Hayes Lemmerz Tightens its Belt
Hayes Lemmerz International, Inc’s second quarter results show that the company has felt the consequences of increased steel and iron prices and lowered OEM production requirements in North America.
Hayes Lemmerz International, Inc’s second quarter results show that the company has felt the consequences of increased steel and iron prices and lowered OEM production requirements in North America.
Continental’s shares prices reached historically high levels last week. The influential automotive supplier’s impressive share prices are attributed to the company’s strong first half earnings, which have increased 46 per cent at the operating level.
At the same time French car manufacturer, Renault, has achieved a similarly impressive share price. According to analysts, the results are due to the car manufacturer’s Megane II and the recently launched Modus model.
Continental Tire North America has announced that its Eco Plus truck tyres are now a published option at all Volvo Truck dealerships nationwide.
“Rising fuel prices have increased the importance of finding ways to lower operating costs and improve the bottom line,” said David Misbrener, CTNA account manager for Volvo Trucks North America. “Continental’s Eco Plus tyre technology provides impressively low rolling resistance for excellent fuel economy and long original mileage. We are very pleased that this premium line of tyres is now also available at Volvo dealerships for fleets trying to find a way to lower their operating costs.”
According to the company tests conducted at its Uvalde proving grounds (SAE fuel consumption test J1264) show that, with Continental HSL Eco Plus tyres in the steer position and the HDL Eco Plus tyres on the drive axle, fuel mileage is increased by up to 7.2 per cent over conventional tyres
In a recent interview Goodyear Tire & Rubber Co’s CEO Robert Keegan has told Germany’s daily Frankfurter Allgemeine Zeitung that the company needs three years to get its US tyre business back on track to healthier profits.
Mr Keegan is reported to have said that Goodyear’s European business was making better progress. The company hasn’t posted a consolidated net profit since 2000, however it managed to record profits in the second quarter from North America and other regions.
Bridgestone Corporation has announced its first half results showing increased sales figures almost across the board.
Goodyear Tire & Rubber has announced that it will raise prices on its consumer, commercial, farm and OTR tyres, effective the 1 September.
Consumer tyre prices will increase by up to five per cent and commercial tyre prices by two per cent. Farm tyre prices are set to go up by five per cent and OTR tyre prices will rise between three and five per cent.
According to a Goodyear spokesman all brands will be affected by the price increase. Company officials are citing escalating raw material costs, higher energy rates and rising transportation costs as the reasons behind the price rises.
Pirelli has announced its preliminary first half results showing what it claims as “a strong improvement of all economic indicators.” While the results were in line with 2004-2006 targets, its net financial position is negative by approximately 2,050 million euros, against 1,745 million euros at year end 2003.
Kumho Tire USA Inc is to increase prices on all of its tyres, effective of the 1 October.
Prices of the company’s passenger, light truck and commercial truck tyres will increase anywhere from three per cent to five per cent, depending on the model.
David Hudrlik, vice president and director of sales, referred to escalating raw material prices and rising shipping costs as the reasons for the increase. The company gave the same reasons for increasing its tyre prices in May.
MAM Software has developed new e-business links with Bridgestone UK. The manufacturer’s account holders will now be able to order stock directly over the Internet, without the need for faxes, telephones or third-party software.
The Tyre Industry Association (TIA) has announced that it will support moves to restructure how the Federal Excise Tax (FET) is calculated on truck tyres.
Rubber and Steel price increases are making a negative impact on businesses across Europe, according to analysts. In the last six months businesses have seen steel prices nearly double from $350 a ton in January to more than $617 a ton in June. This rapid growth is widely acknowledged to have been cause by high levels of demand for raw materials from the Chinese market.
Bridgestone Corporation is set to make a nine per cent gain in net profit to $891.6 million (£490.3 million) by the end of this fiscal year, according to a Japanese newspaper report.
In an attempt to liquidate some cash Goodyear Tire & Rubber Co. has said that it will “commence an offering of approximately $150 million aggregate principal amount of convertible notes, subject to market and other customary conditions.” The company intends to use the proceeds of the sale for what it calls “general corporate purposes”, which includes “the repayment of one of the company’s revolving credit facilities.”
Goodyear Tire and Rubber Co., has released its delayed first quarter results, reporting record sales figures but a loss of nearly $77 million US.
Recent years have seen the commercial truck tyre market move in favour of the Independent dealer. Where previously the fleet sector was dominated by the Equities – ATS Euromaster, Motorway/Hi-Q, National, and Central – the divestment and rationalisation that has taken place over the last five years has enabled the Independents to become a significant player. In fact, at a recent market trends presentation, Continental Tyres estimated that the Independents are now responsible for nearly 50 per cent of all tyres being sold to the market.
Supplying tyres to the truck fleet market, however, is big business and it takes a professional approach backed by a major manufacturer to get anywhere in the fleet business. Not only that, it takes a national, and ever increasingly, international approach to the market. That makes life difficult for the Independent dealer who cannot realistically deal with fleet business in all corners of the UK, never mind offer European cover.
The solution for the Independent is to join a tyre services network that can handle the approach to the national fleets and through its members offer national, or even international cover for fleet customers.
ContiNetwork, set up several years ago by Continental following its divestiture of National Tyres, is one such service network and forms Continental’s primary route to market for commercial tyre sales and service. Interestingly, Continental is now the only service provider to concentrate its distribution solely on the Independent network. Something that is of great importance to the Independent dealer who could often find himself competing against a service provider’s own Equity for the same business yet at different prices.
ContiNetwork has since established itself as one of the leading Independent networks and, according to Continental, services more national fleet business than any other Independent network. With 49 member companies – so-called ContiNetwork Partners – with some 200 tyre depots covering the whole of mainland Britain, its members are in a position to be able to deal with Continental’s national and regional fleets alongside their own contracts.
The package ContiNetwork gives its members is more than just tyres. There has to be a competitive product certainly, but ContiNetwork works to develop relationships and build confidence with its members.
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