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Alliance Tire: The agricultural specialist

Alliance Tire has some unusual barriers to overcome in its search for continued success. However the Israeli tyre manufacturer is focussed and determined to grow.

Most tyre manufacturers have the ability, in today’s global market, to sell anywhere in the world, certainly to their neighbours. Alliance is denied that opportunity by being an Israeli company. Yet despite being perhaps a key industry in Israel, Alliance still has to operate on a free market basis. Denied access to the obvious Middle East market, for reasons we may not always comprehend but certainly cannot have failed to have noticed over the past 50 plus years, Alliance has to work doubly hard to gain market share. That takes determination. It takes loyalty. There is no possibility of failure, therefore everyone must work to win. To understand that drive is to understand why Alliance Tire, a small, single plant manufacturer in a beleaguered state, has the potential not only to survive but to take a leading role in its chosen market sectors.

Alliance has long taken the view that developing niche products for specialist markets is the way to proceed. It has therefore developed its own technology and products to gain respect and a leading market share in its chosen agricultural sector. The requirement to develop and refine placed a burden on the company loans. However, with the appointment of Joseph Anglister as General Manager there was a turnaround in fortunes at Alliance and once more the company was back in operating profit. The turnaround came as the result of efficiencies created by the investment allied to a reduction in the workforce. Today the Alliance workforce has vastly improved its efficiency in production. However, the investment continues and next year will see the installation of a new state of the art calendaring line for inner liners.

28th January 2004/by Tyrepress Editors

Hankook disappoints in 4Q03

Hankook Tire’s operating profit for 4Q03 came in at 21.3bn Won (14.39m Euro), 59 per cent lower than IBES consensus estimates of 51.2bn Won (34.595m Euro). 4Q03 net profit was also thin at 1.9bn Won (1.184m Euro), disappointing street forecasts by a whopping 94 per cent. Operating profit also fell below consensus estimates for the full year, coming in at 170.4bn Won (115.147m Euro). There appear to be three key reasons for the disappointment: payment of 25bn Won (16.894m Euro) in bonuses during 4Q; a sharp increase in freight rates (increased by 52 per cent YoY); and a general rise in most raw material costs. Discounting the bonus figures, the company would have met estimates.

27th January 2004/by Tyrepress Editors

Hankook Tire on target for Q3

Hankook Tire has announced its third quarter results, which prove its strong earnings growth stories. Its net profit was improved by 91.6 per cent YTD. A slight slowdown of its 3Q numbers came mainly from fewer working days. Hankook exhibited another good profitability growth again. Despite its YTD sales growth being at only 9.1 per cent, its operating profit was enhanced by 108.2 per cent YTD and its net profit improved by 91.6 per cent. Meanwhile, there was a slight slowdown of numbers on a QoQ basis, down 7.3 per cent in sales growth and down 0.7 per cent in operating profit. Such a decline was partially due to no sales contribution from apartment sales. But the bigger reason comes from fewer working days in 3Q03 (minus 10 days in YoY). As the company has three-shift production and its fixed cost burden amounts to 55 per cent (largely from depreciation, salaries and others), the fewer number of working days enlarged fixed cost burden and its operating profit was slightly decreased by 0.7 per cent QoQ.

14th November 2003/by Tyrepress Editors

Tom Dattilo: “The customer is king”

US tyre maker Cooper is a phenomenon. During the last ten years it achieved the – relatively speaking – best profits with an operating profit of clearly more than ten percent. But today this is different. The difficult American market, as well as higher raw material prices, have had an effect on Cooper’s operating profit too. But, during this year, and in particular during the recent months, Cooper has made good progress. Cooper is rather successful in the retail business because the company is only engaged in the replacement market and does not have its own sales chain. Talking to TYRES & ACCESSORIES at the SEMA show in Las Vegas, Cooper’s chairman Tom Dattilo explains the key to success: “We treat our clients well, the customer is king and we deliver the best products with a consistent product and brand strategy.” Dattilo confirms again that Cooper will sell up to 4.5 or 5 million tyres extra during next year. While competitors like Goodyear and Continental close plants in the US or reduce their production capacities, Cooper only has one problem: where can we produce the additional quantity of tyres?

12th November 2003/by Tyrepress Editors

BMW meets expectations

BMW’s 3Q results were in line with analysts’ expectations, with revenue down slightly (0.3 per cent) at 9.945 bn Euro and operating profit eight per cent higher than expected, at 762 million Euro. On the positive side, the product mix improved, with increased volume for the 5-series and X5, while on the negative side, R&D costs increased as a percentage of sales, reaching 5.4 per cent.

6th November 2003/by Tyrepress Editors

Honda net profit up 58 per cent

Honda’s net profit for the third quarter was up 58 per cent to 137.36 billion Yen (1.08 bn Euro). The main reasons were strong sales of the Accord in China and the USA, plus good US sales of the Pilot and Element SUVs. Operating profit was down slightly at 151.69 billion Yen (1.2 bn Euro), compared with 153.05 billion Yen for the same period last year. Despite the good figures, Honda says that full year revenue will probably be lower than forecast, due to unfavourable currency movements and continued low sales in Japan.

30th October 2003/by Tyrepress Editors

Cooper does well in magazine survey

Cooper Tire & Rubber Co. has been ranked 19th in the list of Most Successful Engineering Companies, compiled for the trade publication The Engineer. The performance of 900 companies with facilities in the UK were rated on such criteria as percentage change in turnover and operating profit and earnings before interest, tax, depreciation and amortisation (EBITDA). The survey also concluded that the most successful companies view R&D as a function vital to the success of a company rather than an expense off the bottom line.

