Goodyear Reports Losses
Goodyear Tire and Rubber Co., has released its delayed first quarter results, reporting record sales figures but a loss of nearly $77 million US.
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Goodyear Delay Results
Product NewsGoodyear Tire and Rubber Company, has surprised the financial community by delaying the release of its first quarter results. The results were due for release yesterday but, along with the planned investor conference, they have been rescheduled. The company is confident that it will release its financial details well before the 30 June deadline required by its creditors. In light of last year’s late release, Goodyear will also want to avoid any speculation about the reason for the delay.
Goodyear seeks another extension
Product NewsGoodyear Tire & Rubber is seeking an extension from regulators to file its quarterly report. The company said it plans to file the report by mid-June. As reported, the firm last month restated its net income for 1997 through 2003, less 65 million US dollars. Shares closed at 8.22 dollars, down 22 cents.
F1 Cars Too Quick For Their Own Good?
MotorsportA report in the Financial Times suggests that, if Formula One cars continue to develop as they are, within three years they may be too fast for many F1 circuits. As an example, Michael Schumacher’s qualifying time for the Malaysian GP was four seconds faster than last year’s pole position time. The tyre rivalry between Bridgestone and Michelin is responsible for an improvement of over a second per lap, says the article, and it warns that, if development continues, steps may have to be taken to reduce the cars’ performances.
Goodyear’s Lenders Extend Deadline
Product NewsGoodyear’s lenders under its principal US and European credit facilities have amended the terms of the facilities to extend until May 19 the company’s deadline for filing its 2003 Annual Report on form K-10 with the Securities and Exchange Commission. As such, Goodyear will be able to access the credit facilities or obtain letters of credit, despite the delay. The company originally said that it would file its 2003 K-10 and amended 2002 K-10 by mid-May.
Kraiburg report strong financial year
Product NewsGummiwerk Kraiburg closed the 2003 financial year with positive results. The company reported reports sales up by nine per cent in comparison with the previous year, and a rise in turnover amounting to six per cent. With sales up by 20 per cent, the „hotcure“ segment showed above-average progress, while „precure“ remained steady at two per cent up. Kraiburg report that the Central European market is holding up at last year’s level and the Eastern European markets are growing.
Tyrexpo Asia 2004 – A Resounding Success
Product NewsIn view of what has been happening in the fastidious world of tyre shows recently, it is refreshing to report on a successful venture. Of the four Asian tyre exhibitions to date, the Tyrexpo held in Singapore 17th-19th February was by far the best and, bearing in mind the various difficulties necessitating the postponement for six months because of the SARS outbreak, a triumphant achievement for the organisers ECI International. The show had a very strong international attendance both from an exhibitor and visitor perspective. A total attendance of close-on 3,000 from over 60 countries far exceeded most exhibitors expectations. The buying and negotiating power of visitors was also favourably commented on. Those seeking new technology were not disappointed and there were also a number of innovative products on show. The next Tyrexpo Asia will be from the 13th to 15th September 2005 and ECI advised us that many of the exhibitors from this year’s show have already rebooked stands. A full report on Tyrexpo Asia 2004 will appear in the April edition of TYRES & ACCESSORIES.
Hayes Lemmerz Names Patrick C. Cauley Vice President
Product NewsHayes Lemmerz International, Inc. announced the appointment of Patrick C. Cauley to the position of Vice President, General Counsel and Secretary. Cauley, who was serving as the Company’s Interim General Counsel, will continue to report to Curtis Clawson, Chairman and Chief Executive Officer.
Goodyear Names Novotny to Lead Engineering & Manufacturing
NewsThe Goodyear Tire & Rubber Company has appointed Robert A. Novotny to the position of vice president, Global Engineering & Manufacturing Technology. In this role, Novotny will report to Joseph M. Gingo, executive vice president, Quality Systems & chief technical officer, and Chris W. Clark, senior vice president, Global Sourcing. Novotny, 48, replaces Ernest J. Rodia, who is retiring after 37 years with Goodyear. Rodia, 60, had served as the group’s vice president since February
2001.
