Goodyear Announces Rationalisation Plans
Goodyear’s Engineered Products and Chemical businesses are to implement rationalisation programmes in order to reduce operational costs, the company has announced.
Posts
Cooper Down Grade Inner Tube Production
Product NewsDue to a decline in demand Cooper Tire & Rubber has decided to end production of inner tubes at its Clarksdale, Mississippi, plant by 12 November.
The company has confirmed that most of the facility’s 159 workers will be made redundant. About 30 of the workers are expected to remain at the plant to produce curing bladders and operate the rubber mixing unit, which produces rubber for internal consumption at the company’s other plants.
In an official statement the company explained that employees have been notified of the redundancy and will receive outplacement assistance. Cooper is also said to have notified its customers about the inner tube decision and is provided recommendations for alternative sources.
The phase-out is expected to cost about $9 million (£5 million), which will be needed to cover the write-down of assets and the impacts of severance and other benefits. The company will record a charge of approximately $7 million during the third quarter of 2004 as a result of this decision.
Cooper maintains that the decision supports its strategy to “dedicate resources to those product categories that will help the business grow globally and provide shareholder value.” cma
Record CV Registrations – But it’s not all good news
Product NewsThe SMMT has announced record commercial vehicle registrations for August. The rolling year total is 377,345, a record level measured against the 363,687 annual total in 2003. However it’s not all good news, August’s 18,199 registrations were down 5.5 per cent compared with the same period in 2003. There was also a small volume drop across most market sectors with this month’s bus and coach registrations down 17 per cent.
The society claims that year to date CV registration figures confirm record business demand for freight transport, in which the heavy van sector is still driving the figures. These figures follow “a big change in van and truck use patterns and the CV fleet over the past four years.”
Christopher Macgowan, SMMT chief executive, said: “August’s figures confirm record breaking demand for new commercial vehicles. August saw a pause in the recent long-running growth trend, but its impact was small.” He added: “We shouldn’t read too much about future trends from August’s results as the registration plate change in September means many operators wait for the new plate and its effect on residual values. This is illustrated by the fact that September CV registrations are now about 2½ times those of August.”
As well as bus registrations decreasing August’s truck registrations were also down 4.3 per cent, with the rolling year figure at 55,768. According to the SMMT annual truck registrations are still holding close to 56,000, though August saw some “very modest slippage.” For trucks over 15t gvw registrations dipped 10.8 per cent and for those up to 15t gvw there was growth of 6.0 per cent.
In summary the SMMT believes that the near term outlook is positive, but it predicts slower growth ahead.
August New Car Market Dips
Product NewsAugust’s new car market has dipped 4.9 per cent at 84,996 units. However, this figure remains one per cent up compared with last year’s total thus far. Another saving grace for the figures is that they are six per cent better than the five-year average of 80,221 units.
The August market is typically three per cent of year-end total compared to around 17 per cent in September. According to the SMMT since the start of the twice yearly plate change in 1999 the September market has on average accounted for 411,157 units. Industry representatives are expecting a market on par with last year’s 439,365 units, in the 430,000 to 440,000 unit range. They recognise that the new car market has started to cool and the effect of interest rate rises on consumer confidence are said to account for this.
Commenting on the August market, SMMT chief executive Christopher Macgowan said: “Until the industry moved to a twice yearly registration plate change, August was the month to watch. Now, its significance is dwarfed by the key September market.
“Growth that has sustained the market for the last four years has eased a little in recent months and it will be the September figures that tell us if a strong start to 2004 will bring a fourth consecutive record year.’
Group Tyre Team Win Michelin F1 Pitstop Challenge
MotorsportA team made up of tyre fitters from Elite Garages of Horsham and Broadway Tyres of High Wycombe demonstrated their high speed skills by winning Michelin F1 Pitstop Challenge at the Goodwood Festival of Speed.
‘Rolling With the Homies’
Product NewsBasketball star Shaquile O’Neal and NWA rap legend Dr Dre have teamed up to produce a new record. The single, entitled “Dat’s Me” is the seventh song on the DJ Diesel Mixtape and features a chorus line in which Shaq tells of how he and Dr Dre are the hottest stars on the street rolling with “20 inch Pirellis.”
Schumacher and Bridgestone Claim Seventh Title
Product NewsMichael Schumacher has claimed a record-breaking seventh world championship title at the Belgian Grand Prix.
Sumitomo Record Improved Half-Year Results
Product NewsJapanese tyre manufacture, Sumitomo Rubber Industries (SRI) has again improved its half-year results for the six months ended 30 June. In relation to the previous year, sales rose to £1.102 million, compared with £1.069 million previously. SRI’s operating income improved from £65.1 million in the first half of 2003 to £88.2 million in 2004. Almost 74 per cent of the company’s turnover comes from the tyre business unit. SRI’s operating income remains at 58.5 per cent.
Bandag Declares Quarterly Dividend
Product NewsThe Board of Directors of Bandag, Incorporated, declared a regular quarterly dividend of $.325 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the company payable October 18, 2004 to shareholders of record at the close of business on September 17, 2004.
Goodyear may Benefit from New Loan Terms
Product NewsFollowing reports of Goodyear’s first quarterly profit in almost two years, JPMorgan Chase & Co are deciding whether to increase a loan to the company and to trim the interest rate it will pay.
Nokian Announces Record Figures Too
Product NewsFinnish tyre manufacturer, Nokian, has announced that it increased its turnover to 250.8 million euros (£166 million) in the first half of 2004. Compared with the first half of 2003 this represents a 19 per cent improvement.
Goodyear in Profit for 2004 Second Quarter
Product NewsIn the second quarter of 2004 Goodyear achieved a record levels of sales, the company has reported. With all seven of its businesses profitable, the company also reported net income of $25.1 million (£16.5 million) for the second quarter of 2004, a record figure.
Goodyear Results ‘Deflate’ Analysts
Product NewsGoodyear may have been in profit for the second quarter and may have posted record sales but not everyone is impressed. Deutsche Bank analysts have pointed out a number of flaws in the company’s optimism.
Honeywell Completes Friction Materials Team
Product NewsHoneywell Friction Materials has completed its new management team by announcing Scott Buckhout as vice president and general manager, Europe region and Eric Rozier as vice president and general manager, Americas region. The appointments come just two months after the company named Laura Ulz president.
Bandvulc’s Knights Achieve Record Production
Product NewsBandvulc Tyres’ has announced an all time high in its sales volumes, following its achievement of record production levels at its Ivybridge factory.
The company believes that the increase in performance is all thanks to the £1 million investment, which refurbished the company’s facility with a ‘Camelot’ theme, earlier this year.
