$17.9 Million For Nasser
Former Ford Chief Executive Officer Jacques Nasser received $17.9 million in compensation last year when he was replaced at the helm of the second-largest automaker amid losses and declining sales.
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Cooper Earnings Exceed Expectations
Product NewsThe Cooper Tire & Rubber company’s earnings per share for the first quarter of 2002 will be around 35 to 37 cents; significantly more than the previous estimate of 30 cents. This is due to an increase in market share and increased light vehicle production in North America. Full results will be published on April 18.
Shift of Michelin Production Towards Romania
Product NewsNext month, Michelin will close its truck tyre plant at Burnley (UK) and move the production capacity to Romania where the company took over a local producer several months ago. This move was confirmed by CFO Michel Rollier during the Global Automotive Conference held by Morgan Stanley in New York. Rollier added that the truck tyre business should create an average operating profit between 13 and 14 per cent. In the previous year this had been just 8.8 per cent due to the declining market. – a result which was, in any case, much better than the competitors’ results. Rollier added that Michelin wants to intensify its passenger car tyre engagement in the European high performance sector and to improve its position in the winter tyre segment. Both segments meanwhile have become attractive markets. In the USA Michelin has been able to win market share and has exchanged 2.6 million tyres during the Firestone recall.
Research And Development In The Tyre Business
Product NewsEach year in spring the schedule of our editorial staff fills with new tyre launches. What is the reasoning behind the development of more and more new tyres? Is it because customers constantly demand new products? Do they really ask for two per cent more grip on wet roads or three per cent more safety on aquaplaning? Hardly. Many surveys show that customers do not care much about their tyres. Sometimes they do not even know the size of the tyre on their car never mind the correct tyre pressure. And although many customers make the decision which tyre to buy after consulting the test results published in the big German magazines, there is no such thing as a “consumer pressure” on the tyre manufacturers to develop new tyres. More often the industry itself maybe is disappointed with the test results and this might then be a motivation create new products. But indisputably, the greatest drive comes from the car manufacturers. They are constantly demanding higher performing tyres for ever higher performing cars. This is the reason why NEUE REIFENZEITUNG visited the research and development departments of several car and tyre manufacturers to get an impression how they are working together, and to follow up the route of a new tyre from the first sketches to the start of the production. Therefore we will focus on these details in an intermittent series starting in this issue with a very general introduction.
2001 Net Loss For Titan International
Product NewsTitan International has published its 2001 financial results. In the fourth quarter, Titan’s net sales were $100.6 million (Q4 2000: $113.4 m). For 2001as a whole, sales were $457.5 m ($543.1 m). The net loss for Q4 was $21.5 m ($8.0 m) and Titan turned in a net loss for the year of $34.8 m, compared to a net income in 2000 of $4.5 m. President and CEO Maurice Taylor Jr. described 2001 as “difficult for all manufacturers.” On the positive side, Titan settled two long-running (39 months and 40 months) labour disputes and received approval to offer agricultural tyres and wheels through the Case New Holland dealership network.
Fall In Profits For Pirelli
Product NewsPirelli has announced a 32 per cent fall in operating profits for 2001 to 295 million Euro (2000: 437 m). Revenue was broadly similar at 7.5 billion Euro (7.48 bn). The company blamed a slump in the telecoms cable sector. Pirelli’s shares have been up and down, falling 18 per cent in the past month. Rumours of bad results led to a 4 per cent fall last week, but when the results were published, there was a partial recovery of 1.6 per cent.
Net Sales of Federal Corporation Hit Record High in 2001
Product NewsFederal Corporation, based in Taiwan, reported that, as a result of the success of its innovative quality ultra high performance tyre products coupled with the outstanding sales performance of its worldwide distribution network, the company grossed over $89,373,000 in 2001. This is an annual sales record for the company and a 13.26 percent increase on the year 2000.
Continental Rearranges Trading Activities
Product NewsA management buy-out finally helped the Group to divest itself of their trade chain NTS, which has been in the red for some time. It is said that over the last three years only, they had to meet with losses of more than 50 million Euro. And despite of a turnover of more than 200 million Euro, even Vergölst, another trade chain, also failed to avoid considerable losses. In an interview with NEUE REIFENZEITUNG, Dr. Hartmut Wöhler, the Group’s director for trading activities, however assured NEUE REIFENZEITUNG that after last year’s losses of almost a double-digit million sum, this year is ought to see a “black zero”. For Wöhler these unsatisfactory results, amongst others, were due to the repeated management changes which had impacted upon these trading chains over the last 20 years, resulting in a lack of continuity.
Full Year Results From Bandag
Product NewsBandag has announced consolidated net earnings of $17.4 million for the quarter ending 31st December 2001, bringing total net consolidated earnings for the year to $43.8 million, or $2.12 per diluted share on sales of $964.9 million. This compares to 200 net earnings of £60.3 million on sales of $996.1 million. Martin Carver, Bandag’s CEO stated that strong results in the last quarter were offset by performance in offshore operations. He noted that offshore operations continued to experience difficult economic conditions and strong competitive pressures.
First Quarter Results From Amcast
Product NewsAmcast, the automotive parts manufacturer (aluminium wheels), has reported results for its fiscal 2002 first quarter, which ended on December 2 last year. Sales were down 5 per cent compared with last year, at $131.2 million. The net loss for the quarter was $5.5 million. Sales at Speedline, the company’s European operation, were up 9% on the previous year, benefiting from a strong vehicle market and favourable exchange rates.
Worse-Than-Expected Figures For Vredestein
Product NewsContrary to earlier forecasts, the Dutch Vredestein group has announced heavy losses for 2001. Sales and profitability on the German tyre market, which are very important factors in Vredestein’s results, are under pressure.
Revised Earnings Forecast From Bridgestone Imminent
Product NewsBridgestone has said that it will hold a press conference today to give a revised earnings forecast and details of revised output plans for its US subsidiary. Last year’s results were hit by the Firestone recall, with group net profit falling 80 per cent. President Shigeo Watanabe is scheduled to attend the news conference.
Scottish Winter Tyre Safety Campaign Results
Product NewsThe annual tyre safety campaign in Scotland moved from October to December last year. A four day clinic programme held in supermarket car parks revealed that 20% of motorists had tyres with tread below 1.6mm. The clinic programme was followed by a week of police enforcement on the roads, which showed an illegal tyre level of 14.4% – almost exactly matching the UK average of 14%.
Tauzin Data Forwarded To Ford
Product NewsRepublican Senator Tauzin’s data on 11 replacement tyre models has been forwarded to Ford. Tauzin, chairman of the House Energy and Commerce Committee has asked Ford for a comprehensive explanation of how it decided which brands of tyres to use as replacements. He has also asked Ford to run “rig tests” on all replacement tyre brands before installing them. This follows Committee investigators’ claims that 11 of the replacement tyre models had higher damage and injury rates than the Firestone Wilderness ATs being replaced.
2000 Figures From Titan International
Product NewsTitan International has announced net sales for the fourth quarter of $113.4m, down from the previous fourth quarter of $134.4m. Net sales for the year 2000 were $543.1m, compared to $588m for the previous year. The fourth quarter (2000) loss recorded was $8m, as against $6m for the same quarter 1999. The full year results showed a net income of 4.5m against a loss of $11.4m in the previous year.
