For the full year 2003, Bandag reported consolidated net income of $60.2 million, or $3.11 per diluted share, compared to 2002 net income of $2.8 million, or $0.14 per diluted share, which included the write-off of goodwill, primarily of TDS (Tire Distribution Systems, Inc), of $47.3 million net of income tax. Consolidated net sales for 2003 decreased nine percent to $816.4 million from $900.5 million in 2002.
In the USA, the TBC Corporation has issued a bullish financial outlook for 2004, boosted by the contribution of 225 National Tire & Battery retail stores, acquired last month from Sears, Roebuck & Co. TBC expects earnings of around $1.80 to $1.90 per share; a 25 per cent increase over last year’s figure. NTB’s contribution will be around 15 cents per share. Net sales are forecast to be in the region of $1.7 to $1.8 billion. TBC has plans to add 20 company-operated tyre retailers and 25 franchised Big O stores next year, giving the company a total of 1,215 retail locations.
Hayes Lemmerz has reported financial results for the three months ended October 31, 2003. The Company said that earnings from operations totalled 13.9 million US dollars for the quarter, with gross profits remaining consistent, as compared to the same period in 2002. This is despite the increased depreciation expenses and lower OEM production requirements. Net sales for the three month period totalled 530.9 million US dollars, compared to 535.4 million US dollars for the comparable period in 2002. The Company reported a net loss of 10.0 million US dollars, compared to net income of 3.7 million US dollars for the comparable three months in 2002.
Hayes Lemmerz has released figures for fiscal 1Q, ending April 30th. Net sales rose 5.9 per cent to $515.3 million (1Q 2002: $486.7 m). Earnings from operations were $1.3 million, against a loss of $14.6 million a year earlier. The company recorded a net loss for 1Q of $22.6 million, compared with a net loss for 1Q in the prior year of $587.4 million, although this included a net charge of $555.4 million, resulting from a change in accounting principle. Without this, the 1Q net loss for 2002 would have been $33.0 million.
Yokohama Rubber Co. has released its results for the fiscal year 2003, ending 31 March. Net sales rose 0.2 per cent to 400,448 million Yen (3.38 bn US$). Operating income was up 2.1 per cent to 23,184 million Yen ( $ 195.6 m), while net income rose sharply (by 37.8 per cent) to a record 10,144 million Yen ($ 85.6 m). Sales of the Tire Group accounted for 71.7 per cent of net sales and were up 1 per cent to 286,987 million Yen ($ 2.4 bn), with operating income up 10.8 per cent to 17,264 million Yen ($ 145.6 m).
US national distributor American Tire Distributors Inc (ATD) has reported its figures for 2002. Net sales declined 4.3 per cent to $1.06 billion, while pre-tax profits in 2002 were $12.9 million, compared to a pre-tax loss in 2001 of $23.8 million. Net income rose to $37.4 million, as against a net loss in 2001 of $30.9 million. Part of the improvement is due to a 19.3 per cent reduction in operating expenses. ATD operates 62 distribution centres in 35 states and employs 1,900 people nationwide.
Cooper Tire & Rubber has reported its third quarter figures. Net sales were up 6 per cent to $839 million (3Q 2001: $791 m). Operating profit was $55 million and net income was $23 million, 28 per cent up on the 3Q 2001 figure of $18 million. Comparing the first nine months with the same period last year, net income rose 87 percent, from $47 m to $88 m, while operating profit was $195 m, compared to $137 m. Cooper’s tyre sales in North America declined by one per cent during 3Q, but this compared to an industry decline of nearly 8 per cent. Operating profit for the tyre group in 3Q was $27 m. This compares to a loss in 3Q 2001 of $9 m, but this figure was affected by charges related to a proposed class action litigation settlement.
Yokohama has announced a three layered strategy for developing the brand. The first move will be to increase the range of high performance products available from the company. The second will be to launch a new “global” range of products for truck and bus, and thirdly it will target increases in export levels. These three strategies will create the new approach to business recently announced by Yokohama. A company spokesman said, “The aim is to provide our clients, world-wide, with the highest quality products and services based on Yokohama’s own developments.” Yokohama hopes to reach net sales of 460,000 billion Yen within three years, an increase of 15 percent from this year’s figure. This aims for an operating profit of 35 billion Yen by 2005.
The third quarter saw Titan International reports sales increase of $104.7 million compared to $100.5 million for the third quarter of 2001. Year-to-date net sales were $354.2 million compared to $356.9 million for the first three quarters of 2001. The operating results showed a slight improvement, with a loss of $(7.8) million for the quarter, compared to a loss of $(8.0) million in third quarter 2001. Year-to-date loss from operations was $(2.7) million, compared to a loss from operations of $(8.8) million for the 2001 time period.
Global economic factors presented Yokohama with a difficult year in 2001. The market was stable in Europe but the slowdown in US growth limited market development. The strong Japanese private sector capital investment was countered by a sluggish consumer market. However Yokohama still increased sales in the domestic market, though this was offset by a strong Yen which affected exports. Net sales dropped by 1.1 per cent in 2001 to 387.9 billion Yen (3,1 bn Euro). Cost reductions and improvements in efficiency raised operating income by 4.2% to 19.8 billion Yen (168,7 million Euro).
US recycling giant, GreenMan Technologies has reported its sixth profitable quarter in a row. Net Sales for the second quarter ended 31 March 2002 totalled 5.561 million dollars, an increase of 21 per cent compared to the same quarter in 2001. The company processed the equivalent of 5.6 million passenger car tyres in the second quarter of 2002, an increase from 4.8 million in the same quarter of the previous year. Operating profits for the six months to the end of March 2002 have increased by over 100 per cent to 932,000 dollars.
Bandag Inc. has reported a drop in sales for the quarter ended March 31, 2002. Consolidated net sales for first quarter 2002 were $192.5 million, a decline of approximately six percent compared to net sales of $205.1 million in the same quarter of 2001.
Cooper Tire & Rubber Company has announced, from its headquarters in Findlay, Ohio, a 2002 first quarter net income of $26 million US dollars. Net sales were $813 million US dollars, representing a seven percent increase over the first quarter of 2001.
Michelin Group net sales have shown a 2.5 per cent increase for 2001 to 15.77 billion Euro, a slower rate of growth than for the previous five years. However volumes sold have fallen by almost 3 per cent with all markets on a downward trend except passenger car and light truck. Michelin estimate that the operating margin for the year 2001 will lie between 6.2 and 6.8 per cent of net sales.
Titan International has announced net sales for the fourth quarter of $113.4m, down from the previous fourth quarter of $134.4m. Net sales for the year 2000 were $543.1m, compared to $588m for the previous year. The fourth quarter (2000) loss recorded was $8m, as against $6m for the same quarter 1999. The full year results showed a net income of 4.5m against a loss of $11.4m in the previous year.
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