The Board of Directors of Bandag, Incorporated, (NYSE: BDG and BDGA) declared a regular quarterly dividend of $.32 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the Company payable April 17, 2003 to shareholders of record at the close of business on March 21, 2003.
In the USA, Pirelli has received a prestigious award from the Rubber Manufacturers Association (RMA) for its “excellent” worker health and safety record over the past year. The Safety and Health Improvement Program (SHIP) award was presented to Pirelli at the RMA’s annual meeting. The award was created in 1981 to recognise advances in workplace health and safety and this year 174 plants from 29 member companies supplied data for the annual survey. Pirelli’s MIRS plant in Georgia was the clear winner with a remarkable “zero incidents” record.
2002 results were the worst-ever in Fiat’s history. The group posted a net loss of 4.3 billion Euros (2001: – 791 million). The auto division lost 1.3 billion Euros (2001: – 549 million) and Fiat announced that it would refinance the auto division to the tune of five billion Euros. A three billion Euros increase in capital would subscribed immediately but it was not made clear whether the remaining two million would come from a rights issue, or whether General Motors would be asked to contribute.
Taiwan-based Federal Corporation reported record sales for 2002 of US$ 103.4 million, up 15.7 per cent from the 2001 figure of US$ 89.4 million. Sales outside Taiwan and China accounted for $69.2 m (66.9 per cent), up 28.7 per cent on 2001. Domestic sales fell 4.2 per cent to $34.2 m. Much of the success, says President Jamie Ma, was due to strong demand for the ultra-high performance SS-595 tyre.
The Goodyear plant at Fulda, Germany, set a production record of exactly 7,141,095 units in 2002. The plant, which employs 1,648 staff, manufactures high, ultra high, offroad, light truck, truck and agricultural tyres carrying the Fulda name, as well as tyres for other brands from the Goodyear group.
Mere days after sacking 700 workers, Goodyear has elected Susan E. Arnold to its Board of Directors. Arnold is president of Procter & Gamble’s global personal beauty and feminine care business, worth around $8 billion, and is regarded as a high flyer in the business world. Goodyear Chairman Sam Gibara praised Arnold’s “distinguished track record in marketing strategy, product development and leadership.” Her appointment brings the number of board members to 13.
Once again Ford and Firestone have settled a roll-over claim. This case attracted an even higher level of interest as two of the victims of the crash were high profile people. Earl Shinhoster, a veteran NAACP civil rights official in Atlanta, died in the 2000 Ford Explorer crash which also injured Samimah Aziz, a goddaughter of the Rev. Jesse Jackson, and the driver, Ademah Hackshaw. The Explorer was in a motorcade with the first lady of Liberia and a state patrol escort making this an unusual case. Ruby Shinhoster speaking for herself and two other survivors said “I’m relieved …. but they still haven’t admitted they did anything wrong.” Bridgestone/Firestone spokesman Dan MacDonald said the company was pleased to resolve the case without a trial. “Although the tire line involved in this case has an excellent safety record, protracted litigation is in no one’s best interest,” Firestone has now settled some 700 such cases. Ford spokeswoman Kathleen Vokes said the company believes the Explorer is a safe vehicle and statistics back up the claim. Ford and the tire maker had said the accident happened partly because the tire was 7 years old and the motorcade was travelling at least 80 mph in a 70 mph zone.
New cars sales on the U.K. reached a record last year after breaking through the 2.5 million barrier, reported the Society of Motor Manufacturers and Traders. Sales increased 4.3 percent over the year to 2,563.631, worth an estimated 33.3 billion GBP. The Ford Focus was Britain’s top selling new car for the fourth year in a row.
It’s been official since October 1st: Robert (‘Bob’) Keegan (55), who left Kodak as President and COO to join Goodyear two years ago, will be replacing Samir (‘Sam’) Gibara (63) as from 1st January 2003, to become the new CEO, just under one year earlier than planned. Gibara will remain Chairman, a position comparable to that of Chairman of the Board in a European public limited company, and he will be chairing the executive committee, which will assist and advise Keegan. From official statements it is clear that this committee does not and will not serve to purely oversee operations, but fully intends to exercise the right of offering advice and of intervening actively in the running of the corporation.
Bandag Incorporated declared an increase in the regular quarterly dividend from $.315 per share to $.32 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the Company payable January 17, 2003 to shareholders of record at the close of business on December 19, 2002.
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Directors of The Goodyear Tire & Rubber Company declared a quarterly dividend of 12 cents a share. The dividend is payable December 16, to shareholders of record November 15. The payout represents an annual rate of 48 cents per share.
Ford has announced its intent to sell Kwik-Fit to CVC Capital Partners, a leading European Equity group. The price being paid is 330 million pounds in cash and a note that will be paid as CVC obtains outside financing. The proposed transaction will be completed using a new company formed for the purpose, and financed by funds under the management of CVC. Ford will retain a 19 percent equity interest in the new company in order to benefit from the business’s future growth. The sale is expected to be completed in the fourth quarter of 2002 and is subject to regulatory approvals. Ford will record a one-time, after-tax charge of approximately $500 million in the third quarter of 2002 related to the sale of Kwik-Fit. Collision Team America has also been sold, though Ford has withdrawn from the sale of Hertz Equipment Rental Corporation. ”We are pleased to have found such suitable owners for both Kwik-Fit and Collision Team of America,” said Martin Inglis, Ford group vice president, business strategy. “Although these are good businesses, they don’t align with our back-to-basics strategy. These sales further signal the progress that Ford is making on key parts of our Revitalization Plan.”
Cooper Tire & Rubber has published its results for the second quarter, which showed a Q2 record net income of $39 million; an increase over last year’s 2Q figure of 113 per cent. Sales were up one per cent to $836 million and Cooper managed to reduce debt by $29 million. Sales for the first six months totalled $1.6 billion; a 4 p.c. rise over 1H, while net income was up 196 p.c. over the same period last year, at $65 million. 2Q tyre operation sales were $414 million ($433 m 2Q 2001) with operating profit up 39 p.c. to $37 million. The company’s North America unit volumes for 1H have risen by almost 5 p.c., against a decline for the industry of around 2 p.c.
In 1999, Nissan told its suppliers that they had to reduce prices if they wanted to keep the car manufacturer’s business. Since then Nissan has achieved a turnaround, achieving its 20 per cent cost cutting target a year earlier than planned. Despite this, Nissan has asked suppliers for a further 15 per cent cost cut and some have reacted angrily, pointing out that Nissan made a record net profit of $3.2 billion last year.
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