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Directors of The Goodyear Tire & Rubber Co. have declared a quarterly dividend of 30 cents per share. The dividend is payable December 15, to shareholders of record on November 16. The payout represents an annual rate of $1.20 per share.
The Goodyear Tire & Rubber Company will call the newest Blimp “Spirit of Goodyear” in order to honour its 100,000 employees world-wide. The replacement of the former Blimp became necessary because the “Spirit of Akron” crashed at the end of October.
Bridgestone Corporation, the world’s largest rubber company, wants to join the electronic marketplace RubberNetwork.com as the seventh member of the group.
For companies such as Michelin, motorsport plays a very important role in the development of the tyres eventually sold to the public – even if they are very different from those used on the track. Involvement in motorsport has two obvious benefits; publicity and proving technological superiority. There are other benefits though; it offers an extreme training ground for skilled engineers, developing team skills and experience at the limits of tyre technology, and knowledge which cannot be gained elsewhere. Products developed for the race track will never find their way directly on to road-going vehicles. However, many elements of motorsport tyres have found their way into commercial tyre products – compounds, Kevlar and Aramid fibres – whilst rally events supply information about tread design, puncture resistance, rubber hardness and thermal resistance. Motorsport also offers a test bed for simulation procedures. Development is tried out on the virtual test bed and trial tested in the most extreme conditions imaginable. From a tyre manufacturer’s point of view motorsport is about getting a set of tyres to complete the race and cross the line in first place – the rest of the car is only a means to that end. The tyre must be designed to last for the duration of the race. It therefore can and will have a completely different set of design criteria from a road tyre, which has to undergo 25,000 miles and more of driver abuse, function in many weather and road conditions, and give warning when approaching their limits. The race tyre is designed to carry out a single race at maximum power for the duration of its working life. Read more about this topic in the December issues of NEUE REIFENZEITUNG or TYRES & ACCESSORIES.
The Australian Conglomerate, Pacific Dunlop Ltd., cannot reach its income figure from 1998 of A$ 188m. In the first half of 1999 the company reached a net income of A$74.5m compared with A$ 101.7 million for the first six half of 1998.
Degussa-Hüls AG, the world’s second largest carbon black manufacturer, with production sites in Europe, North America, Africa and Asia, has agian announced a price increase of 50 Euro per metric ton for its range of rubber blacks, effective from September 1st, 2000, in Europe. A continuing combination of the weakness of the Euro and unprecedented high prices for crude oil and crude oil products is leading to substantially higher carbon black production costs.
Michelin has announced a fall in net profits, from 535.5 million Euros to 154.4 million Euros for 1999. This is even lower than latest predictions of financial analysts. The figures were affected by the inclusion of a special provision of 370 million Euros, made to cover the entire cost of Michelin’s three-year restructuring plan. However, operating profit for the year rose to 1.23 billion Euros; an increase of almost 15%.
Goodyear, who predicted a slight improvement in its financial fortunes for the second half of the year, is now forecasting “break even or a small loss” for the 3rd and 4th quarters, assuming economic factors remain the same. The low Euro vs Dollar situation and high raw material costs were blamed.
A fire started at a Michelin raw materials warehouse which is dedicated to Michelin’s largest plant at Clermont-Ferrand, where 5,000 people are employed.
Sylvain G. Valensi (58), who has 34 years’ service with Goodyear, latterly as Vice President Goodyear Europe, has, since the joint venture with Sumitomo Rubber Industries (SRI), assumed the role of Vice President of Goodyear Dunlop Tires Europe. Talking to this magazine during the recent “Reifen 2000” exhibition in Essen, he stressed that the major brands Goodyear and Dunlop will remain independent and will almost be in competition with each other.
Bridgestone/Firestone Europe (BFE) has revealed details of a new, ultra-low aspect tyre for trucks and city buses. Called GMD (Greatec Mega Drive) the tyre replaces a pair of dual-mounted drive axle tyres with a single unit. Advantages claimed by BFE include lighter weight, lower rolling resistance and increased carrying capacity. Sizes are 435/45 R22.5 (for city buses) and 495/45 R22.5 (for trucks). Bus tyres will be commercially available early next year and the larger GMD truck tyres in 2002.
Cooper Tire & Rubber, the US tyre and rubber manufacturer, announced sales of US$ 2.2 bn, which is an increase of 17% compared with 1998. Net income was US$ 135.5m. This figure is 6.7% up on 1998.
The top three natural rubber producers, Thailand, Malaysia and Indonesia, want to set a minimum price for rubber on the world market and to limit supply. However, despite meeting twice in the past month, the three countries are unable to agree how these objectives might be achieved.
There are rumours in the market that the industry will raise tyre prices – maybe even this week – to cover increases in raw materials (rubber, oil, carbon black). As production capacities have been expanded during the last 24 months, it is doubted whether any increase will stick due to market pressure.
Goodyear and retreader/truck tyre dealer Treadco have announced the formation of a joint venture company, called Wingfoot Commercial Tire Systems. Ownership is 60/40 Goodyear/Treadco. Wingfoot will be the world’s largest network of cv tyre outlets and truck tyre retreading facilities, with coverage coast-to-coast.
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