Cheng Shin continues growth, stock rating upgraded
Financial analysts have upgraded their view of shares in the Maxxis tyre brand’s manufacturing parent company Cheng Shin Rubber. Describing it as “one of the most successful Taiwan stories in China”; Morgan Stanley gave Cheng Shin the “overweight” rating, raising its earnings per share projections by 1 per cent and 9 per cent for 2011 and 2012 respectively. At the same time the stock’s price target was raise from NT$68.33 to NT$78.3.
Continue ReadingJapanese tyre makers avoid share price carnage
Despite the fact that their homeland suffered the combined catastrophe of earthquake and tsunami earlier this year Japanese tyre makers faired surprisingly well at the stock exchange in August at a time when the share prices of virtually all the other tyre majors took a beating. (See “Bloodbath at the stock exchange”).
Continue ReadingMartin Blakey appointed Tech Europe vice president
Tech Europe has announced the appointment of Martin Blakey as vice president of sales and marketing for Europe. According to the company, this appointment has been made to ensure that customers receive “the highest levels of service during a period of sustained growth for the Tech and Pang brands of Tyre repair products in the European markets.”
Continue ReadingYokohama Australia gains ISO 14001
Yokohama Rubber Co., Ltd., has announced that Yokohama Tyre Australia Pty., Ltd. (YTA), its tyre sales company in Australia, obtained ISO 14001 certification on July 25, 2011. YTA began its efforts toward acquisition of certification in August 2010. Its practices were then reviewed by the Australian examination organization SAI Global Limited, and certified. YTA is the second of Yokohama Rubber's overseas tire sales companies to be accredited under ISO 14001, following Yokohama Tire Taiwan Co., Ltd.
Continue ReadingAnalysts: Cooper 2Q results a ‘big miss'
“We had expected the second quarter to be tough…for Cooper given the weak second industry shipment numbers and adverse mix, but we were surprised by how weak it actually was,” was the stark verdict of analysts in response to Cooper Tire & Rubber’s most recent financials. This is exemplified in the company’s profitability results.
Continue ReadingNokian 1H profits double, sales up 41%
Nokian Tyres reports that the group’s net sales increased by 41.4 per cent to 628.0 million euros during the first six month of 2011 (444.2 million euros in the first half of 2010). Operating profit grew faster still, almost doubling to 165.6 million euros (2010: 82.0 million euros) and earnings per share increased to 1.06 euros (2010: 0.58 euros).
Continue ReadingBloodbath at the stock exchange
The bloodbath at the stock exchange continues, with share prices of all the leading tyre makers falling sharply. The attention grabbing headline news is set-against strong half year figures from all leading tyre manufacturers which range from very good to excellent. And it is more than likely that the industry will set new record figures at the end of the year in terms of turnover and profit, which in normal circumstances virtually guarantees rising share prices. However, for the last 10 days the contrary has been true.
Continue ReadingTyrespot saves time with EDIWheel
MAM Software has announced that Tyrespot is using its EDIWheel tyre ordering module. Almost all of Tyrespot's tyre purchases are now conducted electronically, saving the company hours of administration and paperwork.
Continue ReadingContinental AG manager investigated for Corruption
One of Continental AG’s managers is reportedly under police investigation relating to corruption allegations. Following an article in Germany's Bild newspaper, Bloomberg reported that Frankfurt prosecutor’s office confirmed that such an investigation is underway.
Continue ReadingMichelin operating income, margin stable as 1H sales increase
Michelin has released its first half financial results, showing stable operating income of €971 million for a 9.6 per cent operating margin, with net sales up 21 per cent. The Group says the figures are in line with its corporate “road map”, revising its full year sales volumes objectives upwards – after 12.6 per cent market growth in the first half – and reconfirming its profitability estimates. The Group suggests market growth should accelerate in line with long-term trends by the end of the year, targeting an 8 per cent growth in full-year sales volumes.
Continue ReadingContinental ups 2011 sales and EBIT forecasts
Continental is raising its outlook for 2011, based on what it called “a very successful first half-year” that included double-digit growth rates for sales and EBIT. “We had previously forecast sales of more than 28.5 billion euros, but we are now expecting at least 29.5 billion euros. We are also targeting an adjusted EBIT margin of around 10 per cent, slightly more than the good 2010 figure of 9.7 per cent,” said Continental executive board chairman Dr. Elmar Degenhart on Friday 29 July on publishing figures for the first half of the year.
Continue ReadingAnalysts on Pirelli results: ‘fewer tyres…more profits’
Following the publication of second quarter/first half 2011 financial results showing Pirelli doubled net profits year-on-year, financial analysts have lauded Pirelli “over any other auto part or tyre maker in EU.”
Continue ReadingPirelli to raise European prices 6% in September
Following the release of its second quarter financial results yesterday, Pirelli announced that it would implement a further round of price increases at the end of the summer. The latest six per cent prices hike will be effective in all European markets across the company’s car, SUV and van tyre product ranges from 1 September. The company reported that the it has had to raise prices as a consequence of the rising costs of “key raw materials, in particular natural and synthetic rubber, and oil.”
Continue ReadingHankook Q2 “disappointing” – Deutsche Bank analyst
While Hankook’s second quarter represented a record in terms of sales, a Deutsche Bank report has provided a metaphorical cold shower with the “disappointing” news of a 34 per cent slide in year on year operating profit. On a consolidated International Financial Reporting Standards accounting basis, pre-tax profit was also down 20 per cent, while operating profit margin fell to 7 per cent from 12.8 per cent.
Continue Reading90% UHP surge in Europe helps Hankook to quarterly sales record
Hankook Tire has announced second quarter global sales of KRW 1,580 billion (£917 million), a rise of 21 per cent year on year, and the company’s best ever quarter. Operating profit for the quarter was KRW 110.7 billion. The region where the company experienced the greatest growth was the emerging Russian market, where Hankook nearly doubled its sales. In other major territories, sales grew by between a third and a half, with European figures at the top end of this scale. Hankook said its figures demonstrate the “increased recognition” of the quality of its tyres, as the ultra high performance segment outstripped total sales growth in its major markets, most notably in Europe, where the Korean manufacturer sold 89.6 per cent more UHP tyres year on year. Original equipment sales in the segment were also up 90 per cent in consolidated non-domestic markets.
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