Toyo Tire & Rubber has revised its consolidated and non-consolidated performance forecasts for the first half of the fiscal year ending March 31, 2008 (the period between April 1, 2008 to September 30, 2008). The revisions replace the forecasts originally released on August 12 and May 13 respectively.
India’s JK Tyre showed a loss of 323.70 rupees (3.97 million pounds sterling; 1.00 GBP = 81.58 INR) for the quarter ending September 2008, the company has reported. The same quarter in 2007 yielded a profit of 243.9 million rupees. Meanwhile, net sales for the quarter rose 27.1 per cent on the same quarter last year, rising from 6.88 billion to 8.74 billion rupees. Shares in the company earned 10.05 rupees each, meaning that there was a growth of 26.89 per cent on the previous year, when earnings per share were at 7.92 rupees.
Sumitomo Rubber Industries has released its consolidated interim results for the period between January 1 and June 30, 2008, and these figures show a pattern echoed throughout the tyre industry at present – increased sales but reduced profits. Net sales of 284,491 million yen (£1.38 billion) were 12.1 per cent up on those achieved in the first six months of 2007, during which time sales of 253,858 million yen (£1.24 billion) were recorded.
Increasing raw material and personnel costs are said to be two of the key factors behind lower net profits for India’s MRF in the financial year’s third quarter. In the three months to June 30, 2008 the Chennai based company experienced a 25 per cent drop in net profits from the corresponding quarter a year earlier, to Rs 318.6 million (£3.74 million). Net profits for the nine months of the current financial year stand at Rs 1.492 billion (£17.5 million), an increase of 39.2 per cent.
Third quarter profits for JK Tyre & Industries Ltd were dented by rising material costs. Although sales in the three months to June 30,2008 were 17.7 per cent up on the previous year, between April and June the company recorded a net profit of Rs 202.4 million (£2.37 million), an increase of just 0.25 per cent on the previous year’s third quarter. Net sales for the quarter were Rs 8.49 billion (£99.57 million), as opposed to 7.22 billion (£84.68 million) a year earlier.
Components manufacturer Accuride reports that in the quarter to March 31, 2008 the company achieved sales of US$238.2 million, a decrease of 26.2 per cent on the same quarter a year earlier. This decline in net sales, says the company, reflects a 33 per cent decline in North American Class 8 production and a $24 million reduction due to products re-sourced by a light vehicle customer during 2007.
A net loss of $11.7 million was reported for the first quarter of 2008, compared to a loss of $1.9 million in the corresponding quarter of 2007. Adjusted EBIDTA was $18.5 million, compared to adjusted EBIDTA of $49.2 million a year earlier.
Fourth quarter figures for Goodyear India Limited have been released, and show a 24.58 per cent rise in profits compared with the same period the previous year. During the quarter that ended March 31, 2008 a profit of Rs 126.20 million (£1.60 million) was recorded on the back of sales totalling Rs 2,277 million (£28.8 million), an increase of 14.03 per cent on the previous year. Annual profit, in contrast, declined 10.8 per cent compared with that of the year before, to Rs 451.2 million (£5.71 million). This decrease occurred in spite of higher annual net sales of Rs 9,175.1 million (£116.2 million), an increase of 6.8 per cent. Annual EBIT, at Rs 5549 million (£70.3 million), showed an increase of 16.7 per cent.
Sumitomo Rubber Industries has announced its consolidated interim financial results for the period between January 1 and June 30, 2007. Net sales for the company were reported as 253,858 million yen (£1.060 billion), slightly lower than the 2006 half-year figure of 254,664 million yen (£1.063 billion). Operating income was 17,322 million yen (£72.35 million), down from the previous year’s 18,466 million yen (£77.13 million), and ordinary income for the half-year was 17,231 million yen (£71.97 million), up from the 2006 half-year result of 13,819 million yen (£57.72 million). Net income was 8,159 million yen (£34.08 million), a significant jump on the half-year 2006 result of 1,924 million yen (£8.04 million).
Net sales of tyres to unaffiliated customers equalled 211,715 million yen (£884.26 million), while operating income was 12,796 million yen (£53.44 million).
Toyo Tire & Rubber has made public its consolidated business results for the first quarter of the 2007 fiscal year (April 1, 2007 to June 30, 2007). The company reports that, due to the strong performance of the tyre business in overseas markets, net sales rose by 8,895 million yen (£37.2 million) to 82,777 million yen (£345.7 million), a 12 per cent increase on the first quarter of the 2006 fiscal year. Operating income increased 22.2 per cent to 4,217 million yen (£17.6 million), ordinary income was up 54.3 per cent to 4,240 million yen (£17.7 million). Net income, however, decreased 55.3 per cent or 4,498 million yen (£18.8 million) to 3,632 million yen (£15.2 million).
