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Michelin Announces Tyre, Oliver Rubber Tread Price Increases

Michelin in North America has announced price increases for some of its own tyre lines and for products manufactured by the Michelin owned Oliver Rubber Company. Continuing increases in raw material, energy and transportation costs are said to be behind these latest price rises.

Michelin North America will, effective July 1, 2008, increase prices between 6 and 36 per cent on Michelin, BFGoodrich and Kléber brand agricultural and compact line tyres and tubes sold in the US and Canadian markets. The company adds that back orders of record as of June 30 will benefit from price protection until July 31, 2008. The Oliver Rubber Company will increase prices for its retread rubber products by 5 per cent, effective June 1, 2008.

29th May 2008/by Tyrepress Editors

Michelin: Tyre Markets Recovered in April

Sales in the European tyre replacement markets recovered in April, according to Michelin and industry analysts. European truck tyre replacement sales are reported to have grown 10 per cent; while Michelin’s numbers suggest that European passenger tyre replacement sales grew 4 per cent in April (compared with a -1 per cent year-to-date figure). Total OE sales are said to have grown by “a high double digit figure.” Responding to the report, Deutsche Bank analysts put the perceived recovery down to “the Easter weekend effect.” However, Tyres & Accessories’ research shows that the current sales situation may not be so rosy overall.

Taken in isolation, April was a very good sale month in France (which no doubt meant strong sales for market leader Michelin). This may explain why their calculation puts the European market up 4 per cent, but it conflicts with the ETRMA Europool data T&A has seen.

28th May 2008/by Tyrepress Editors

Cooper Drops Starfire Brand in North America

Cooper Tire & Rubber has reportedly ceased production of its Starfire associate tyre range in North America, and the company may further reduce the number of brands it sells. Manufacture of Starfire tyres ended last year and, as inventories are now mostly depleted, Cooper has begun recommending ‘suitable alternatives’ for dealers that formerly sold the brand.

Cooper launched the Starfire brand in 1994 to fit between the Cooper and Mastercraft brands, and the range was produced in sizes for passenger cars, SUVs and light trucks. The range continues to be sold in Asia.

13th May 2008/by Tyrepress Editors

Pirelli Quarter Results Show Net Income Rise

Pirelli & C. Spa reports that its Pirelli Tyre operation “substantially held its position in an unfavourable quarter for the world car market” during the first quarter of the 2008 financial year. Results for the quarter ended March 31, 2008 also reflected the company’s decision to further focus upon core businesses, including the repurchase of the 38.9 per cent share in Pirelli Tyre held by shareholders in Speed SpA since August 2006.

Group revenues for the quarter amounted to 1.31 billion euros, up 2.1 per cent on the first quarter of 2007, at constant exchange rates and net of the effect of sales relating to deconsolidation of the real estate assets of DGAG. Taking into account the effect of DGAG, sales as of 31 March 2007 amounted to 1.81 billion euros. EBIT, at 114.6 million euros, was substantially in line with the figure in the first quarter of 2007 (117.5 million euros), net of the result linked to the temporary consolidation of DGAG that had characterised the previous year period. Taking into account the effect of DGAG, EBIT as of 31 March 2007 amounted to 129.5 million euros.

13th May 2008/by Tyrepress Editors

Hayes Lemmerz to Close US Aluminium Wheel Facility

On May 12 Hayes Lemmerz International announced the planned closure of its aluminium wheel manufacturing facility in Gainesville, Georgia (USA) by the end of this year. The company has taken the decision to close the factory due to global overcapacity in the light vehicle aluminium wheel market and the increasing level of aluminium wheel imports coming into North America from countries with lower production costs. The company says the closure announcement reflects its overall strategy to continue to focus its business on the “right products in the right geographic regions”.

The Gainesville facility, which has been producing wheels since July 1994, employs approximately 290 people. Employees were advised of the closure during a meeting at the facility. A portion of the production currently at Gainesville will be moved to the Hayes Lemmerz aluminium wheel facility in Mexico.

13th May 2008/by Tyrepress Editors

Nokian Reports Strong Sales and Profits

Between January and March 2008, Nokian Tyres Group recorded net sales of 246.3 million euros (199.9 million euros), showing an increase of 23.2 per cent on the corresponding period a year earlier. Operating profit rose to 54.4 million euros (2007: 39 million euros). Compared with the previous year, the group’s net sales increased by 1.4 per cent in the Nordic countries, by 64 per cent in Russia and the CIS countries, by 33.7 per cent in North America and fell by 8.8 per cent in Eastern Europe.

