The US Justice Department indicted one Bridgestone Corporation executive and two former officials for conspiring to fix the prices of certain automotive parts, reports Tire Review. Bridgestone itself agreed in February to plead guilty to price-fixing, paying a $425 million criminal fine. The case involves anti-vibration parts used in automotive suspension systems and engine mounts.
Tyre firm celebrates 2013 results, approves board remuneration The Goodyear Tire & Rubber Company is celebrating achieving “many milestones in 2013, a year that was unlike any other in its 115-year history”. Chairman and CEO Richard J. Kramer highlighted record segment operating income and “strong cash flow” as two examples at the company’s annual shareholder […]
On numerous occasions German tyre maker and automotive supplier Continental has indicated its intention to increase the number of women holding senior positions within the company, therefore the contract renewal of human resources head Elke Strathmann – the first and currently only female member of Continental’s Executive Board – appeared a mere formality. Yet the company has allegedly decided against renewing her contract upon its expiry at the end of December.
At Nokian Tyres’ Annual General Meeting on 8 April 2014, the company’s financial statements for 2013 were accepted and the Board of Directors and the President and CEO discharged from liability. The meeting decided that a dividend of €1.45 per share shall be paid for the period ending 31 December 2013. The dividend shall be paid to shareholders included in the shareholder list maintained by Euroclear Finland Ltd on the record date of 11 April 2014. The dividend payment date is 25 April 2014.
Pirelli & C. S.p.A states that it will appeal the European Commission’s decision regarding cable cartel activity. While the Commission does not directly name Pirelli as a participant in an alleged cartel in the underground and submarine power cable market, it deems the Italian company “jointly and severally liable” as Pirelli owned alleged cartel protagonist Prysmian Cables and Systems (formerly Pirelli’s Cables and Systems division) until 2005, and therefore “exercised a decisive influence” over the business for the first six years of the decade-long cartel. The European Commission has imposed a shared fine of €67.31 million on Pirelli and Prysmian.
Blackcircles.com has announced a growth in revenue of 20 per cent to £27.8 million (versus £23.2 million in 2012). The online tyre retailer said that the latest full year results mean its revenues have a compound annual growth rate of 22 per cent since 2008. EBITDA increased to £1 million. The results follow the announcement of former Tesco chief executive Sir Terry Leahy’s appointment to the Blackcircles.com board.
Germany’s Reiff Group, whose business portfolio includes tyre and wheel wholesale and retail activities, has reported that “two negative influences” affected its business in 2013: A one-off effect of €4.9 million and a drop in margins in its tyre business. Group turnover fell 3.6 per cent year-on-year to €509 million, with €358 million coming from its tyre and auto business. The company reported a net loss of €8.7 million; in 2012, it achieved a net profit of €0.6 million.
Pirelli & C. SpA today reported full-year 2013 consolidated revenues of 6,146.2 million euros on 31 December, an increase of 1.2 per cent from 6,071.5 million euros a year earlier. Tyre revenues, which account for almost all of the company’s sales totalled 6,115.8 million euros in 2013, an increase of 1.4 per cent from 6,031.3 million euros. Full year tyre-derived pre-tax profits (EBIT) were 822.0 million euros, an increase of 1.2 million euros (+0.1 per cent) compared with 820.8 million euros in the same period a year earlier, with a margin equal to 13.4 per cent (13.6 per cent in 2012). However, whether it will be enough to allay pre-release market fears that emerging market exchange rates and particular Russian market instability remains to be seen.
Apollo Tyres has inaugurated the second of its two global R&D centres. According to Indian publication The Hindu, the tyre maker opened the centre at its Chennai facility today. The centre will focus on the development of commercial vehicle tyres.
Double Coin Holdings has posted operating revenue of approximately CNY 14.33 billion (£1.4 billion) for 2013, up 18.43 per cent from the previous year. The company attributed the increase rise to expanded production of tyres at its Anhui branch, as well as products and increased trades of other subsidiaries. Net profit attributable to shareholders rose 4.63 per cent to CNY 306 million (£30.1 million). Earnings per share was CNY 0.344 (£0.03).
German specialty chemicals company Lanxess AG reports that its sales decreased 8.7 per cent year-on-year in 2013, to €9.1 billion, and it says this decline is primarily attributable to lower selling prices in its Performance Polymers business segment due to lower raw material prices, and to the “challenging competitive situation.” On the back of increasing production-related costs and negative currency effects, EBITDA pre-exceptionals decreased 39.9 per cent year on year to €735 million, which was within Lanxess’ guidance range of €710 million to €760 million. Lanxess says a slight increase in volumes was unable to compensate for the decline in earnings. The Group’s EBITDA margin pre exceptionals fell to 8.9 per cent from 13.4 per cent in 2012.
Leading wheelmaker Uniwheels Group reports that it managed to both increase revenues 5.8 per cent and stabilise the company’s overall business in full-year 2013 results published today (24 March 2014). According to the company, the business’s growth came largely thanks to the “very positive” development of the firm’s Automotive Division, which focuses on supplying the OEM business and grew 12 per cent in 2013. In addition, the successful implementation of cost-cutting measures in the administration of the business is also said to have had a positive impact.
Consolidated net income at online tyre dealer Delticom has decreased for the second consecutive year, falling 47.9 per cent year-on-year to €11.6 million for 2013. This is 67.8 per cent lower than the 15-year old company’s best ever net income of €36.0 million, which it achieved in 2011. Nevertheless, upon releasing its 2013 Annual Report the company defended this result by claiming its business model “has once again proven its resilience” and that Delticom ran a profitable business last year despite an “adverse” market environment.
British chancellor of the exchequer George Osborne has opted to freeze fuel duty as part of his 2014 budget statement, given today (19 March) in the House of Commons. Arguably the most tyre-specific announcement after the freezing of fuel duty was the news that an extra £200 million for pothole maintenance.
Less than two weeks after releasing overdue third quarter 2013 results that reflected the disruptions experienced at Cooper Chengshan in China – a situation that cost the company US$56 million in negative impact, including $47 million in lower volumes and $9 million in manufacturing inefficiencies – Cooper Tire & Rubber has published its fourth quarter and full year 2013 figures. Sales, operating profit and net profit are all lower than in 2012.
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