Tyres can’t function without this critical raw material. Whether its natural or synthetic rubber you are interested in, articles bearing this tag feature this indispensable polymer.
Desser Tire & Rubber Co. affiliate, Aero WBS has achieved the qualification for retreading Canadair 200, 700, 900 series and Embraer 135 and 145 series aircraft tyres, as well as forming an investigative committee for opening a FAA/EASA approved factory outside of the United States.
National haulier James Nuttall (Transport) is moving its truck fleet on to Michelin’s Energy tyres following outstanding results from a year-long trial. The company is seeking ways to reduce costs, and with the increases in fuel prices, the company has devoted some attention to ways in which consumption can be lowered. The transport operator reports that it recorded a 5.08 per cent improvement in fuel efficiency when using Michelin’s XZA 2 Energy and XDA 2 Energy tyres compared to the fleet’s existing XZE 2+ and XDE 2+ fitments, which are principally designed for regional haulage. Performance was measured using two identical Scania R 420 6×2 tractor units.
On 14 February 2011, the board of directors of Yokohama Rubber decided the following management changes in board membership and corporate officers, which take effective on 1 April 2011. The changes include the promotion of Hikomitsu Noji to director and senior managing corporate officer, president of Tire Group. He is currently director and managing corporate officer, president of the Tire Group, general manager of Tire Global Production Division.
Sumitomo Rubber Industries announced full year 2010 results and issued a profit warning on 9 February, but analysts warned that while positive sales projections look conservative the firm may have underestimated raw material costs as well. During the last financial year, higher raw materials prices reportedly cut earnings by 30.6 billion yen year-on-year and yen appreciation had an adverse impact to the tune of 5.0 billion. While higher selling prices boosted profits by 8.9 billion yen and volume/composition is said to have given a 39.8 billion yen boost. Higher productivity also contributed to earnings.
Titan Tire, the US subsidiary of Titan International, has announced that it will increase its aftermarket prices for its Titan and Goodyear branded farm and construction tyres from 1 April. On the back of raw materials, energy and transportation costs tyre prices will increase by up to 8 per cent, though Titan also stated that “certain tyres’ prices may rise in excess of 8 per cent due to realignment and positioning of the product.” The rise will affect tyres shipped on or after the date of the increase.
The first round of the 2011 World Rally Championship has yielded a win in the production car category (PWRC) for Dmack Tyres at its debut event. Czech driver Martin Semerad used the brand’s DMG-ICE tyre to seal what Dmack describes as “a dream start” in Sweden. In the S2000 category Martin Prokop also secured second place on Dmack rubber. Dmack is lined up beside global tyre giant Michelin as the only two tyre manufacturers authorised to supply rubber to WRC competitors.
Denmark’s Starco has announced the formation of a joint venture with Buco S.A., a family-owned company located in Buenos Aires, Argentina. Buco specialises in the development of rubber parts for agricultural machinery, and under the joint venture’s terms the Starco Group receives exclusive European distribution rights for the entire Buco product range – including a comprehensive range of semi-pneumatic tyres and wheels, corrugated hoses and telescopic tubes for seed drills. Starco Europe group marketing manager Brian Lorentzen states that with the joint venture both companies will “benefit from their combined product expertise and market knowledge, all of which supports a strategy of expanding further into the agricultural segment in Europe.”
Analysts at JP Morgan have increased their estimates for Goodyear Tire & Rubber's 2012 earning per share (EPS) and reduced 2011’s figure – mainly due to the impact of raw material prices. To reflect the impact of higher natural rubber prices, JP Morgan lowered its 2011 earnings per share projection to $0.50. However, 2012 has been revised up to $2.25. The estimates assume global volume growth of 4 per cent in 2011 and 2012 and a $374 million negative price/mix against raw material costs spread out in 2011.
A safety recall covering a number of Toyo and Nitto brand products has been announced by Toyo Tire Holdings of Americas Inc. The tyre maker says approximately 4,891 tyres are subject to this recall, of which approximately 588 were produced using a rubber chemical mixture that does not meet the company's specification. “As a consequence, sections of the tread may become detached, potentially causing loss of vehicle control and a crash, which could result in death or injury,” Toyo states in a press release.
During the most recent quarter turnover at Apollo Tyres increased by just 3.2 per cent to Rs 23.68 billion (£319.39 million), and this modest growth in turnover in the three months to December 31, 2010 is in line with growth throughout the first nine months of the current financial year. During the nine months to the end of last year the company achieved net sales of Rs 61.38 billion (£827.89 million), a year-on year growth of 2.7 per cent. The strongest performer in Apollo Tyres’ global operations proved to be the Netherlands based former Vredestein unit, whose turnover grew 11.7 per cent to Rs 6.49 billion (£87.54 million) in the third quarter and 13.1 per cent to Rs 16.11 billion (£217.29 million) in the nine months to December 31, 2010. Apollo Tyres’ net profit for the third quarter decreased 36.8 per cent to Rs 1.2 billion (£16.19 million) while it decreased 35.9 per cent to Rs 2.5 billion (£33.72 million) in the first months of the year.
Following the conclusion of the official Formula One group test, held in Jerez, Pirelli reports its PZero tyres have enjoyed “another faultless run.” The four days of testing at the Spanish circuit presented the opportunity to present the full range of Pirelli tyres, although the wide variety of medium to high speed corners at Jerez meant that the supersoft tyres saw very little action and the teams instead favoured the soft, medium and hard compounds.
Two Hankook Tire America Corp. executives have opted to leave the company. Bill Bainbridge, director of brand communications, has decided to retire effective February 25. He joined Hankook in 2003 after stints with Toyo Tire USA, where he served as marketing director from 1996 to 1999 and as a regional sales manager from 2001-03. Prior to that, he held positions with SEMA, where he was vice president of marketing from 1999 to 2001; and BFGoodrich Tire. in a variety of in-store and field positions.
Analysts chided Hankook Tire’s fourth quarter financials as “as expected…weak fourth quarter results.” In an investor’s note published during the week commencing 31 January, Deutsche Bank wrote that the figures were “in line with our expectations, but…30 per cent lower than consensus.”
The underwhelming performance was put down to the continually rising natural rubber prices: “Tyre makers are generally guiding for rubber prices to remain strong over the next 6-12 months and average selling price hikes remain the only way to protect margins.”
Although Goodyear Tire & Rubber recorded a net loss for the third consecutive year, company chairman and CEO Richard J. Kramer states he’s “very pleased” with the tyre maker’s fourth quarter and full year 2010 performance. “Our operating results reflect significant recovery, with improvement across all of our businesses versus last year despite escalating raw material costs,” Kramer commented.
WIthin its full year 2010 results report, released February 10, Goodyear Tire & Rubber discloses plans to close its tyre making facility in Union City, Tennessee by the end of this year. A stated reason for proceeding with closure plans is the desire to “reduce high-cost manufacturing capacity globally” as per Goodyear strategy. The Union City plant currently employs approximately 1,900 people.
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