North America
After months of protracted negotiations, the Goodyear Tire & Rubber Co. and the United Steel Workers of America (USWA) arrived at a draft agreement for a new labour contract, designed to last three years and covering 16,000 Goodyear associates in the USA.
From October 1st, Pirelli Tire North America is to increase passenger car and light truck tyre prices. The price increase is prompted by rising raw material costs and will vary by product offering, reaching a maximum of four per cent.
Continental Tire North America, Inc. has announced that it will supply the all-season tyres for the Chrysler Crossfire, the high-performance coupe that debuts with the 2004 model year. The Crossfire will be equipped with Continental ContiTouringContact CW95 tyres. “The Chrysler Crossfire is a high-performance vehicle, and a critical part of fulfilling that product promise is using tyres that help improve safety and enhance the driving experience,” said Andreas Gerstenberger, vice president of CTNA’s original equipment business.
In a groundbreaking move at Goodyear the company has agreed to giving the United Steelworkers of America a seat on the board of directors. In return, the union members will give up raises for three years, pay more for health care and accept smaller pensions. Those are key points in a contract agreement reached last week by the company and the United Steelworkers of America. Union members will vote on the contract by mid-September.
If early-season prognostications from the US National Weather Service ring true, American motorists may be in for an extra-snowy winter in many parts of the country. Goodyear officials say they’re ready for an early snowfall. Goodyear’s family of Ultra Grip winter tyres offers motorists a range of choices for seasonal tyres. The Eagle Ultra Grip GW-3 features Goodyear’s innovative V-TRED technology, which aids in dispersing water and slush from the tread. The new 3D-BIS technology provides high tread blade density and additional biting edges while maintaining block stiffness. This translates into increased grip in snow and ice, but with controlled wet and dry steering stability. A rim flange protector helps to protect expensive custom wheels from potential kerb and pothole damage during the winter. The Eagle Ultra Grip GW-3 is available in North America in 21 sizes, ranging from 15- to 18-inch rim diameters, and in aspect ratios from 65 to 35.
Continental’s 2Q results have exceeded the forecasts of industry experts.
Compared with 2Q 2002, turnover was down 3.4 per cent to 2.825 billion Euro
(2.925 bn), but operating income rose 11.3 per cent to 216 million Euro
(194 m). The group’s operating margin was 7.6 per cent and, while the car
tyre and truck tyre divisions were slightly below this (6.7 and 7.4 per
cent). ContiTech and Continental Automotive Systems achieved 8.5 and 9.0
peer cent respectively. Conti’s CFO Dr. Hippe was cautious about the
second half of the year, although he said that annual operating profits
could “considerably exceed” the stated target of 700 million Euro.
Michelin has released financial figures for the first half of the year. Sales were down 6 per cent to 7.348 billion Euro, but excluding currency effects, this would be a rise of 4.4 per cent. Operating profit rose one per cent to 578 million Euro and net income was 165 million Euro; below what was expected, but this was almost entirely due to charges of 178 million Euro for restructuring in Spain. Truck tyre sales were better than expected, while car tyre revenues were worse. Michelin’s debt increased by 0.1 billion Euro to 3.9 billion, due largely to the acquisition of the Viborg chain.
Goodyear’s second quarter (Q2) figures reveal that the company lost $73.6 million, compared to a net income in Q2 last year of $28.9 m. Sales were up nearly 8 per cent at $3.8 billion (3.5 bn), but volumes were down half a million units to 52.8 million pieces. Chairman and CEO Robert J. Keegan described the results as „disappointing“, but said he was encouraged by the „numerous positive trends„ (notably operations outside North America) and he was „optimistic“ about the turnaround plans.
The Trelleborg Group has signed an agreement with Smiths Group Plc of the UK to acquire its operations in polymer-based precision seals (Polymer Sealing Solutions – PSS). PSS has annual sales of approximately SEK 5.5 billion (599.37 million Euro) and some 6,000 employees, mainly in Europe and North America. Following the acquisition, the annual sales of the Trelleborg Group are expected to total SEK 22.5 billion (2.45 bn Euro), with approximately 21,000 employees in some 40 countries. The acquired operations will form a new business area within the Trelleborg Group.
Figures show that Trelleborg Wheel Systems achieved sales for the first half of the year of 1,470 million Swedish Kroner (SEK), or 160.2 million Euro. Operating profit was up 33 per cent to SEK 84 million (9.15 m Euro), compared with last year’s first half figure of SEK 63 million (6.87 m Euro). During the second quarter, turnover was SEK 713 million (77.7 m Euro) and operating profit was SEK 39 million (4.25 m Euro).
Bandag, Incorporated has reported consolidated net income of $8.7 million, or $0.45 per diluted share for second quarter 2003, compared to second quarter 2002 consolidated net income of $11.7 million, or $0.57 per diluted share, a decrease of 26% and 21% for consolidated net income and diluted earnings per share, respectively. Second quarter 2003 results were reduced by approximately $2.2 million due to net foreign exchange losses. Second quarter 2003 results were also reduced by approximately $1.5 million in net charges related to Bandag’s distribution subsidiary, Tire Distribution Systems, Inc. (TDS), for store divestitures and a real estate impairment charge. Consolidated net sales for second quarter 2003 were $204.1 million, a decline of approximately 12%, compared to consolidated net sales of $231.1 million in the prior year period.
Cooper Tire & Rubber Company has reported results for the second quarter of the year. Net income was $13 million, compared with the all-time record earnings of $39 m for Q2 last year. Turnover was up slightly at $840 m ($836 m) and operating profit was $38 m. The Tire Group reported turnover up 4 per cent to $432 m ($414 m) while operating profit declined to $14 m from $37 m in Q2 2002. The high cost of raw materials was blamed. Overall, unit sales of Cooper brand tyres rose 8 per cent in the quarter.
In North America, Ford and GM are encouraging their suppliers to produce more parts in China, not only to support locally-made vehicles, but to enable them to match a “world price”, based on a Chinese price. The companies offer a deal where, if a supplier builds a factory in China, it can sell to Ford and GM factories in North America. GM Europe denied that it was pressurising suppliers to re-locate, although if a supplier asked GM how he could cut costs, he might be advised to move to China or Korea.
OE manufacturer readers of the magazine “Automotive Industries” have voted for their top suppliers. More than 1,000 replied and a list of the “Ai Fab Fifty” has been compiled. Tyre manufacturers in the list are Bridgestone/Firestone Inc., Goodyear and Michelin North America Inc. Other companies which will be familiar to our readers include Continental Teves, Hayes Lemmerz and ArvinMeritor Inc. Of the companies mentioned, ArvinMeritor was the only one to make the top ten list.
The new Pirelli North America Tyre factory at Rome, Georgia has been named as the recipient of the 2003 Robots & Vision User Recognition Award for its MIRS robotic tyre manufacturing process. Pirelli is the fourth winner of the award, which is presented every two years at the International Robots & Vision Show and Conference.
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