In light of these figures, Nokian Tyres President and CEO, Kim Gran, pointed east in explaining the company’s sales growth: “The majority of growth in sales came from Russia and other CIS countries. Both sales of summer tyres and pre-sales of winter tyres were brisk. The average price of tyres rose as a result of a good sales mix, successfully implemented price increases and new products. Russian manufacture increased in line with targets, and the advantages thereof improved the profitability.”

Passenger car sales were also reportedly boosted by the introduction of the new studless Nokian Hakkapeliitta R winter tyre family, which will be launched to consumers in the autumn.

Deutsche Bank analysts described the results as “signalling future potential,” pointing out that net sales grew 34 per cent and margins reached a high 34 per cent. As a result the bank raised its estimates by some 6 per cent, and its target price to 37 euros. “We believe the fast growth in Russia combined with stability in Russian production were the main drivers on top of which mix seems to have improved slightly. Going forward, we believe margins could remain at the first quarter level at least when compared to history (normally second half margins are above first quarter),” the analysts commented

In a note to clients, ABN Amro said it thinks Nokian’s first quarter results last month were “surprisingly good.” This broker believes a snowy Easter in core markets will result in car and van tyres, and particularly Vianor, seeing some results shift to the second quarter.

Giving an overview of the development of the markets it operates in, Nokian representatives observed that while passenger car replacement markets in Russia and the CIS countries have grown compared with the first quarter of 2007, the Nordic markets declined slightly. Sales grew 64 per cent in Russia and CIS, generating 47 per cent of manufacturing sales.

Interestingly, despite a delay in the onset of the summer season in the Nokian’s Russian and Eastern European markets (a fact that company representatives predict will result in a bumper second quarter), recent developments mean there is a additional upside for the company’s Russian business this quarter. According to the results statement, Nokian will now experience a lower tax rate as a consequence of tax relief in Russia. The tax relief is valid “for as long as the company gains tax on yields corresponding to the amount of the Russian investment, and for two years thereafter.” According to the filing, now that the uncertainties surrounding this tax relief have been ironed out, first quarter 2008 figure contains a non-recurring 6.5 million euro tax relief from the second half of 2007.

Since the company’s last report, the Vianor retail chain has expanded in Russia and Ukraine. At the end of March, the Vianor network comprised a total of 382 sales outlets, 208 of which were partner and franchise stores. During the first quarter, a total of 16 new Vianor outlets were opened, including a branch in New Hampshire, USA and the company’s fifth outlet in Kazakhstan.

Looking forward Nokian Tyres’ expects its prospects for 2008 to be good: “Demand is increasing for winter tyres, UHP summer tyres and SUV tyres, particularly in Russia, the CIS countries and Eastern Europe. In North America, too, prospects in the winter tyre market have improved, whereas in the Nordic countries and Western Europe markets remain flat. Manufacture of forestry machinery as well as other machinery and equipment is active, and the global shortage of heavy special tyres is continuing.”

9th May 2008/by Tyrepress Editors

International Operations Outshine Domestic For Cooper Tire

Cooper Tire & Rubber Co has reported a first quarter net income of $2 million on 31 March 2008. Net sales for the period were $679 million, an increase of $10 million over the prior year. According to the company, the increased revenues were driven by volumes in the International segment. Industry observers calculated that the $2 million figure represents a 92 per cent fall in first-quarter net income, with the Retuers news agency highlighting the fact that the company’s “headwinds” are exacerbated by a doubling of costs related to liability claims. For its part, Cooper conceded that the company has faced similar challenges to other North America-based businesses including “increased raw material costs, increased products liability costs, and decreased sales volumes in North America.

Cooper shares fell 96 cents (7 per cent) to $12.75, below the stock’s earlier 52-week low of $12.85, in response to the results.

Cooper’s North American Tire generated sales of $498 million, down 3 per cent from 2007’s record first quarter, and $8 million in operating profit which was considerably below the first quarter of 2007 ($28 million, an increase of $34 million over the first quarter of 2006). The segment’s decrease in sales, compared to the first quarter of 2007, was reportedly the result of lower unit volumes partially offset by improved mix. The largest volume decreases were in the areas of economy passenger and light truck tyres.

8th May 2008/by Tyrepress Editors

BFG Official Tyre for Mustang Series

Michelin North America’s BFGoodrich brand is the presenting sponsor and official tyre of the Ford Racing Mustang Challenge for the Miller Cup.

The seven-race professional kicked off this past weekend at Road Atlanta, with all factory-built Ford Mustang FR500S race cars competing on BFGoodrich g-Force R1 tyres.

