Titan International’s 3Q turnover was $111.2 million; 6.2 per cent higher than for the same period last year. The quarterly loss before tax was $12.6 million (3Q 2002: -$21.9 m). The negative impact of high raw material costs and increased employee benefit costs was estimated at around $2.1 million. There was also a figure of $1.7 million as a cost incurred when Titan consolidated all its tyre manufacturing into its plant at Des Moines, Iowa.
Cooper Tire & Rubber Co. has been ranked 19th in the list of Most Successful Engineering Companies, compiled for the trade publication The Engineer. The performance of 900 companies with facilities in the UK were rated on such criteria as percentage change in turnover and operating profit and earnings before interest, tax, depreciation and amortisation (EBITDA). The survey also concluded that the most successful companies view R&D as a function vital to the success of a company rather than an expense off the bottom line.
The Hong Kong Special Administrative Region’s (HKSAR) government is proposing that all new tyres are registered and taxed. A spokesman said that new car buyers will be required to pay an annual tax of HK$100 (11 Euro) for the five tyres on a car. The money will be used to buy and operate machinery to turn scrap tyres into rubber bricks, used to pave roads, and once the capital outlay for the machinery is recouped, the tyre tax will be lifted. The proposal has the backing of the Hong Kong Automobile Association.
Tyre manufacturer Bridgestone Corp. released a revised earnings outlook Wednesday containing the impact of the fire at its Tochigi factory, having lowered net and pre-tax profit forecasts for the year ending Dec 31. Bridgestone now expects a group net profit of 78 billion yen against the 80 billion yen the company projected in August when it issued an earnings report for the January-June half.
The Vietnamese Government has taken steps to protect its domestic rubber industry by imposing an import tax on car tyres and tubes of 30 per cent and a 50 per cent tax on motorbike and bicycle tyres and tubes. These will fall to five per cent by 2006, as a condition of Vietnam’s entry into AFTA; the ASEAN Free Trade Area.
US national distributor American Tire Distributors Inc (ATD) has reported its figures for 2002. Net sales declined 4.3 per cent to $1.06 billion, while pre-tax profits in 2002 were $12.9 million, compared to a pre-tax loss in 2001 of $23.8 million. Net income rose to $37.4 million, as against a net loss in 2001 of $30.9 million. Part of the improvement is due to a 19.3 per cent reduction in operating expenses. ATD operates 62 distribution centres in 35 states and employs 1,900 people nationwide.
Vredestein has released preliminary annual figures for 2002, showing a net profit of 12.7 million Euros, although this figure includes extraordinary income of 1.6 million Euros and a one-off tax benefit of 1.5 million Euros. Group turnover was down slightly to 300 million Euros (2001: 305 m), but the operating profit of 14.7 million Euros marks a turnaround from 2001, when Vredestein recorded a 7.8 million Euros loss.
Belshina is seeking investment of 72.2 million dollars from Germany, Slovakia, the Czech Republic and Japan for the completion of three projects to develop new tyre production at Belshina. The Belarussian government has a programme to attract 1.5 billion dollars in place for 2003. This will be allied to a monetary, price and tax reform designed to encourage inward investment.
Scottish fast fit McConechy’s Tyre service has taken a giant leap in corporate development by buying 33 outlets from Goodyear and Dunlop.
Taxing waste disposal to pay for recycling and composting facilities, and an energy policy that will deliver 60% cuts in greenhouse gases should be at the top of the Government’s action list post Johannesburg according to Baroness Barbara Young, Chief Executive of the Environment. Speaking at Environment UK 2002, Barbara Young said government, its agencies and NGOs need to deploy all the tools at their disposal to create the massive shift in SME and public behaviour needed to overcome challenges such as the growing waste problem. Raising the landfill tax may have a short-term adverse affect on waste tyre disposal. A tax on waste though may well have a long term positive impact on recycling of waste tyres.
Ford has announced its intent to sell Kwik-Fit to CVC Capital Partners, a leading European Equity group. The price being paid is 330 million pounds in cash and a note that will be paid as CVC obtains outside financing. The proposed transaction will be completed using a new company formed for the purpose, and financed by funds under the management of CVC. Ford will retain a 19 percent equity interest in the new company in order to benefit from the business’s future growth. The sale is expected to be completed in the fourth quarter of 2002 and is subject to regulatory approvals. Ford will record a one-time, after-tax charge of approximately $500 million in the third quarter of 2002 related to the sale of Kwik-Fit. Collision Team America has also been sold, though Ford has withdrawn from the sale of Hertz Equipment Rental Corporation. ”We are pleased to have found such suitable owners for both Kwik-Fit and Collision Team of America,” said Martin Inglis, Ford group vice president, business strategy. “Although these are good businesses, they don’t align with our back-to-basics strategy. These sales further signal the progress that Ford is making on key parts of our Revitalization Plan.”
A two-thirds fall in the world Telecom market has meant a drop of 90 million Euros in profit before interest and tax for the Pirelli group in the first half of 2002. Turnover was down 11.9 per cent to 3.35 billion Euros, compared with 1H 2001 and group operating profit fell 35 per cent to 278 million Euros. The tyre sector performed well, particularly in the high performance segment, but this was not enough to offset what Pirelli describes as “the unprecedented crisis” in the world telecoms market. The group is carrying out a “cost containment exercise” which it says has resulted in efficiencies totalling 90 million Euros in the first half.
Beru AG has published results for the financial year ending 31st March. Sales topped 300 million Euro for the first time (303.1 m Euro, compared to 276.5 m the previous year). After-tax earnings were up 27.7 per cent at 42.4 million Euro (33.2 m last year). The increase was due mainly to growth in diesel cold-start technology and tyre pressure monitoring systems. This latter product group saw sales rise by nearly 60 per cent to 10.7 million Euro.
Continental’s profits after tax rose almost 62 per cent in the first quarter of the year to 68 million Euro (2001; 42 million). Corporation sales increased by 6.1 per cent to 2.734 billion Euro (previous year 2.578 bn). Ignoring changes from consolidation (mainly the inclusion of Conti Temic), sales fell slightly by 1.7 per cent. In the same period, EBITA (EBIT before goodwill amortization) rose 16.5 per cent to 148 million Euro (2001; 127 million). Cash flow was positive and the numbers of workers increased by 291 to 65,584.
Nokian Tyres have released first quarter results. Turnover was up 10.3 per cent at 84.5 million Euro (Q1 2001: 76.6 m). The operating result was -1.0 m Euro (-1.9 m) and the result before tax was -4.0 m (-5.0 m). The net result was -3.3 m (-3.7 m). Sales and profits of passenger car tyres rose, while sales of heavy tyres decreased, as did sales of retreading materials. Sales of the chain Vianor were up, but the loss was greater than Q1 2001. Nokian’s aim for 2002 is to achieve better turnover and profit than last year.
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