Pirelli & Co SpA recorded a group net income of 131 million euros in the first half ended 30 June 2004. The figure is particularly impressive when it is compared with same time the previous year. In the first six months of 2003 the company had a net income of –21 million euros. In 2004 the group expects a significant improvement in results in all activity sectors, both at operating and net level.
Continental’s shares prices reached historically high levels last week. The influential automotive supplier’s impressive share prices are attributed to the company’s strong first half earnings, which have increased 46 per cent at the operating level.
At the same time French car manufacturer, Renault, has achieved a similarly impressive share price. According to analysts, the results are due to the car manufacturer’s Megane II and the recently launched Modus model.
There was good news for Goodyear Tire & Rubber on Wednesday, as its shares closed at a 52-week high thanks to analysts recommending its stock.
The shares closed at $11.42, and were up 44 cents which meant the company’s stock has not closed below its 10-week moving average since late May.
Last month the manufacturer ended a six-quarter losing streak by posting a second quarter profit of $25.1 million, which equated to 14 cents a share, this figure compared with a loss of $53 million, or 30 cents per share, recorded in 2003.
Reuters news agency is reporting that there has been a fire a Bridgestone’s largest tyre factory. The news of the blaze comes less that a year after a huge fire at the Tochigi factory north of Tokyo dealt a significant blow to the firm’s earnings.
According to Deutsche Bank, Bridgetone’s second half forecasts are overly pessimistic. The company’s projections are also said to assume low production volume and reflect an overly negative “cost-push scenario.” Instead Bridgestone’s strong first half results, which include an increase in turnover of 4 per cent and 29 per cent improvement in the companies operating income, have led analysts to project a more positive outlook and to affirm their advice to buy these shares.
The French investment and insurance group AXA has announced that is has acquired 11.75 per cent of Continental’s shares. AXA has held shares in Continental before now but only recently publicised the fact in order fulfil German law. According German legislation, companies disposing of more than 10 per cent of their shares have to make this knowledge public.
Titan International has reported positive first half results, with net sales of $288.2 million, (£158 million) from $260.0 million compared with 2003. Second quarter net sales increased by 29 per cent, reaching $121.2 million, (£66 million) from the previous year’s figure of $94.0 million. The net sales, for the period ending 30 June, were adjusted to reflect the sale of Titan Europe, which brought sales of $131.0 million.
A net income of $5.6 million (£3 million) was recorded for the second quarter, resulting in a $10.9 million (£6 million) year-to-date sum for 2004. The figure compared favourably to the previous year’s net losses of $(8.2) million for the second quarter and $(14.1) million for the first six months. Diluted earnings per share were $.32 for the second quarter, compared to a loss per share of $(.39) for the corresponding quarter of 2003, resulting in a $.71 increase quarter-over-quarter. Year-to-date earnings per share leveled at $.57 measured against a $(.67) loss per share in the first half of 2003.
Continental’s recently published and extremly favourable half-year business results seem to have fired the imagination of analysts. After the German tyre manufacturer announced 9.9 per cent increase in turnover and a 21.4 per cent increase in EBIT, half a dozen company and market reports have been published arguing that Continental shares still have considerable development potential.
The final deadline for acceptance of the takeover offer Continental AG, Hanover, has submitted for Phoenix AG, Hamburg, has expired. Upon completion of the statutory mandated two-week deadline extension, the international automotive supplier now has more than 75.96 percent of Phoenix shares at its disposal.
Execution of the takeover now depends on the outcome of the EU commission’s antitrust investigation. The EU is expected to issue its go-ahead until October.
With the takeover of Phoenix AG, Continental AG intends to further develop its ContiTech division into one of the world’s leading specialists in rubber and plastics technology.
Financial sources are reporting that China based Junma Tyre Cord Co., Ltd., is seeking a listing on the Sesdaq. The move will see Junma Tyre Cord become the first Chinese company to list S shares on the stock exchange.
Junma’s net profit grew at a compound annual growth rate of about 46 per cent to some 60 million yuan, approximately £4 million, in the last financial year.
S shares are shares of China-incorporated companies which are directly listed in Singapore.
Following its offering of $350 million aggregate principal amount of 4 per cent convertible senior notes, Goodyear Tire & Rubber Company has announced that is has closed the sale.
Phoenix AG shareholders have a last chance to accept the offer submitted by Continental AG for the takeover of Phoenix AG shares. The statutory mandated deadline for acceptance of Continental’s 15 euros per share offer is 19 July.
In an attempt to liquidate some cash Goodyear Tire & Rubber Co. has said that it will “commence an offering of approximately $150 million aggregate principal amount of convertible notes, subject to market and other customary conditions.” The company intends to use the proceeds of the sale for what it calls “general corporate purposes”, which includes “the repayment of one of the company’s revolving credit facilities.”
Only hours after announcing that it would offer a $150 million aggregate principal amount of convertible notes, Goodyear has said that it is doubling the total amount available to $300 million
The German tyre manufacturer Continental AG has to wait for another two weeks before they hear whether or not the European Commission will approve the take-over of automotive supplier, Phoenix. The Commission says that the legal examination will be completed by 29 June but did not give any reasons for the extension of the deadline.
At the end of April Continental started the take-over bid of its Hamburg based competitor. In the middle of last week Continental acquired the majority of the Phoenix shares.
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