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Analysts: Winter Tyres; Price Increases to Support Sumitomo Profitability

Following the publication of Sumitomo Rubber Industries’ nine-month 2010 results, financial analysts have observed that the firm was “hit by higher raw material prices,” which are said to have “shaved off” billions of yen of profitability. Nevertheless the company maintained its full-year earnings advice. Deutsche Bank analysts said they expect the company to outperform in the fourth quarter of this year off the back of winter tyre sales: “The key point is whether price rises/better product mix/higher volumes can offset the impact of raw materials prices, including natural rubber and yen/baht appreciation.”

15th November 2010/by Tyrepress Editors

Rubber Prices May Force Production Cuts in India

Natural rubber prices have been the bane of tyre makers in India of late, and on November 12 the New Delhi based Financial Express reported that major tyre manufacturers in India are considering production cuts to minimise on losses arising from prices that have risen above Rs 200 (£2.77) a kilogram.

12th November 2010/by Tyrepress Editors

Acquisition adds to Lanxess' Vulcanisation Chemical Range

The acquisition of two businesses belonging to Solutia Inc. subsidiary Flexys is intended to strengthen the product portfolio chemical specialist Lanxess’ offers its customers from the tyre and rubber industries. Pending approval from the relevant antitrust authorities, the company will incorporate Flexsys’ primary accelerator business and Perkalink 900 anti-reversion agent into its Rubber Chemicals business unit. Lanxess has not disclosed any financial aspects of the acquisitions and reports that no Flexsys employees will be transferred to Lanxess.

9th November 2010/by Tyrepress Editors

RockTron Seals Energy Deal in Malaysia

Fly-ash recycling technology innovator, RockTron International has announced that it has signed an MOU with Malaysia energy provider TNB, following the launch of RockTron Asia in Kuala Lumpur this October. The company is also in discussions with major companies from across Asia regarding the company’s new licensing proposition. Tyre industry interest in RockTron stems from its technology’s ability to manufacture “eco-minerals” from stockpiled coal-fired power station waste (otherwise known as fly ash), which can be used to manufacture tyre rubber filler, or indeed as fillers and extenders in any polymer, rubber and coatings manufacturing and as cementitious substitutes, dramatically cutting costs and CO2 emissions.

8th November 2010/by Tyrepress Editors

Bridgestone Reports 12% Sales Increase

The first three quarters of the 2010 fiscal year have been described by Bridgestone as a period “plagued by rising raw materials and materials prices and the appreciating Japanese yen.” Despite these hurdles, the tyre maker reports achieving a 12 per cent increase in net sales and 838 per cent rise in operating income during this time, having reached figures of 2,091.2 billion yen (£15.9 billion) and 113.4 billion yen (£861.5 million) respectively. Ordinary income for the nine months was 100.8 billion yen (£765.7 million) and net income 66.7 billion yen (£506.7 million), compared with an ordinary loss of 9.2 billion yen and net loss of 27.4 billion yen for the corresponding period a year earlier.

8th November 2010/by Tyrepress Editors

Conti Predicts 25 billion euro Sales; 9% EBIT in FY10

The Continental Corporation is predicting it will achieve sales of more than 25 billion euros and an adjusted pre-tax profit margin (EBIT) of 9 per cent when it publishes full year financial results for 2010. The margin target had previously been 8 – 8.5 per cent. Continental released the projections in parallel with its third quarter results which show that the automotive supplier posted sales of 19.1 billion euros and an adjusted EBIT of 1.79 billion euros after three quarters, exceeding the pre-crisis level of the first three quarters of 2008. At 9.4 per cent, the nine-month adjusted EBIT margin also exceeded the comparable 2008 level.

3rd November 2010/by Tyrepress Editors

Cooper Expecting Continued RM Rise in 2011

Having raised the prices of its US passenger and light truck tyres by 6.5 per cent, Cooper Tire has told analysts in a conference call that the manufacturer expects raw materials costs to rise into 2011, as suggested by reports in the Financial Times and on tyrepress.com yesterday. Increased demand from automotive suppliers, especially in China and India, alongside unhelpful weather conditions in the rubber tapping season in south-east Asia have driven natural rubber prices continually upward in 2010.

