Sumitomo Sales Drop 24% in Q1 2009
Sumitomo Rubber has seen its sales decrease 24 per cent year-on-year
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Toyo Results Highlight Financial Difficulties
Product NewsToyo Tires has released its consolidated business results for the first three quarters of the 2008 financial year, revealing results down on those a year earlier. Net sales for the nine month period were 269,357 million yen (£1.98 billion), just under one per cent less than for the first three quarters of the 2007 year. Operating income, at 611 million yen (£4.5 million), plummeted 95.3 per cent from last year’s figure of 12,951 million yen, and net loss for the nine month period amounted to 9,990 million yen (£73.57 million) as opposed to 6,946 million yen in 2007.
Could Part Nationalisation Be an Option for Conti?
Product NewsGerman media reports, supposedly quoting industry sources suggest Schaeffler Group is discussing the possibility of either the federal or state governments taking a direct stake in Continental AG. So far, the federal government has clearly rejected such an idea and has only indicated the possibility of potential loans or loan guarantees. Whichever way it goes, we are likely to see the outcome tomorrow 30 January as after the summit meeting between state prime ministers Christian Wulff (Lower Saxony) and Horst Seehofer (Bayern) and German Economics Minister Michael Glos in Berlin.
Meanwhile Reuters reported that Continental AG posted a full-year operating profit margin of 8 per cent in 2008, quoting “several people familiar with the matter.” The sources also said that Continental manager Gerard Cordonnier would be appointed as new Chief Financial Officer of the company.
Bridgestone Operating Profit Anticipated to Drop 15%
Product NewsAccording to Japan’s Nikkei financial daily, Bridgestone expects its operating profit to decrease by 15 per cent to 100 billion yen (£742.7 million) in the 2009 calendar year. The Japanese tyre major anticipates sales will fall about 10 per cent from their 2008 level, to around 2.85 trillion yen (£21.2 billion), reported the newspaper.
On December 22 the company reported an expected 2008 operating profit of 118 billion yen (£876.4 million), significantly down on the 249.96 billion achieved in 2007.
Bridgestone Sustain 40% Hit on Profits
Product NewsBridgestone has announced that its net profit fell 40 per cent in the first nine months of 2009, prompted by diminished demand and inflated raw materials costs. Net profits were down to 49.47 billion yen (317 million pounds sterling; 1 GBP = 156 JPY), from 2007’s figure of 82.34 billion yen in the same period.
Revenue for the company increased 1.3 per cent to 2.5 trillion yen (£16 billion), thanks mainly to the Chinese market, which continues to look relatively solid. However, operating profit was down 26.8 per cent to 119.2 billion yen (£761 million) because, Bridgestone comments, of massive fuel cost increases. US sales have dropped 2 per cent in the period, while Japanese sales saw a small rise of 1 per cent.
Kumho Reports Increased Q3 Net Loss
Product NewsSouth Korea’s second largest tyre manufacturer, Kumho Tire, said on October 21 that its third-quarter net loss had increased from the previous year, the result of rising raw material prices and a tyre surplus. The AsiaPulse news service reports that Kumho recorded a loss of KRW 30.8 billion (£13.6 million) in the three months ending September 30, compared with a net loss of KRW 10.7 in the corresponding quarter of 2007.
Trelleborg Release Half-Yearly Report
Product NewsTrelleborg, the industrial group specialising in advanced polymer and applied technology, has released its six-month interim report. The document supports a view of sustained “favourable growth and improved earnings”.
The Swedish firm, which has operations in 40 countries, has announced that: “The order and delivery scenario remained favourable during the second quarter, with organic growth of 7 percent; Operating profit for the quarter in continuing operations, excluding items affecting comparability, was the strongest to date and increased to SEK 734 M from 596, while the operating margin increased to 8.7 percent from 7.5; Four acquisitions were completed during the quarter, adding combined annual sales of approximately SEK 750 M; and As a result of the restructuring program for Trelleborg Automotive that was announced in April 2008 that affects the Fluid Solutions business unit, operating profit for the quarter was charged with SEK 353 M and SEK 238 M after tax.”
Report: Bridgestone to Announce 26% Profit Fall at Year End
Product NewsBridgestone Corp is expected to announced a sharp fall in group operating profits as a result of rising rubber prices. According to the Nihon Keizai Shimbun daily financial newspaper, Bridgestone could announce a fall of up to 26 per cent in its operating profits compared with the last financial year.
New sources now expect Bridgestone’s group operating profit for the year ending 31 December to fall to about 185 billion yen ($1.74 billion), down from the company’s initial estimate of 195 billion yen. Thomson Reuters estimates put the analyst consensus forecast for Bridgestone’s operating profit this year at about 189 billion yen.
