When not producing tyres, Germany’s Continental AG spends its time developing automotive and mobility technologies. This requires the company to concentrate heavily on research and development, and a current focus is on technology that eliminates the greatest risk factor on our roads – human error.
Some financial analysts are recommending Continental shares ahead of a possible further sale of some of the stake directly owned by current 49.9 per cent shareholders Schaeffler Group. “Even if Schaeffler were to do another private placement of Conti shares, we think it might not be enough to satisfy investor appetite. We regard Conti as a structural, earnings and free cash flow driven overweight offering an attractive entry point,” Morgan Stanley analysts wrote in an investor’s note published 22 March.
A year ago the newly appointed managing director of Euro-Tyre BV, Frank van Leeuwen, reported that the Netherlands-based wholesaler enjoyed growth in excess of 25 per cent in 2010. Yet the company, like many in the business, needed to remain on the ball in order to avoid the widespread tyre availability issues brought on by an improving economy. Now, 12 months later, Euro-Tyre says that while the problem of availability and supply lies in the past, the pattern of strong growth has continued.
Following news that Midas will be acquired for an estimated US$310 million, company CEO Alan Feldman described the deal with TBC Corporation as being “the best opportunity for Midas to go forward.” Speaking to the Chicago Tribune newspaper, Feldman described the acquisition as a “strategic, compelling marriage of two leading brands in the automotive repair aftermarket.
They say that all publicity is good publicity, but Goodyear executives probably could have done without the publicity it got from CNBC last week. The consumer news and financial information channel asked why Goodyear shares had fallen 13 per cent this year in an improving environment during a 7 March broadcast. The answer that Jeffery B. Middleswart, president, director of research at Behind the Numbers, was blunt to say the least: “This is a company basically bleeding to death.”
Pirelli & C. SpA’s has released fourth quarter and full year 2011 results showing consolidated revenues in 2011 totalled 5,654.8 million euro, an increase of 16.6 per cent from 4,848.4 million euros in 2010. Consolidated operating income after restructuring charges was 581.9 million euros compared with 407.8 million euros in 2010, and with a 10.3 per cent margin compared with the target of “around 10 per cent” announced last November. This is almost two percentage points higher than the 8.4 per cent achieved in 2010.
A new joint communication programme has been launched by Trelleborg and agricultural vehicle manufacturer Fendt in order to publicise the two companies’ efforts towards enhanced farming productivity and efficiency. Under the title ‘The productivity equation, brightly solved’, the new campaign shares that the productivity assessment for agricultural operations may involve complicated calculations, incorporating a lot of factors such as fuel, manpower, machine configuration, software or facilities. However, this advanced equation can be ‘brightly’ solved by adopting the combined Fendt and Trelleborg solution, which the two companies says maximises productivity and controls to boost the operating result of farming professionals.
Financial analysts have expressed a vote of confidence in Continental AG’s present and future financial performance by increasing the price their expect the company’s shares to achieve in the medium term. Recommending a new, higher price target to its investors, Morgan Stanley analysts raised their price target for Continental stock to 90 euros per share, up some 15 euros from the previous target of 75 euros.
Infinity Tyres has announced that the company will publish a self-titled lifestyle magazine in a bid to communicate the multifaceted nature of the brand. According to the company, Infinity likes to think of itself as more than just a tyre brand.
Off-road tyre specialist BKT has reported two important new developments in its European operation since the start of this year. The first of these is the appointment of Lucia Salmaso, who as marketing director has directed strategic marketing and communication activities at BKT Europe srl since the start of 2009 and helped to establish the European subsidiary’s headquarters in Seregno, near Milan, Italy, as managing director of BKT Europe.
Continental AG has announced that the company plans to pay a dividend of 1.5 euros per share for the 2011 fiscal year, almost tripling analyst estimates of 0.55 euros. Based on the approximately 200 million shares outstanding, the proposed amount to be distributed totals roughly 300 million euros. This equates to a payout ratio of about 24 per cent, according to an official statement on the subject.
Last year was a “very challenging year” for Yokohama Tire Corporation, reports Dan King, senior vice-president of sales and marketing at Yokohama’s North American operation. King describes the North American consumer tyre market as being “basically flat” and says in light of this Yokohama was pleased to have grown in all segments of its business.
Ugo Forner, senior vice president of Pirelli’s truck business unit, shares an insight into a sector of the world’s fifth largest tyre maker that is sometimes concealed in the shadow of the company’s sporting ambitions (such as Formula 1) and its positioning as a leading high performance passenger car tyre brand. This sector is of course commercial vehicle tyres, a business in which Pirelli has a presence in many markets around the world, including South America, where it is market leader; indeed, the region is considered the company’s “cash cow”.
Retreading specialist and fleet service provider Bandvulc recently celebrated its 40th anniversary. The Devon-based company marked the occasion at a recent end of year review. “With much subterfuge, code words and red herrings, members of staff managed to prepare a commemorative photobook, arrange a surprise gift and compile a 45 minute presentation to celebrate the occasion,” Bandvulc shares. During the proceedings commercial director Philip West delivered a light-hearted overview of the past four decades and secretly contributed messages of congratulations and best wishes from numerous customers and suppliers were shared with the O’Connell family, along with several mementoes.
At a recent dealer event, Hankook Tire America unveiled plans to launch an associate dealer programme during 2012. US-based industry publication Tire Review reports company officials as saying the as-yet unnamed programme will be formally introduced on 1 April. While details are still being finalised, the programme will apparently feature a tiered volume- and product-based bonus reward system. Participating dealers will receive start-up and POS kits. Hankook shares that distributors will be eligible for cash rewards based on sales volume and sales of key premium tyres.
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