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MAN AG: Buy
Product NewsThe analysts at the banking house M.M.Warburg rate MAN AG shares as a buy. The effects of the management to restructure the firm are already having an effect, so a price target of 27 Euros has been set.
Recall Scare Hits Bridgestone Shares
Product NewsBridgestone shares dropped by 5.4 per cent following the filing of a lawsuit by an American lawyer, calling for the recall of 27.5 million Bridgestone Steeltex tyres. Potential costs of the action are estimated at $2.75 bn. The fall in share price and possible damage to brand image appear to be unwarranted, as the National Highway Traffic Safety Administration has already investigated the tyre and officially announced that it found no defects on Steeltex tyres.
Better Times For Bridgestone
Product NewsBridgestone Corporation appears to have come through the Firestone recall nightmare, with first half figures showing a net profit of nearly 24.5 billion Yen (218 million Euros), compared to a loss last year of 30.5 billion Yen. The company has increased its profits forecast by 5 billion Yen to a full year profits figure of 70 billion Yen and also announced that production would be increased at 12 plants over the next two years, boosting annual output by 8 million tyres. Bridgestone shares in Tokyo rose 6.4 per cent at the news, reaching 1,685 Yen.
Upgrade For Ford Shares Despite Reservations
Product NewsIn the USA, UBS Warburg has upgraded Ford’s shares from “Reduce” to “Hold”. Despite this, the analysts have reservations about the future and believe that a re-scaling of Ford’s business and a more drastic restructuring will be necessary.
Analysts Cautious On Nokian
Product NewsNokian’s shares have risen 12 per cent over the past three months and, for the year as a whole, have risen slightly against an 11 per cent general decline in the auto and component sector. The Finish company traditionally makes the lion’s share of profits in the second six months of the year, because of winter tyre sales, plus Nokian has announced a joint venture in Russia and its RoadSnoop tyre pressure monitoring system has great potential. Despite all this, analysts Morgan Stanley have downgraded the company from “Equalweight” to “Underweight”. The reasons for this caution are 1. A worry that the winter tyre market may not be as good as expected, due to large stocks. 2. The high level of investment needed and time scale of the Russian JV. 3. The high level of investment in retail expansion which has yet to show returns.
Further Fall For Goodyear Shares
Product NewsGoodyear shares fell to just 17 US$ on Friday; a loss of 6 per cent over the week. Asian companies fared better, with gains for Hankook (+10 p.c.), Kumho (+ 9 p.c.), Sumitomo Rubber (+ 8 p.c.) and Bridgestone (+ 8 p.c.).
Goodyear Reacts to ‘Mini Tender’
Product NewsThe Goodyear Tire & Rubber Company said it has become aware of an unsolicited “mini tender” offer by TRC Capital Corp. to purchase up to five million shares of its common stock, or approximately 3 percent of Goodyear’s total shares outstanding, for $19.50 per share. Goodyear said it expressed no opinion on the unsolicited offer, but advised its shareholders to exercise extreme caution in considering the offer. “Mini tender” offers are not subject to many disclosure, filing and procedural protection requirements of the U.S. Securities and Exchange Commission and are often structured to obtain shares at below market prices. “Mini-tender” offers – tender offers for less than five percent of a company’s stock – have been increasingly used to catch investors off guard. Many investors who hear about mini-tender offers surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers. But they later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices. Goodyear urged its shareholders to review the terms of the “mini tender” offer carefully and to consult with their financial advisors before considering this offer.
Bandag Buys Stock
Product NewsBandag has agreed to purchase over 1.5 million of its shares from Lucille A. Carver, widow of the company’s founder and mother of current President, Chairman and CEO Martin Carver. Mrs Carver was a director of the company from 1957 until May this year and the sale reduces the voting power of the Carver family from 78 per cent to around 64 per cent. The total purchase price is $40,183,636.
Shredding Mystery Causes Fall In Cooper Shares
Product NewsShares in Cooper Tire & Rubber fell dramatically (by as much as 25 per cent at one stage, although they later recovered to 11 per cent down) after reports that someone in the company had shredded documents relating to a personal injury court case against the company. Cooper denies that executives ordered the documents destroyed and blamed “two, low-level, non-management rogue employees” for the destruction of the documents. The case in question results from a fatal accident in 1998. Cooper denies that the tyre in question suffered from a manufacturing defect.
Bigger-Than-Expected Loss For Goodyear
Product NewsGoodyear has reported a first quarter loss of $63.2 million; larger than many analysts expected. The biggest regional operating loss was $51.3 m, incurred by the North American Tyre operation. Europe was profitable with operating profits of $16.6 m (Q1 2001 $31.4m), as was Asia. Sam Gibara declared himself “disappointed” by the figures, but he expected the company to “make progress in the second quarter”. The loss was blamed on production cuts, currency levels and the return of stock worth $10 m when the Penske Automotive Center chain closed. Despite the figures, Goodyear’s shares rose 3.6 per cent on expectations of profitability in the second quarter.
SmarTire Engages Financial Advisor
Product NewsTyre pressure monitoring specialist SmarTire has appointed H. C. Wainwright and Co. Inc. (Boston) as the company’s financial advisor. Wainwright was founded in 1868 and is one of the United States’ oldest private, independent investment banking firms. Additionally, SmarTire has completed issuing 750,000 shares to raise 1.31 million dollars. The funds will be used for debt repayment and working capital.
$17.9 Million For Nasser
Product NewsFormer Ford Chief Executive Officer Jacques Nasser received $17.9 million in compensation last year when he was replaced at the helm of the second-largest automaker amid losses and declining sales.
Rise In Turnover For Apollo Tyres
Product NewsIndian tyre manufacturer Apollo Tyres has reported an increase in turnover of 17 per cent for the twelve months ended March 31st. Revenue was 17 billion Rupees (394.9 m Euro), compared with 15.54 bn Rupees (360.9 m Euro) for the previous twelve months. Apollo’s shares on the Bombay Stock Exchange rose 7.27 per cent at the news.
Continental Takes Over The Outstanding Shares Of Temic
Product NewsLast year Continental bought 60 percent of DaimlerChrysler’s microelectronic subsidiary Temic for 398 million Euro. Now DaimlerChrysler pursued the option to sell the outstanding 40 percent to Continental for 215.3 million Euro. The German group has already renamed the new subsidiary as Conti Temic microelectronic GmbH which is under the leadership of Continental’s board member Dr. Wolfgang Ziebart and is part of the business unit Continental Automotive Systems.
