tax Archives - Page 12 of 19 - Tyrepress

Posts

Fickle Power Supply, Importers Blamed for Dunlop Nigeria’s Woes

The Chairman of Dunlop Nigeria Jabez Lawuyi chose the company’s September 4 Annual General Meeting as the occasion to announce that the country’s chronically unreliable energy supply has reduced the tyremaker’s production and sales capacity by 20 per cent during the first half of 2007.

Nigeria’s unreliable electricity supply prompted Dunlop Nigeria to set up the means to operate using natural gas power several years ago. However, Mr. Lawuyi reported that this alternate source of power has proven to be no more reliable. “The supply of electricity has remained epileptic while that of gas has deteriorated significantly that together has led to a 20 per cent loss in the volume of production and sales of tyres in the first half of the year,” Lawuyi said.

Mr. Lawuyi also used the AGM as a platform to hit out at tyre importers, whom he accused of manipulating import tariffs in order to flood the local market with “substandard and under-priced tyres,” a practice he believes contributed to the closure of Michelin’s Nigerian operations in January. It was also his duty to inform shareholders than the company has achieved an annual turnover of N5 billion (£20 million) and a pre-tax loss of N370 million (£1.5 million).

6th September 2007/by Tyrepress Editors

Toyo Tires – Stay in Charge, Whatever the Weather

Whether it’s the wrong kind of leaves on the line, frozen pipes or frosted locks, traditionally us Brits have never prepared well for winter… and it shows. As the sage advice goes, there’s no such thing as bad weather, just the wrong clothing. And whilst no sane person would brave the winter months in their summer shoes, we somehow expect our cars to.

The safety-conscious Scandinavians have it sussed. With many countries enforcing fitment of winter tyres in appropriate months, the accident figures, or rather lack of them, speak for themselves. We’ve all seen cars beached by the roadside or sliding helplessly along a poorly cleared road. Often with inevitable and expensive results. Whilst a decent set of winter tyres may tax the pocket a little, it’s small beer compared to a lost day’s work, your insurance excess – and resulting premium hike – or worse! Many fatal accidents occurring in winter could have been wholly avoidable had the vehicle in question had the right tyres fitted. Putting a price on safety really is the worst kind of false economy.

28th August 2007/by Tyrepress Editors

Beru Registers Slight Revenue Growth in H1 2007

German vehicle engine technology and TPMS producer Beru Aktiengesellschaft has reported sales revenues of 224.2 million euros in the first half of 2007, despite what it calls ‘unfavourable market conditions.’ This first half sales figure was reflected slight sales growth, being 0.5 per cent higher than the 223.0 million euros achieved in the first half of 2006. The company credits strong growth in its Electronics and Sensor Technology and Ignition Technology divisions for the latest results.

Half year operating profit (EBIT) of 24.4 million euros represents an operating margin of 10.9 per cent, lower than the H1 2006 EBIT of 30.9 million euros and EBIT margin of 13.9 per cent. Net profit for the period amounted to 18.5 million euros, slightly lower than last year (20.8 million euros). First half earnings per share amounted to 1.80 euros, down from 2.06 euros in H1 2006.

Beru reports an expanding OE auto industry during the first half of the year and sales in this segment increasing by 3.0 per cent to 154.5 million euros. Sales revenues in the high-margin aftermarket segment decreased by 4.7 per cent to 56.3 million euros, an occurrence attributed to mild winter weather in the first quarter of the year. Although sales revenues stabilised in the second quarter of 2007, they were still lower than projected.

14th August 2007/by Tyrepress Editors

Quarter Profits up at Superior Industries

OE alloy wheel supplier Superior Industries International announced their financial results for the second quarter of this year on August 9, figures that show a solid increase in unit wheel shipments, net sales, gross margin and pre-tax income from continuing operations compared to the second quarter of 2006.

“The benefits of our hard work during the past several years to improve productivity, reduce costs, and position Superior for success as a truly global company are becoming increasingly evident in our financial performance,” said chairman, president and CEO Steven Borick.

