Prices for Yokohama’s consumer segment tyres will increase by up to eight per cent as of March 1. Yokohama Tire Corporation says the price rise will include passenger car, high performance and light truck tyres and that other in-line adjustments will be announced at a later date.
Compagnie Generale des Etablissements Michelin has announced that the tyre major’s sales shot up 20.8 per cent in 2010, while operating income swelled to 1.695 billion euros, representing a 9.5 per cent operating margin. Net income totalled 1.049 billion euros. According to Michelin the growth was driven by a 13.4 per cent increase in sales volumes, led by the group’s global presence and the rebound in mature markets. However managing partner Michel Rollier warned investors “In light of our capital expenditure commitments and the increase in raw materials costs, free cash flow is expected to be temporarily negative in 2011.” Nevertheless, Michelin confirmed its objective of generating positive free cash flow over the entire 2011-2015 period.
The manufacturer also sought to emphasise its “responsive pricing policy” in the face of rising raw materials costs; sustained productivity gains and cost discipline; not to mention “robust free cash flow.” At the same time the company proposed a dividend of 1.78 euros subject to approval.
Analysts chided Hankook Tire’s fourth quarter financials as “as expected…weak fourth quarter results.” In an investor’s note published during the week commencing 31 January, Deutsche Bank wrote that the figures were “in line with our expectations, but…30 per cent lower than consensus.”
The underwhelming performance was put down to the continually rising natural rubber prices: “Tyre makers are generally guiding for rubber prices to remain strong over the next 6-12 months and average selling price hikes remain the only way to protect margins.”
Kumho Tire USA is raising its prices on some of its rannge by an as-yet undisclosed amount on 1 March. Kumho said increases will affect all passenger, light truck/SUV and medium truck tyres. The company concluded its statement by saying the exact details of the increase "will be provided to our clients in the near future.”
An experimental 40 tonne truck running on xlite wheels has achieved a fuel consumption improvement of more than 20 per cent during a trial conducted on the continent. According to xlite distributors Motor Wheel Services, the test was conceived by Andreas Loechter, managing director of Lifetime Technologies GmbH in Germany, using a standard MAN 446hp SZM TGX 18.440 XLX tractor unit, a Krone Profi Liner Eco trailer, xlite wheels and Michelin low rolling resistance tyres.
Bridgestone’s decision to impose a drastic 12 per cent increase of North American truck and bus tyre prices in only likely to recoup roughly a fifth of the increased rubber costs the tyre manufacturer has had to pay recent, Deutsche Bank analysts reported.
Lodge Tyres technician John Lane, based at the firm’s Walsall branch, recently became the 500th technician to attend and pass the Vehicle Roadside Technician training provided by Bridgestone UK Ltd, training department.
Sales for Yokohama Rubber’s tyre operations increase 13.7 per cent in the first nine months of the fiscal year ending March 31, 2011, the company reports. During the nine months to December 31, 2010 Yokohama recorded tyre business sales of 310.2 billion yen (₤2.36 billion) and operating income of 23.2 billion yen (₤176.42 million), up 37.4 per cent year on year. The company reports this sales growth came through gains both in its domestic Japanese and international markets and it more than offset the adverse effect on profitability caused by rising raw material prices as a strengthening yen. Domestic market sales were helped by an economic rebound and heavy snows, which prompted strong winter tyre sales, while overseas growth was most notable in the US and China.
UK two-wheel tyre distributor Bike Tyrestore has announced a new round of price increases from manufacturers Continental and Sava. Continental motorcycle and scooter product prices are to increase by a figure reported to be around 5 per cent. Sava, continues Bike Tyrestore, will implement its price increase selectively on the back of the continuing rise of raw materials costs. Both brands will sell at the increased prices from 1 February, 2011.
Approaching its first birthday, Stoke-on-Trent tyre retailer For Tyres has been chosen as one of three finalists for the Sentinel Business Awards in the Start-up Business of the Year category. The winner will be announced at the awards presentation dinner on 29 March, one of the county’s most prestigious business events of the year.
Renault has announced that it will become the first vehicle manufacturer to offer its customers an own-branded tyre, when its Motrio range is released to UK Renault dealers on 1 February. The manufacturer is pitching the budget segment tyre to drivers of “older Renault vehicles, with prices starting at £36 per tyre fully fitted”. Renault recently lowered its new car prices by up to £2,000, and it says the own-brand tyres will “help drive down the cost of motoring” further. The manufacturer says the Motrio range “has been tested to Renault’s strict specifications to ensure owners can be certain that the performance of the tyre is in harmony with their vehicle”.
Nankang Rubber Tire representatives have reported an increase in sales of 28.7 per cent in 2010, making it “a record year” for the company. Despite the appreciation of the Taiwan new dollar’s exchange rate, Nankang says it achieved a 28.7 pr cent increase in operating income year-on-year, having reached figures of 13,618,253 thousand Taiwan dollars (£468.9 million) in comparison with 10,581,829 thousand Taiwan dollars (£364.7 million) in 2009.
Cooper Tire & Rubber Co. is raising prices on all of its passenger and light truck/SUV tires as of 1 February, reports Tire Review. The increase will reach a maximum of 2.5 per cent, the company told dealers.
Vehicle accessory company Ring Automotive has released a new range of tyre pressure gauges intended to help motorists reduce fuel costs and tyre wear. A total of four gauges are available in the Ring Tyre Gauge line-up and each of these complements the Ring compressor range launched in 2009.
The cost of natural rubber price has reportedly doubled in 2010 and is said to have increased a further 15 per cent during the opening weeks of January 2011, according to an equity research note published by Deutsche Bank analysts Gaetan Toulemonde. So far this month natural rubber costs have continued to surge to US$5.7/kg, a new record high.
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