Cooper Tire & Rubber Co. announced that it will restate its earnings for 2009 and for 2010’s first quarter due to a “material weakness” in the company’s internal financial reporting, Tire Review reports. As a result, at least for full year 2009, Cooper’s net profit will improve, the company reported. How the restatement will impact first quarter 2010 results is unknown.
Steve Tidmarsh, formerly managing director of Kumho Tyre UK, joined Bond International as financial director on the 1 July 2010. According to the company, Bond International has a growth plan to increase business by more than 25 per cent over the next two and a half years and Tidmarsh’s appointment is said be a key part of implementing these changes.
Halfords has reported that its group revenues (the period from 3 April to 26 July 2010, incorporating first quarter financial performance for the 13 weeks to 2 July 2010) increased 9.6 per cent year-on-year, reflecting the acquisition of Nationwide Autocentres in February 2010. However, like-for-like revenues at Halfords’ Retail and Autocentres business units were down -2.1 per cent and flat respectively. As a result, the Group level, this represented a like-for-like revenue decline of –1.9 per cent.
Hankook recent record second quarter results contradict the negative predictions of some financial analysts that when Hankook Tire kicks off the second quarter earnings season for auto/auto part makers on 20 July, it will set the tone for a “lacklustre” set of results from the likes of Hankook, Kumho and Nexen. In an investor’s note dated 1 July 2010, Deutsche Bank research analyst Sanjeev Rana had commented: “We expect tyre makers such as Hankook and Nexen Tire to report in line or slightly below consensus results due to the burden of higher rubber prices.” It appears these reports failed to take into account the huge profit jumps of 501 per cent and 43 per cent in the first quarter 2010 from Hankook and Nexen respectively and an 18 per cent increase in sales from Kumho – all of which surprised analysts at the time.
MAI International has appointed Gianluca De Rosa as head of finance, effective 1 July 2010. In his new position, De Rosa will be responsible for all financial matters within the MAI Group. De Rosa (43) gained a degree in Economics, with honours, from the University of Verona and has subsequently held a number of senior financial positions in various business sectors, including a multinational food importer/exporter, a real estate business and as a chartered accountant. Said Ian Thomas, MAI Group CEO: "We are delighted to welcome Gianluca De Rosa to our senior management team and he brings a wealth of experience in his specialist field."
On July 16 Brian Anderson took over the positon of director of financial planning and analysis at Cooper Tire & Rubber, replacing Craig Durliat, who recently became director of credit for the North American Tire Organization. In his new role, Anderson will coordinate and consolidate global business plans and create the North American Tire Operations' financial plans. He will also partner with marketing and pricing to ensure strong customer relationships, and will oversee commercial analysis, working closely with sourcing, purchasing and manufacturing in all regions.
Michelin's Investor Relations Department has updated its company consensus. The figures presented in the consensus are based upon data published by financial analysts who monitor the Michelin share, or directly collected from them. The average of the analysts’ responses anticipate full-year 2010 net sales of 16,772 million euros, increasing to 17,979 million in 2011 and 18,832 million euros in 2012. The analysts’ average figure for operating income and operating margin in 2010 is 1,138 million euros and 6.8 per cent respectively. For 2011 these figures are 1,436 million euros and 8.1 per cent, and 1,696 and 9.0 per cent for 2012. The average estimate for net income this year is pegged at 637 million, while in 2011 and 2012 net income is expected to rise to 870 million and 1,041 million respectively.
Continental AG should strike while the iron is hot and sell more debt while the market is in a receptive mood. That’s the view of The Wall Street Journal’s Michael Wilson, who explained in an article published today (14 July 2010) that the company needs the money to service its 8.2 billion euro syndicated credit facility, which is due to be repaid in August 2012:
“Since the start of this year, the company has been promising to issue bonds, the proceeds from which will be used to repay the facility. However, volatility in capital markets during the start of this year meant it was only last week that the company felt confident enough to actually launch a deal.”
Two changes to Titan International’s executive management team have been announced by the company’s board of directors. Kent W. Hackamack, vice president of finance and treasurer, has been named executive vice president of corporate development. Hackamack, who joined Titan in 1994 as corporate controller, was appointed vice president of finance and treasurer in 1996. He is a certified public accountant and holds two degrees from Northeast Missouri State University in accounting and computer science. "Titan has been in various negotiations to increase its worldwide footprint in agricultural and mining wheels and tyres. Kent's experience will help us achieve those goals," said chairman and CEO Maurice M. Taylor Jr.
Displaying a wide range of its products on its generously proportioned stand near the main entrance in Hall 3, Kumho marketing manager Wolf Fuder said the Korean manufacturer had experienced a similar level of traffic at its stand to that in the pre-recession year of 2008. However, the make-up of the visitors was different; Fuder commented that there were “more international guests” and fewer from the domestic German market.
Pirelli Tire North America (PTNA) has announced plans to expand its sales and marketing operations with a new office in New York City. According to the company, this office will complement its North American headquarters in Rome, Georgia. The expansion is intended to assist the company’s sales growth and will reportedly only involve “the outward facing parts of the sales and marketing departments.”
Demand for tyres in India is expected to grow 20 per cent in the 2011 financial year, the Economic Times newspaper reports. This current fiscal figure is two per cent higher than in the previous financial year, and is said to be taking place on the back of strong demand for vehicles across all segments.
The organisational structure at Yokohama Tire Corporation has been altered following Jim MacMaster’s retirement on June 30. President and CEO of Yokohama’s US operation, Takao Oishi, has not named a direct successor for MacMaster, who served as executive vice president and COO. Instead, Dan King, previously vice president of sales and marketing, will now also be responsible for corporate strategy and planning, while Gary Nash has been promoted to vice president, off-the-road (OTR) division and Yukio Kuroda now oversees technical services and product liability.
Effective July 1, 2010, Thomas Praktish has taken on the role of executive vice president and chief financial officer of Michelin North America. Prior to this appointment Mr. Praktish served as controller for Michelin Americas Small Tires and his previous roles within the company include financial positions in Michelin’s manufacturing plants and corporate offices, both in the US and in France. Praktish began his career with Michelin as a financial analyst for BFGoodrich Tires.
UK coalition government business secretary Vince Cable has ruled out further publically financed direct support for the UK car industry. Additionally he cast doubt on plans made by the previous Labour government that would have subsidised early purchases of low-emission vehicles in 2011. Cable told London’s Financial Times on 29 June, “We don’t want to go around the country waving a cheque book.”
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