A desire to purchase before price increases took effect on 1 April buoyed sales of Michelin tyres during the first quarter of 2017. Increased sales volumes accounted for 7.3 per cent of the 9.9 per cent year-on-year rise in net sales during the period. Net sales amounted to €5.57 billion in the first three months of the year. While Michelin hasn’t published its operating result or margins for the quarter, it expressed a hope that margins will improve in the second half of the year.
Continental AG reports achieving annual sales of €40.55 billion in 2016, a year-on-year increase of 3.6 per cent. Adjusted EBIT amounted to €4.34 billion, 0.6 per cent lower than a year earlier, while the adjusted EBIT margin was also slightly down, at 10.8 per cent. Profit after tax rose 2.6 per cent to €2.80 billion; earnings per share were €14.01.
Toyo Tire & Rubber has reported a year-on-year decline in net sales, operating income and ordinary income for the 2016, and remained in the red for another year. Even though the company projected in November 2016 the expectation of profit of 12 billion yen, issues with certain non-tyre products led to an extraordinary loss recorded in the closing of accounts for the year, turning the projected profit into a loss of 12.26 billion yen (£86.1 million).
Michelin reports having met its financial objectives in 2016 and its chief executive officer considers the year “a successful milestone in our strategic roadmap.” The tyre maker’s sales volumes increased 2.1 per cent during the year, outperforming the market, and an increase in operating and net income was also recorded.
Hankook Tire reports achieving consolidated sales of KRW 1.61 trillion (£1.1 billion) and an operating profit of KRW 239.8 billion (£167.2 million) in the fourth quarter of 2016. For the full year, total sales revenues amounted to KRW 6.62 trillion (£4.6 billion), and increase of 3.1 per cent, and operating profit rose 24.7 per cent to KRW 1.10 trillion (£766.8 million).
The economically-teetering country of Venezuela was a recurring theme in Goodyear Tire & Rubber’s 2016 financial report. The tyre maker’s deconsolidation of its subsidiary in that country drove down both sales and unit volumes for the year, however the measure had a more favourable impact upon Goodyear’s bottom line.
The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the third quarter of the company’s 2016-17 financial year. Consolidated revenue in the three months to 31 December 2016 amounted to Rs 34.35 billion (£404.8 million), a year-on-year rise of 17 per cent, while operating rose slightly to Rs 5.37 billion (£63.3 million) and net profit increased by six per cent year-on-year to Rs 2.96 billion (£34.9 million). The tyre maker states that it witnessed good volume growth in both its Indian and European operations in the third quarter, led by the passenger car tyre segment.
Rosava reports selling 3.9 million tyres last year, a 45 per cent year-on-year increase on 2015. The Ukrainian tyre maker says the greatest rate of growth was witnessed in the agricultural tyre segment, where sales were up 57.6 per cent compared with 2015. Car tyre sales rose 47.3 per cent year-on-year, while sales of light commercial vehicle and truck tyres increased by 25 per cent and 17 per cent respectively.
In the second quarter of its current financial year – the three months to 30 September – JK Tyre & Industries increased its total income by 5.2 per cent year-on-year to Rs 20.7 billion (£245.7 million) and lifted operating profit by 22.1 per cent to Rs 3.2 billion (£38.0 million). Operating margin rose from 13.2 per cent in the corresponding quarter of last year to 15.3 per cent. Meanwhile, net profit declined 13.5 per cent year-on-year to Rs 1.0 billion (£11.9 million).
Pirelli was unable to match last year’s sales and, particularly, income during the first nine months of 2016. The Italian tyre maker’s net sales declined 3.8 per cent year-on-year to €4.53 billion euros, a decline almost entirely the product of the deconsolidation of its business in Venezuela; excluding this factor, turnover declined just 0.1 per cent. Turnover for the Consumer business increased 4.8 per cent to €3.78 billion, and the proportion of this from premium products increased from 62.2 per cent last year to 64.6 per cent. Turnover within Pirelli’s Industrial business declined 19.0 per cent year-on-year to €764.9 million.
Shandong Linglong Tire Co., Ltd. reports that its net profit rose 272 per cent year-on-year in the first nine months of 2016, with the company recording net profit on RMB 776 million (£90.7 million) during the period. Operating revenue rose 15.54 per cent year-on-year to RMB 7.4 billion (£886.9 million).
While turnover at Nexen Tire was just stable in the third quarter of this year, the third-largest South Korean tyre maker was much more profitable. Turnover amounted to KRW 470.2 billion (£322.4 million), down a whisker from the KRW 470.3 billion recorded a year earlier, however operating profit rose 28.4 per cent to KRW 65.4 billion (£44.9 million). Operating margin increased year-on-year from 11.0 per cent to 13.9 per cent. The company’s ordinary profit also increased, up 102.3 percent to KRW 53.6 billion (£36.8 million).
Kumho Tire has reported an operating profit of KRW 9.5 billion (£6.5 million) for the third quarter of 2016; this result contrasts strongly with the KRW 6.0 billion loss recorded in the same three months of last year. Sales in the July to September period amounted to KRW 710.1 billion (£482.9 million), one per cent less than during the same period of 2015. The South Korean tyre maker’s third quarter net loss declined year-on-year from KRW 55.4 billion to KRW 32.0 billion (£21.8 million).
Yokohama Rubber Co., Ltd. has reported a decline in its sales and earnings for the first three quarters of 2016. Profit attributable to owners of the parent declined 53.5 per cent year-on-year to 8.5 billion yen (£63.0 million). This results from a 38.0 per cent decline in operating income, to 18.9 billion yen (£140.1 million), on a 7.5 per cent decline in net sales, to 410.2 billion yen (£3.0 billion). Weaker demand and declining prices in Yokohama’s principal product sectors, together with the yen’s appreciation, were the main factors behind the lower sales and earnings.
While Continental achieved moderate sales growth in the third quarter of 2016, the company reports that “several isolated and unrelated circumstances” in its Automotive divisions had a “negative impact on earnings.”