profit warning Archives - Tyrepress

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Prinx Chengshan expecting 50% drop in net profit

Company News, International News

Prinx Chengshan Holdings Limited and its subsidiaries have issued a profit warning to shareholders and potential investors. The company’s Board of Directors informs that although they anticipate group revenues for 2021 increasing by approximately 20 per cent year-on-year (2020 revenue: 6.28 billion yuan), they project that net profit will decline by approximately 50 per cent year-on-year, to an expected 260 million to 330 million yuan (£30.8 million to £39.1 million).

21st December 2021/by Stephen

Liqui Moly executives apologise after major difficulties with new software

Product News, UK News

“The introduction of new company software in January has turned Liqui Moly into a permanent building site”, according to a published apology from company officials. The system that was supposed to simplify processes and reduce costs for the oil and additive specialist, has had the opposite effect and negatively affected the half-year results. “If we were listed on the stock exchange, I would have to issue a profit warning,” said CEO Ernst Prost.

16th July 2019/by Chris

Goodyear shares fall 12% after trading update

Company News, International News

Goodyear’s share price fell 12 per cent after the company published a trading update with the US stock market Securities and Exchange Commission ahead of Detroit Motor Show presentation scheduled for 15-16 January 2019.

16th January 2019/by Chris

Nokian issues profit warning

Nokian Tyres’ management has issued a profit warning stating that second half revenues are likely to be lower than expected. Third quarter sales are said to be stable year-on-year, which are somewhat lower than some analysts’ projections (Deutsche Bank for example had said +10 per cent).

7th October 2013/by Tyrepress Editors

Delticom AG publishes 9-monthly report 2012

Online tyre dealer Delticom has published its 9-monthly report for 2012. In a troubled market environment the company recognised revenues of €280.4 million in 9M 12, a fall of -5.8 per cent year-on year.

Earnings before interest and taxes (EBIT) decreased in the reporting period by 37.9 per cent to €17.5 million (9M 11: €28.2 million), primarily due to higher fix costs. This translates into an EBIT margin (EBIT in percent of revenues) of 6.2 per cent (9M 11: 9.5 per cent). Third quarter EBIT saw a decline of 55.0 per cent, from prior-year's €9.5 million to €4.3 million. The quarterly EBIT margin was 4.9 per cent (Q3 11: 9.5 per cent).

8th November 2012/by Tyrepress Editors

Michelin sales up 6 per cent in the first nine months of 2012

Michelin has reported sales of 16.142 billion euros in the first nine months. The figure, which represents a 6 per cent increase compared with the same period last year, comes despite slow demand and continued pressure in the economic environment especially in mature markets. However, despite the increase, sales volumes were down 6.7 per cent, with the overall improvement being explained by product mix and raw materials-related price increases.

23rd October 2012/by Tyrepress Editors

Delticom warns on profit outlook in 3Q results

Delticom has reported revenues of 280.4 million euros in the first three quarters of 2012, down some 5.8 per cent compared with the previous year. The preliminary results show that pre-tax profits (EBIT) amounted to 17.5 million euros, which suggests this figure fell by around a third compared with last eyar. By comparison, in the first nine months of 2011 revenues increased by 15.8 per cent to 297.7 million euros and EBIT by 23.3 per cent to 28.2 million euros. As a result of the “challenging market environment” Delticom warned investors that it is scaling back its EBIT goal for the current financial year to 7 – 8 per cent.

18th October 2012/by Tyrepress Editors

Michelin analysts’ “top pick”

With tyre demand said to be down between 2 and four per cent, financial analysts at Deutsche Bank confidently reported that the tyre companies under its coverage “should record strong results in the third quarter due to a still positive pricing environment”. Or in other words because manufacturers are said to be doing their best to maintain prices. And this is said to be coupled with a reported raw material tailwind.

