Preliminary key data published today by Continental Corporation shows that the tyre and automotive systems manufacturer enjoyed both higher turnover and adjusted EBIT margin in the 2015 fiscal year. Full year sales of around 39.2 billion euros represent a year-on-year increase of 13.6 per cent, while adjusted EBIT margin rose from 11.3 per cent for the 2014 financial year to 11.7 per cent for 2015.
Michelin has reported growing nine-month 2015 financials that show an 8.6 per cent increase in net sales to 15.8 billion euros, with unit volumes up 2.8 per cent. Both are figures that outperform market averages. Car and light truck tyre sales growth outperformance was particular strong, while truck tyre and specialty business volumes were only slightly higher than their market levels.
Alloy wheel manufacturer Uniwheels AG reports sales of 3.9 million wheels in the first half of 2015, 11.3 per cent more than a year earlier and a record first-half volume. This gave the company revenues of €217.0 million, a year-on-year increase of 26.8 per cent. EBITA rose 30.2 per cent in the January to June period to €27.9 million and the margin increased from 12.5 to 12.8 per cent. Net profit rose 66.9 per cent to €19.3 million.
Online tyre retailer Delticom reports that its revenues in the first half of this year rose 10.7 per cent year-on-year to €250.2 million. EBIDTA for the period between 1 January and 30 June was up 6.4 per cent to €6.6 million, although the EBITDA margin contracted from 2.7 to 2.6 per cent. EBIT decreased 32.3 per cent in the reporting period to € 1.4 million, while consolidated net income totaled €0.7 million, up from the €0.2 million net loss reported a year earlier. Earnings per share were €0.06.
Unaudited financial results for the first quarter of Apollo Tyre Ltd’s 2015-16 financial year were released yesterday, and these show a year-on-year rise in the company’s operating and net profits despite lower net sales.
It is hard to believe that little more than two years have passed since Nokian Tyres predicted the market for premium tyres in Russia would grow by an average of ten per cent each year, and even harder to grasp that as recently as 2012 the Russian and CIS markets accounted for 35 per cent of the tyre maker’s total net sales.
The financial results for the first six months of published by Pirelli & C. SpA yesterday show a 6.4 per cent year-on-year rise in net sales in the period to 30 June, with sales amounting to €3.2 billion. Organic growth accounted for 3.2 per cent of this increase. Pirelli’s consumer business enjoyed year-on-year growth of 10.2 per cent, while revenues for the industrial business declined 5.2 per cent.
All key financial figures headed in the right direction during the first half of this year, and therefore tyre maker and automotive industry supplier Continental AG has upwardly revised its adjusted EBIT margin and free cash flow forecast for the full year.
Hankook Tire says increasing global competition, slow market growth in China and Korea and exchange rate fluctuations contributed to a year-on-year decline in operating profit in the second quarter of 2015. While sales revenue was only slightly down on a year earlier, falling 2.5 per cent to KRW 1.62 trillion (£886.4 million), operating profit dropped 20.0 per cent year-on-year in the April to June reporting period to KRW 201.1 billion (£110.0 million). Net profit figures were not reported.
Titan International is considering an expansion of its wheel business in the coming half year. In the company’s second quarter 2015 results announcement, CEO and chairman Maurice Taylor reports that Titan International is “exploring plans to expand our wheel plant in Turkey” and to “establish a new wheel presence in Brazil to accompany our existing tyre business.” Taylor did not furnish any additional details about the two potential projects.
Goodyear has reported strong overall results for its second quarter, despite falling sales in the Europe, Middle East and Africa region. The manufacturer reported that the 20 per cent lower sales, $1,265 million compared to $1,580 million in the same quarter in 2014, was primarily a result of “unfavourable foreign currency translation”, though it also saw two per cent lower tyre unit volume. This was a result of lower consumer tyre sales and the manufacturer’s exit from the agricultural tyre business. Both original equipment and replacement tyre shipments were down two per cent. Its EMEA operating income was also eight per cent below the 2014 2Q, though operating margin rose from 7.4 to 8.5 per cent.
Michelin reports a year-on-year rise in its net sales, operating income and net income in the first half of 2015. Net sales rose 8.5 per cent to €10.5 billion in the six months to 30 June 2015. Operating income increased 8.9 per cent to €1.3 billion, while operating margin remained constant at 12.0 per cent. At €707 million, net income was up 13.3 per cent year-on-year.
Sumitomo Rubber Industries’ new financial year got off to a sluggish start, with sales declining 2.9 per cent year-on-year in the January-March period to 185.2 billion yen (£976.3 million). Ordinary income went down 34.6 per cent to 12.0 billion yen (£63.3 million) and gave a margin of 6.5 per cent, compared with 9.4 per cent a year earlier. Net profit fell 29.4 per cent to 7.7 billion yen (£40.6 million).
While JK Tyre & Industries was unable to maintain turnover in the previous financial year, profits at India’s third-largest tyre maker rose significantly. The company reports that turnover decreased 3.6 per cent to Rs 73.3 billion (£743.9 million) during the 2014/15 financial year, which ran from 1 April 2014 to 31 March this year. Operating profit rose 11.7 per cent to Rs 7.7 billion (£78.1 million) while net profit jumped 26.7 per cent to Rs 3.2 billion (£32.5 million).
First quarter revenues at Pirelli & C. S.p.A rose 6.5 per cent year-on-year to €1,473.2 million, the tyre maker reports; excluding a 4.1 per cent positive foreign exchange effect, revenue growth amounted to 2.4 per cent. EBIT rose 4.5 per cent year-on-year in the three months from 1 January to 31 March 2015 to €210.1 million, while EBIT margin reduced from 13.6 per cent to 13.4 per cent. Pirelli notes that the EBIT margin before restructuring charges was 13.6 per cent, compared with 14.0 per cent a year earlier. Net profit for continuing operations increased 12.2 per cent year-on-year in the first quarter to €101.4 million.
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