Less than a year after Carolina Dybeck Happe’s appointment as chief financial officer (CFO) of the Trelleborg Group, the Swedish company has announced Dybeck Happe will step down from her position in the first quarter of next year and return to former employer, Assa Abloy, where she will take on the position of group CFO as of 1 March 2012.
On 9 December Bridgestone Corporation received a visit from the president of Costa Rica, H.E. Mrs Laura Chinchilla Miranda. During Mrs Chinchilla’s visit to the tyre maker’s headquarters she met with Shoshi Arakawa, chairman of the Board, CEO and president, as well as several other Bridgestone executives.
In announcing details of its recently-signed fleet agreement with contract hire and direct rental firm Alltruck, Bridgestone UK comments that securing the deal was not achieved solely on cost. Rather, the combination of a state-of-the-art account system and the durability of its products were the major factors in helping land the contract.
The sale of China Enterprises Limited’s share in Hangzhou Zhongce Rubber Company to CZ Tire Holdings Limited for RMB600,000,000 or approximately US$94.41 million has been closed, China Enterprises reports.
Following a drop in demand for Nokian heavy tyres and the expectation that lower demand will continue into 2012, the Finnish manufacturer has opted to reduce its production output of these products. On 25 November Nokian shared details of a preliminary plan to change the working pattern of its heavy tyre production to a discontinued five-day, three-shift model and to reduce the work input of approximately 100 factory and 15 white-collar employees through lay-offs. The company says that personnel cuts are also a possibility.
Schaeffler AG, major shareholder in tyre maker Continental, reports it has “remained on its course of success” during the third quarter of 2011. Based on business development during the first nine months of the year, the company says it is confident of meeting its full-year targets – Schaeffler expects to increase sales by more than ten per cent and its EBIT margin by more than 13 per cent in 2011.
In the third quarter of 2011 Polish tyre maker Debica S.A. reported sales of PLN 717 million (£138.6 million), a 38.9 per cent year-on-year increase. Operating profit in the July to September quarter rose 61.6 per cent year-on-year to PLN 59.9 million (£11.6 million) while net profit, at PLN 32.6 million (£6.3 million), was down 9.62 per cent compared with the third quarter of 2010.
India’s government is seeking proposals for divesting the Tyre Corporation of India Limited (TCIL) through an outright sale. In a document released through the Department of Disinvestment, a part of the country’s Ministry of Finance, the Indian government stated it has “decided to disinvest 100 per cent equity shareholding held by it in TCIL through outright sale” and reported that it “proposes to engage the services of an advisor to advise and manage the outright sale process successfully.” To achieve this divestment of its Rs 296.3 million (£3.3 million) equity in TCIL, the Indian government has called for tender submissions from merchant and investment bankers, consulting firms and financial institutions with experience in this type of transaction. The deadline for submissions is 12 December 2011.
Although enjoying an 8.4 per cent increase in sales to 258.2 billion yen (£2.1 billion) in the six months to September 30, 2011, Yokohama Rubber experienced a decline in both operating and net income during this period. The company says rising raw material costs, an appreciating yen and an increase in selling, general and administrative expenses were chiefly responsible for the decline in operating income, which fell 8.3 per cent to 7.6 billion yen (£61.2 million) year-on-year between April 1 and September 30. These factors in turn led to net income falling 75.8 per cent to 294 million yen (£2.4 million). Yokohama notes however, that its actual operating income figure was 26.7 per cent higher than its earlier projection of 6.0 billion yen, the better result being achieved thanks to increased product selling prices and cost cutting measures.Net sales during the second quarter of the current financial year, between July 1 and September 30, 2011, increased 6.6 per cent to 128.8 billion yen (£1.0 billion). In this three month period operating income actually increased by 45.7 per cent, to 3.4 billion yen (£27.8 million), however second quarter net loss grew substantially year-on-year, from 222 million yen to 2.5 billion yen (£20.4 million).
Kumho Tyres has announced in increase in its NVQ training programme. Having started in 2009, the programme has created 22 graduates to date while a further 37 tyre technicians from 31 of the company’s nationwide network of ECSTA Performance Centres (EPCs) are currently progressing through the scheme. New expansion plans will encourage retailers from the wider EPC network to become involved, according to Kumho. The scheme is being run in conjunction with Kumho’s national distributor, Micheldever Tyre Services, while the training is being delivered by ReMIT – the UK’s largest motor industry specialist training provider.
Commenting on a half-year that saw the increase in Apollo Tyres’ net profit fall behind sales growth, company chairman and managing director Onkar Kanwar noted that “currency fluctuations, especially a weaker rupee, and continued cost push have impacted our bottom line.” Kanwar described the “near flat growth” in India’s commercial vehicle tyre segment during the first half of the country’s fiscal year as “worrying” and a situation that “could pose a challenge in the coming quarters.” The Apollo chairman said the company’s European business is currently registering strong growth, however his view of the region remains cautious: “We are alert to the broader economic situation there and are keeping a close watch on developments,” he stated.
Financial analysts at Morgan Stanley described Nokian's recent third quarter financials as “a good set of results”, with sales and pre-tax profits (EBIT) ahead of consensus. As a result the the consensus is that these provide a positive outlook for the fourth quarter of 2011. However the investor's note also said that growth in order intake is levelling off.
Financial analysts responded warmly to Continental’s third quarter earnings results, but added a note of caution too, with Morgan Stanley stating: “probably not enough to keep the share moving up.” The investor’s note pointed out that revenues are 5 per cent ahead of the street, EBIT beat consensus by 4 per cent and margin of 9.7 per cent is “just shy of the 9.6 per cent expected.”
Although the United States tariff on imported Chinese consumer tyres is scheduled to end next year and import duties will thus drop from 29 to four per cent, Chinese manufactured tyres are not expected to regain the massive competitive advantage they once held over their US-made counterparts. During a quarter results conference call, Cooper Tire & Rubber chairman, chief executive officer and president Roy Armes commented that tyres produced in China held a 15 to 20 per cent cost advantage over locally produced tyres in the US market in early 2009. “Now it is in that 10 per cent to 15 per cent range,” he shared. Chief financial officer Brad Hughes added that the cost advantage for a landed tyre from China in the US was “moving towards” 10 per cent.
Tyresure has passenger car and trailer TPMS systems on the market already; now the system manufacturer is introducing its new unit for use on trucks and buses. The system can handle up to four tyres per axle and up to six axles, allowing 24 separate pressures and temperatures to be monitored and relayed back to the driver with fully automatic alerts. Tyresure UK managing director Ian Smith commented: “In the current financial climate, this is something all operators can opt for, with minimal outlay, to significantly reduce their costs and improved their HSE procedures.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