“BFG’s involvement in the Ford Racing Mustang Challenge for the Miller Cup goes beyond just our sponsorship involvement,” said Doug Brown, brand category manager for BFGoodrich brand. “BFGoodrich Tires wants to provide yet another avenue to recognise the efforts put forth by the drivers because we know they can count on the g-Force R1 tyre lap after lap and we want the competitors to be recognised for their racing ability as well.” (Tire Review/Akron)

6th May 2008/by Tyrepress Editors

MTNA Celebrates Dual Ringtread Anniversary

Marangoni Tread North America celebrated the 32nd birthday of Ringtread retreading system and the 4th anniversary of its introduction into the US on April 27. The very first Ringtread was produced in Ferentino, Italy, on April 27, 1976, and exactly 28 years later the company’s facility in Madison, Tennessee produced the first American made Ringtread retread.

The company reports it marked the occasion with cake, as the Ringtread moulds are too hot for ice cream!

2nd May 2008/by Tyrepress Editors

General Launches Redesigned Web Site

Continental Tire North America has redesigned its General Tire Web site – www.generaltire.com. CTNA said the revised site “supports the revitalisation of the General Tire brand, which includes both its product line as well as the overall look and feel of the brand.” The upgraded site is easy to navigate, CTNA said, and has several new features in addition to the existing tyre selector and dealer locator, tyre registration, educational and customer care links.

1st May 2008/by Tyrepress Editors

BFGoodrich Hits CUV/SUV Segment With New Long Trail T/A

Michelin North America has released the BFGoodrich Long Trail T/A Tour, targeting the growing crossover and small SUV market segments. Available in 35 sizes covering 15 to 20-inch wheel diameters, the BFGoodrich Tires Long Trail T/A Tour features a closed shoulder design with contoured tread blocks for handling and precise cornering, as well as a rigid center rib, siping and rib shifting for positive on-centre feel, all-season traction and a quiet ride, the company said.

1st May 2008/by Tyrepress Editors

RUD-Erlau Delivers World’s Largest OTR Tyre Chains

Following the recent completion of a three year expanion and modernization programme of its Aalen, Germany, tyre protection chain (TPC) production facility; RUD-Erlau delivered and installed two full sets of the world’s largest TPCs last month. Called the R 75S Plus the TPCs have gone into service in both Europe and North America.

In Europe the R 75S Plus are protecting all four 52/80–57 tyres on a CAT 994 loading limestone. The other machine to be shod with R 75S Plus is a giant LeTourneau 1850 working iron ore in North America.

1st May 2008/by Tyrepress Editors

Michelin North America Announces Price Increases

Continuing increases in raw material, energy and transportation costs have been cited as factors for Michelin North America’s most recently announced priced increases for passenger, light truck, earthmover and industrial tyres.

Earthmover and industrial tyre prices, including items on back-order, will increase up to 8 per cent on products sold across North America as of June 1, 2008. Passenger and light truck replacement tyre prices will increase by up to 8 per cent for Michelin, BFGoodrich, Uniroyal, private and associate brand tyres sold in the United States. This increase is effective for all shipments scheduled on or after July 1, 2008.

1st May 2008/by Tyrepress Editors

Hankook Sales Reach $1 Billion in Q1 2008

Hankook has reported year on year sales growth of 18.4 per cent during the first quarter of 2008, delivering the company its first-ever quarterly sales exceeding US$1 billion. The company attained sales of KRW997.3 billion ($1.041 billion). Sales figures for the three-month period included an impressive upsurge in worldwide UHP sector sales of more than 40 per cent and sales to OE manufacturers growing by 15.7 per cent.

Sales to Europe grew by 25.5 per cent year-on-year, boosted by a massive 183 increase in year-on-year sales to the Russian market. Sales to North America also recorded an 18.1 per cent year-on-year increase. In addition, sales to Latin America, Asia-Pacific, Africa and the Middle East increased year-on-year by 22.5 per cent.

1st May 2008/by Tyrepress Editors

Vianor Expands into New Hampshire

The Nokian-owned Vianor tyre retail chain has continued its international expansion following the opening of a new branch in Kazakhstan two weeks ago. This time the Finnish based company has taken steps to increase its presence in North America (specifically New Hampshire, USA). Nokian Tyres has made a partner agreement with Vianor-Concord operated by South East Ventures LLC and given them the right to use the Vianor brand. According to company representatives, Nokian Tyres does not officially own Concord, in contradiction with some local news reports. Instead, the agreement sees Concord Tire and Auto Service, an independent company for 27 years, effectively licensed and rebranded as a Vianor outlet. There are now 6 Vianor outlets in the US.

29th April 2008/by Tyrepress Editors