Scott & Scott, LLC a law firm with offices in Connecticut and California, announced a securities fraud class action against The Goodyear Tire and Rubber Co. The complaints filed by the law firm have cited various individual defendants including Samir G. Gibara, Robert W. Tieken, Robert J. Keegan, and Stephanie W. Bergeron.
Toyota’s first half results were better than expected, with a strong 2nd quarter, in which turnover rose 10.6 per cent and operating profits were up 46 per cent, year on year. Strong sales growth globally, effective cost reductions and favourable currency exchange rates were cited as the main reasons.
BMW’s 3Q results were in line with analysts’ expectations, with revenue down slightly (0.3 per cent) at 9.945 bn Euro and operating profit eight per cent higher than expected, at 762 million Euro. On the positive side, the product mix improved, with increased volume for the 5-series and X5, while on the negative side, R&D costs increased as a percentage of sales, reaching 5.4 per cent.
Chris W. Clark (52) has been appointed to the newly-created post of senior vice president of global sourcing, responsible for activities from procurement to manufacturing to global sourcing. He will head a new organisation that links all of Goodyear’s global manufacturing and supply chain activities directly to improved customer service and business results. Clark joined Goodyear in 1973 and his most recent post before the current promotion was as president of the company’s Latin American region.
Titan International’s 3Q turnover was $111.2 million; 6.2 per cent higher than for the same period last year. The quarterly loss before tax was $12.6 million (3Q 2002: -$21.9 m). The negative impact of high raw material costs and increased employee benefit costs was estimated at around $2.1 million. There was also a figure of $1.7 million as a cost incurred when Titan consolidated all its tyre manufacturing into its plant at Des Moines, Iowa.
Michelin’s third quarter results show that turnover was down 1.7 per cent on 3Q 2002 to 3.8 billion Euro, but volumes were up slightly for both OE and replacement markets. Speaking of prospects for the year as a whole, Michelin expects to achieve an operating margin slightly below the 7.8 per cent of last year. Raw material costs have risen by 300 million Euro this year and second half figures will be affected by the consolidation of the loss-making Viborg retail chain and a PSA wheel recall.
SmarTire has released figures for the fiscal year ending 31st July 2003. Turnover was $1.8 million; an 80 per cent increase on the 2002 figure of $1 million. The company reported a net loss for the year of $9.9 million (-$6.8 m in 2002). Bright spots are the introduction of the TREAD act, mandating tyre pressure monitoring systems on US vehicles, and entry into new markets, such as China.
Cooper Tire & Rubber Company will announce its third quarter financial results before the market opens on Thursday, October 16, 2003. A conference call discussing the financial results will follow at 11:00 a.m. (EDT). Individuals can access a webcasting of the conference call at our investor relations web page at www.coopertire.com
A study by J.D. Power and Associates in the USA places Pirelli highest in satisfaction for its original equipment car/compact van tyres among over 30,000 new vehicle users.
Managing Director of the Pirelli Tyre Sector, Francesco Gori: “Pirelli’s strategy of attacking the North American original equipment market is producing significant results, thanks also to MIRS™ technology”
Pirelli car/compact van tyres have been ranked highest by American motorists, compared to all the other original equipment brands included in the study. This has been confirmed by J.D. Power and Associates, one of the principal institutes for the analysis of the United States market, in its annual tyre research into the Index of Satisfaction, conducted among 30,478 owners of new cars.
A national survey of members of the National Tyre Distributors Association reveals that over a third of respondents have been the victim of illegal fly tipping of tyres within the past six months. Results vary according to location; 70 per cent of dealers in South and West Wales reported fly tipping on their premises, while the best area was the North East (25 per cent) and the worst was the South East and London, where 95 per cent of dealers reported illegal tyre dumping in their area.
The row over tyres used in Formula 1 escalated when Ferrari’s Technical Director Ross Brawn said that Ferrari was considering lodging protests over the results of several of this season’s races. A large number of Michelin teams “were running illegal tyres for a considerable amount of time” he said in an interview with Autosport magazine, dismissing suggestions that the row is damaging the sport. Michelin claims that its tyres are legal. As far as the average F1 fans are concerned, they would doubtless prefer the 2003 championship to be decided on the track by drivers, rather than in a courtroom by lawyers.
Superior Industries International has warned that operating results for the third quarter will be below previous estimates. While turnover is satisfactory, SII has experienced “significant one-time expenses relating to multiple expansion programs and record number of new product launches. The company is confident that its programme of capacity expansion, modernisation and cost reductions will bear fruit, but short term expenses are higher than anticipated. Wheel shipments will be around 3 per cent down on 3Q last year, said President and COO Steve Borick.
After a seven-year gap, Continental AG, Hanover, is back in Dax. On September 22 the international automotive supplier will return to the German’s stock market’s blue chip index. The announcement was made yesterday by the Deutsche Börse AG in Frankfurt/Main. Continental, a founding member of the index, thus becomes the first company in Dax’s fifteen-year history to stage a comeback into the circle of Germany’s 30 largest companies.
Bridgestone Australia reported a drop in net profit of over 20 per cent for the first half of the year, to A$ 4.16 million (2.4 m Euro), while turnover was up 3 per cent to A$ 262.45 million (151.7 m Euro). Executive director of finance Andrew Moffatt blamed an increase of cheap, imported tyres for the fall in profits and Bridgestone is in negotiations with its workforce to increase productivity. No half-year dividend was declared, but the company expects to declare a “reasonable” year-end dividend.
Bandag, Incorporated has reported consolidated net income of $8.7 million, or $0.45 per diluted share for second quarter 2003, compared to second quarter 2002 consolidated net income of $11.7 million, or $0.57 per diluted share, a decrease of 26% and 21% for consolidated net income and diluted earnings per share, respectively. Second quarter 2003 results were reduced by approximately $2.2 million due to net foreign exchange losses. Second quarter 2003 results were also reduced by approximately $1.5 million in net charges related to Bandag’s distribution subsidiary, Tire Distribution Systems, Inc. (TDS), for store divestitures and a real estate impairment charge. Consolidated net sales for second quarter 2003 were $204.1 million, a decline of approximately 12%, compared to consolidated net sales of $231.1 million in the prior year period.
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