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Continental AG Posts Half-Year Profit

Based upon preliminary figures for the second quarter of 2009, Continental AG is reporting a “clear profit” for the three-month period, with an adjusted EBIT of 283.0 million euros. Reported EBIT for the quarter was 38.8 million euros, compared with a loss of 34.3 million in the first quarter. These results, says Continental, demonstrate the company’s “unwavering operational strength in the midst of the ongoing crisis in the automotive sector.”

“In an extremely difficult business environment and despite the current paralysis due to its uncertain future, Continental still achieved its operating goals,” said Continental Executive Board chairman Dr. Karl-Thomas Neumann on July 20.

20th July 2009/by Tyrepress Editors

Analysts Hail ‘10x Better Than Expected’ Continental Results

Morgan Stanley has raised its estimates for Continental AG shares following what the analysts described as “much stronger than expected second quarter results” According to Morgan Stanley the pre-announced second quarter results reveal an adjusted group EBIT figure “10 times higher than…expected.” The 5.9 per cent EBIT margin therefore compares very favourable with the analysts’ 0.6 per cent forecast.

Furthermore, this positive surprise appears to be split 50 per cent between the Auto and Rubber groups, where sales in the Chassis & Safety division and “strong winter tyre sell-in won the quarter.” However, the analysts also warn that while the company has obviously benefited from “early winter tyre sell-in…this cannot be extrapolated into the third quarter where we think profit will certainly be lower.”

20th July 2009/by Tyrepress Editors

Conti Clairoix Workers Face Property Damage Charges

Several hundred employees from Continental AG’s Clairoix facility in France assembled outside a courthouse on July 17 during the appearance of seven of their colleagues. The seven workers were answering charges related to property damage at a regional government office in April. If found guilty, the accused face up to five years imprisonment and a fine of up to 75,000 euros.

The seven are accused of stormed the office in April following the Clairoix factory’s announced closure. Furniture and computers were thrown from windows and files were removed from cabinets and strewn about. Authorities estimate that around 40,000 euros worth of damage occurred.

17th July 2009/by Tyrepress Editors

91 Laid off from Bridgestone Factory in US

Further layoffs have been announced at a Bridgestone facility in the US following a week-long shutdown. An additional 91 employees at the OTR tyre factory in Bloomington, Illinois were laid off on July 12, four months after 67 of their colleagues were let go. The company expects to re-hire 40 of these workers on August 1, however it comments that due to inventory levels and industry demand, 19 workers will also be laid off on August 15.

14th July 2009/by Tyrepress Editors

Apollo Tyres Launches Refreshed Website

During the first quarter of 2009, Apollo Tyres launched its new corporate identity across its operations. Now it’s the turn of its website to don the new look and colours. Apollo has moved away from the earlier usage of black and red to the vibrancy of purple and orange, moderated by shades of grey – colours and usage, which no other tyre company has, and only a few companies across the world dare to incorporate. The colours have allowed Apollo, it says, to bring to the fore its “internal reality of youthfulness and dynamism”.

14th July 2009/by Tyrepress Editors

Simon Tattersall Appointed ATS Euromaster Head of National Truck

ATS Euromaster has appointed Simon Tattersall as Head of National Truck, reporting directly to Peter Fairlie, Group Sales Director. Tattersall has worked for with parent company Michelin for 28 years, based at their headquarters in Stoke-on-Trent. In his most recent role he was Business Development Manager for Michelin Fleet Solutions and Sales Manager, responsible for the company’s original equipment sales to trailer manufacturers in the UK and Nordic countries.

Commenting on his appointment, Tattersall said: “My primary focus as Head of National Truck is to continue building on the success ATS Euromaster has enjoyed over the last two years, during which it has won major contracts with customers including Eddie Stobart, Suttons and Gist.

14th July 2009/by Tyrepress Editors

Aeolus Announces New Truck Tyres

Aeolus Tyres has announced that it is introducing two new types of truck tyres. The new HN254 and HN369 truck tyres have a widened tread and a new rubber composition designed to improve road safety and wear resistance. They will replace the brand’s HN257 and HN355 profiles.

“Aeolus Tyres puts all its efforts into the evolution of its current tyre programme. They will not be diverted off this course, not even in the current worldwide financial situation,” says Bertus Heuver on behalf of Aeolus Tyres Europe, exclusive importer for Aeolus in continental Europe.

9th July 2009/by Tyrepress Editors

Pirelli Group Reorganises its Finances

Financial analysts are predicting that the Pirelli & C SpA will separate shares in its tyre business from the holding company. Writing in an investor’s note, Deutsche Bank analysts predicted “near-term action to reduce holding discount by giving shareholders two stocks: a pure tyre company and a pure holding company” and valued the tyre company at between 0.21 euros and 0.33 euros/share.

Good take up of Pirelli Real Estate SpA’s capital increase, which closed on Friday 3 July and was 99.4 per cent subscribed, has also resulted in a 14 per cent reduction in net debt, according to analysts. The company itself reported it raised 397 million euros throught the offer.

