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Nokian Tyres begins ‘controlled exit’ from Russia

Due to the war in Ukraine and subsequent, tightening sanctions, Nokian Tyres plc has determined that it is “no longer feasible nor sustainable” to continue operations in Russia. The Finnish tyre maker’s Board of Directors thus decided today to initiate a controlled exit from this market. Exit preparations start immediately and Nokian Tyres will evaluate different options for its departure, with “due consideration to local employees and legislation.”

28th June 2022/by Stephen

Impossible to resume production – Michelin transferring Russian operations

Company News, International News

After suspending its manufacturing activities in Russia on 15 March, Michelin now confirms that it is “technically impossible to resume production,” due in particular to supply issues, amid a context of general uncertainty. It says Michelin Group is “therefore compelled” to plan the transfer of all of its Russian operations by the end of 2022.

28th June 2022/by Stephen

Arcom: Increase turnover with greater storage space

When the going gets tough, diversify. This strategy helped storage systems specialist Arcom weather the storms of the past two years. The Polish company is once again enjoying strong demand, both within the tyre industry and beyond. We caught up with sales manager Marcin Smulski during The Tire Cologne to find out more.

21st June 2022/by Stephen

Nokian Tyres raises 2022 net sales guidance

Although the war in Ukraine and subsequent sanctions continue to “cause significant uncertainty” for Nokian Tyres’ operating environment, especially in regards to its business in Russia, on Friday the company reported that demand for its tyres has nonetheless remained good. For this reason, and after successfully implementing price increases to mitigate the impact of inflation, Nokian Tyres has raised its net sales guidance for 2022.

20th June 2022/by Stephen

Pirelli Q1 EBIT up 35%, but full-year estimates revised down

Company News, International News

Pirelli & C. Spa has reported a strong set of first quarter 2022 results which show revenues and pre-tax profits (adjusted EBIT) were up 22.2 per cent and 35.4 per cent respectively despite considerable turmoil related to the war in Ukraine and the resultant sanctions against Russia, where Pirelli runs two tyre factories. However, the tyre manufacturer has also revised down full-year estimates due to the same “geopolitical tensions”.

12th May 2022/by Chris

Continental: Lower income despite strong tyre business in Q1 2022

Announcing its financial results for the first quarter of 2022, tyre maker and automotive technology firm Continental states that it “performed well” during the period despite “an increasingly turbulent market environment.” It describes its Q1 2022 tyre business as “strong.”

11th May 2022/by Stephen

Titan International: No further investments in Russian operation

Company News, International News

Although Russian tyre maker Voltyre-Prom recently spoke of potential opportunities arising from the war in Ukraine and related international implications, majority shareholder Titan International confirms it will not be investing in this business any time soon. Details of Titan’s relationship with the Russian operation were set out in the US-based firm’s 10-Q financial report for Q1 2022 and further commented on during a teleconference held on 3 May.

5th May 2022/by Stephen

Kwik Fit: Cost of living crisis affecting most drivers

Results of a survey conducted on behalf of Kwik Fit suggest 69 per cent of motorists have changed their driving behaviour since the beginning of the year. Altered habits include cutting down on ‘non-essential’ car journeys, something 35 per cent of the 2,000 respondents admitted to doing. Drivers of petrol or diesel cars are almost twice as likely to cut down on such trips, with 40 per cent doing so as opposed to 22 per cent of electric vehicle (EV) drivers.

4th May 2022/by Stephen

Nokian Q1 shows strong growth with Ukraine war effects set to bite in Q2

The effects of the Ukraine war are not present in Nokian’s first quarter reporting, published on 28 April. The company has seen good levels of Q1 growth versus 2021, especially in its car tyre sales, but also in its commercial tyre business. However, with the manufacturer highly leveraged on Russian manufacturing and European sanctions against the country ramping up, it has announced to investors that all bets are off regarding its 2022 forecasts. The negative effects are largely related to passenger car tyre sales – Nokian explains that its “Heavy Tyres” are produced in Finland. It adds that while it has stopped the distribution of these products in Russia, “Nokian Tyres has never sold tyres to the Russian army, and the Russian Federation is not a customer of Nokian Tyres.”

29th April 2022/1 Comment/by Andrew

Nokian Tyres expects significant drop in net sales due to Ukraine war

Following the withdrawal of its 2022 guidance on 28 February, Nokian Tyres has commented that it expects net sales and segments operating profit in 2022 to “decrease significantly compared to 2021.” The tyre manufacturer is the most acutely affected by the Ukraine-Russia war, as analysis previously published on Tyrepress shows.

28th April 2022/by Andrew

Michelin: Q1 sales up 19% to 6.5 billion euros

Company News, International News

Michelin; Jefferies

Michelin Group has reported that its first quarter 2022 sales amounted to 6.5 billion euros, a 19 per cent increase on the first quarter of 2021. According to the company, price increases and strengthening replacement demand helped it offset headwinds including operation disruptions and inflationary pressures exacerbated by the conflict in Ukraine plus the resurgence of Covid-19 in China.

27th April 2022/by Chris

UK government blocks Russian and Belarussian tyre, rubber product imports with 35% tariff increase

Company News, International News, Retreading, UK News

On 25 April 2022, the UK Government announced a further tranche of trade sanctions against Russia. The new sanctions, which were introduced by International Trade Secretary Anne-Marie Trevelyan and Chancellor of the Exchequer Rishi Sunak, include import bans on silver, wood and high-end products like caviar. At the same time, the government has raised tariffs by 35 percentage points on items from Russia and Belarus, including diamonds and “rubber products”. Additional duties of 35 per cent were already introduced on “new pneumatic tyres, of rubber” on 25 March 2022.

25th April 2022/by Chris

Continental revises 2022 outlook, publishes preliminary Q1 results

Due to several factors, Continental is adjusting its outlook for fiscal 2022. The company expects global production of passenger cars and light commercial vehicles to increase by between four and six per cent year-on-year in 2022, a lower rate than the six to nine per cent growth that the prior outlook (published 9 March 2022) was based on. Negative effects from cost inflation for key inputs, especially for oil-based raw materials as well as for energy and logistics for the Tires and ContiTech businesses, are also becoming significantly more material.

22nd April 2022/by Stephen

Duty of care – Continental restarts tyre production in Russia

Company News, International News

Although war continues to rage in Ukraine, German tyre maker Continental is once again producing in Russia. The reason the company gives for resuming tyre manufacture is duty of care for its Russian workforce.

20th April 2022/2 Comments/by Stephen

Synthos: Ukraine war & EU regulations driving interest in recovered materials

With its acquisition of Trinseo’s rubber production plants in Schkopau, Germany late last year, Polish firm Synthos has also taken on the minority stake in Swiss start-up Tyre Recycling Solutions (TRS) that Trinseo held. It reports that its collaboration with TRS is now “progressing according to plan.”

14th April 2022/by Stephen