Warm Weather Affects Canadian Tire
Fuel and garage product retailer has blamed losses at its gasoline bars and an unseasonably warm Eastern Canadian winter for melting its fourth-quarter earnings by 8.4 per cent.
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Bandag Releases 4th Quarter Results
Product NewsBandag Incorporated has reported consolidated net sales for the fourth quarter 2006 of US$253.7 million compared to consolidated net sales of US$252.3 million in the fourth quarter 2005, an increase of 1 percent. Consolidated net sales were positively impacted by approximately US$2.6 million due to the effect of converting foreign currency net sales into U.S. dollars.
Continental’s EBIT Could Improve
Product NewsFollowing Manfred Wennemer’s recent statement that he was expecting a lower pre-tax profit margin in 2007, Deutsche Bank analysts have suggested the Continental CEO’s words were “very bearish.” Wennemer’s assessment is based on the cost of integrating Motorola’s car electronic unit (3 per cent EBIT margin versus 11 per cent for Continental AG) into the group.
Herman Trend Alert: Manufacturers Being Squeezed
News(Akron/Tire Review) In the United States and elsewhere, structural (non-wage) costs for manufacturers, as a percentage of the total costs, are continuing to rise. According to a study released in September by the U.S. National Association of Manufacturers (NAM), The Manufacturing Institute and the Manufacturers Alliance/MAPI, structural costs increased from 22.4% to 31.7% of the total costs, compared to similar costs for similar companies in nine trading partner countries in 2003. “(This) sharp rise in these non-wage costs represents a significant and long-term problem for our nation’s manufacturers and America’s economy,” said John Engler, president of the NAM.
Hungary Attracts International Tyre Companies
Product NewsHungary is one of the few Eastern European countries in which there is no traditional automobile industry. Among the few well-known companies the bus manufacturer Ikarus (one of Eastern European market leaders) is the most commonly known. Nevertheless since the early 1990s some Western manufacturers have installed production or assembly plants there, namely General Motors, Suzuki and Audi. (Audi Hungary Kft is actually the second biggest company in the Hugarian economy). These foreign investments were partly induced by tax exemptions and other incentives like tax-free import of parts, etc. Last year 136,130 cars were produced in Hungary and new car registrations almost reached 200,000 units. This is when Hungary becomes of interest to Western tyre manufacturers.
Trelleborg Transfers US Capacity to Sri Lanka
NewsTrelleborg has taken steps to consolidate its industrial tyre production capacity, moving production from North America to Sri Lanka. Trelleborg reports that it has plans to invest in increased production capacity at one of Trelleborg Wheel Systems’ plants in Sri Lanka. As a consequence of this, the production of industrial tyres will be terminated and relocated from Trelleborg Wheel Systems’ plant in Hartville, Ohio, in the US. The cost of closure, production transfer and investments will total approximately 130 million Swedish krone (£9.7 million) over a three-year period.
Toyo – Whatever The Weather
Product NewsWhether it’s the wrong kind of leaves on the line, frozen pipes or frosted locks, traditionally the British 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.
Toyo representatives point to Scandinavian’s example of preparedness. With many countries enforcing fitment of winter tyres in appropriate months, the Scandinavian 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.
Italian Justice Minister to Investigate Alleged Spy Plot
Product News(Akron/Tire Review) Italy’s Justice Minister Clemente Mastella has ordered an internal investigation to determine whether ministry officials were involved in an alleged plot to spy on civilians, according to ANSA news agency. Police have reportedly arrested 21 people, including two senior executives from Telecom Italy and parent company Pirelli SpA. The parties have been accused of illegal phone tapping and accessing secret bank, tax, phone and judicial records.
Predictions: Pirelli First Half Net Profit Down 6.7 per cent
Product NewsA consensus of financial analysts has predicted that Pirelli’s first half consolidated net profit will come in at 165 million euros (down 6.7 per cent) compared with 177 million euros at the same point last year. The projections are based on the estimates of eight analysts polled by Dow Jones. Higher tax payments than last time are expected to have weighed on the first half 2006 result. Analysts are expected to pay particularly close attention to the conference call for more details on Telecom Italia’s new strategic shift.
Goodyear Seeks State Help for Fayetteville Plant
Product NewsThe Goodyear Tire & Rubber Co. is asking US state official for millions of tax dollars to modernize its Fayetteville plant that is at risk of closing. State Rep. Rick Glazier, a Democrat from Fayetteville, confirmedt that local and company officials are discussing options to help upgrade the 37-year-old plant. With about 2,600 employees, the factory is the third-largest private employer in the county, the Fayetteville Observer reported. The move is widely seen as a hint that Goodyear is considering closing the factory.
Matador Sales Exceed 227 million euros in First Half 2006
Product NewsMatador Group companies reported sales of 227 million euros in the first half of 2006, including a 50 per cent share of Matador Omskshina. Sales are up 14 per cent compared with the same period last year. Pre-tax profits for the period totalled 15.4 million, up 26 per cent on the previous, despite increased raw material costs. “This result was positively influenced by the fact that practically all components within the group recorded an increase in sales and did not generate a loss for the Matador Group,” a company statement explained.
Cooper Idles All Four US Plants
Product NewsFollowing earlier reports that Cooper Tire & Rubber will idle its Texarkana, Arkansas production facility, the company now says it has decided to suspend production at all of its US plants for two weeks. Cooper Tire & Rubber Europe’s production facility at Melksham, UK, is not expected to have any shutdowns. However, sources within the company report that production here has also been cut back slightly. As the problem is due to oversupply, deliveries are not expected to be adversely affected. Cooper Tire & Rubber Europe sources all of its 4×4 lines from the US production plants.
Bandag Announces Cost Cutting Programme
Product NewsBandag, Incorporated announced that it has closed its pension plans to new hires in the U S and Canada, and will freeze the existing pension plans for US employees and for salaried Canadian employees effective 31 December 2006. The cost-cutting programme includes an early retirement programme and voluntary and involuntary redundancies for some US employees.
Old Tyre Entrepreneurship
Product NewsA recent Farmer’s Weekly article entitled “One man’s waste…Profit from tyres” encourages farmers to shop around for the best deal when it comes to disposing of tyres. The article pointed to new waste regulations that came into force on 15 May, explaining that Farmers can store waste tyres that are “already on-farm” under an exemption licence from the Environment Agency that must be applied for by 15 May 2007.
Trelleborg Completes Sale of Goodall Rubber
Product NewsTrelleborg has completed the sale of US subsidiary, Goodall Rubber Co. Goodall, which sells and distributes industrial supplies, primarily hoses and hose connectors, in the US and Canada, has slightly more than 400 employees and generated sales of approximately SEK 650 M in 2005.
