Reifen 2004 the Most International Yet
This year’s Reifen 2004 exhibition was the most international yet. Exhibitors and visitors alike are already looking forward to the next show, which will take place from 23 to 26 May 2006.
This year’s Reifen 2004 exhibition was the most international yet. Exhibitors and visitors alike are already looking forward to the next show, which will take place from 23 to 26 May 2006.
Bridgestone Corporation has released its unaudited fiscal results for the first quarter of the year. This is the first time that Bridgestone has declared its results on a quarterly basis and thus comparisons with the previous year’s performance are not available. The company has 424 consolidated subsidiaries and 213 equity method affiliates and the turnover for the quarter was 559.5 billion Yen ($5.294 billion). Of this figure, 445.7 billion Yen ($4.218 billion) was attributable to the tyre business segment. Net income for the quarter was 28 billion Yen ($265 million) and operating income 47.1 billion Yen ($446 million), of which 38.5 billion Yen ($365 million) came from tyres.
Cooper-Avon Tyres Ltd has achieved record sales results in the first quarter of 2004. Four years ago the company implemented a new strategy to help safeguard its future. As part of this, the company has seen substantial investment in new processes and products in recent years and is growing at a rate of some 10 – 12% per annum. It is anticipated that this trend is set to continue in the foreseeable future.
VW, which has warned that its 1Q results would be bad, was hit further yesterday when it recalled 870,000 Passats, Audi A6 and A8 models. The worldwide recall is because of a possible fault to the cars’ front axles. The news affected the company’s share price, which at one stage fell by two per cent.
Ford continues to show signs that its recovery programme is on track. Its first quarter results showed an earnings per share of $0.96, as against Ford’s forecast of $0.45. The pre-tax margin was 4.7 per cent, up from 1.9 per cent last year and -1.2 per cent the year before. The figures show that Ford has improved from one of the worst performing car companies to one of the best in less than two years.
Wheel manufacturer Superior Industries has released its first quarter 2004 results. Turnover was up 10.7 per cent to an all-time high of $234.19 million. Net income fell to $13.667 million, compared with $22.266 million in 1Q 2003. Superior’s aluminium suspension components business made a loss of $2.9 million, while the company’s share of profits from its wheel manufacturing joint venture SUOFTEC in Hungary was $2.17 million, due largely to the favourable currency exchange rate.
Cooper Tire & Rubber has said that its earnings per share for the first quarter of 2004 will be around 30-34 cents per share; significantly higher than the forecast of 24-28 cents per share. The reasons are higher sales, a strong performance of Cooper-Standard Automotive and a smaller than expected impact of raw material prices. Cooper’s full 1Q results will be released on April 22nd.
Kumho Tire U.S.A. is recalling some 1,400 ECSTA V710 competition tyres because of “inconsistent test results relating to tread splice and tread area durability. “Kumho have said, “Kumho Tire’s priority is safety, and we are committed to supplying our customers with the highest quality and best performing tyres that are available anywhere in the world. It is with this philosophy in mind that Kumho is taking immediate action in discontinuing the sale of the ECSTA V710 Competition Tire. The sale of the ECSTA V710 Competition Tire will be discontinued immediately, and tyres in use in the market will be collected from consumers. Kumho will replace them with either the Kumho ECSTA V700 or Victoracer tyre free of charge.”
Gummiwerk 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.
Bridgestone Firestone Maxiprest reports headline earnings per share of 1.4 cents for the year ended December – a sharp decline from earnings of 23.2 cents reported the previous year. The group reported a headline loss of 1.759 million Rand after a 21 million Rand profit the year before. At trading level, margins were maintained at 26 per cent, which was more than satisfactory given the pressure on pricing in the second half of the year end trading results from the African operations. The group said the results were impacted by charges approximating 24.6 million Rand relating to the strengthening on the Rand, the write-down of investments in African operations of 1.8 Rand and the provision for increased bad debt to 11.2 million Rand.
Pirelli has published its financial results for 2003, which show positive results from the company’s recent cost-cutting strategy. Group turnover was down slightly to 6.67 billion euro (2002: 6.72 bn), but turnover in the tyre sector rose from 2.86 billion euro in 2002 to 2.97 billion euro last year. EBITDA rose from 523 million Euro in 2002 to 628 million for the last year. The operation income is 268 million Euro (2002: 118 million Euro). Net profit increased form -405 million Euro in 2002 to +4 million Euro last year. Looking at the tyre sector, the turnover rose 11.6 per cent. 7.5 per cent of this was attributable to increased volumes and the remainder to improved prices and product mix, notably in the high performance sector. Operating income was 220 million euro (2002: 191 m); an increase of 15 per cent, while net profit was 129 million euro (78 m). Overall, prospects for 2004 are bright, says Pirelli as the company expects to continue reaping the benefits of its cost-cutting and simplification measures. In tyres, Pirelli is looking forward to yet further improvements, based on its continued focus on the high performance sector, predicted growth in the North American and Chinese markets and relocation of production to reduce costs.
Titan International’s financial results showed year on year a pre-tax improvement with reported net sales of 120.5 million US Dollars for the fourth quarter (up 11 per cent from 2002) and 491.7 million US Dollars for the year ended December 31, 2003 (up 6.2 per cent from 2002). Titan recorded a loss before income taxes of 33.7 million US Dollars for the year, compared to 44.3 million US Dollars in 2002. Maurice Taylor Jr., Titan president and CEO said, “The operating results achieved in fourth quarter confirm that Titan is making progress toward our goals of profitability. We were pleased that Titan’s orders surged beginning in December 2003, and continuing through first quarter 2004.”
In a competition to supply tyres for the F-16 Fighting Falcon, the United States Air Force notified The Goodyear Tire & Rubber Company that its radial aviation tyres won a USAF performance shootout with a major competitor. Goodyear Flight Radials beat a Michelin radial tyre design by 56 per cent on the F-16 block 40 main landing gear, according to results of the USAF competitive evaluation. Goodyear officials said the win is significant since the Air Force uses the test results in its annual procurement awards.
Goodyear Flight radial aircraft tyres beat a Michelin radial tyre by 56 per cent in a head-to-head test on the landing gear of a US Air Force F-16 Fighting Falcon. The test examined tyre life cycle costs and in the past, the USAF has used test results as a basis for its annual procurement awards. The USAF has more than 2,000 F-16s in service.
The Pirelli Group has announced preliminary results for 2003 showing group revenues at 6,679 million Euro, down 0.6 per cent on the previous year’s 6,718 million Euro revenue. However, this still represented a growth of 7.2 per cent given comparable conditions. The operating income (EBIT) more than doubled to 266 million Euro and the Net debt was reduced to 1,755 million Euro, down by 300 million from the previous year. Overall the industrial operations staff numbers were reduced from 35,247 to 33,401 in 2003. Tyre sector sales accounted for 2,965 million Euro, an increase of 11.4 per cent; 7 per cent due to increased volume, the balance on prices and mix. Operating income from the tyre operation was 220 million Euro, an improvement of 15 per cent on the 2002 figure.
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