Winter Tyres
Matador has released its third generation passenger car winter tyres, the MP59 Nordicca. Designed with an asymmetric tread pattern the company claims to be the optimal shape for meeting the demands of a UHP winter tyre, the MP59 Nordicca has been built with European conditions in mind.
For the second quarter in a row Continental AG, has not shown any earnings growth. Deutsche Bank analysts have observed that even if EBIT was 5 per cent above consensus in the fourth quarter, pre-tax earnings were down 1 per cent year on year. According to the market analysts this is because the group lost market share in winter tyres, and margin recovery at Motorola is slower than expected.
US replacement tyre shipments declined 4.9 per cent in January, despite being down 4.4 per cent in January 2005. The downturn is widely accepted to have been at least partly caused by the recent Goodyear strike. According to Deutsche Bank analysts, warm weather may also have pushed back demand for winter tyres. The analysts also observed that other tyre makers, including Cooper Tire, are experiencing better demand than the overall market data suggests
Nokian Tyres’ Board of Directors has decided to start the expansion and capacity increase at its Russian factory early. As a result of the start-up of Phase II, the output of the Vsevolozhsk factory will more than double with the target to reach the production of 10 million tyres by 2011.
Nokian Tyres has developed a number of new products for the fast growing European winter tyre market. These tyres have been produced with Central European driving conditions in mind and therefore their design and construction features place maximised safety especially in winter conditions as their number one priority.
New legislation and improving economic conditions in Eastern Europe have been two of the main factors behind the rise of the winter tyre market, a market in which about 67 million passenger car winter tyres were sold in 2006, some 12% more than the previous year.
Following news that it is raising the price of replacement truck and bus tyre prices in Europe, Michelin has announced its intention to raise the price of winter tyres for cars and trucks in Japan as of April 2, in response to company concerns over material costs.
(Akron/Tire Review) At the Goodyear Tire & Rubber Co. dealer meeting today in Orlando, Fla., Goodyear introduced the new ultra-high performance Eagle F1 all-season tyre, an “expanded” Wrangler SR-A tyre as well as the new Ultra Grip Performance and Ultra Grip SUV winter tyres.
Days after Continental announced that it increased sales of winter tyres by 8 per cent in 2006, financial analysts have been assessing the knock-on effect. In one report Deutsche Bank analysts suggested: “…since the weather [was] mild in Europe in the fourth quarter 2006, the sell out season was low, underlying high inventories at dealers. As a result they say there is a risk that the 2007 winter season will be challenging as dealers will have to move their excess stock first before ordering new tyres.
The rising demand for winter tyres across Europe has been reflected in sales figures released by Continental AG. Worldwide sales of Conti’s winter tyres reached 19.1 million in last year, an 8 per cent increase on 2005 sales and 41 per cent more than in 2002.
According to research conducted by Continental, this increasing demand has been primarily fuelled by the public becoming more widely aware of the safety issues related to winter driving. Changes to German road traffic regulations have also had an influence on sales.
In the words of Continental AG Chairman of the Board (and head of Passenger and Light Truck Tire division) Manfred Wennemer “This fifth consecutive record result confirms the correctness of our approach in this attractive segment and is reassuring for the coming years, since it can be attributed to growth in several markets. In Europe these are predominantly Germany, Russia and Eastern Europe as a whole, but they also include Italy, Holland and Belgium.“ Mr. Wennemer added that Continental is also pleased with market developments in North America.
A leading US tyre retailer is advising motorists that cars fitted with summer or all-season tyres may not be adequately prepared for safe winter driving. The Tire Rack, drawing on the results of recently conducted evaluations, claims that even those tyres marketed as being suitable for all seasons offered markedly inferior handling in icy conditions compared with vehicles fitted with winter tyres.
Fresh from the success of pre-selling over 1 million winter tyres by August this year, Deldo has announced plans to further its interaction with the UK market, arranging to meet clients at next May’s Brityrex trade show. Tyres & Accessories contacted Deldo marketing manager, Rutger Veerman, and also learnt that the company and its key Chinese manufacturing partner, South China Tire & Rubber Company Ltd (Guangzhou) is investing in improving product production.
To get an idea of the scale of Deldo’s operation you need only look at the company’s annual turnover. In recent years Deldo have achieved an annual growth rate of approximately 10 per cent. Wanli remains Deldo’s best selling budget product, with a range of 160 (in 2007) passenger, light truck, SUV, 4×4 and truck tyres. Deldo is likely to sell 2 million Wanli products this year.
Netherlands-based international wholesaler, Van den Ban, prides itself on being able to provide a comprehensive range of competitively priced tyres and, furthermore, describes itself as a leading player within the highly competitive UK market. In November VDB launched a new e-commerce site which is said to provide clients with an even more user friendly system that constantly updates prices.
Up till now Reedijk Banden Import B. V. (RBI) has generally been known as a Netherlands-based tyre wholesaler that is particularly active within its home market and some trade in Germany, Belgium and France. However since the beginning of 2006 the company has embarked on a controlled expansion programme which has seen RBI evolve into more of an international company with new sales projects being introduced around Europe and most recently in the UK.
The second stage of Nokian Tyres‘ Russian factory, which started operation in June 2005, was launched today (22 November) in Vsevolozhsk. The second stage launch marks the conclusion of construction work on the warehouse and the mixing departments, which started in September 2005.
The 19,000 square metre warehouse can house approximately 600,000 tyres. The start-up and test-run of the first mixing line at the new department was done in September and the second line is being installed. The new mixing department enables the company to produce rubber compounds for tyre production locally in Russia and end deliveries from the Nokia factory in Finland.
Publishing its third quarter results Nokian Tyres announced it achieved pre-tax profits 35.8 million more than doubling the previous year’s total of 16.9 million euros. Nokian’s results were well-received by analysts who applauded the company’s consensus beating results. According to Deutsche Bank, Nokian’s EBIT was 6 per cent higher than analysts’ collective projections and 19 per cent above Deutsche’s estimate.
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