9th July 2009/by Tyrepress Editors

Michelin Closes Mexico Tread Pressing Plant

Overcapacity in Michelin’s North American retreading operations led the company to close its truck tread pressing plant in Querétaro, Mexico on July 7. Production from the Michelin Retread Technologies (MRT) plant, which employs approximately 80 people, will be relocated to the company’s retreading facility in the United States. Michelin states that the decision to stop production of this particular product line has no impact on the continuing operations of its passenger car and light truck tyre plant in Querétaro.

8th July 2009/by Tyrepress Editors

Ruia to Resign from Role with Group Companies

According to Indian media sources, Pawan K Ruia has voiced the intention of stepping down as executive chairman of his group companies. According to a report in the Business Standard financial newspaper, Ruia may relinquish his position and appoint separate professional management to the firms. The Ruia Group, of which PK Ruia is chairman, will remain the enterprises’ holding company.

8th July 2009/by Tyrepress Editors

Schaeffler Taps Houlihan Lokey to Advise on Restructuring

Schaeffler Group, which holds a 90 per cent shareholding in Continental AG, has recruited investment bank Houlihan Lokey to advise it on restructuring its finances. “To restructure its finances along with finding a long-term overall solution the Schaeffler group is seeking the advice of a number of experts and has appointed investment bank Houlihan Lokey,” a company spokesman told Financial Times Deutschland.

8th July 2009/by Tyrepress Editors

First Stop Gives Away Free Fuel

In an effort to brighten the lives of the nation’s cash-strapped drivers, the First Stop network of tyre dealerships has chosen to pay for a number of lucky drivers’ fuel. Lisa Chatfield of Stoke-on-Trent was the first prize winner of a year’s supply of free fuel. The second entry to be drawn was Clive Moles of Lincolnshire, who has won enough fuel to keep him motoring for a month.

Chatfield was delighted and commented: “I had just been to replace two of my tyres when I entered the competition and was absolutely delighted to find out that I’d won. I’m a busy mum and use my car a lot during the week, as well as getting out and about at the weekend. I had totally forgotten about entering this competition so it was a wonderful surprise to hear that I had won. Combined with the fact that my fiancé has just been made redundant from JCB this prize will be a great financial help.”

8th July 2009/by Tyrepress Editors

Proliance Files for Chapter 11

Proliance International has filed voluntary Chapter 11 petitions in the US Bankruptcy Court for the District of Delaware on 2 July. In addition, Proliance has agreed to sell substantially all of its North American assets for $21.5 million in cash, under a court supervised sale process to Centrum Equities XV. Centrum Equities also owns the Visteon aftermarket business, which it purchased in February 2008.

Charles Johnson, Proliance president and CEO, said, “The combination of Centrum’s resources and industry expertise and Proliance’s manufacturing and distribution capabilities will help get our business back on track faster and enable the combined company to serve its customers in an exemplary way. Longer term, we believe ownership by Centrum will create a stronger balance sheet and establish a solid platform which will provide opportunity for growth.”

Roger Brown, president and CEO of Centrum Equities XV, said, “We are excited about this opportunity to put together these two leading companies in the automotive aftermarket. We strongly believe that the combination with Proliance, along with the financial investment to be made, will provide for unparalleled service in the industry.” (Tire Review/Akron)

7th July 2009/by Tyrepress Editors

Punch sells BBS and Punch Metals

Some four months after Punch International nv, parent company of wheel manufacturer BBS, described automotive industry market conditions as “extremely difficult”, it has announced the sale of its BBS and Punch Metals BBS and Punch Metals businesses, which belong to the company’s Motive group. This significant part of Punch International’s automotive business will be acquired by Creacorp nv, Punch’s main shareholder. Punch will retain ownership of the BBS brand, however the transaction gives rise to a one off non-cash loss of around 48 million euros. In return, Creacorp nv is taking over a number of obligations, such as the rental guarantee for the property used by BBS and Punch Metals (approximately 10 million euros), securities for loan agreements and certain key suppliers (7.5 million euros) and the purchase obligation for the Hayes Lemmerz site in Gainesville, Georgia (5 million euros). A licence fee will also be paid for the use of the BBS brand.

1st July 2009/by Tyrepress Editors

H1 Revenues May Dip 35%, Says Titan Europe

Worcestershire based wheel manufacturer Titan Europe Plc has warned that its anticipated revenue for the first half of this year may be 35 per cent lower than a year ago. The company, whose two major shareholders are Mefro Wheels GmbH and Titan International subsidiary Titan Luxembourg Sarl, notes this figure in particular reflects the further weakening its second quarter performance.

“Trading conditions remain difficult with the construction market continuing to be severely hit by the global recession,” stated a June 29 company trading update. “The directors expect by the half-year, based on constant exchange rates, that construction market volumes will be down by about 50 per cent whilst agricultural and mining markets will be down by between 25-30 per cent.

30th June 2009/by Tyrepress Editors