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Toyo Net Income Muted Despite Healthy Sales

Toyo Tire & Rubber has released details of business performance for the first three quarters of the financial year ending March 31, 2008. Year on year net sales for the nine months ending December 31, 2007 increased 13 per cent to 272,023 million yen (£1.29 billion), and operating income jumped 55.6 per cent over that earned in the equivalent months of 2006 to 12,951 million yen (£61.3 million). Net income shrank year on year, however, down 18.9 per cent to 6,946 million yen (£32.9 million). This overall net income result reflects the costs incurred through Toyo’s “compliance reporting issue” that was made public in mid-November 2007.

19th February 2008/by Tyrepress Editors

Sales Up but Net Profit down at Sumitomo Rubber

Sumitomo Rubber Group has released interim results for the financial year ended December 31, 2007. The Group as a whole generated sales of 567,306 million yen (£2.68 billion) during 2007, up from 534,086 million yen (£2.52 billion) the previous year. The bulk of these sales came from the company’s SRI Tire Trading division, which recorded 474,282 million yen (£2,24 billion) in sales last year, an increase from 430,630 million yen (£2.04 billion) in 2006.

18th February 2008/by Tyrepress Editors

Sibur-Russian Tyres Willing, If A-V Can Clear Debt

According to unconfirmed reports, Sibur-Russian Tyres has agreed to some type of merger with troubled Amtel-Vredestein provided the later can restructure its current debt load.

The reports said that Sibur-Russian Tyres gave Amtel-Vredestein two months to rework its loans or even repay some of all of the loans. However, given the current worldwide financial crisis, it is not expected that banks will make major concessions, the reports said. (Tire Review/Akron)

15th February 2008/by Tyrepress Editors

Conti May Eliminate 2,000 VDO Jobs

It appears as if Continental plans to reduce the workforce at its VDO automotive electronic unit by 2,000 jobs. Germany’s Financial Times Deutschland reports that sources within Continental have disclosed that cuts will occur at the recently acquired unit, however the company declined to officially comment to the German financial newspaper.

A reduction of 2,000 jobs includes the 500 job cuts Siemens was considering before the unit’s purchase by Continental. Financial Times Deutschland further commented that, should the details of the cuts be accurate, they might in part allay concerns of the IG Metall trade union, which feared that up to 7,000 jobs may have faced the axe.

15th February 2008/by Tyrepress Editors

Michelin to Open Recycling Plant at Toul Factory Site

Michelin, together with French corporation Suez, intends to establish a recycling facility at the premises of its former factory in Toul in order to fulfil its pledge to maintain activity at the site. Financial details of the project have not as yet been made public.

The closure of the Toul factory in France was announced at the start of October 2007, with an inability to remain competitive cited as the main factor driving closure of the PCR manufacturing plant. A total of about 830 people were employed at the Toul plant, and when making its announcement Michelin stated that the company would provide “all the support necessary to help them find a new job rapidly or start a professional project.”

13th February 2008/by Tyrepress Editors

Yokohama Reports 88% Increase in Net Earnings

Yokohama Rubber Co., Ltd. has reported an 88.1 per cent increase in net income. According to official financial results, the company generated a total of 25.7 billion yen (£123.5 million) net income in the first three quarters of its current financial year, ended 31 December. Increases of 80.2 per cent in operating income, to 30.8 billion yen (£148 million), and 11.4 per cent in net sales, to 409.7 billion yen (£2 billion) underlined growth in post-tax earnings.

Operating income nearly doubled in Yokohama’s Tire Group, climbing 98.8 per cent, to 25.6 billion yen (roughly £123.5 million), on sales growth of 13.1 per cent, to 312.5 billion yen (£1.5 billion). Improved profitability at Yokohama’s subsidiaries in the US and in Asian nations outside Japan is said to have “amplified” unit sales gains.

12th February 2008/by Tyrepress Editors

Pirelli: Motorbike Tyre Sales up 12%

Pirelli Tyre has experienced a 12 per cent increase in tyre sales in 2008. Sales are said to have been boosted by the performance of the US and Asian markets and technology investments. A Thompson Financial report quoted company officials as saying that motorbike tyre sales equate to a total of 337 million euros per year. Pirelli representatives said motorbike tyre sales represent 8-9 per cent of overall tyre sales. Wider forecasts are expected to be made in March. Pirelli also reported growth of around 12 per cent in the motorbike tyre sector last year.

11th February 2008/by Tyrepress Editors

Pirelli to Buy Back Tyre Unit Share in H1 2008?

For a number of months Pirelli & C SpA has openly expressed its intention to buy back the 38.9 per cent share in Pirelli Tyre that it sold to a group of six banks in 2006. An Italian newspaper, the Corriere della Sera, has in February reported that the company intends to make this acquisition before the end of the financial year’s first half. According to some analysts the share in the tyre unit, which sold for 740 million euros in August 2006, is currently worth around 900 million.

11th February 2008/by Tyrepress Editors

First New MG Roadsters Expected in May

Shanghai Automotive (SAIC) is aiming to start producing MG TF roadsters in Nanjing in May and at its plant in Longbridge, Birmingham, within three months of then, a senior executive told the Financial Times. However the cars relaunch could be delayed further by quality and production.

According to the report, MG is also studying at least three new models, including a replacement for the TF, which it hopes to produce from 2010, Chen Hong, SAIC’s president told the newspaper. About 70 per cent of the new model’s manufacture – including their engines – will be made in China. The remaining 30 per cent is expected to be produced in Europe.

