North America
(Akron/Tire Review) Groupe Michelin reported an increase of 4.5 per cent in net sales for the current third quarter, compared to the third quarter of 2004. In North America, the passenger and light truck tyre replacement markets experienced a 2.6 per cent growth year to date September 2005, compared to 2004, Michelin reported.
The Yokohama Rubber Co, Ltd has announced a 2.3 per cent increase over its initial forecast for the first half of 2006 (1 April 2005 to 30 September 2005). This means the company expects to record 200 billion yen in net sales, 3.5 billion yen increase in ordinary profit (a 133.3 per cent increase) and 13 billion yen in net income (up 8.3 per cent). According to Yokohama, these upward revisions reflect an increase in the volume of sales in the company’s overseas tyre business, profit improvements in North America, and the weaker-than-expected foreign exchange rate of yen.
(Akron/Tire Review) Toyo Tires International has begun “prototype tyre production” at its Toyo Tire North America (TTNA) plant in White, Georgia. The first test tyres rolled off the line on 10 October, just a year after ground was broken for the highly automated plant. Toyo officials said that upon completion of product quality checks and performance tests, TTNA will launch commercial production in early 2006. The plant will have an initial capacity of 2 million passenger and light truck/SUV tyres per year.
Deutsche Bank analysts have published a “buy” rating for shares in Sumitomo Rubber Industries. The bank says it sees potential for the company’s share price to grow in the region of 20 per cent. “SRI’s earnings are much better than expected and the acquisition of TBC Tyres in North America through Sumitomo Corporation brings additional positive aspects,” Deutsche Bank representatives reported.
At the same time the bank’s analysts lowered their expectations for Cooper shares and issued a “hold” rating for the company’s stock. Analysts from Deutsche Bank lowered their expectations to $13.50. “Due to weaker demand the company is obviously not meeting the turnover target this year,” the analysts commented.
(Akron/Tire Review) Continental Tire North America Inc (CTNA) said it has begun negotiations with the United Steelworkers (USW) for a new labour agreement at its Charlotte, NC tyre manufacturing plant.
The current labour agreement, initiated on 20 September 1999, does not expire until 30 April 2006, according to CTNA, but the tyremaker wanted to begin negotiations now to “address high manufacturing costs,” the company said.
SmarTire Systems Inc has announced that it has signed a contract with Dana’s Commercial Vehicle Systems group to market and sell SmarTire’s tyre pressure and temperature monitoring systems to the commercial truck, bus and RV markets.
International ratings agency Fitch Ratings has said that the settlement between Bridgestone and the Ford Motor Company could pave the way for Bridgestone to improve profitability in its US operations. The settlement, which is in relation to the infamous “August 2000 Firestone/Ford Explorer Tyre Recall” problem, will have a negative effect on Bridgestone’s financial position in the short term. Despite this Fitch affirmed Bridgestone’s senior unsecured foreign currency rating at ‘A’ with stable outlook and short-term rating at ‘F1.’
(Akron/Tire Review – Freeport Journal Standard) The $18 per share “cash merger” offer by an New York private equity firm for Titan International apparently caught the United Steelworkers (USW) well off guard, leaving the national union and its Freeport, Illinois, local scrambling for information.
(Akron/Tire Review) Former Continental Tire North America executive Jim Seidel has been named vice president and chief operating officer Stamford Tires & Wheels Inc a North American subsidiary of Singapore-based tyremaker Stamford Tyres Corp Ltd.
(Akron/Tire Review) Titan International Inc says it has received a “cash merger offer” from a private equity group. The $18 per share offer was made, according to Titan, by One Equity Partners LLC, which is affiliated with JP Morgan Chase & Co. Based on the number of outstanding Titan shares available, the deal is likely worth about $350 million.
As a consequnce of the continuing cost increase of the sector’s key raw materials and energy, Pirelli Tyre has announced an increase of its list prices, differentiated by area and segment.
The increase will be 4.5 per cent in Europe and North America for car, SUV and commercial vehicle tyres, and all Group brands; and 6 per cent worldwide for all Motorcycle Tyre brands.
A prototype hybrid U.S. Air Force aircraft refueller truck built on a Mack Truck chassis features a new mixed-service tyre from Goodyear.
Goodyear Unisteel G287 MSA tyres (315/80R22.5) are mounted in the steer position on the 6,000-gallon refueller. Mack Trucks Inc. and the U.S. Air Force Advanced Power Technology Office developed the hybrid diesel-electric truck. Eight Goodyear Unisteel G286 tyres (12R22.5) are mounted on the vehicle’s rear drive axles.
(Akron/Tire Review) The merger of Galaxy Tire & Wheel Inc. and Dynamic Tire Corp. has been completed, resulting in the creation of GPX International Tire Corp. The Boston-based Galaxy Tire and Toronto-based Dynamic Tire announced their merger plans this past June.
Combined as GPX, the companies will post some $300 million in sales for 2005, officials said, and will have operations in North America, Europe and Asia. GPX officials said that the new firm will market Galaxy and Primex brands as its “flagship” tyre brands.
Continental Tire North America has announced that it is increasing prices on its replacement passenger and light truck/SUV tyres by up to 8 per cent. However, the increase is not due to take effect until 1 January 2006. The price increase includes all Continental, General and private brand tyres.
Less than a month ago, Continental announced a second price increase in the US (passenger and light truck tyres), of between 3 and 8 per cent, which became effective 1 October after a 6 per cent rise last February. Analysts expect Continental and the industry in general to fully offset raw material price increases.
(Akron/Tire Review) The United Steelworkers (USW) and Continental Tire North America (CTNA) reached an agreement for CTNA to provide “enhanced severance benefits” to hourly workers who lost their jobs when the tiremaker suspended production at its Mayfield, Ky., tire plant last year. The tentative agreement was finalized 15 September, and the ratification vote was held 30 September.
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