SmarTire Settles Legal Action
SmarTire and the company’s debenture holders have settled their legal dispute.
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Cooper Sells Automotive Unit
Product NewsCooper Tire & Rubber has announced that it will sell its automotive business, Cooper-Standard Automotive, to an entity formed by The Cypress Group and Goldman Sachs Capital Partners for approximately $1.165 billion in cash. The transaction, which is subject to certain post-closing adjustments, is expected to close in the fourth quarter of 2004.
Cooper-Standard Automotive, which had revenue of approximately $1.6 billion in 2003, is a manufacturer of fluid handling systems, body sealing systems, and active and passive vibration control systems, primarily for automotive original equipment manufacturers.
Thomas Dattilo, chairman, president, and CEO of Cooper Tire & Rubber said: “We are pleased with the transaction terms reached with Cypress and Goldman. We look forward to pursuing growth opportunities in our tyre business. We believe that after the transaction is completed Cooper-Standard Automotive will be well-positioned for continued strong growth under its new ownership.” Proceeds from the sale are expected to be used for debt reduction, further investment in operations and in repurchasing shares.
Biggest Online Dealer Takes On Investors
Product NewsEurope’s biggest online tyre dealer, the Hanover based Delticom AG, has signed an investment contract with a local bank and a local private equity firm. The deal is the company’s second investment contract. Four years ago the online tyre dealer took on an investor, the company writes in its press release. With this new deal Delticom is seeking to allow for further international expansion and the build-up of a global network, explain the company’s two chairmen Andreas Prüfer and Rainer Binder. “With regards to a possible floating of our shares we are well prepared,“ they say. Delticom has not published the size of the new investment contract or any figures relating to the ownership situation of the company. This year Delticom expects to achieve a turnover of £44.5 million.
Pirelli Records First Half Improvement
Product NewsPirelli & 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 and Renault Share Prices Boom
Product NewsContinental’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.
Good News for Goodyear Shares
Product NewsThere 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.
Bridgestone Reports Fire at its Largest Plant
Product NewsReuters 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.
Bridgestone Forecasts ‘Overly Pessimistic’
Product NewsAccording 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.
AXA acquires 12% of Conti Shares
Product NewsThe 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 Reports Favourable Results
Product NewsTitan 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.
Conti is Becoming Analysts‘ Favourite
Product NewsContinental’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.
Continental Gains 75.96% of Phoenix Shares
Product NewsThe 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.
Jumna Tyre Cord to list on Sesdaq
Product NewsFinancial 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.
Phoenix Share Deadline Looms
Product NewsPhoenix 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.
Goodyear Closes Offering
Product NewsFollowing 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.
