Some Russian stocks are either under-performing or were overvalued at their initial public offerings. There have been some notable successes in the market recently like Novatek a Russian gas company which raised $966 million at its IPO and has seen its share price rise 150 per cent since then. Unfortunately for the tyre business, Amtel-Vredestein has not faired so well.
Trelleborg has completed the sale of US subsidiary, Goodall Rubber Co. Goodall, which sells and distributes industrial supplies, primarily hoses and hose connectors, in the US and Canada, has slightly more than 400 employees and generated sales of approximately SEK 650 M in 2005.
(Akron/Tire Review) According to news reports, Continental Tire North America (CTNA) presented its “last, best and final offer” to United Steelworkers officials yesterday. The tyre maker’s master contract with the union expires Apr. 30.
The company said its latest proposal was its ninth in an attempt to secure cost cuts of some $32 million at its Charlotte, N.C., plant. Union officials said they are reviewing the proposal, and plan to resume meetings with CTNA this Friday.
A study carried out by Continental revealed that 25 per cent of motorists in Germany “frequently” drive faster than the legal speed limit. However, when it comes to assessing other motorists’ behaviour, 92 per cent believed that other motorists speed “often, very often, or always.” It will probably come as little surprise that younger drivers are the worst offenders, with almost half of the 18-25 age group exceeding speed limits.
The Goodyear Tire & Rubber Company will report first quarter 2006 financial results before market opens on Thursday, May 4, to be followed by an investor conference call at 11:30 a.m. EDT. Participating in the conference call will be Robert J. Keegan, chairman and chief executive officer; Richard J. Kramer, executive vice president and chief financial officer; and Darren R. Wells, senior vice president, business development and treasurer. They will review Goodyear’s first quarter results.
Toyo Engineering Corp. has received a contract for a synthetic rubber plant to be built by Bridgestone (Huizhou) Synthetic Rubber Co., Ltd., a Bridgestone Corp. affiliate, in China. The plant will be constructed in the Huizhou Dayawan Economic and Technological Development Zone in Guangdong Province to produce 50,000 tonnes a year styrene-butadiene rubber (SBR). The Rubber World report said Toyo is responsible for engineering, procurement of equipment and materials, and construction on a lump-sum basis, plus commissioning assistance. The plant is scheduled for completion in the first half of 2008.
(Akron/Tire Review) So, just how accurate is a tyre billy or a boot at gauging a tyre’s inflation pressure? According to TRIB, not even close. The Tire Retread Information Bureau held a contest at the recent Mid-American Trucking Show, challenging truckers to demostrate their inflation guestimation skills – and none of the participants could come within +/- 5 psi, according to Harvey Brodsky, TRIB’s managing director.
TRIB’s Pump ‘Em, Don’t Thump ‘Em Tire Contest, co-sponsored by the Meritor Tire Inflation System by PSI, was designed to test the ability of CDL-carrying truck drivers to determine the pre-set inflation pressure of tires by just by giving the tire a good “thump.” Three truck tyres on wheels, provided by Hankook Tire Co., were inflated to a certain pressure and staged at the TRIB booth. Contestants got to kick, thump, bang or hit a tyre and then report what they believed to be the tyre’s inflation pressure.
(Akron/Tire Review) According to the Rubber Manufacturers Association’s (RMA) Tread Rubber Market Analysis Committee, total tread rubber shipments will increase 2.8% in 2006, up from 1.9% growth in 2005. The increase will be fueled by economic growth, a strong demand for OTR tyres and heavy truck-traffic volumes, the RMA committee reported.
Michelin’s budget for raw material costs is expected to increase by 11 per cent year-on-year in 2006. However, Deutsche Bank analysts report that natural rubber is up 15 per cent so far this year. “Natural rubber (RSS3) represents 25 per cent of raw material (24 per cent of sales or 4 billion euros), therefore should the natural rubber stay at these levels this would imply a discrepancy of around. 75 million euros on budgeted margins,” the analysts explained.
(Akron/Tire Review) Mitch Schneider, nationally recognized automotive service professional, author and lecturer, has joined Babcox Publications as a senior contributing editor.
Beginning in July, Schneider’s popular commentary will appear monthly in Babcox’s Tech Group publications, including Brake & Front End, ImportCar and Underhood Service. In addition to frequent exclusives on AftermarketNews.com and Autocarepronews.com, another column written specifically for store professionals will appear regularly in Counterman magazine.
So far 50 per cent of those who answered Tyres & Accessories’ question of the month say they are simply too busy to sell wheels. This month’s question asks readers about their preferences when it comes to selling alloy wheels. Do you sell them or are you busy enough moving tyres to worry about the extra expense and hassle of selling wheels? The next 30 per cent of respondents said they order-in wheels as and when. Only 20 per cent say they actively try to sell wheels.
The majority may have said they do not have time for wheels, but the strongest comments came from those who order-in wheels. “I do not believe that there is one tyre dealer nowadays that has no time to sell alloy wheels. Albeit selling alloy wheels through a regular tyre shop would not provide millionaire success,” one reader told T&A. Keep your answers and comments coming (please include your name and contact details) clicking here.. The complete results and report will be published in the April magazine’s wheel report.
(Akron/Tire Review) TRIB will hold its “Pump ‘Em, Don’t Thump ‘Em” contest at its booth at the upcoming Mid-America Trucking Show, set for next week in Louisville, Kentucky. The Mid-America Trucking Show is the trucking industry’s largest national event, and draws manufacturers, marketers and thousands of drivers each year.
The Pump ‘Em, Don’t Thump ‘Em contest, co-sponsored by ArvinMeritor, will be held Friday, 24 March at 10:30 am in Booth 6973 in the West Wing of the Kentucky Exposition Center.
Deutsche Bank analysts are more optimistic than the management when it comes to predicting future results. The analysts forecast that Sumitomo will achieve 13 per cent more operating profit than the management predicts. “Working off our new…forecasts and historical 12-month valuations we lower our target price from 1,700 yen to 1,500 yen but maintain our Hold rating,” the report commented. “However, we still think it may only just sustain single-digit profit growth given the significant pull impact of rising input costs,” they added.
(Akron/Tire Review) Italian banks Mediobanca and Banca Intesa will likely be chosen to lead the initial public offering (IPO) of Pirelli’s tyre unit, according to a Reuters report, though an official decision has not yet been made. Goldman Sachs will advise on the deal, the report stated. Sources also suggested that the Pirelli tyre unit could be listed by this summer.
(Akron/Tire Review) The voluntary tyre recall launched by Cooper Tire & Rubber Co. on 13 February includes Cooper, associate and private brand tyres it produced as far back as February 2004, according to documents found on NHTSA’s web site. Cooper itself has issued no public information about the recall.
Of the approximately 288,000 tyres Cooper is recalling, some 183,000 were produced between February 2004 and 21 January 2005. These tyres – predominately designed for light truck/SUV applications – were being recalled due a slow leak that may be caused by a “contaminant in the upper sidewall,” according to an Associated Press report.
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