23rd October 2003/by Tyrepress Editors

Cooper 3Q figures – sales up, profits down

Cooper Tire & Rubber has published its third quarter figures. Sales totalled $913 million ($839 m in 3Q 2002), with tyre sales a record $526 million – 13 per cent up on the 3Q 2002 figure of $464 million. Operating profit on tyre sales was $34 million ($27 m). Despite these good sales figures, profits were hit as, overall, Cooper’s net income was $18 million, compared with $23 million in 3Q last year. Looking ahead, chairman, president and CEO Thomas A. Dattilo said that the company was “optimistic about improving conditions in the tyre industry. We expect the improving economy and consumer confidence to spur increasing replacement tyre demand.”

17th October 2003/by Tyrepress Editors

Operating Profit for Hayes Lemmerz emerging from Chapter 11

Hayes Lemmerz International, Inc. has announced that it posted operating income of 51.6 million dollars for the second quarter ended July 31, 2003, these include costs related to the Chapter 11 period. This is a big improvement from a previous year’s loss of 12.6 million dollars, which also included expenses related to the Company’s Chapter 11 reorganization. Earnings from operations excluding these items was 20.4 million dollars in the current quarter, compared with a year earlier loss of 7.2 million dollars. Gross profit margin increased to 11.2% in the second quarter of 2003 from 7.6% in 2002.

17th September 2003/by Tyrepress Editors

Good Quarter For Nokian

Nokian Tyres has released its figures for the first quarter of the year. Turnover rose 13.2 per cent to 95.7 million Euros (1Q 2002: 84.5 m). Group operating profit was 3.2 million Euros (1Q 2002: – 1.0 m) and the manufacturing operating profit was 11 million Euros, with the Vianor tyre chain making a loss of 5.2 million Euros. This latter figure was an improvement of 1.5 million Euros over 1Q 2002. Group profit before taxes was 1.6 million Euros, compared with a deficit of 4 million Euros for the same period last year.

6th May 2003/by Tyrepress Editors

Nissan Clears Debts – Operating Margin Best In Industry

Three years ago, Nissan had debts of 2,100 billion Yen ($17.4 billion) but the company has recently announced a cash surplus of 8 billion Yen. Last year’s operating profit was a record 737 billion Yen (5.5 bn Euros); an increase of over 50 per cent. Net profit was up 33 per cent, at 495 billion Yen (3.7 bn Euros). In addition, Nissan’s operating margin of 10.8 per cent is the highest in the industry. Chief Executive Carlos Ghosn forecast higher operating profits and increased unit sales for the year ahead.

24th April 2003/by Tyrepress Editors

Profit For Vredestein

Vredestein has released preliminary annual figures for 2002, showing a net profit of 12.7 million Euros, although this figure includes extraordinary income of 1.6 million Euros and a one-off tax benefit of 1.5 million Euros. Group turnover was down slightly to 300 million Euros (2001: 305 m), but the operating profit of 14.7 million Euros marks a turnaround from 2001, when Vredestein recorded a 7.8 million Euros loss.

18th February 2003/by Tyrepress Editors

Cooper Net Income Rises In Fourth Quarter

Cooper Tire & Rubber has reported a 50 per cent rise in net income in the 4th quarter of 2002, compared to the same period in the previous year. Net income was $23 million on a turnover of $842 million (4Q 2001: $16 m/$777 m). For the year, the Tire Group posted a turnover of $1.8 billion ($1.7 bn) with unit sales up 5 per cent and the operating profit rose 88 per cent to $137 million, although the 2001 figure was affected by class action settlement charges totalling $72 million. Excluding these charges, operating profit for the year declined by $8 million or 5 per cent. Sales for the Automotive Division last year rose 7 per cent to $1.6 billion. Thomas A. Dattilo, Cooper chairman, president and CEO, said that the group had achieved its targets for the year and the outlook for 2003 was “challenging”.

7th February 2003/by Tyrepress Editors

Cooper Third Quarter Sales And Profits Up

Cooper Tire & Rubber has reported its third quarter figures. Net sales were up 6 per cent to $839 million (3Q 2001: $791 m). Operating profit was $55 million and net income was $23 million, 28 per cent up on the 3Q 2001 figure of $18 million. Comparing the first nine months with the same period last year, net income rose 87 percent, from $47 m to $88 m, while operating profit was $195 m, compared to $137 m. Cooper’s tyre sales in North America declined by one per cent during 3Q, but this compared to an industry decline of nearly 8 per cent. Operating profit for the tyre group in 3Q was $27 m. This compares to a loss in 3Q 2001 of $9 m, but this figure was affected by charges related to a proposed class action litigation settlement.

30th December 2002/by Tyrepress Editors

Tyre Figures Good, But Telecoms Hurt Pirelli

A two-thirds fall in the world Telecom market has meant a drop of 90 million Euros in profit before interest and tax for the Pirelli group in the first half of 2002. Turnover was down 11.9 per cent to 3.35 billion Euros, compared with 1H 2001 and group operating profit fell 35 per cent to 278 million Euros. The tyre sector performed well, particularly in the high performance segment, but this was not enough to offset what Pirelli describes as “the unprecedented crisis” in the world telecoms market. The group is carrying out a “cost containment exercise” which it says has resulted in efficiencies totalling 90 million Euros in the first half.

1st August 2002/by Tyrepress Editors