Russia
Next year, Michelin plans to extend its tyre line-up to fully cover all phases of the crop cycle and adapt to new types of use, and at this week’s Agritechnica show the tyre maker is presenting the new products joining its portfolio – on of these is the BibLoad Hard Surface, a new range for compact and telescopic loaders.
Yokohama Rubber reports record sales and earnings in the first three quarters of 2013. Net sales increased 4.9 per cent over the same period of the previous year to 412.4 billion yen (£2.6 billion), operating income increased 13.8 per cent to 29.9 billion yen (£188.3 million) and net income increased 12.3 per cent to 19.6 billion yen (£123.5 million). The three totals were the highest ever in the nine-month period between January and September, although the company does point out that prior to shifting to calendar-year accounting in 2011 the same nine-month period corresponded to the fourth, first, and second quarters of the financial year.
At today’s presentation of its 2013-2017 Industrial Plan in London, Pirelli & C. SpA chairman and chief executive officer Marco Tronchetti Provera spoke of the need for a “change of pace” in its activities in Russia, noting that “we’re running late with our start-up plan.” The Russian market situation, and what Pirelli intends to do there, was then explained in greater detail by Gregorio Borgo, Pirelli’s general manager operations.
During the first nine months of 2013, Finnish tyre maker Nokian Tyres added 124 outlets to its Vianor dealer network. As of 30 September 2013 the Vianor network operates 1,161 centres in 26 countries. Vianor outlets in Finnland, Sweden, Norway, the US, Switzerland and Russia belong to the company while the remaining 978 are bound to Vianor/Nokian through franchise agreements.
Financial analysts have described Nokian’s latest third quarter financial results as “better than expected”, however they also pointed out that any optimism will be have to be balanced against the details of a recent profit warning. The profit warning referred to forthcoming fourth quarter figures, which are expected to be “weak”, with pre-tax profits (EBIT) estimates projecting a -13 per cent decline.
Upon announcing its third quarter 2013 results, Nokian Tyres points out that although its group sales decreased 3.0 per cent year-on-year to €357.0 million in the three months to 30 September, the company’s profitability remained strong and it improved market share. Operating profit rose 11.9 per cent to €95.7 million and profit for the period amounted to €70.9 million. Earnings per share were up €0.08 to €0.53.
The Russian city of Kaluga is home to several European vehicle manufacturers, including Volkswagen, PSMA and Volvo Trucks, along with suppliers such as Magna, Faurecia, Benteller and Gestamp. The name Continental now joins this list following the official start of production at the company’s new tyre factory in Kaluga on 29 October.
Michelin has won a tyre supply deal for the Teesport based Containerships fleet. With 60 6×2 mid-lifts, fleet engineer Gordon Aitchison says the results of a recent 1,000km trial have helped to identify significant annual cost differences of more than 20 per cent between four different 295/80R22.5 premium brand tyres.
Yokohama ’s Russian tyre manufacturing and sales subsidiary, Yokohama RPZ has hosted the company’s latest tree-planting ceremony at its plant grounds in the Special Economic Zone in Lipetsk. The ceremony is part of the company’s worldwide Yokohama Forever Forest Project.
Every year, Bridgestone releases a new Mid-Term Management Plan. Each covers a five-year period and incorporates rolling changes. In announcing its 2013MTP, Bridgestone says the latest plan reflects changes in the operating environment since the formulation of the 2012 mid-term plan and incorporates revisions and additional strategies and actions “as deemed necessary.” Amongst the themes covered by the new plan is the restructuring of Bridgestone’s tyre business strategic business units (SBUs).
Figures released by Michelin this week add further weight to the ETRMA’s suggestion of recovery being evident in recent European market developments. The French tyre maker reports growth in both the passenger car/light commercial vehicle and heavy truck markets in Europe (including Russia and Turkey) during September.
German wholesaler Baro is making its first appearance at Tyrexpo Africa 2014, with the express purpose of seeking new distribution partners for its European manufactured ranges of car, truck and agricultural tyres.
News from the USA; Titan International Inc., in partnership with One Equity Partners (OEP) and the Russian Direct Investment Fund (RDIF), has closed the acquisition of a majority interest in Voltyre-Prom, a leading producer of agricultural and industrial tyres in Volgograd, Russia, from the principal owner, Cordiant, for approximately $94 million. This sum includes the assumption of debt, subject to various post closing adjustments over a period of three years.
Nokian Tyres’ management has issued a profit warning stating that second half revenues are likely to be lower than expected. Third quarter sales are said to be stable year-on-year, which are somewhat lower than some analysts’ projections (Deutsche Bank for example had said +10 per cent).
A new management role, that of ‘general manager operations’, has been created at Pirelli, and Gregorio Borgo has been appointed the first incumbent. Borgo, currently head of Pirelli’s Asia-Pacific region, will report directly to company chairman and chief executive officer Marco Tronchetti Provera in his new position.
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