7th February 2008/by Tyrepress Editors

New Supervisory Board Chairman for Amtel-Vredestein

Amtel-Vredestein N.V., Russia’s largest passenger car tyre manufacturer, has announced that Mr. Rafael Nagapetiants (managing director and head of the Corporate Finance Department at Alfa-Bank) has been appointed chairman of the company’s Supervisory Board. Director Hendrik W. ten Bosch has been elected as vice-chairman. Maxim Ignatiev, who served as acting-chairman of Supervisory Board, will continue as a director and member of the Remuneration and Appointment Committee.

31st January 2008/by Tyrepress Editors

Bridgestone Acquires NZ’s Largest Independent Tyre Retailer

Bridgestone has boosted its retail presence in New Zealand through the acquisition of the 19 outlets operated by Tony’s Tyre Service, the country’s independent tyre retailer. The chain, founded in 1982 by businessman and former retreader Steve Lange, and its 150 plus employees, will come under the control of the tyre major on March 31.

“I think it’s the right time,” commented Lange to the Manawatu Standard. “The company’s achieved some pretty spectacular results and it’s got a fantastic reputation in the industry. We want to take that to the next level.” Mr Lange will continue in his role as chief executive and the retail outlets look likely to retain their distinctive brand identity. “Nothing changes,” he added. “We are still the operators and a totally independent entity. I’ve been pretty careful to ensure that my people would not be changed. The consumer will not notice any difference.” The financial details of the acquisition remain undisclosed due to a confidentiality agreement, however Mr. Lange indicated the offer was very attractive.

31st January 2008/by Tyrepress Editors

Preliminary Figures Show Strong Revenue Growth at Delticom

Leading European online tyre retailer, Germany’s Delticom AG, has delivered news of greatly increased 2007 financial year revenues. According to preliminary consolidated IFRS figures, year on year revenues have jumped by about 24 per cent, from 173 million euros in 2006 to 214 million euros last year. This figure is at the upper end of Delticom’s forecast (210 – 215 million euros). At the same time, EBIT of between 12.0 million and 12.5 million euros is anticipated for 2007, up from 10.2 million the previous year.

From this total revenue figure, eCommerce revenues totalled 194 million euros, an increase of 25 per cent. Revenues in Delticom’s wholesale division were up year-on-year from 18 million to 20 million euros. Delticom attributes what it views as strong growth in 2007 to the ongoing positive growth in business at its online shops, of which the company now has a total of more than 86 in 30 countries. More than 600,000 new customers were acquired in 2007, raising the total number of customers to more than 1.8 million. There has also been constant growth in the number of partner workshops: right now customers can have their tyres fitted in more than 20,000 workshops worldwide.

31st January 2008/by Tyrepress Editors

Yokohama Signs OTR Supply Agreement with Barrick Gold

Yokohama Rubber announced on January 30 that it has signed a long-term contract with Barrick Gold Corporation for the supply of OTR tyres. Under the terms of the contract, Yokohama Rubber shall deliver approximately 1,300 tyres a year to Barrick for ten years, from 2009 to 2018. To meet this new demand, Yokohama began building the third plant at its Onomichi facility in Japan’s Hiroshima Prefecture in October 2007. The Onomichi plant specialises in the manufacture of OTR tyres and the additions to the facility currently under construction are scheduled to begin operation in January 2009. Yokohama Rubber plans to invest approximately 5 billion yen (£23.57 million) into the third plant’s construction.

Headquartered in Toronto, Canada, Barrick Gold Corporation is the world’s largest pure gold mining company, and owns approximately 30 mines around the world. The company is expanding its mining operation to meet a fast growing demand for gold from the decorative and industrial use markets, thus needed a secure tyre supply in the current environment of global shortages.

30th January 2008/by Tyrepress Editors

WRAP Seeks New eQuip Lessors

WRAP is looking for new lessors to join its successful eQuip Residual Value Guarantee scheme, which in its four years of operation has benefited a number of tyre recyclers. There are currently ten finance providers signed up to the scheme and WRAP now wants to open the panel to new lessors as the recycling sector continues to grow.

Ian Wardle, Head of Business Support at WRAP, says: “eQuip has already made a significant contribution towards meeting UK recycling targets. To date, 328 assets have been guaranteed through eQuip, at a value in excess of £19 million. These assets have already diverted three million tonnes of waste from landfill and the demand for this type of activity is going to grow rapidly in the next few years. We need other lessors to join the existing panel so that we can help the recycling sector to keep pace with this demand.”

25th January 2008/by Tyrepress Editors

Yokohama Initiates Patent Proceedings Against Hangzhou Zhongce

The fortunes of Hangzhou Zhongce in the US have received another blow. Only seven months after the beginning of the now notorious Foreign Tire Sales recall of the company’s Westlake, Compass and YKS branded tyres, the Chinese manufacturer is facing legal action regarding the tread pattern used on some of the tyres it produces.

On January 17 the Yokohama Rubber Company filed an intellectual property infringement complaint with the Miami office of the Florida Southern District Court. The document filed by Yokohama claims that Hangzhou Zhongce has copied the tread pattern design from its S.drive tyre range, a design patented in the US by Yokohama in November 2005. The alleged copycat tyres are marketed under the Sumo brand name, the private brand belonging to Singapore’s Stamford Tyres, and the models in question are the Sumo Firenza ST-08 and Sumo Akina ST-08.

23rd January 2008/by Tyrepress Editors