Michelin Establishes Presence in Vietnam
Vietnam Business Finance News has reported the opening of Michelin operations in Vietnam. The website states the French tyre major is establishing a presence within the country in order to take advantage of Vietnam’s rapidly increasing demand for radials.
Continue ReadingBridgestone Posts Loss for “Challenging” First Three Quarters
Bridgestone reports that its operating environment “remained challenging” in the first three quarters of the 2009 fiscal year. The nine months to September 30, it comments, was a time of “weakened consumer spending and declines in private sector capital investment, which counteracted signs of recovery among some exports.” The continuation of recession conditions in Europe and the United States was tempered by some sectors showing signs of stabilisation, however, and a gradual recovery was seen in China. Other regions also began to show slight signs of recovery, the tyre major states.
Continue ReadingNokian Tyres Signs Revolving Credit Facility
Nokian Tyres says it signed a 180 million euro syndicated revolving credit facility for three years with international banks on November 4. The facility, the company reports, will be used for general corporate purposes and to refinance the existing 180 million euro syndicated revolving credit facility signed on April 19, 2005. The Mandated Lead Arrangers and Bookrunners are Calyon, Handelsbanken, Nordea, Pohjola Bank, Sampo Bank and SEB. DnB NOR acts as an arranger. Pohjola Bank was the sole coordinator for the facility, Nokian adds.
Continue ReadingConti Names New Saudi Arabia Tyre Sales Partner
On November 4 Continental AG announced the formation of an exclusive partnership covering the sale of its passenger car, light commercial vehicle and truck tyres in Saudi Arabia. This role will now be handled by Almutlak Trade & Industries. Continental reports its new MENENA business unit will focus upon business in the Near and Middle East and North Africa, a concentration of effort the German tyre major describes as “another logical step in building up a sales network.”
Continue ReadingBankruptcy Court Confirms Hayes Lemmerz Reorganisation Plan
On November 3 Hayes Lemmerz International announced that the United States Bankruptcy Court for the District of Delaware has confirmed the proposed plan of reorganisation filed by the wheel manufacturer in July. Now that the go-ahead has been given, Hayes Lemmerz expresses confidence that the plan will significantly improve its balance sheet and reduce leverage. The company's total consolidated pre-petition funded debt of approximately US$720 million is now expected to shrink to approximately $240 million upon emergence from Chapter 11 bankruptcy.
Continue ReadingNokian Net Sales Down, But 3Q Ahead of Predictions
Nokian Tyres’ net sales for the first nine months of 2009 totalled 550.8 million euros (down 32.2 per cent on 813.2 million euros in January to September 2008). Meanwhile the company’s operating result amounted to 61.2 million euros in the period. According to the company, sales and operating result improved clearly in the third quarter. July to September operating profit fell 39 per cent compared with 43.7 million euros (£42.492 million; $64.6 million). Reuters reported that this figure beat all of the forecasts in its poll. During the same period, sales fell 28 per cent to 204 million, in line with expectations. Sales and operating margin is said to have improved, compared to previous quarters, due to pre-season deliveries of winter tyres, restocking of heavy tyres by OE customers, production restructuring and reduced raw material cost.
Continue ReadingAnalyst: Conti May Buy Schaeffler Assets, Float Rubber Group
Continental may buy Schaeffler Group’s automotive assets (namely LuK clutches and/or INA bearings) and then float its Rubber Group to pay for it. That’s the view of Klaus Pflum, head of investment bank Nomura's European automotive mergers and acquisitions operations, who made this prediction at the Reuters Auto Summit in Paris. In his view Continental is more likely to opt for an initial public offering (IPO) and this route may raise more money than a divestment and direct sale: "I don't see any banks who are willing to finance a four to five billion euro debt ticket,” Pflum told the conference.
Continue ReadingYokohama Releases CSR Report in English
The English language version of Yokohama Rubber’s CSR Report 2009 has gone online. A visit to the company’s website (http://www.yrc-pressroom.jp/env_en) will yield the annual document in PDF format. The company has also added a site report summarising CRS activities at each of its domestic and overseas production sites and affiliates.
