Wheel supplier Superior Industries has announced the resignation of chief financial officer Erika Turner. In the short term her shoes will be filled by Emil “Bud” Fanelli, who has served as the company’s vice president and corporate controller since 1997. Superior Industries has begun the quest to bring a new CFO into the fold.
(Tire Review) Amerityre Corp. has been notified by NASDAQ that its current financial status “was out of compliance” and that its stock may get delisted. NASDAQ claims Amerityre is not meeting the exchange’s Equity Standard Listing Rules, because it does not have a minimum of $2.5 million in shareholder equity, $35 million in market value of listed securities or $500,000 in net income from continuing operations for the most recent fiscal year. To remain listed, Amerityre must deliver by 20 October a “specific plan” on how it will meet and sustain those requirements, NASDAQ said. For its part, Amerityre said it “anticipates that its implementation of cost cutting measures combined with anticipated increases in revenues and successful fundraising efforts will be sufficient to bring it back into compliance with the minimum stockholders' equity requirements”.
The media team at Accuride Corporation have given details of a “debt restructuring agreement.” As part of this agreement the company is filing a voluntary petition for bankruptcy under Chapter 11 of the US Bankruptcy Code and has secured a US$50 million “debtor-in-possession” credit facility to enable normal business to continue.
A new chief financial officer will start his duties at Continental AG on October 19. Wolfgang Schäfer, According to sources mentioned by Reuters, the Finance and Administration CEO at competitor Behr will officially take on the role at Conti’s next supervisory board meeting.
Online tyre retailer Blackcircles is set to launch a new service that will see the company foray deeper into the aftermarket. (For full report see November’s Tyres & Accessories magazine) Earlier this summer the company announced that it would expand its network of independent garages by 30 per cent by the end of the year in preparation for the move. Blackcircles currently counts 1,200 independent garages in its network. The South East and North West are said to be prime regions for new garages to meet demand.
In recent years Blackcircles.com has grown to a turnover of in excess of £10, after having only launched in 2001. In an earlier report, the Financial Times quoted Welch as saying sales were as much as 80 per cent up year-on-year. While year-on-year sales growth is currently quoted at 60 per cent it remains nonetheless impressive. 2008 turnover was £11 million, but in 2009, it is predicted to be £15 million.
Continental has voiced concerns over MAG Group’s proposed acquisition of the German manufacturer’s beleaguered Clairoix facility following its receipt of the Syrian company’s letter of intent, reports Reuters. Mail-based discussions are ongoing, says the report, with MAG vice-chairman for strategy and finance Fawaz Sabri quoted as saying, “We sent… an amended version of the letter of intent and are awaiting their response. We have put everything down and all our concerns,” he told Reuters. Conti spokesman, Alexander Luehrs said that the main points of contention were the price and the transference of technology. The German manufacturer clearly wishes to protect its technology against producing a potential competitor.
Goodyear Tire & Rubber Company has announced that its four-year labour contract with the United Steelworkers union (ratified on 18 September) could save the company as much as $555 million in savings before a potential profit sharing impact. The company also committed to investing $600 million in its USW facilities over the next four years. The seven plants covered by the master agreement are in: Akron, Ohio; Buffalo, New York; Danville, Va.; Fayetteville, N.C.; Gadsden, Alabama; Topeka, Kansas; and Union City, Tennessee.
According to a Goodyear statement, these changes are expected to provide Goodyear with cost savings of approximately $215 million over the term of the contract. Combined with savings realized through “pre-bargain agreements to reduce staffing levels at five plants,” the company expects to realize $555 million in total savings over the term of the agreements. However, financial analysts at Deutsche Bank estimated that the agreement will result in $155 million of gross annual savings by 2013. Their response was to raise their share price estimates for 2010 and 2011 to $1.85 and $2.45 from $1.70 and $2.20 respectively.
Following a recent acquisition, Reclaim Industries Ltd has become Australia’s largest tyre recycler. The publicly traded tyre recycler and rubber manufacturing company purchased the Sydney based Renaza tyre processing plant for AU$621,000 from the bankrupted ReVived Rubber Technologies and Renaza Resources – an acquisition that comes at a time when Reclaim is seeing business increase 27 per cent over the 2009 financial year.