John Lampe: “Family-Channel was our escape”
Product NewsJohn Lampe, who is CEO of Bridgestone/Firestone Americas Holding and the first foreigner to become a member of the board of the Japanese parent company, certainly enjoys great respect among American tyre bosses. Even a forced tyre recall that cost the company more than 1 billion dollars couldn’t bring Bridgestone to its knees. After a billion dollar loss in 1999, last year Bridgestone/Firestone Americas could again report 90 million in profits. And this positive trend doesn’t seem to be coming to an end. “Obviously we are far away from what a business with an 8 billion dollar turnover has to achieve,” John Lampe tells TYRES & ACCESSORIES at the SEMA show in Las Vegas. Lampe doesn’t speak in terms of “yesterday and today”, but in categories “before and after the recall” and explains to T&A the measures taken for recovery and change. It is like this: all “core products” will be marketed exclusively through Bridgestone’s “Family-Channel”. As well as the Bridgestone sales chain, independent tyre dealers belong to the Family-Channel.
Backlash to Goodyear profit re-statement
Product NewsThe revelation by Goodyear that it has overstated profits by $100 million over five years has led to deep concern among investors. One shareholder filed a lawsuit, alleging that profits were deliberately mis-stated in order to maintain a high share price. The day after Goodyear’s announcement, shares fell by 19 per cent, eventually recovering to close nine per cent down at $6.19. The episode underlines the uneasy relationship between Goodyear and its investors, with some analysts wondering whether it will cause a delay to the promised issue of new stocks and bonds.
Bridgestone revises earnings forecast
Product NewsTyre manufacturer Bridgestone Corp. released a revised earnings outlook Wednesday containing the impact of the fire at its Tochigi factory, having lowered net and pre-tax profit forecasts for the year ending Dec 31. Bridgestone now expects a group net profit of 78 billion yen against the 80 billion yen the company projected in August when it issued an earnings report for the January-June half.
Shake-up in Goodyear finance department
Product NewsThomas A. Connell is to join Goodyear from TRW as vice president and controller reporting to Stephanie W. Bergeron, senior vice president, corporate financial operations. He is joined by Michael M. Rajkovic, vice president of finance for its North American Tire business unit. He will report to Robert W. Tieken, executive vice president and chief financial officer, and to Jonathan D. Rich, president, North American Tire.
Rajkovic replaces Richard J. Kramer, who was named senior vice president, strategic planning & restructuring by the company. Kramer moves on to become senior vice president, strategic planning & restructuring for The Goodyear Tire & Rubber Company.
“Richard has been active in driving change in our organisation and is recognised as an outstanding leader,” said Robert J. Keegan, chairman and chief executive officer, to whom Kramer will report in his new position. “His experience, plus his deep knowledge of our company, makes him a valuable addition to our corporate leadership team as we build toward our 2005 objectives and turnaround.”
Excise Duty Cut Urged For Indian Tyres
Product NewsIn India, Parliamentary committee has urged the Government to reduce the amount of excise duty levied on tyres sold into the replacement market, from 24 per cent to 16 per cent. This follows a recent reduction from 32 per cent to 24 per cent. Such a reduction would save a single truck operator Rs 18,000 (361.8 Euro) a year in excise duty, says the committee. The Indian tyre industry contributes Rs 3,500 crore (703.5 million Euro) a year in taxes, the report adds.
“Tentative Agreement” Reached Between Goodyear And Unions
Product NewsThe long-running saga of discussions between Goodyear and the United Steel Workers of America took another turn when it was announced that the two sides had reached “a tentative agreement” on a new, three-year labour contract. The next step is for USWA’s 19,000 workers to vote to approve the deal. No details were given, but one unconfirmed press report said that the factory at Huntsville, Alabama, which produces Dunlop tyres, would close as part of the agreement, resulting in the loss of 1,000 jobs.