Continue ReadingTitan's Third Quarter Results: Net Loss of $11.1 million
Titan International of Quincy, Illinois posted a net loss of $11.1 million for the period, compared to a net gain of $10.3 million for the same period last year, reports Tire Review. Driving down the profits was a sharp sales drop: $141.5 million for the quarter against sales of $255.5 million for the same period in 2008. Year-to-date sales were $581.1 million, compared to $778.1 million in 2008, and net profits year-to-date were $1.8 million in 2009, compared to $31.7 million last year.
Continue ReadingContinental Achieves 3Q EBIT of 413.4 million euros
Continental AG’s Rubber Group led the way in total group pre-tax profits (EBIT) of 413.4 million euros in the third quarter of 2009, with EBIT for the first nine months of this financial year totalling 662.1 million euros. The impressive profits, made from group sales of 5.337 billion euros in the third quarter (third quarter 2008: 5.892 billion euros) are widely seen as opening the door for Continental’s previously discussed 1 billion euro capital increase/ refinancing negotiations – “to be concluded no later than end of 1st quarter of 2010.” However, it wasn’t all good news and special effects of around 1.36 billion, and in particular a goodwill impairment of 875.8 million in the Automotive Group cannot be ignored.
Continue ReadingGITI Draws on UK Experience For German Truck Tyre Business
In January 2009 GITI Tire Europe incorporated a new UK truck tyre subsidiary, a move taken to enable the company to better focus upon the specialist needs of this market segment. The independent company took over the truck tyre business from Romney International/Compass Group (who continue to distribute GITI’s passenger car range). GITI has now decided to adopt this British model in Germany, and as of October 26 the company has taken over distribution of truck tyres in the German market from Reifen Gundlach, who had served as exclusive importer since 1994.
Continue ReadingGoodyear Stock Plummets following CFO’s Operating Income Q4 Prediction
Shares in Goodyear Tire & Rubber Co experienced the sharpest fall in New York trading for 22 years following chief financial officer Darren Wells’ prediction that income in North America will decline between $75 million and $125 million compared to third quarter results in the period October-December 2009. The company therefore forecasts an operating loss in North America during the fourth quarter. Wells made the statement during a conference call with analysts today discussing the results of 2009’s third quarter.
Continue ReadingGoodyear Reports Improvement in Q3, but Decline Vs 2008 Continues
Goodyear Tire & Rubber Company’s third quarter 2009 financial report showed sales and income improvements in comparison with quarter two, but the results continue to reflect what the company calls “weak industry demand”. Accentuating the positive, Goodyear states that it “sees opportunities as markets recover”, an idea reflected in the company’s launch of 57 new products over the course of the first three quarters of 2009 (15 in quarter three), a figure that surpasses the full-year target. Additionally, Goodyear has improved its liquidity, made year-to-date savings totalling $540 million and reduced its inventories by more than $1 billion in the period, while producing a third quarter segment operating income of $275 million, a figure that shows improvement on 2008, with sales 11 per cent up from quarter two at $4.4 billion.
Continue ReadingApollo Tyres Sees Profit Hike in July-September, Predicts Big Things for 2010
After witnessing a substantial jump in profits from the quarter ending 30 September 2009, Indian tyre manufacturer Apollo has suggested that more is to come in 2010. The company told Indian business news sources that it will be aiming for 50 per cent higher revenues for its financial year (ending March 2010) thanks to the effect of its new-ish European subsidiary, Vredestein Banden, which the company acquired on 15 May.
Continue ReadingSchaeffler and IG Metall Form Joint Committee
Schaeffler Group and the IG Metall union agreed to form a joint committee which, according to the company, “represents the first joint step towards the agreed implementation of co-determination in the company. The joint committee consists of six representatives from each party and is intended for the exchange of information about issues related to the economic situation and further development of the Schaeffler Group. A representative of the Schaeffler Group will act as the chairman and an employee representative will be deputy chairman of the committee. The joint committee will hold four ordinary meetings per year.
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