A change of tyre is in the pipeline for the FIA World Touring Car Championship. Yokohama Rubber has announced it will supply its ‘ECO’ racing tyres as one-make tyres for the WTCC series for the 2010 to 2012 seasons. The ECO product follows on from Yokohama’s Advan A005 dry surface and Advan A006 wet weather tyres, supplied since 2006.
Financial analysts are predicting that Michelin will benefit most from a margin recovery effect set to hit premium tyre manufacturers in 2010. According to Deutsche Bank, despite a significant negative volume effect, the leading tyre companies have been “very resilient” in 2009. This means they have benefitted form pricing discipline, raw material tailwinds (in the second half) and a positive OE/replacement mix. The analysts believe that next year’s volumes should rebound strongly from their low current level and, coupled with a leftover raw material tailwind and with restructuring paybacks, margins should rebound strongly. “Michelin should benefit the most followed by Pirelli. While Continental should benefit the least [proportionately] since tyres represent only 30 per cent of the group's revenues,” the investor’s note explained.
After pioneering the so-called “cash for clunkers” scrappage incentive model in 2008, which was then mirrored in all the major European markets, the French government has announced that it is phasing out its 1000 euros for a 10 year-old car stimulus package. According to financial analysts, this measure had a net positive impact on demand of approximately 200,000 units, or 10 per cent of the market against a gross market impact of 400 units.
The developments in the French market follow the rather more abrupt end of a similar scheme in the German market, where demand for cars purchased under the scheme exceeded supply on 2 September. According to a Deutsche bank report published at the time, the scheme was responsible for 9000 unit sales a day since its introduction.
To avoid a free fall of the market next year, Germany’s car market for example is expected to be 25 per cent down in 2010, the French government has decided to reduce its scheme progressively. Next January the incentive will drop to 700 euros before dropping to 500 euros next July and hitting zero in January 2011. As a result, Deutsche Bank analysts are predicting “a limited decline of French registrations in 2010 of around 1.9 million units, -5 per cent.”
Michelin has been awarded a fleet contract with construction and land remediation company, GSE Haulage. The company believes the French tyre manufacturer can help the growth of its business with the fitment of Michelin XZE 2+ and XDY 3 tyres to its twenty Scania tippers, on a “pence per kilometre” contract. The vehicles will be operating on and off-road in the punishing environments of construction and quarry sites, meaning that mileage potential and resistance to damage – therefore reducing downtime – are the most important issues for GSE. Highlighting the importance of his tyre policy, Ricky Hemmings, Managing Director of Kent-based GSE Haulage explains: “One of the lessons we have learned with tyres is that price isn’t everything and by adopting a fleet-wide Michelin policy we have been able to radically reduce vehicle downtime.”
A report produced by the BBC has highlighted the increase of tyre dumping scams following the implementation of recycling laws and the financial risks unwitting property owners are exposed to should tyres be left on their land. The article, screened on Welsh channel S4C on Tuesday, highlighted the plight of Maria Burt and others who have been left with hefty bills for removing tyres left on their property by tenants operating tyre collection operations.
Pirelli has been confirmed in the twice-yearly review of Financial Times sustainability indices FTSE4Good World and STOXX, for the seventh consecutive year. The indices measure corporate performance in terms of respect for international standards of economic, social and environmental sustainability. British independent research provider Eiris, working for the Financial Times, evaluated corporate characteristics including: sustainable supply chain management, ethical behavior rules, means of prevention and management of risk, environmental impact management and relations with stakeholders. The review did not admit new companies to the Automobiles & Parts segment of the indices, continuing to include Pirelli as the only Italian company included in that segment.
Goodyear Tire & Rubber has announced that its Luxembourg based subsidiary Goodyear S.A. will commence a cash tender offer to acquire any outstanding shares in Polish tyre company TC Debica for 59.52 PLN per share.
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