Yokohama Rubber says its operating income in the first quarter of 2015 was its “highest first-quarter result ever.” The Japanese manufacturer achieved a 1.0 per cent increase in operating income to 11.8 billion yen (£62.9 million) on a 0.9 per cent decline in net sales to 138.7 billion yen (£739.3 million). This gave the company an operating margin of 8.5 per cent. Net income dropped 10.1 per cent to 5.8 billion yen (£30.9 million).
The Board of Directors of Apollo Tyres Ltd today approved the company’s audited financial results for the fourth quarter (January to March) and the entire 2014-15 financial year. At the same time, the Board recommended a dividend payout of 200 per cent, to be approved by the shareholders at the tyre maker’s Annual General Meeting later in the year.
Although it enjoyed growth in Western markets during the first quarter of 2015, Nokian Tyres reports that its business in Russia “remains challenging”. The tyre maker’s 9.9 per cent year-on-year decrease in net sales to €281.3 million was driven by a 43.9 per cent decline in gross sales in Russia and the CIS. Operating profit dropped 29.4 per cent to €48.3 million and profit margin contracted from 21.9 per cent to 17.2 per cent. A windfall meant good news on the bottom line, however; the annulment of a previous tax ruling meant the company was able to return taxes and interest of €100.3 million to its financial result. Therefore profit for the three-month period rose 249.3 per cent from €38.7 million in Q1 2014 to €135.3 million this year.
Continental Corporation is increasing its sales forecast for the current fiscal year from about €38.5 billion to more than €39 billion after its sales climbed 14 per cent year-on-year to €9.6 billion and net income rose 12 per cent to €657 million in the first three months of this year.
While Continental will present its figures for the first quarter of 2015 on Thursday, the company has already published some details of what it calls a “positive start” to the year. In the three months to 31 January, the tyre maker and automotive supplier’s sales rose 14 per cent year-on-year to around €9.6 billion. Adjusted EBIT increased to approximately €1 billion. Integration costs and one-time expenses for Veyance of €37 million had a negative effect on the company results in the first quarter.
Although the absence of Cooper Chengshan Tire (CCT) was noticeable in Cooper Tire & Rubber’s net sales during the first quarter of 2014, the tyre maker managed to increase operating margin, and excluding the impact of CCT’s divestment, increased operating income in the opening three months of the year.
Hankook Tire achieved a global sales revenue of KRW 1.48 trillion (1.19 billion euros) and an operating profit of KRW 203.2 billion (164 million euros) in the first quarter of 2015, both figures down on the previous year period.
India’s MRF Limited reports that its year-on-year net profit almost doubled in the three months to 31 March 2015. Net profit during the period amounted to Rs 3,326 million (£34.4 million), up 94.6 per cent on the Rs 1,709 million (£17.7 million) earned in the first three months of 2014. This huge jump in profit was achieved in spite of hefty competition from imported Chinese tyres, and was facilitated by much lower natural rubber prices – Mumbai-based stock and wealth trading company Angel Broking reports that MRF’s raw material costs declined from 65.7 per cent of sales in the second quarter of calendar year 2014 to 57.4 per cent of sales in the reporting period. Net income of Rs 33,120 million (£342.7 million) for the quarter was only 0.4 per cent higher than a year ago.
Net sales at Trelleborg Wheel Systems remained steady in the first three months of 2015 thanks to exchange rate effects, despite an 11 per cent year-on-year decline in organic sales. The Trelleborg business unit responsible for tyres and wheels achieved sales of SEK 1,122 million (£86.3 million), just a whisker under the SEK 1,126 million earned in the first quarter of 2014.
A positive 9.7 per cent currency effect due to euro weakness helped Michelin achieve 5.6 per cent year-on-year growth in net sales in the first quarter of 2015, even though a 5.1 per cent worsening in price mix whittled €245 million from this top line result. Net sales for the three-month period amounted to €5.02 billion. Overall sales volumes rose 1.5 per cent, performance described by Michelin CFO Marc Henry as “faster than market growth.” He added that this performance was “in line” with declining B2B markets for truck and specialty tyres, and showed faster growth than B2C passenger car and light commercial tyre markets.
Amerityre Corp. has named Michael Sullivan who has been chief operating officer of the company since 1 December 2014 as CEO. The appointment took effect on 1 April 2015. In February, Amerityre, which makes industrial tyre products and polyurethane tyre technologies, reported that it cut its net loss by one-third in the quarter ended 31 December to $128,465 on sales of $1.35 million. This announcement marked the firm’s 78th consecutive quarterly loss.
Andrew Page Group has reported a record quarter in 1Q 2015. Following a record-breaking year in 2014, Andrew Page says the firm is continuing to grow its business, with March being the company’s best ever trading month in its 98-year history.
Jim Sumner, chairman commented: “The group’s sales continue to grow at a phenomenal rate, exceeding all expectations. The team should be very proud about what has been achieved and excited about the rest of the year and beyond.”
Reporting what looks likely to be its last full year results before ChemChina takes control, Pirelli has confirmed marginally improved financial data in its tyre business for the full year 2014. EBIT rose 4.5 per cent to 852.6 million euros (815.7 million euros in 2013), though revenues were marginally down (0.4 per cent) to 6,007.5 million euros. Total net profit was up 8.6 per cent to 332.8 million euros (versus 306.5 million euros in 2013).
The CEO of Continental Corporation has described 2014 as “another extremely successful financial year” and confirmed that all targets set for the year were reached. “When evaluating the results, we should not overlook the fact that there was, in some cases, very weak growth in Europe, Russia, and South America,” elaborated Dr. Elmar Degenhart. “There were also significant exchange rate fluctuations. In addition, the mild winter at the end of 2014 had a negative impact on the winter tyre business in Europe. The driving force behind the sales development once again came from China and North America. In light of this, it is remarkable that profit after taxes of just under €2.4 billion or €11.88 per share could be achieved.”
Details of a difficult 2014 have emerged in Titan International’s full-year financial report, which was published earlier today. The tyre maker’s CEO and chairman, Maurice Taylor, took the eye-watering US$80.4 million loss attributable to Titan on the chin, referring to 2014 as “a year of very real challenges for businesses in the agriculture, construction and mining sectors.” He also reported that Titan International shed at least 1,900 people from the payroll during the year due to lower production output, with the company’s global employee count sinking below 6,500. Other issues that arose during the 12 month period included currency impacts, impairment charges of approximately $76.5 million and a union slowdown.
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