For the three months ended June 30, 2007, net sales increased 16.1 per cent to US$255,217,000 compared to $219,880,000 for the second quarter of 2006, driven by a 3.7 per cent increase in unit wheel shipments, a higher percentage of large-diameter wheels in the sales mix than in the prior year, and higher pass-through aluminium costs in selling prices.

10th August 2007/by Tyrepress Editors

Reduced Subsidy to Cost Chinese Tyre Trade Tens of Millions

The Chinese government’s decision to slash tax rebates on tyre exports from 13 to 5 per cent will cost manufacturers tens of millions of dollars. In response Qingdao Yellow Sea Rubber Co Ltd reportedly said that the policy would have a negative impact on its performance and create roughly 10 million yuan (US$1.32 million) in additional costs. Giti Tire Corporation is also said to have noted the negative impact.

China eliminated or cut tax rebates for more than 2,800 export items from 1 July this year, in what China Daily described as: ”its boldest move yet to rein in exports since it joined the World Trade Organization in 2001.” The affected items account for 37 per cent of all export products, according to the Ministry of Finance.

8th August 2007/by Tyrepress Editors

Pre-Tax Profit Skyrockets at JK Tyre

The un-audited financial results released by JK Tyre & Industries Ltd for the quarter ending June 30, 2007 – the third quarter of India’s financial year – reveal good news for shareholders and paint a picture of a company in a strong position.

Revenues of Rs 8,178 billion (£100 million) were recorded for the quarter and the company reported EBIDTA of Rs 725.3 million (£8.8 million), up from the Rs 444.9 million (£5.4 million) achieved last year. Pre-tax profit rose to Rs 312.3 million (£3.8 million), a huge jump from a year ago when profits before tax stood at Rs 56.1 million (£683,700). The earnings per share for the quarter stands at Rs 6.56 (£0.08).

31st July 2007/by Tyrepress Editors

Change in Chinese Export Rules May Lead to More Tyre Price Increases

(Akron/Tire Review) Effective July 1, the Chinese government will reduce, and in some cases eliminate, VAT (value-added tax) refund rates given to companies exporting certain goods out of China. More than 2,800 product classifications – including rubber, steel and carbon – will be affected by the reductions, the third change in refund rates since 2005.

China is making these changes to address overwhelming export growth and attempt to manage its trade surplus. Traditionally, export VAT refunds have kept export prices low for tyremakers and tyre- and wheel-component suppliers exporting out of China. According to an Ernst & Young report released June 20, “any change to a VAT refund rate will impact the prices charged on export goods as well as the profitability of exporters.”

29th June 2007/by Tyrepress Editors

Big 3 Take on Chin With New Senate CAFE Bill

(Akron/Tire Review) Seen as a major slap at Detroit’s Big 3 automakers, the Senate yesterday voted 65-27 to raise CAFE standards by 40 per cent no later than 2020. The measure calls for all passenger cars and light trucks/SUVs average at least 35 miles per gallon by that date.

Automakers immediately claimed the increased standards would cost them billions, and one – troubled Chrysler Group – said the measure would bankrupt them. The proposal also includes provisions against price gouging and a call for major increases in the production of ethanol.

The House, which passed its own version earlier this month, is expected to begin considering the Senate bill next week. The Senate bill also voted down a compromise package crafted by Michigan Senator Carl Levin, who worked with automakers to develop a lesser plan.

25th June 2007/by Tyrepress Editors

Plimsoll Produces Tyre Prosperity League Table

A new league table from leading financial analysts Plimsoll Publishing aims to provide an answer to that age-old question in the Tyres, Exhausts & Batteries market: Why do some companies fail and others prosper?

The equation is not as simple as strong sales equals survival. Nor is the success rate of a firm automatically affected by market conditions. Instead, they say, it depends on the ingredients in a finely-balanced recipe that includes good margins, low borrowing, responsible management and foresight.

Plimsoll’s new analysis of the market weighs all these ingredients and turns them into a unique one-page snapshot of each company’s prospects. From that, it establishes a league table based on 1000 leading firms that looks like this: 278 companies are in a strong position, with a pre-tax margin of 10 per cent; 116 are in the good sector, on 4 per cent margins; 160 are rated as mediocre, on 3 per cent; 272 are in the “caution” category and 174 are in the “danger” range.

