North America
(Akron/Tire Review) Continental AG’s chief financial officer claimed yesterday that the German tyre and auto system maker has at least 3 billion euros in a ‘war chest’ to finance future acquisitions. Company CFO Alan Hippe, who is also president of Continental Tire North America, made the remarks in an interview with Handelsblatt newspaper.
(Akron/Tire Review) Continental Tire North America has broadened its General Exclaim UHP ultra high performance tyre line with additional sizes. The line extension includes sizes 195/50R15 82V, 205/50R15 86V, 195/55R15 85V, 205/50R16 86V, 205/55R16 91V, 215/55R16 93W, 275/40R18 99W, 245/35R20 95W and 245/40R20 99W. Two additional sizes, the 225/50R16 92W and 275/40R17 98W will be available in October, the company said.
Hercules Tire International, based in Kitchener, Ontario, Canada, is the largest independent tyre exporter in North America, with warehouses in Canada, the USA and China. The company’s export lines cover a vast range of different brands, prices and grades of tyre, from passenger car and light truck tyres to very large off-the-road and speciality tyres. Hercules’ own brands include Hercules, Merit, Electra and Ironman – all of which are manufactured in the USA and China.
Godyear Tire & Rubber Co today reported second quarter sales of $5.1 billion (up 3 per cent on 2005), a record for any quarter. Segment operating income reached $267 million, with net income amounting to $2 million. According to the company, the sales growth reflects improved pricing and product mix driven by demand for the company’s branded tyres in the consumer replacement markets, and the favourable impact of currency translation. Revenue per tyre increased 7 per cent compared to the second quarter of 2005.
(Akron/Tire Review) Continental Tire North America (CTNA) announced today that it has decided to close its former Mayfield, Kentucky., tyre plant. The plant, which has only served as a warehouse and rubber mixing facility since CTNA ended tyremaking there in December 2004, will be shuttered completely within six months, the company said.
(Akron/Tire Review) On the same morning that its chairman, president and CEO resigned, Cooper Tire & Rubber Co. released its first half and second quarter 2006 financial results. For the first half, the company posted sales of $1.2 billion, up 19 per cent over the same period last year. But Cooper posted a net loss of $26 million for the half. Second quarter sales of $625 million were up 22 per cent year-to-year, and were driven largely by Cooper’s business in China, the company said. Cooper acquired Cooper Chengshan (Shandong) Passenger Tire Co. and Cooper Chengshan (Shandong) Tire Co. in February.
(Akron/Tire Review) Titan International has officially completed the purchase of Continental Tire North America’s OTR tyre plant in Bryan, Ohio. Titan said the purchase price was $53 million. According to Titan, the plant employs 325 people and had 2005 sales of $125 million.
(Akron/Tire Review) United Steelworkers Local 890 approved a new four-year master contract with Titan International, clearing the way for Titan to acquire the Continental Tire North America’s Bryan, Ohio, OTR tyre plant. The contract was ratified during a two-day vote by membership over July 29-30, with more than 80% approving the deal.
(Akron/Tire Review) Continental Tire North America and Bridgestone/Firestone North American Tire have both announced prices increases. CTNA said it is increasing prices on all Continental, General, Semperit and private brand medium truck tyres by up to 5 per cent, effective 1 August.
BFNAT said it will boost prices on its Bridgestone, Firestone, Fuzion, Dayton, associate and private brand tyre lines by up to 4 per cent, effective 1 September. The increase includes OE, replacement and export sales, and covers passenger, light truck/SUV, medium truck, agricultural and OTR tyre lines.
(Akron/Tire Review) Michelin North America said today that it is raising prices on all of its replacement market passenger and light truck/SUV tyres sold in the U.S. by 3 per cent. The increase will be effective Oct. 2.
(Akron/Tire Review) Goodyear Tire & Rubber Co. yesterday announced that as of Aug. 1 it was raising prices on its medium truck tyre lines by as much as 5 per cent. In addition, Goodyear also hiked prices on its retread products sold in North America by up to 5 per cent as of July 1. The increase, due to raw material, energy and transportation costs, covers the company’s Goodyear, Dunlop and Kelly-Springfield brands.
Michelin and the United Steelworkers on Tuesday reached a tentative agreement on a new contract for hourly workers at three of its BFGoodrich tyre plants in the United States. Details of the agreements, which cover about 3,450 workers, will not be released until the union has completed ratification votes, Michelin spokeswoman Lynn Mann said. The contracts covering the Michelin union workers in North America were to expire at midnight on July 22, but both sides had agreed to temporary extensions while talks continued. The agreement covers two of Michelin’s BFGoodrich plants in Alabama and one in Indiana and is to be used as a template for contract talks with Goodyear Tire & Rubber Co. and Bridgestone Corp. in North America.
(Akron/Tire Review) Officials of United Steelworkers Local 890, representing Continental Tire North America’s Bryan, Ohio, OTR tyre plant, say they are close to finalizing agreements that will clear the way for Titan International to buy the facility. As per its contract with the union, before CTNA can sell the plant the USW must settle on a new master contract with the buyer – in this case Titan – presuming the new deal will be at least equal to its current contract.
(Akron/Tire Review) The United Steelworkers’ (USW) master contracts with Michelin North America, Goodyear and Bridgestone/Firestone expired Sunday at midnight without incident and without a walkout by union workers. But twice over the weekend the union and Michelin agreed to extensions of their contract – one 24-hour extension on Saturday and a 48-hour extension on Sunday. The contract, which covers Michelin’s unionized plants in Tuscaloosa and Opelika, Ala., and Fort Wayne, Ind., is now scheduled to end at midnight on July 25.
Jaguar Cars has selected two Dunlop SP Sport performance tyres for its new supercharged XKR, a 420-horsepower sporting Grand Tourer. Dunlop tyres, standard on the 2007 Jaguar XK, have also been specified for the XKR, which delivers 120 more horsepower. The XKR will jet to 60 mph in 4.9 seconds; the car arrives in showrooms by year’s end. The convertible model takes 5 seconds.
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