Nokian’s net sales grew to 349.4 million euros (18.3 per cent) in the first half of 2006. During the same period operating profit amounted to 48.6 million euros (2005: 46.1 million), up 5.4 per cent. However profits before tax fell 10.8 per cent to 42 million euros in the period. Nokian Renkaat shares soared 18 per cent higher in response to the news.
Stamford Tyres Distributors India Private Limited (Stamford Tyres India) was incorporated on 6 July 2005 with an authorized capital of 500,000 rupees (£5700) and will sell and distribute wheels and tyres to the Indian market.
Alliance Tire Co. ltd. has signed a supply contract with Caterpillar Inc., the world’s largest manufacturer of heavy engineering equipment. Alliance Tire expects the contract to generate $4 million revenue through December 2007. According to Alliance, the relationship could create other business opportunities for the company and help it penetrate new markets.
Standard & Poor’s Equity Research analyst Efraim Levy has reduced his earnings estimates for Goodyear Tire & Rubber, saying that raw material costs will have a greater impact on the company than was originally thought. He cut the second-quarter and full-year 2006 earnings estimates on Goodyear to 36 cents and $1.29 per share, respectively, from 43 cents and $1.51. Levy said he expects the company to be cash-flow negative in 2006 and he lowered the target price on Goodyear shares to $14 from $17.
The Board of Directors of Pirelli & C. S.p.A has announced it will begin its initial public offering for Pirelli Tyre S.p.A on 21 June. Pirelli Tyre S.p.A. gained Borsa Italiana approval for the listing on 12 June 2006. Banca Caboto, Capitalia, Goldman Sachs International, J.P. Morgan Securities, Mediobanca, Merrill Lynch International and Morgan Stanley, will act as Global Coordinators for the Global Offering.
(Akron/Tire Review) Pirelli SpA has cleared a key hurdle in its quest to issue stock for its tyre group. Milan’s bourse cleared the listing of shares in Pirelli Tyre, but no timetable for the possible listing was given. Regulator Consob must still approve the IPO. Mediobanca SpA and Banca Akros SpA have been retained by Pirelli to handle the potential IPO.
Together with joint venture partner Inci (40 per cent of the shares), in June Hayes Lemmerz inaugurated a new aluminium wheel casting plant in Manisa (in the Izmir region of Turkey). Production is based on the low-pressure process and operates at the same standard as at all the original equipment manufacturer’s other facilities. 400,000 wheels will be manufactured this year, with some 17-inch products being sold to Toyota. In the next year production will increase to approximately 1 million units with further expansion plans in the offing dependent on the order situation.
The floatation of Pirelli & C. SpA’s tyre unit could raise as much as 1 billion euros two inside sources told Bloomberg. According to the report Pirelli is seeking to take advantage of increasing profit at Pirelli Tyre SpA and plans to sell as much as 40 per cent of the division in the IPO. The shares are scheduled to go on sale during the week beginning 12 June said the sources.
(Akron/Tire Review) After its first year of operation, Russian tyremaker Amtel-Vredestein NV ended up in the black, posting net income of $5 million in 2005 against sales of $671 million. Net sales jumped 40 per cent for the year versus 2004’s results, the company said.
Tributes have been paid from politicians and industry figures following the tragic death last Friday of Edouard Michelin, Managing Partner of the Michelin group. Mr. Michelin (42) drowned in a boating accident off the Brittany Coast during a fishing trip. He is survived by his wife and their six children. The Michelin company was founded in 1889 by Edouard Michelin’s great grandfather and Mr. Michelin joined the family firm in 1985, after training as an engineer at the Ecole Centrale de Paris. He took over as head of the company in 1999, succeeding his father Francois.
Analysts at the Deutsche Bank are upgrading Goodyear shares to “Hold” from “Sell”, saying that Goodyear shares have experienced a material correction since the bank lowered its recommendation to Sell in January. In the short term, the analysts say that they continue to see earnings risk associated with very weak demand, which may force Goodyear to idle factories in order to bring down inventories.
The board of Indian tyre manufacturer Apollo Tyres Ltd. has approved a plan to raise 2 billion rupees (34 million euros) through a public issue of shares. Apollo also plans a rights issue, whereby company shareholders would get one share for every six held under the rights issue. The company would also allot one warrant for every four rights shares issued.
(Akron/Tire Review) Goodyear Tire & Rubber Co. share prices dropped to a new 52-week low May 22 after an industry analyst downgraded the company’s stock. Goodyear’s stock fell as low as $12.22 per share in trading Monday before finishing the day at $12.71, down from the previous low of $12.78 per share, according to exchange reports.
Bridgestone Corp. reported first quarter 2006 sales of 704.7 billion yen, up 16.7 per cent compared to the same period in 2005, resulting in a 4 per cent bump in quarterly net profits to $239 million.
The company said that strong global sales helped offset heavy increases in raw material costs. Bridgestone said its tyre sales in Japan rose 10 per cent for the quarter, while sales in the US increased 25 per cent, and sales in Europe increased 13 per cent. Sales elsewhere jumped 37 per cent, Bridgestone said.
Industry analysts have forecasted first quarter sales figures for Michelin of around 3.85 billion euros ($4.75 billion) – a rise of 6.7 per cent. The figure is the average of estimates from 11 analysts, which ranged from 3.7 billion euros to 4.2 billion. Michelin’s actual first quarter financial results will be revealed after the close of the stock market today.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