17th October 2012/by Tyrepress Editors

Analysts: Delticom profit warning a reflection of European tyre market weakness

Delticom issue a profit warning (19 July 2012) after revenues and pre-tax profits (EBIT) came in below expectations. As a result the company reduced its full-year growth target from +10 per cent to +5 per cent year-on-year and stated that an EBIT margin above 9 per cent (compared with 6.9 per cent in the first half of 2012 and 9.4 per cent in the first half of 2011) is only attainable in the event of a good winter tyre season prompted by wintery weather.

20th July 2012/by Tyrepress Editors

Bridgestone cautious about profit growth due to Europe crisis

Bridgestone executives have aired a degree of caution relating to the tyre major’s earnings outlook for this year. According to various news sources Bridgestone Corp.'s chief financial officer on suggested the impact of the euro-zone debt crisis is affecting demand, which in turn is weighing on its business.

28th May 2012/by Tyrepress Editors

Conti Predicts 8.5% EBIT this Year

Continental AG says it expects pre-tax profits (EBIT) of about 8.5 per cent this year, despite an earlier prediction of 9.3 per cent. The company, which recently gained a new leading shareholder – ball bearing maker Schaeffler Group – put the profit warning down to the “substantial worsening of the economic environment on the vehicle markets in North America and Europe in the third quarter and the unchanged high burdens from increased raw material cost.” The company maintained its 2008 sales projection of 26.4 billion euros.

15th September 2008/by Tyrepress Editors

Morgan Stanley ‘Double Downgrades’ Michelin

Financial analysts at Morgan Stanley have downgraded Michelin stock to “underweight” and predicted Michelin will make a profit warning when it announces its first half 2008 results on 30 July. “We are double-downgrading Michelin…This year’s sharp rise in raw material costs may be the immediate source of pressure on earnings, but we think the bigger risk going forward is slowing OE and replacement demand,” the analysts explained. Describing the premium tyre manufacturers’ pricing discipline as “remarkable,” the bank predicted pre-tax (EBIT) profit margins would still fall to 7.3 per cent, near the company’s historical average, in 2008.

Explaining the reason for their rating downgrade, the Morgan Stanley analysts suggested Michelin’s truck and speciality tyre segment strengths could be weakness in a tough market for vehicle makers: “With 50 per cent of [Michelin’s] revenues coming from truck and speciality tyres, Michelin’s fortunes are tied to the industrial cycle more than any other tyre company we cover globally.” In addition, according to the report, around 30 per cent of revenue and 20 per cent of Michelin’s profits are said to be generated in North America where recent tyre demand has been particularly weak.

22nd July 2008/by Tyrepress Editors

Michelin Looking to Cut Production Costs by 20 per cent

(Akron/Tire Review – FT) Groupe Michelin is aiming to lower its production costs in Europe and North America by an estimated 20 per cent as it clamps down on inefficient development and manufacturing processes ahead of next year’s expected sharp downturn in the global truck market.

2nd October 2006/by Tyrepress Editors

Yokohama OP down 64.6 per cent

Yokohama Rubber Co., Ltd., posted an 11 per cent increase in net sales, to 106.8 billion yen (£486.7 million), in the three months ended 30 June. The increase resulted primarily from robust growth in overseas tyre business, according to the company. Tire sales also benefited from increased shipments to automakers in Japan. However, the rising prices for raw materials offset the sales growth in the Tire Group, and operating income in the group declined 64.6 per cent, to 1 billion yen (£4.56 million).

9th August 2006/by Tyrepress Editors

Michelin Issues ‘Reassuring’ Profit Warning

Michelin has reassured market watchers that it will be able to achieve an operating margin of around 8 per cent for the full year, following the successful achievement of the same figure (equivalent to 644.7 million euros) in the first half of 2006. The company had previously predicted that it would achieve an operating margin of 8.8 per cent. Michelin achieved first half net sales of 8,023 million euros, up 7.1 per cent compared with the same period last year.

31st July 2006/by Tyrepress Editors