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Sumitomo Rubber warns on earnings, to raise prices 7%

Sumitomo Rubber Industries announced full year 2010 results and issued a profit warning on 9 February, but analysts warned that while positive sales projections look conservative the firm may have underestimated raw material costs as well. During the last financial year, higher raw materials prices reportedly cut earnings by 30.6 billion yen year-on-year and yen appreciation had an adverse impact to the tune of 5.0 billion. While higher selling prices boosted profits by 8.9 billion yen and volume/composition is said to have given a 39.8 billion yen boost. Higher productivity also contributed to earnings.

16th February 2011/by Tyrepress Editors

Titan to raise US aftermarket farm, construction tyre prices

Titan Tire, the US subsidiary of Titan International, has announced that it will increase its aftermarket prices for its Titan and Goodyear branded farm and construction tyres from 1 April. On the back of raw materials, energy and transportation costs tyre prices will increase by up to 8 per cent, though Titan also stated that “certain tyres’ prices may rise in excess of 8 per cent due to realignment and positioning of the product.” The rise will affect tyres shipped on or after the date of the increase.

15th February 2011/by Tyrepress Editors

Federal Tires’ prices to go up from 1 March

Federal Tires has announced that it is raising prices the prices of its passenger car and light truck tyres by up to 12 per cent with “in-line adjustments for all onward orders and remaining back orders.” According to a statement issued 14 February, the price increases take effect on 1 March 2011. The company said all customers will be included in the increase and the percentage increase will vary by product line and continents “contingent upon the overall market conditions.”

14th February 2011/by Tyrepress Editors

Yokohama to increase North American prices

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.

14th February 2011/by Tyrepress Editors

Michelin sales up 20.8% to 17.9 billion euros, operating margin now 9.5%

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.

11th February 2011/by Tyrepress Editors

Analysts praise Nokia’s ‘very strong’ fourth quarter, predict 30% capacity increase

Financial analysts lauded Nokian’s “very strong” fourth quarter results, with Morgan Stanley predicting the news will raise the share price, while Deutsche Bank increased its price target from 37 to 38 euros. Strong demand is also expected to lead to a significant increase in unit output during 2011.

The analysts concurred that Nokian’s pre-released sales and operating income headline figures were in line with the actual results – making the focus on the company’s net debt and continuing outlook. And these, in Morgan Stanley analyst Edoardo Spina’s words are both “great news.” Net debt totalled only 1 million euros, implying cash generation of 383 million euros, according to the analysts.

10th February 2011/by Tyrepress Editors

Don’t put tyre purchases on the backburner – Delticom

Online tyre retailer Delticom has referred to passenger car tyres as the new “black gold” and comments that these guarantors of vehicular safety and mobility can now very often only be obtained at far higher prices than in 2010. Discussing the issue, Delticom AG CEO Rainer Binder makes it clear that “car drivers are likely facing drastic price increases in 2011.” Binder elaborates that “raw material prices are virtually exploding. Many manufacturers purchase the raw materials needed for tyre production months in advance. The drastic increase in raw material prices in the last few weeks will thus become noticeable in retail prices after a time lag. But further substantial price increases are expected in the course of the year. Against this backdrop I can only urge drivers who need new tyres to buy them now and not put purchasing tyres on the back burner.”

10th February 2011/by Tyrepress Editors

Continental performance ‘entirely attributable to tyre operations’

Continental AG’s adjusted EBIT is reportedly 15 per cent (100 million euros) above estimates produced by Deutsche Bank. With net debt below 6.5 billion euros, impressed analysts commented that “these better results are entirely attributable to the tyre operations.” The tyre division contributes 28 per cent of the group’s sales and 42 per cent of adjusted EBIT, which reported a higher result despite the significant raw materials headwind.

8th February 2011/by Tyrepress Editors

Yokohama led Japanese domestic tyre price increases – analysts

Financial analysts from Deutsche Bank commented that Yokohama’s recently reported third quarter operating profit margin declined 2 percentage points year-on-year to 11.9 per cent because “price hikes offset only 2.7 billion yen of the 7.8 billion yen of impact to profits from rising natural rubber and other raw materials prices.” They also observed that the company did not alter its guidance due to “uncertainty regarding trends in raw materials prices and foreign exchange rates.” Instead Yokohama, as Toyo subsequently did, announced plans to hike the price of its replacement tyres in the domestic market.

8th February 2011/by Tyrepress Editors

Further Bridgestone Americas price increases

In addition to previously announced price adjustments in its Bandag and truck tyre businesses, Bridgestone Americas Tire Operations has announced price increases for two of its off-road divisions. The company’s Off Road Tire, U.S. & Canada Commercial Tire Sales division (BAOR) has announced plans to increase prices by 12 per cent with some in-line adjustments. The price increases will affect all mining, construction and industrial tyres marketed by BAOR and are scheduled to begin March 1. Furthermore, the Agricultural Tire, U.S. & Canada Commercial Tire Sales division (BAAG), has announced a four per cent price increase on Firestone branded agricultural, construction and forestry tyres; Bridgestone branded garden tyres and Regency branded tyres sold in the United States and Canada replacement markets. The new pricing will be effective April 1, 2011.

8th February 2011/by Tyrepress Editors

Toyo to raise passenger car and light truck tyre prices in Japan

From 1 April Toyo Tire & Rubber Co. Ltd will increase the price of tyres for passenger cars and light trucks sold in the Japanese domestic replacement market by an average of 7 per cent. Despite the fact the price hike takes effect on April fool’s day, the increase is not joke and applies to both Toyo’s summer and winter tyres. In fact the cost of some size of light truck tyres will rise sooner, with their Japanese domestic market price increase scheduled to take effect on 1 March 2011.

7th February 2011/by Tyrepress Editors

Bridgestone's 12% Truck Tyre Price Hike Won't Cover Increased Costs – Analysts

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.

3rd February 2011/by Tyrepress Editors

Conti, Sava to raise two-wheel prices

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.

28th January 2011/by Tyrepress Editors

Marangoni Retreading Systems increases prices

Marangoni Retreading Systems has announced a price increase in all European, Middle Eastern and African markets for its entire range of retreading materials. The increase, effective as of 15 February, will be approximately 10 per cent for standard products and 15 per cent for high performance products with high natural rubber content.

27th January 2011/by Tyrepress Editors

JK Tyre Q3 Net Profit Down Three-Quarters

India’s JK Tyre has posted net profits for its third quarter ending 31 December, 2010 of 90.14 million rupees, a year-on-year reduction of 74.93 per cent on the 360.46 million rupees posted in the same quarter at the end of 2009. “It was a very challenging quarter as the prices of natural rubber have increased 100 per cent, attaining unprecedented levels. Other raw materials have also registered a sharp increase of nearly 40 per cent,” stated JK Tyre & Industries vice chairman & managing director Raghupati Singhania.

25th January 2011/by Tyrepress Editors