Bridgestone Corp. posted better than anticipated results for the first quarter, prompting the company to make an upward revision to its FY2010 financial projections. For the quarter, Bridgestone posted sales of 659 billion yen, up 16.1% year-over-year, while net income rose from a 34.9 million yen loss last year to a net gain of 17.6 million yen.
The board of Pirelli & C. has confirmed what the market has been predicting for some time – the company has “resolved upon a plan for separation of Pirelli Real Estate” from the rest of the tyre dominated business. According to the company, such a separation will occur through the assignment of nearly all Pirelli RE shares held by Pirelli & C. to ordinary and savings shareholders of Pirelli & C., and, therefore, via voluntary reduction of the corporate capital of Pirelli & C. for “an amount equal to the value of the Pirelli RE stake being assigned.” Now shareholders have to approve the transaction by July in order for the actual separation, planned for the end of 2010, to take place.
Tire Review reports Cooper Tire & Rubber Co. reported net income of $12 million for the quarter ended 31 March, a $33 million improvement from the same period in 2009. Net sales were $754 million, an increase of $183 million, or 32 per cent, from the prior year. Operating profit was $33 million for the quarter, a $49 million improvement compared with a loss of $16 million in 2009, the company said.
Shares in Japan’s three largest tyre manufacturers (Bridgestone, Yokohama and Sumitomo) have risen in Tokyo trading this morning, following recommendations made by Citigroup. Bloomberg reports that the gains were made following a report by Citi’s analysts suggesting 2010’s global demand growth in tyres would be 8.2 per cent, as opposed to the previously quoted 5.5 per cent.
Titan Tire Corporation has introduced the second generation of its 007 MFT mining tyre product line. This new product, says the US manufacturer, offers enhanced durability, a more ‘aggressive’ tread pattern, improved heat dissipation and the ability to carry a larger payload. Sizes currently offered in the range include 59/80R63, 53/80R63, 40.00R57 and 27.00R49.
Continental AG has reportedly revived plans to sell bonds to help it repay large debts. Citing “two people familiar with the matter,” Business Week reported that the planned sale of about 1.5 billion euros ($2 billion) in notes may take place as early as May.
The Michelin Group is first and foremost a tyre maker – 99 per cent of its business is directly tyre related. Yet the residual proportion of Group activities not centred upon the black, rubbery rings – the company’s maps and guides, ViaMichelin and Michelin Lifestyle – should by no means be viewed as just a sideshow, a therapeutic diversion from the serious business of producing tyres. In the words of Michelin managing partner Jean-Dominique Senard, “the one per cent is crucial to the 99 per cent of sales. It gives us half a billion contacts through our website clicks, and tens of millions of maps and guides are sold.
Apollo Tyres has opened its 150th sales and marketing office in Tirunelveli, in the southern Indian state of Tamil Nadu. It is also Apollo Tyres’ 10th sales and marketing office in Tamil Nadu. The 149th office was in Etawah, Uttar Pradesh and the 148th in Begusarai, Bihar, opened in February and January this year. Since March 2009 Apollo Tyres has added 15 sales and distribution points to its network in India, something the company points to as being in keeping with the company’s “mantra” of being close to the customer.
India’s major tyre manufacturers have seen their shares jump up to 4.9 per cent in value today amidst reports of price hikes across the four biggest domestic names. Bloomberg UTV reports that Apollo Tyres (up 4.9 per cent), CEAT (2.54), JK Tyre (2.32) and MRF (1.61) all saw their stock rise in value, following reports that CEAT is raising its prices by between two and five per cent, while Apollo and JK Tyre are to make a decision later on the size of their price increases.
The Kumho Asiana Group is one step closer to untying its financial knots following the financial investors of Daewoo Engineering and Construction accepted the terms for selling their share in the company. This leaves the path clear for Kumho Asiana to continue its restructuring plans a step further without losing Kumho Industrial to court receivership.
Goodyear Tire & Rubber Co’s chairman and outgoing chief executive of Goodyear Tire & Rubber Co. received a pay package worth as much as US$17.196 million in 2009. While Keegan’s “non-equity incentive plan compensation” virtually doubled from $4.6 million to $9.514 million during the period, total pay was only 5.39 per cent up on the $16.317 million he received last year. In 2008 Keegan’s package was worth $23.6 million, according to company’s Securities and Exchange Commission (SEC) filing.
Reuters reports that GITI Tire intends to launch a US$400 – 500 million initial public share offer in Hong Kong in the near future. The news agency states that a ‘source’ indicated Giti Tire plans to seek Hong Kong listing committee approval in the coming two weeks, aiming to list shares in April. The deal is, adds Reuters, sponsored by BofA Merrill Lynch and Credit Suisse.
Titan International’s shareholders voted to double the company’s common shares offered on the stock market, reports Tire Review. The board revised Titan’s articles of incorporation to increase the number of common stock shares form 60 million to 120 million. Titan said 86 per cent of shareholders voted in favour of the move. Titan chairman and CEO Morry Taylor said the new shares will “allow the company additional flexibility for possible business opportunities.”
24 February sees the popular UK government/OEM scrappage scheme enter its final phase. Car manufacturers have now been allocated shares of about 50,000 potential further orders based on brand popularity by the Department for Business, to help ensure a smooth closing of the scheme. In a statement business secretary Peter Mandelson reminded would-be car buyers to take advantage of the scheme before it closes.
The scrappage scheme will end when the budget for runs out or at midnight on Wednesday 31 March 2010, whichever is the sooner. According to the Department for Business, the government scrappage scheme will not be extended. But that won’t stop a number of manufacturers offering good deals to customers outside of the “official” scheme.
In the wake of financial results that Michelin characterised as being “more agile than ever,” financial analysts have raised their price targets for the tyre manufacturer by 7 euros from 29 to 36 euros. The Morgan Stanley analysts wrote in their investors note that they had upped estimates from the 2010 to 2011 earnings per share from 3.15 to 4.30 and 3.90 to 4.76 respectively. At the same time they issues a new 2012 earnings per share prediction of 5.98 euros.
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