“Matador Group has completed another successful year,” said company spokesperson, Dušan Koblišek in a statement about its 2004 activities.
Describing Matador’s acquisitions and its move into the automotive supply segment as “a breakthrough period in the history of our company,” he went onto explain that the group’s initial consolidated results recorded a profit before tax of SKK 388 million (£7 million).
Cooper Tire’s fourth quarter 2004 results disappointed analysts, according to a Deutsche Bank report. For them, the “major disappointment” was volume, which decline 6 per cent year-on-year. Cooper also registered earnings per share of $0.04, less than half analysts’ estimate. As a result the bank cut its 2005 earnings per share estimate from $1.45 to $0.75. They also cut their 2006 estimate from $2.45 to $1.25. In spite of these criticisms, the analysts also noted that the result were not necessarily reflective of “normal” profitability. “We find it encouraging that CTB’s order fill rates are in the low 80 per cent range, which implies that demand is outstripping supply.”
In the first three months of the 2005 financial year Yokohama reported 305.9 billion yen (£1.54 billion) of net sales, a three per cent increase on the previous year. The company explains that strong overseas sales offset the negative impact of the high yen. Results for the period ended 31 December 2004, also showed that operating income dropped to 17.5 billion yen (£88 million). At the same time net income decreased 6.9 per cent to (roughly £41.23 million)
Yokohama reports that tyre sales were “solid” overseas, especially in North America, Asia and Europe, while replacement sales in Japan grew. Sales of the Tire Group therefore increased 4.3 per cent to 226 billion yen (£1.14 billion). The management maintains its full year projections, saying that Yokohama will record a 4.6 per cent gain in net sales, a 9.1 per cent increase in operating income, a 4.3 per cent rise in ordinary income and a 3.2 per cent drop in net income.
Continental has commissioned a survey investigating student opinions of universities. It is hoped that the research will give a clearer picture of the opinions of German secondary and university students on social and political questions. The results will be presented by Thomas Sattelberger Continental board member responsible for personnel on 24 February. The research, conducted by TNS/Infratest, was wittily entitled “Reforms and Wissenschaf(f)t” – a pun referring to the word “Wissen schafft“ (meaning knowledge) and “Wissenschaft“ (meaning science).
Alcoa’s Hungarian wheel plant won the 2004 National Quality/Excellence Award, the most prestigious business excellence award in Hungary, the company has announced. Alcoa Wheel Products Europe (AWPE) was awarded the national prize by Hungarian Prime Minister Ferenc Gyurcsany during a recent ceremony.
Polyurethane tyre manufacturer, Amerityre, has claimed that its products out perform “comparable rubber compounds” when it comes to heat aging and Ozone resistance. The claim follows testing at an independent laboratory in accordance with ASTM test standards. Amerityre explains that it tested its products for these attributes in anticipation of NHTSA standardised testing, including an “oven-aging test” due to take effect in July 2007.
BorgWarner Inc has reported 2004 earnings of $3.86 per share on sales of $3.5 billion (£1.9 million). In the fourth quarter of 2004 the company also recorded sales of $889 million (£477 million) up 11 per cent compared with the same time in 2003. BorgWarner reports that this equates to an operating income margin of 10 per cent.
Market analysts at Morgan Stanley, have raised Continental’s stock price target from 52 euros to 60 euros. The Morgan Stanley analysts clearly believe that the shares have more potential than they first thought: “We are raising our price target based on the expectation that our current earnings forecasts are likely too conservative and have significant risk to upward revisions following fourth quarter results.”
The German Helaba Trust has changed its advice for Michelin shares to a sell rating. The announcement pre-empts Michelin’s quarterly sales results, which are due to be released on the 11 February. In the first nine months of 2004 Michelin’s turnover increased 4.6 per cent to 11.7 billion euros. The analysts believe that company will record fourth quarter sales of 4.3 billion, a one per cent increase. Their report suggests that this growth has been largely driven by the commercial vehicle sector, which it predicts will have been responsible for 1.1 billion euros of that total. The trust also suggests that the company’s passenger car sales remained virtually flat, with sales only increasing 0.3 per cent or 1.9 billion euros.
Continental’s Hanover headquarters have denied claims that the company “will do anything to win magazine tyre tests.” The company’s rebuttal follows motoring journalist Robert Collin’s accusations that the company manipulated test results by providing specially produced products rather than the series units they should have. Furthermore, the Swedish Aftonbladet magazine article suggested that Continental had a “secret test tyre department” whose role it was to produce such tyres.
In a statement issued by the manufacturer’s head office, Continental “emphatically denies” the claims. “We don’t have a secret department that produces special tyres to be used in tests,” added Rainer Strang, Continental corporate spokesperson. He also pointed out that the company’s good reputation was confirmed by its market success in addition to its “consistently outstanding test results.” “Continental tyres undergo months and even years of rigorous testing and development with the world’s leading car manufacturers,” he added.
Continental AG’s most recent financial results show that the company has broken all previous records, including the one billion euro EBIT barrier. Speaking to Tyres & Accessories, Continental chairman, Manfred Wennemer, explained that the company achieved the one billion euro mark, despite the costs incurred in the partial closure of the company’s Mayfield plant.
With regard to US business, Mr Wennemer said that while the company is still in deep water, the situation is considerably better than in recent years. The Continental chairman went on to speak of his belief that this area of business will break even by the end of the year, as has been suggested before.
As far as 2005 is concerned, Mr Wennemer is confident that Continental can top this year’s impressive results. Chief financial officer, Dr Alan Hippe, demonstrated this feeling of optimism when he pointed out that company debts had dropped to less than one billion euros. The company’s share value also has the potential to increase by 40 per cent in the next two years, he added. Continental shares are currently trading at 52.50 euros.
Goodyear North American Tire division president, Jon Rich, said his unit’s 2004 financial results would show its first annual profit in three years, according to a Tire Review report. Mr Rich made his comments at the company’s annual dealer meeting in Dallas. Aggressive cost cutting and high sales of Goodyear’s Assurance passenger tyre line led to the improvements in both sales and profits, he explained.
When Tyres & Accessories published a question of the month on the subject of run-flat tyres, it provoked quite a reaction. At the time T&A asked: Should run-flat tyres be fitted on new cars as ‘standard’ original equipment?
The answers given were both varied and surprisingly. Although 45 per cent of those who responded answered with a definite ‘yes,’ more than a quarter of readers (27 per cent) said an equally definite ‘no.’ Almost the same number sat on the fence, so to speak, satisfied with the development of a two-tier market. Consequently the majority of respondents were either against or indifferent to the introduction of run-flat technology through OE, while the largest single group were for them. So, the question still remains: does anybody really want run-flats, or are manufacturers trying to introduce them by stealth?
Delphi has reported losses of $102 million (£55 million) in the last three months of 2004, following cost restructuring and the drop in General Motors’ vehicle production, reports the Detroit News.
Excluding special charges, the company lost $51 million, or nine cents a share, against Wall Street estimates of a 15-cent-a-share loss for the quarter.
Total revenues were down three per cent to $7 billion, but the company increased non-GM revenue 14 per cent to $3.4 billion in the fourth quarter.
Bridgestone Australia is predicting that its 2005 results will suffer “significantly” because of a rise in raw material prices, reports Fairfax news site.
The manufacturer recorded a $10.86 million (£4 million) net profit in 2004, which was up 1.9 per cent on the previous year.
“As predicted in our October and December 2004 stock exchange releases, raw material prices increased significantly in the last quarter of 2004,” Bridgestone said.
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