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Japan’s Sumitomo Rubber Industries has reported net sales of ¥780,608 billion (€4.57 billion) for the 2013 financial year, 9.9 per cent higher than in 2012. Annual operating income amounted to ¥77,055 billion (£450.74 million), up 10.5 per cent year-on-year. Net income, at ¥44,794 billion (£262.03 million), was 26.4 per cent higher than in 2012. Net income per share was ¥170.75 (£1.00).
Rubber and plastics manufacturer Styron announced today that Solution Styrene Butadiene Rubber (SSBR) capacity at one of its production lines will double after the company reached an agreement with material supplier JSR to acquire its current production capacity rights. JSR currently holds capacity rights to 50 per cent of one production line at Styron’s facility in Schkopau, Germany, however under the agreement Styron will regain full capacity rights as of 1 April 2014.
Turnover at Toyo Tire & rubber rose 27 per cent during the 2013 financial year to ¥370 billion (£2.2 billion), the company reports, while operating profit almost trebled to ¥38.3 billion (£224.6 million); operating margin was 10.3 per cent. Despite these favourable figures, Toyo’s bottom line was significantly below its result a year earlier; net profit fell 12.3 per cent to ¥11.6 billion (£68.0 million).
Toyo Tire & Rubber gives word that the chairman of its Board of Directors Kenji Nakakura will relinquish this role on 28 March 2014. The 64-year old will be named an executive emeritus of the company. Nakakura commenced as chairman and representative director on 28 March 2013.
This year, Goodyear Tire & Rubber celebrates its 60th anniversary as a key supplier to the USA’s most popular motorsport – NASCAR. The tyre maker says its NASCAR tyre supply is one of the longest-running supplier relationships in racing, and in all of sports history. “All of us at Goodyear are extremely proud to celebrate 60 consecutive years of supplying race tyres to NASCAR and its drivers,” said Stu Grant, Goodyear’s general manager of global race tyres. “Since 1954 our involvement in NASCAR has been a proving ground for tyre development, helping Goodyear provide superior performance and innovation both on and off the track.”
Net sales, operating income and net income at Yokohama Rubber rose to record levels during the 2013 financial year, the company reports. It says this performance mainly reflected a tyre business recovery in North America and China along with strong winter tyre sales in the Japanese market. Net income increased 7.3 per cent over the previous year to ¥35.0 billion (£206.0 million), on a 14.0 per cent increase in operating income, to ¥56.6 billion (£333.1 million) and a 7.5 per cent increase in net sales, to ¥601.6 billion (£3.5 billion).
Earlier today, Bridgestone shared news that it has entered into a plea agreement with the US Department of Justice on antitrust activities and accepted a $425 million fine. But it omitted to mention that the amount to be paid is so large because this isn’t the first time Bridgestone has been found guilty of price-fixing in the United States. In a statement published yesterday, the Department of Justice confirmed that Bridgestone’s failure to disclose its participation when pleading guilty to other violations in October 2011 was a “factor in determining the $425 million fine.”
Come November, every new car and light commercial vehicle sold in the European Union will need to have a tyre pressure monitoring system, making the region the second behind the US to make TPMS fitment mandatory. The question vehicle manufacturers must answer is which type of TPMS is best for them. While direct TPMS systems have enjoyed a lot of attention since the first phase of the ECE R64 legislation came into force in November 2012, one indirect TPMS manufacturer expresses confidence in a growing presence in the high-volume market.
Sumitomo Rubber Industries appears to have contested Goodyear Tire & Rubber Company’s claims of “anti-competitive behaviour” on the part of the Japanese tyre manufacturer. Following the news that the two companies are in arbitration regarding the dissolution of their joint ventures and international alliances, Sumitomo published a short Japanese-language statement making it clear that the firm doesn’t agree with Goodyear’s take on things.
Moody’s Investors Service has affirmed Goodyear Tire & Rubber Company’s, Corporate Family Rating at Ba3 and Probability of Default Rating at Ba3-PD. In addition Moody’s has revised the company’s rating outlook to positive from negative. The Speculative Grade Liquidity Rating was affirmed at SGL-2. The news is likely to be interpreted as a signal of improved financial performance at Goodyear, following the publication of good financial results from the US tyremaker yesterday (13 February 2014). The timing of the announcement is also interesting in light of the new that Goodyear and Sumitomo are dissolving their joint venture.
Following a statement from Sumitomo and comments from Goodyear executives yesterday, later on 13 February 2014 Goodyear confirmed that it is moving to end its joint venture with Sumitomo Rubber Industries. The company also confirmed comments suggesting that the move has been precipitated by alleged anticompetitive behaviour. Writing in the company’s annual report, otherwise known as a 10K filing, company representatives said: “We have learned that SRI has engaged in anti-competitive conduct that we concluded warrants the dissolution of the global alliance”.
On 13 February, Bridgestone Corporation entered into a plea agreement with the US Department of Justice; this deal will see the company plead guilty to an antitrust conspiracy related to the sale of automotive anti-vibration rubber products. Bridgestone will also pay a US$425 million fine, and says it now intends to “take appropriate disciplinary action against certain responsible employees” in accordance with applicable corporate standards.
The Board of Directors at Yokohama Rubber and Kumho Tire have resolved to enter into master technological alliance agreement. This agreement is the result of discussions between the two companies following their signing of a Memorandum of Understanding on 29 November 2013; Yokohama says the newly-signed agreement defines the framework and purpose of the technology alliance the two tyre makers will share, and it paves the way for further discussion of the details of the their proposed technology tie-up.
At the tail-end of Goodyear’s full-year 2013 results conference call, Laura Thompson (executive vice-president and CFO) appeared to suggest that the key reason Goodyear has opted to end its global alliance with Sumitomo is because the Japanese firm has engaged in alleged “anti-competitive” behaviour: “Sumitomo has engaged in anti-competitive conduct in relation to anti-trust laws and we think that warrants a dissolution of the partnership. On January 10 we began arbitration to dissolve the partnership.” As a result the American company could be poised to buy out Sumitomo’s joint venture shares.
Goodyear Tire & Rubber Co. has reported full-year 2013 annual sales of US$19.5 billion, down 7 per cent from 2012. However, operating income was up 27 per cent compared with 2012 at $1.6 billion. Reference to the news that Sumitomo and Goodyear are looking to end their international joint ventures were noticeable by their absence from the official results reports. The company reported that it generated more than $1 billion of free cash flow from operations, resulting from higher net income and a $415 million benefit from working capital.
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