Analysts: Few reasons to buy Michelin stock
In light of only “modest” improvements on second half EBIT predictions and a “rather low quality free cash flow”, financial analysts are not optimistic about Michelin’s ability to sustain it share price. In an investor’s report published 13 February, Morgan Stanley reported that Michelin’s 974 million euros of pre-tax profits (EBIT) in the period may have been 5 per cent above consensus expectations, but it was driven by gains in the mining tyres business.
Continue ReadingMichelin claims strategic validation in 2011 financial report
Michelin announced its full financial year report for 2011 today, its board claiming a vindication of its strategy in the process. The company produced “extraordinary results” according to chief financial officer Marc Henry, who presented the results in a conference call with managing partners, Michel Rollier and Jean-Dominique Senard. Alongside increased sales volume (up 6.7 per cent) and a 39 per cent increase in net income, the manufacturer’s management set its sights on a 2.5 billion euro profit goal by 2015. Michelin said it would capitalise on its competitive strength in speciality tyres, including “world leadership” of the earthmover segment and European leader in Agricultural tyres, with a new 40,000-tonne EMOTR plant in the near future, though a location has yet to be decided. Rollier also announced details of the completion of Senard’s succession, announced last year and due to be completed at the Annual Meeting on 11 May.
Continue ReadingGoodyear to announce Q4 2011 financial results
The Goodyear Tire & Rubber Company will report fourth quarter 2011 financial results before markets open on Tuesday, 14 February. The announcement will be followed by the customary investor conference call at 08:30 (13:30 GMT) with Richard J Kramer, chairman and chief executive officer, and Darren R Wells, executive vice president and chief financial officer.
Continue ReadingAnalysts: Schaeffler refinancing its debt is a positive for Conti
Schaeffler AG, which currently controls what is effectively a 60 per cent stake in Conti, has announced plans for new credit worth around 8 billion euros. In addition to this refinancing, the company announced plans to issue 2 billion euros of bonds. According to financial analysts at Morgan Stanley, this all comes around the same time as ratings agencies Stand & Poor’s and Moody's are planning to publish official credit ratings. And all follows Schaeffler’s decision to change its legal form into AG back in September 2011 in order to gain better access to capital markets.
Continue ReadingToyo announces Chinese cushion JV
Toyo Tire & Rubber Co., Ltd. has agreed to establish a China-based joint venture company to manufacture and distribute urethane seat cushions for transportation machinery. The agreement was signed with Guangdong TGPM Automotive Industry Group Co., Ltd., headquartered in Foshan City, Guangdong Province.
Continue ReadingGoodyear to webcast 2012 Global Auto conference presentation
The Goodyear Tire & Rubber Company has announced that it will webcast its presentation at the 2012 Deutsche Bank Global Auto Industry Conference in Detroit, Michigan, on 10 January. Darren R. Wells, executive vice president and chief financial officer, will provide a business overview and discuss the company’s strategies for approximately 40 minutes.
Continue ReadingAnalysts: Conti’s 4Q revenue could beat 3Q
Continental AG’s management is confident enough that its fourth quarter revenue will beat the third quarter to tell analyst of the upgrade. According to Morgan Stanley, this implies a slight upgrade to consensus numbers which following 7.7 billion euros for the third quarter currently stand at 7.6 billion for the final quarter of the year.
Continue ReadingAl Dobowi holds inaugural Westlake Partners’ Day
The Westlake tyre brand is named after one of China’s most popular domestic tourist destinations and a 2011 addition to UNESCO’s World Heritage Sites – the freshwater West Lake in the centre of Hangzhou, the home town of its manufacturer Hangzhou Zhongce, located around 180km south-west of Shanghao. Shen Jin-Rong, Hangzhou Zhongce president and chairman, reflects with pride on the link between what is seen as a premier Chinese location and the tyre brand named after it: “Westlake is our tyre brand and also the best place in our city.” The Al Dobowi Group distributes the brand in several European territories through its Eskay Tyres subsidiary; the newly exclusive distributor of the brand in the UK was announced as Axle Group Holdings at the end of September – owner of the Viking International wholesale arm and the National Tyres & Autocare retail chain (see T&A October’s Wholesale feature and the Related News link below). Tyres & Accessories travelled to the town from Shanghai with representatives from the Al Dobowi Group to see the development of Hangzhou Zhongce’s manufacturing facilities, and to witness the growth in interaction between the manufacturer and European dealers of its Westlake brand.
Continue ReadingScrapping fuel duty increase good news for motorists – Bridgestone
Following the announcement of the government’s Autumn budget statement, which included the news that the planned 3p rise in fuel duty in January is to be cancelled, Bridgestone has been the first to publically respond to what this means for motorists. In addition to the fuel duty increase cancellation, there will a 1 per cent cap on public sector pay rises for two years after the end of current freeze next year. Borrowing is £112 billion more over the next four years than previous forecasts, but debt interest payments are £22 billion less than expected.
Continue ReadingBosch Aftermarket appoints new UK and Ireland sales manager
Bosch Aftermarket, the division of the German company responsible for supplying diagnostic garage equipment, training and the Bosch Car Service network, has appointed Dominic Moran its new country sales manager for the UK and Ireland. Moran, who begins in the position on 1 January 2012, moves to the UK from his current Aftermarket role as regional sales manager for the Bosch Group in Australia; he brings with him, notes Bosch, significant experience from previous sales roles within the consumer hardware and automotive sectors.
Continue ReadingTyre markets slow during October
Demand for tyres is reported to have slowed during October, showing “further weaknesses,” according to financial analysts. The October decline is said to have been especially prevalent in North America and in the truck aftermarket globally. Commenting on the news, which follows Michelin's publication of its regularly market overview figures, Morgan Stanley analysts wrote: “While we believe consensus already expects a slowdown, we think risks to fourth quarter 2011 and 2012 volume are still high.”
Continue ReadingAxle Group gain place in Sunday Times HSBC Top Track 250
Axle Group Holdings, the Glasgow group comprising the tyre retailer National Tyres and Autocare and wholesaler Viking International has been ranked in the Sunday Times HSBC Top Track 250 league table. Chairman Alan Revie began his career as a tyre fitter with National Tyres and Autocare at the age of 17. He became a branch manager just two years later before developing his career in the industry and then returning in 2001 to buy the business.
Continue ReadingTire Rack to expand HQ
US tyre distributor The Tire Rack plans to break ground this week on a 130,000 sq ft expansion to its South Bend, Indiana, headquarters, reports Tire Review. The expansion project will add warehouse and office space to the site, which already measures 532,000 sq ft.
Continue ReadingPirelli aiming to be "global premium leader" by 2015
Following the publication of positive nine-month figures yesterday (8 November), Pirelli chairmain Marco Tronchetti Provera today released details of the manufacturer's goals between now and 2015. The headlining statement of intent is the desire to be "global premium leader" (following a so-called "local by local" strategy) by 2015. And in order to achieve this Pirelli is increasing capital investment up to a value of 2.2 billion euros for the period 2011-2015.
Continue ReadingPirelli: all nine-month indicators improved
Pirelli & C. SpA has reported that in the nine months ending 30 September 2011, the tyre manufacturing group saw "all economic indicators improved over the period," with revenues growing by 17.9 per cent to 4,265.8 million euros and profitability - understood as the ratio of the operating result to sales - by 10.6 per cent.
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