Illinois developer buys former Cooper plant
The shuttered Cooper Tire & Rubber Co. tyre plant in Albany, Georgia, has been sold to an Illinois developer, according to Tire Review. No details of how much was paid have yet been released.
Continue ReadingGajah Tunggal accused of covenant breach, Moody’s considering rating downgrade
Moody's Investors Service has placed PT Gajah Tunggal Tbk's B3 corporate family and senior secured ratings on review for possible downgrade. According to a report published in Indonesia Today, this review action follows “the payment of a dividend to shareholders seemingly in contravention of the covenants of its restructured bonds launched in June 2009, and the resulting alleged claim of covenant breach by an anonymous bondholder.”
Continue ReadingContinental to focus investment on Asian markets
Continental AG plans to focus its near-term investments on the Asian markets, according to board member Heinz-Gerhard Wente. In a Bloomberg report, Wente noted that sales in Asia will likely represent a third of the corporation’s total revenues. “While Europe will remain the biggest market for Continental, next year might ‘bring some problems’ because of a possible economic slowdown triggered by the sovereign-debt crisis,” the Bloomberg story said. It would not be “a dramatic downturn,” though.
Continue ReadingEuropean output up, but Michelin exposed in NA, not enough in emerging markets
Following Michelin’s investor’s day briefing at its Cuneo, Italy factory on 5 October financial analysts suggested that while the good news is that Michelin’s European production is up and increasingly efficient, the company remains over-exposed amidst the ailing demand of the North American markets and conversely not exposed enough in the emerging markets.
Continue ReadingCredit agencies lower GITI Tire rating, Gajah Tunggal not affected
Credit agencies Fitch and Standard & Poor’s have altered their rating for GITI Tire Pte. Ltd. According to Fitch’s latest assessment, “GITI's liquidity is likely to remain strained over the next 12 months because of substantial cash outflows despite the refinancing of the company's notes.”
Continue ReadingEuro Car Parts sold to LKQ Corporation in £225 million deal
LKQ Corporation, purportedly the largest provider of aftermarket and recycled collision replacement parts in the US and Canada, has acquired Euro Car Parts. The initial purchase price was £225 million, however in addition the purchase agreement provides for the price to increase by a further £55 million if Euro Car Parts meets certain growth targets.
Continue ReadingBridgestone plea bargain in marine hose case
Bridgestone Corp. has entered into a plea agreement regarding its involvement with a bid-rigging scheme in the US and bribery charges in Latin America. According to Tire Review, under the plea agreement, Bridgestone has pleaded guilty to antitrust conspiracy charges and a violation of the Foreign Corrupt Practices Act. As a result, the company will pay a $28 million fine, which is said was “a significant reduction from the applicable sentencing guidelines due to Bridgestone’s cooperation and remediation efforts.”
Continue ReadingMichelin Man to hit TV screens with wet grip adverts
Michelin is to communicate a series of wet grip orientated messages with the next phase of its UK advertising campaign. This time the safety themed ads are designed to show the Michelin Man (Bibendum) protecting a motorist from treacherous wet driving conditions. Through a mix of TV ads, outdoor posters and on-line banners, the next phase of Michelin's global ad campaign will be rolled out across the UK. The first television ads will appear on Monday 12 September.
Continue ReadingHankook Multistrada bid falls through
The scramble to purchase a controlling stake in Indonesia’s second largest tyre manufacturer Multistrada Arah Sarana PT continues, as Reuters reports that the company’s shareholders have rejected a bid from Hankook for a controlling stake. Yokohama and private equity investment firm TPG Capital are reported to be the other bidders, though a Hankook spokesperson told Reuters that “none of the bids satisfied” Multistrada’s shareholders.
Continue ReadingAnalysts note improved Schaeffler outlook, continuing risks
Responding to Schaeffler Group’s recently published second quarter results, including a margin of 15.3 per cent for the quarter, financial analysts have praised the “very respectable results”. However, writing in an investor’s not dated 2 September, Morgan Stanley also noted risked associated with the company’s outlook and pointed out that margins were down 150 basis points year-on-year and 220 basis points quarter-on-quarter due to “higher raw material costs and ongoing expansion costs.”
Continue ReadingSchaeffler Group financials: growth in 1H 2011
The Schaeffler Group says its first six months in 2011 have “set new records in sales and operating results”. The company has grown its net income to 641 million euros in the period, with EBIT rising 20 per cent to 883 million euros and margin at 16.4 per cent. The company expects sales to increase by “at least 10 per cent” and has an EBIT margin target of “more than 13 per cent” for the year. Schaeffler’s sales in the first six months rose by 18 per cent to approximately 5.4 billion euros.
Continue ReadingBridgestone Europe re-certificated to ISO 9001:2008
Bridgestone Europe’s sales companies and warehousing have been re-certificated to ISO 9001:2008. The certification, independently verified by Lloyd’s Register Quality Assurance, requires companies to meet specific quality management system requirements across all business areas.
Continue ReadingGovernment targeting Bosch, Continental, Schaeffler for UK manufacturing investment
The British government is attending the Frankfurt Motor Show with the intention of targeting automotive suppliers such as Bosch, Continental and Schaeffler for discussions on potential investment in UK manufacturing. According to a report published by The Telegraph on 29 August, the government has “drawn up a list of foreign manufacturers that it wants to attract to the UK in order to boost output and help rebalance the economy.” The article continues by explaining that Mark Prisk, minister for manufacturing, will attend the Frankfurt Motor Show (also known as IAA Car) later this month.
Continue ReadingEngineers convicted in Goodyear corporate espionage case
A US federal judge has sentenced two former Wyko engineers to four years probation and 150 hours of community service after they were convicted of stealing trade secrets from Goodyear Tire and Rubber Co. in a corporate espionage case that first surfaced in 2009.
Continue ReadingAnalysts raise Yokohama estimates
Financial analysts have raised their estimates for Yokohama Rubber after reviewing their raw material assumptions. Their rationale is that, “while not as smoothly as peers, Yokohama Rubber is passing costs on to customers, and despite uncertainties (downturn in US/Europe), we expect it to report 30 per cent growth in adjusted full year…earnings on lower raw material prices and full-year contributions from price hikes.”
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