2nd November 2010/by Tyrepress Editors

Indonesia/Malaysia Home to Thriving Tyre Retail Markets

International News

As the Asian region’s car parc continues to swell in the wake of economic recovery, the demand for aftermarket products and services is also said to be increasing. GfK Asia, which conducts retail audits in the automotive aftermarket in major Asian cities like Bangkok, Kuala Lumpur, Jakarta, Manila and Seoul, recently looked into the relationship between car “populations” in these cities relative to the number tyre servicing garages and compared the saturation levels in differing economies. While each tyre servicing garage in developing cities such as Kuala Lumpur, Bangkok, Jakarta and Manila serviced an average of 2250 vehicles, this figure is almost halved, at 1172:1 in a “developed” city such as Seoul. The Malaysian figure is almost four times the 674:1 average ratio GfK published in April 2009.

2nd November 2010/by Tyrepress Editors

Yokohama Reports Sales and Earnings Gains in 1H 2010

The Yokohama Rubber Company announced today that its sales in the first half of the present fiscal year (1 April – 30 September, 2010) increased 17.9 per cent over the same period of the previous fiscal year, to 238.3 billion yen. Sales in Yokohama's tyre operations increased 18.5 per cent over the first half of the previous fiscal year, to 184.9 billion yen, reported the manufacturer.

1st November 2010/by Tyrepress Editors

The Rise and Rise of Rubber Prices

Following many financial reports from tyre companies suggesting that sales are up but profits have not necessarily followed suit, it seems that the high price of rubber – cited as a major profit-eating factor – is set to continue its upward momentum in the near future. The Financial Times says heavy rains in south-east Asian rubber growing regions are responsible, having disrupted tapping in the region, thus limiting supply. According to the report, this situation is unlikely to be alleviated until 2012.

1st November 2010/by Tyrepress Editors

Synthetic Rubber Demand to Reach 13.4m M/T by 2015: Analysts

A new report by Global Industry Analysts suggests that the synthetic rubber market will climb to 13.4 metric tons by 2015, “particularly” on increased usage in the tyre and automotive industry. The consumption and production of synthetic rubber was significantly affected by the global economic recession, says a statement by GIA announcing its new publication: ‘Synthetic Rubber: A Global Strategic Business Report’.

29th October 2010/by Tyrepress Editors

Rising Costs Force MAI to Raise MAXAM Tyre Prices

MAI Group recently raised its tyre prices by three per cent and Ian Thomas, head of Sales & Marketing at the company, warned that customers should brace themselves for a further price increase in December, of up to 10 per cent, as raw material costs continue to rocket. He said: "Over the last few months, we have absorbed the raw material price rises, but it has now reached the stage where we are reluctantly having to pass on some of the latest increases to customers."

29th October 2010/by Tyrepress Editors

India to Rely More on Synthetic Rubber: Lanxess

Tire Review reports that specialty chemicals firm Lanxess predicts an increase in demand for synthetic rubber in India, a country the company said has a long history in the production and consumption of natural rubber. “Driven by the needs of rapid modernisation, India is currently undergoing a shift toward replacing natural with synthetic rubber in a variety of applications,” the company said.

28th October 2010/by Tyrepress Editors

Goodyear Posts Loss on RMs despite Highest Sales in 2 Years

The Goodyear Tire & Rubber Company today posted its highest third quarter 2010 sales and tyre unit volumes since the third quarter of 2008. Yet under pressure from spiralling raw materials cuts, alongside charges for refinancing debt, the manufacturer ended up with a $20 million loss largely due to consistently high costs throughout the quarter, especially in raw materials. The company made a net profit of $72 million in the same period in 2009.

28th October 2010/by Tyrepress Editors

Hankook Delays US Price Increase citing "Supply Difficulties"

Hankook Tire America , which previously announced it would raise prices on all consumer and commercial tyres effective with shipments on 1 November, has postponed the increase until 1 December due to “our current supply difficulty,” reports Tire Review.

27th October 2010/by Tyrepress Editors