Net sales within the company’s tyre segment increased by 8,608 million yen (£35.9 million) to 58,468 million yen (£244.2 million), an increase of 17.3 per cent. From this figure, OE tyre sales declined below last year’s first quarter level, a drop the company attributes to decreased production of car lines equipped with Toyo’s products. In the domestic Japanese market demand was slow, however Toyo’s “vigorous” efforts to boost sales resulted in sales equivalent to the levels of the same period of the previous year. Meanwhile, the volume of overseas sales, centring mainly on the North American market, comfortably surpassed the levels of the same period of the previous year. This increase, combined with the weaker yen, ensured higher net sales than for the previous period last year. Operating income increased by 27.9 per cent or 890 million yen (£3.7 million) over Q1 2006 to 4,075 million yen (£17.0 million).
Vehicle component manufacturer Accuride Corporation has published details of the company’s second quarter (to June 30) results. Net sales of US$245.1 million were recorded during the quarter, a sizeable drop from the $361.7 million earned during the same quarter of 2006. Half year net sales, at $570.6 million, were similarly lower than the previous year’s result, when net sales of $721.7 million were recorded between January and June. The company attribute the lower sales to a reduced demand for commercial vehicles with engines compliant with new emissions standards that came into effect in 2007.
“As expected, significant reductions in commercial vehicle production have impacted our results in the quarter as demand for vehicles with EPA compliant engines was weak,” said Accuride chairman and CEO Terry Keating. “We have anticipated this downturn fairly well so far and are using this period of reduced production levels to invest in core businesses and undertake necessary maintenance. These actions ensure we are well positioned for the upswing in the cycle in 2008 and beyond.”
Indonesia’s PT Gajah Tunggal Tbk and the company’s subsidiaries achieved a net profit of IDR72.649 billion (£3.87 million) during the January to June 2007 half-year period. This figure is a drop of more than 42 per cent on the IDR126.102 billion (£6.7 million) profit enjoyed during the same period of 2006. This drop in profit came despite an 21.3 per cent increase in net sales, up from IDR2.633 trillion (£141.4 million) to IDR 3.218 trillion (£171.6 million) and operating profits that were 60.61 per cent higher at IDR 339.538 billion (£18.1 million).
The explanation given by Gajah Tunggal management for the reduced profit indicated that the sluggish 2007 result resulted from a foreign exchange loss that reached IDR14.262 billion (£760,000) and an interest expense valued at IDR181.048 billion (£9.6 million).
Recently released income statements indicate that PT Gajah Tunggal Tbk, manufacturers of the GT Radial brand and ranked as one of the world’s 30 largest tyremakers, had a challenging year during 2006.
While net sales for the company increased by 13.2 per cent to 5,470 billion Indonesian rupiahs (£314.4 million) in the year to December 31, 2006, operating income dropped from 407 billion rupiahs (£23.4 million) at the end of 2006 to 365 billion (£21.0 million) a year later. Net income dropped a worrying 65.9 per cent to 118 million rupiahs (£6.8 million).
Quarterly figures confirm the trend towards higher sales yet lower income, with quarterly net sales in the period to March 31, 2007 posted as 1,535 billion rupiahs (£88.2 million) as opposed to 1,229 billion a year earlier. Operating income increased from 111 million rupiahs (£6.4 million) to 171 million (£9.9 million). However net income for the quarter was scarcely a fraction of that gained a year earlier, down from 215 million rupiahs (£12.4 million) in March 2006 to just 12.9 million (£739,000) this year.
Michelin’s annual shareholders’ meeting was held in Clermont-Ferrand on May 11, and managing partner Michel Rollier submitted to the shareholders a number of proposed changes in the area of Michelin Group corporate governance. Of particular significance was the proposal that “the [Group’s] management be enlarged to non-general managing partners in order to guarantee the sustainability as well as collegial nature of its management”.
The resolutions submitted for shareholder vote – 18 in total – were approved by a sizable majority, and the company’s bylaws were amended accordingly. Mr. Didier Miraton, Head of Research and Industrial Performance and Mr. Jean-Dominique Senard, Chief Financial Officer, were appointed Non-General Managing Partners. Commenting on the changes, Mr. Rollier stated he was convinced that he and the two new managing partners, would form “the close and efficient team Michelin needs to rise to the challenges confronting it”.
Goodyear’s net sales for 2006 were a record $20.3 billion, up 3 per cent despite a 5 per cent decline in tyre unit volume. However strike costs of $367 million meant the company recorded net losses of $330 million, compared to net income of $228 million in 2005. The company estimates that the strike reduced 2006 sales by $363 million, tyre volume by 2.8 million units and net income by $367 million. Tyre unit volume was 51.2 million units in the fourth quarter, compared to 55.7 million units in the 2005 period.
Analysts have interpreted Nokian’s positive results as an indication that the Finnish company’s move to Russia has paid off. Results published yesterday showed the company’s second quarter sales grew almost 60 per cent in the second quarter. “Net sales came in at 120.3 million euros, some 11 per cent better than expected; EBIT came in at 26.8 million euros some 45 per cent better than our estimate of 18.4 million,” Deutsche Bank analysts reported.
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