25th May 2007/by Tyrepress Editors

Goodyear Set to Spend $125 Million at Plant

(Akron/Tire Review) News reports out of Alabama say that Goodyear plans to pour $125 million into upgrades and new equipment at its nearly 80-year-old Gadsden, Alabama, tyre plant. Reportedly the investment will come over three years. Plant manager Jim Davis told the Gadsden Times that, “The capital that we’re investing here will bring process capability and production capability that just do not reside here at this times. The investments in our plant will definitely help improve our plant’s viability and competitiveness.”

Goodyear is also getting help from the local government, said reports, with the Gadsden City Council approving $125 million in tax abatements. The Gadsden plant was one of the Goodyear plants that were given “protected status” in the recently signed master contract with the United Steelworkers, meaning it will likely remain operational through 2010.

23rd May 2007/by Tyrepress Editors

Pirelli Tyre Post Positive Quarterly Figures

Pirelli &C. SpA have released company financial figures for the quarter up to March 31, 2007, and this data indicates a largely positive three months for Pirelli Tyre. In the first quarter of 2007 Pirelli Tyre registered a 6 per cent increase in sales, in spite of a negative exchange rate effect, and although faced with increases in raw material prices operating income rose compared with the same period in 2006.

Revenues as of 31 March 2007 were equal to 1,060 million euros, up from 1,000.4 million euros in the first quarter of 2006, an increase of 9.1 per cent on a like-for-like basis, net of any exchange rate effect. EBITDA was equal to 150.9 million euros.

Operating income amounted to 103.7 million euros, an increase of 4.5 per cent compared with the first quarter of 2006 when operating income was recorded as 99.2 million euros. The ratio over sales was substantially unchanged compared with last year, despite increases in raw material costs.

14th May 2007/by Tyrepress Editors

South Africa May See Tyre Disposal Fees

(Akron/Tire Review) South Africans will likely have to pay a bit more for their tyres as the country is poised to enact a tyre disposal levy on all new tyre purchases.

As with similar taxes in North America, the South Africa levy will go toward the collection and disposal of scrap tyres.

Public comment on the proposed regulations were collected up until March 25, and policymakers reportedly have made minor changes to the original proposed legislation.

Reportedly the South Africa tyre industry is against the planned tax over fears the collected funds would be diverted to the state’s general fund and not to waste collection or recycling efforts.

8th May 2007/by Tyrepress Editors

Chinese Rubber Association Seeks Lower Import Tax

On 22 March the China Rubber Industry Association proposed a cut in import taxes for natural rubber and a build-up in strategic reserves as a way of protecting the sector from price swings. Chairman Ju Hongzhen told Reuters it wanted import tariffs below 12 per cent as higher rubber prices were squeezing margins at tyre makers. Importers of natural rubber now have to pay either a 20 per cent import tax or a flat tax of 2,600 yuan a tonne.

23rd March 2007/by Tyrepress Editors

Two Further Goodyear Appointments

On the same day that Goodyear Tire & Rubber announced the appointment of a new company president came the news of two further appointments. Darren Wells has been appointed senior vice president of finance and strategy for the company as of March 14. Wells, 41, previously served as Goodyear’s senior vice president, business development & treasurer.

With the announced appointment of Chief Financial Officer Richard J. Kramer to run the North American Tire Business as its president, Wells assumes Kramer’s former responsibility for the company’s overall strategy development. In addition, Wells retains his finance responsibilities, which include treasury, investor relations, business development and tax.

14th March 2007/by Tyrepress Editors

A Taxing Issue

(Akron/Tyre Review – Ottawa Sun) Even a fresh set of tyres couldn’t help Steven Patzer steer clear of the taxman. The Ottawa-area engineer learned just how far the reach of federal tax collectors can extend recently when he bought a set of used tyres on eBay. The Houston, Tex., seller warned Patzer that shipping the tyres directly to Canada’s capital would run him $160 US on tyres that cost him only $225 US. Instead, Patzer had his Michelins sent to Watertown, N.Y., which is a 90-minute drive from his Kanata home, for almost half the cost.

6th March 2007/by Tyrepress Editors