The ArvinMeritor, Inc., board of directors at a meeting has declared a quarterly dividend of ten cents per share on the common stock of ArvinMeritor, Inc., payable Dec. 8, 2003, to shareowners of record at the close of business on Nov. 24, 2003.
The Board of Directors of Bandag, Incorporated, (NYSE: BDG and BDGA) today declared an increase in the regular quarterly dividend from $.32 per share to $.325 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the Company payable January 16, 2004 to shareholders of record at the close of business on December 19, 2003.
The price of rubber in Thailand has risen to a record high of 50 Baht per kilo (1.07 Euro), which is good news for growers and not so god for producers of products such as tyres. Last year Thailand exported 2.35 million tonnes of rubber to 60 countries, with China and Japan each taking just under half a million tonnes. This year China is expected to be the largest customer, taking around 550,000 tonnes, valued at 30 billion Baht (642.6 million Euro).
Six years after signing a solus tyre and battery agreement with Kwik-Fit Fleet in 1997, Lex Vehicle Leasing purchased its millionth tyre. Lex operates a fleet of 100,000 vehicles and the company has signed an extension to the contract until December 2005. For the record, the one millionth tyre was a Michelin 7.50 R16, fitted to an RAF-operated Land Rover Defender.
Cooper Tire & Rubber has published its third quarter figures. Sales totalled $913 million ($839 m in 3Q 2002), with tyre sales a record $526 million – 13 per cent up on the 3Q 2002 figure of $464 million. Operating profit on tyre sales was $34 million ($27 m). Despite these good sales figures, profits were hit as, overall, Cooper’s net income was $18 million, compared with $23 million in 3Q last year. Looking ahead, chairman, president and CEO Thomas A. Dattilo said that the company was “optimistic about improving conditions in the tyre industry. We expect the improving economy and consumer confidence to spur increasing replacement tyre demand.”
Kwik-Fit Fleet has announced record turnover for the first six months of this year; up 5.4 per cent to 54.6 million Pounds. This follows the acquisition last November of the Kwik-Fit group by CVC Capital Partners from the Ford Motor Co. KFF has also recently switched advertising agencies and London-based Atkinson Associates will now handle the 1.5 million Pound account.
We hear a lot today about the demise of the retread industry, especially the car tyre sector, and a lot of tyre dealers have stopped stocking retreads, preferring instead to carry cheap new tyres.
Against this background, it is refreshing to learn of an independent tyre dealer who is not only still stocking retreads, but actively selling them. The company in question is Durham-based retailer and wholesaler Tyrespot, which stocks tyres from nearby manufacturer C-Tyres, and Managing Director John Shaw says that he has seen retread sales rise over the last two years and he expects to increase sales by a further ten per cent this year.
He explains: “We have never changed our policy towards retreads. Our experience has shown that if we stock them, we will sell them. This year we expect to sell more than 20,000 retreaded tyres through our retail and wholesale business, proving that it has been well worthwhile sticking with the product.”
John Shaw points out that much of Tyrespot’s growth has been achieved in market niches, emphasising the opportunities open to dealers willing to target and work at these markets. He says: “Although sales of 80 series retreads have stagnated, we have seen substantial growth in sales of retreads for 4×4 vehicles as well as increased demand for 65, 55 and 50 series tyres. It is clear that there is a large potential market for the sale of retreaded tyres to younger drivers who want to make sure that they are legal and who see the economic benefits offered by retreads. In addition, we are looking closely at the opportunities presented by retreads within the winter tyre market. As a result, we are well on the way to a record year of retread sales.”
The Board of Directors of Titan International, Inc. (NYSE: TWI) has approved a quarterly cash
dividend of $.005 (one half cent) per common share for the third quarter of 2003. The cash dividend is payable October 15, 2003, to stockholders of record on September 30, 2003.
Superior Industries International has warned that operating results for the third quarter will be below previous estimates. While turnover is satisfactory, SII has experienced “significant one-time expenses relating to multiple expansion programs and record number of new product launches. The company is confident that its programme of capacity expansion, modernisation and cost reductions will bear fruit, but short term expenses are higher than anticipated. Wheel shipments will be around 3 per cent down on 3Q last year, said President and COO Steve Borick.
Sumitomo Rubber Industries has reported a 50 per cent rise in net profit for the first half of the year, up to 4.79 billion Yen (US$ 40.77 million), compared with 3.2 billion Yen $27.25 m) in 1H 2002. Tyre sales were described as “sluggish” and the figures were boosted by strong sales of sporting goods (notably golf clubs and balls), where operating profits were up 56 per cent, and by cost-cutting measures. SRI maintained its forecast of a record 11 billion Yen ($93.6 m) for the full year.
Overseas sales of the Taiwan-based Federal Corporation totalled US$ 10.2 million in June; a record monthly high and 17.18 per cent higher than June last year, which was itself a record. Federal reported a record first quarter sales figure of US$ 26.44 million, 16.32 per cent up on Q1 2002.
The Board of Directors of Titan International, Inc has approved a quarterly cash dividend of $.005 (one half cent) per common share for the second quarter of 2003. The cash dividend is payable July 15, 2003, to stockholders of record on June 30, 2003.
Yokohama Rubber Co. has released its results for the fiscal year 2003, ending 31 March. Net sales rose 0.2 per cent to 400,448 million Yen (3.38 bn US$). Operating income was up 2.1 per cent to 23,184 million Yen ( $ 195.6 m), while net income rose sharply (by 37.8 per cent) to a record 10,144 million Yen ($ 85.6 m). Sales of the Tire Group accounted for 71.7 per cent of net sales and were up 1 per cent to 286,987 million Yen ($ 2.4 bn), with operating income up 10.8 per cent to 17,264 million Yen ($ 145.6 m).
Federal Corporation has reported its first quarter results. Sales rose 16.3 per cent to US$26.4 million (1Q 2002: US$ 22.7 m). Sales in March this year hit an all-time high figure of US$10.7 million (March 2002: US$8.6 m), of which 70 per cent were export sales. Jamie Ma, President of Federal Corporation, was bullish about future prospects, predicting “another year of growth”.
Three years ago, Nissan had debts of 2,100 billion Yen ($17.4 billion) but the company has recently announced a cash surplus of 8 billion Yen. Last year’s operating profit was a record 737 billion Yen (5.5 bn Euros); an increase of over 50 per cent. Net profit was up 33 per cent, at 495 billion Yen (3.7 bn Euros). In addition, Nissan’s operating margin of 10.8 per cent is the highest in the industry. Chief Executive Carlos Ghosn forecast higher operating profits and increased unit sales for the year ahead.
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