1Q Los for Kumho to be Bigger than Planned
Product NewsKumho Tire Co. told analysts earlier this week that its anticipated first quarter loss will be larger than expected. For the first quarter of 2008, Kumho lost 36 billion won (US$36.2 million), compared with a loss of 14.3 billion won for the same quarter last year. The tyremaker’s year-over-year operating profit, though, was up 30 per cent and sales rose 15.6 per cent. (Tire Review/Akron)
National’s Revie Speaks of a Strong 2007, Confirms Expansion Plans
Product NewsHealthy annual figures for National Tyres and Autocare were hinted at on April 22, along with a confirmation of the company’s intention to invest in expansion. Although the full year 2007 results are as yet available from Companies House, executive chairman Alan Revie disclosed that turnover in 2007 increased 15.8 per cent, from £87.7million to £101.6 million, and operating profit shot up 128 per cent, from £1.45m to £3.3m.
Commenting on the results, Revie said “2007 marked another year of significant progress for the company, and this creates a wonderful platform to launch our ambitious growth plans.” These growth plans, he reiterated, include investing more than £12 million in new outlets over the next five years. Mr. Revie said that although nationwide growth was anticipated, an emphasis on a number of key regions was planned. These areas include the London, the Home Counties, and the West Midlands.
Annual Profits More than Double for Sibur-Russian Tyres
Product NewsSIBUR Holding JSC reports that its Sibur-Russian Tyres JSC (SRT) operation generated 23,777 million roubles (£508 million) in revenue in the year ended December 31, 2007, an increase of 25.2 per cent on the 18,989 million (£406 million) of a year earlier. Operating profit, at 592 million roubles (£12.6 million) was a healthy 212 per cent above the previous year’s figure. In the absence of income tax or other costs, net profit for the year also stood at 592 million roubles.
Broken down into product segment, the total SRT tyre sales of 23,777 million roubles were largely made up of truck tyre sales, which stood at 13,385 million roubles (£286 million), a 26.4 per cent per cent increase on 2006 sales. Passenger car tyre sales, at 6,279 million roubles (£134 million) increased year on year by 27.4 per cent, and other tyre (including aircraft and agricultural) sales increased 18.4 per cent to 4,113 million roubles (£88 million).
Annual Profits More than Double for Sibur-Russian Tyres
Product NewsSIBUR Holding JSC reports that its Sibur-Russian Tyres JSC (SRT) operation generated 23,777 million roubles (£508 million) in revenue in the year ended December 31, 2007, an increase of 25.2 per cent on the 18,989 million (£406 million) of a year earlier. Operating profit, at 592 million roubles (£12.6 million) was a healthy 212 per cent above the previous year’s figure. In the absence of income tax or other costs, net profit for the year also stood at 592 million roubles.
Broken down into product segment, the total SRT tyre sales of 23,777 million roubles were largely made up of truck tyre sales, which stood at 13,385 million roubles (£286 million), a 26.4 per cent per cent increase on 2006 sales. Passenger car tyre sales, at 6,279 million roubles (£134 million) increased year on year by 27.4 per cent, and other tyre (including aircraft and agricultural) sales increased 18.4 per cent to 4,113 million roubles (£88 million).
Hankook Stock Jumps Following Morgan Upgrade
Product NewsHankook Tire’s share price has “jumped” 5.4 per cent following an upgrade from Morgan Stanley. The South Korea-based tyre manufacturer’s share price rose to 15,500 won at closing on 20 February, the largest gain since 18 December. The national Kospi index dropped 1.9 per cent. Morgan Stanley raised its rating on Hankook to “overweight”’ from “equal-weight”’ in a report dated today. “While the market seems nervous on higher raw material prices, we are more comfortable with the company’s ability to protect its margin,” Seoul-based market watchers, such as Jason Kang wrote. “The industry has been maintaining pricing power” through consolidation.
Bridgestone Forecasts Lower Profits for 2008
Product NewsA 32 per cent drop in net profit for this year has been forecast by Bridgestone Corporation – the result, it says, of rising raw material prices. The anticipated fall in net profit to 90 billion yen (£426.3 million) is paired by a forecast 22 per cent decrease in operating profit to 195 billion yen (£923.7 million).
Nokian Annual Results Show Increased Sales & Profits
Product NewsNokian Tyres reports that its net sales increased 22.6 per cent during 2007 to 1.025 billion euros. During this period the company recorded an operating profit of 234 million euros, a 52.8 per cent rise on that of the previous year. During the year earnings per share also increased 55.7 per cent from 0.88 euros to 1.37 euros, and profit for the period was 168.9 million euros, up 57.4 per cent from 107.3 million euros a year earlier.
