Yokohama establishes Singapore subsidiary
The Yokohama Rubber Co., Ltd., established a Singapore subsidiary called Yokohama Rubber Singapore Pte. Ltd. in April. The new subsidiary, capitalized at US$20 million (all equity capital from Yokohama Rubber), is scheduled to begin full operations from mid-May.
Continue ReadingMichelin evolves agricultural digital strategy, aims to establish innovative partnerships
The digital strategy employed by Michelin’s Agricultural Product Line is undergoing a few changes. Explaining the main reasons behind this, the business unit’s digital communication manager Guylaine Drolet shares that the rethink was prompted by two observations.
Continue ReadingYokohama reports record first quarter operating income
Yokohama Rubber says its operating income in the first quarter of 2015 was its “highest first-quarter result ever.” The Japanese manufacturer achieved a 1.0 per cent increase in operating income to 11.8 billion yen (£62.9 million) on a 0.9 per cent decline in net sales to 138.7 billion yen (£739.3 million). This gave the company an operating margin of 8.5 per cent. Net income dropped 10.1 per cent to 5.8 billion yen (£30.9 million).
Continue ReadingApollo reports slight drop in annual revenues, increase in net profit
The Board of Directors of Apollo Tyres Ltd today approved the company’s audited financial results for the fourth quarter (January to March) and the entire 2014-15 financial year. At the same time, the Board recommended a dividend payout of 200 per cent, to be approved by the shareholders at the tyre maker’s Annual General Meeting later in the year.
Continue ReadingDifficulties in Russia drag down Nokian Tyres’ Q1 2015 net sales
Although it enjoyed growth in Western markets during the first quarter of 2015, Nokian Tyres reports that its business in Russia “remains challenging”. The tyre maker’s 9.9 per cent year-on-year decrease in net sales to €281.3 million was driven by a 43.9 per cent decline in gross sales in Russia and the CIS. Operating profit dropped 29.4 per cent to €48.3 million and profit margin contracted from 21.9 per cent to 17.2 per cent. A windfall meant good news on the bottom line, however; the annulment of a previous tax ruling meant the company was able to return taxes and interest of €100.3 million to its financial result. Therefore profit for the three-month period rose 249.3 per cent from €38.7 million in Q1 2014 to €135.3 million this year.
Continue ReadingEurope, America or Asia – Nokian evaluating sites for a new tyre plant
Nokian Tyres already operates 13 production lines within its facilities in Russia and only has space to install one more. Company CEO Ari Lehtoranta says arrangements have been made to implement this extra line, and looking further ahead the company is “preparing plans” for its next factory. During a conference call on 8 May, he outlined the options the tyre maker was considering for this additional plant as well as the timetable for the related decision process.
Continue ReadingContinental’s tyre business achieves 19.2% EBIT margin in Q1
Continental Corporation is increasing its sales forecast for the current fiscal year from about €38.5 billion to more than €39 billion after its sales climbed 14 per cent year-on-year to €9.6 billion and net income rose 12 per cent to €657 million in the first three months of this year.
Continue ReadingQuality and good partnerships key to Silverline’s success
One of the best-known firms in the UK’s 4x4 and SUV aftermarket is Silverline Wheels and Tyres. In addition to stocking major tyre brands and the Atturo SUV and 4x4 range, the Warwick-based company supplies rims designed for the finest British and European off-road vehicles and worn by ‘big iron’ imports from the USA. Silverline has created such a name for itself in this niche market that it’s hard to believe it began there by chance.
Continue ReadingMWSD preparing to take wheel messages onto European markets
Motor Wheel Service Distribution (MWSD) achieved vindication for its wheel safety message at European level when the component was named as a “safety critical item” in European law within the Roadworthiness Package. The issue – in this case the potentially unchecked fatigue caused to commercial vehicle wheels by being fitted to unsuitable hubs – is not considered over now that provision has been made in European law. “It’s made changes – real changes – out there, there’s no doubt about it,” Motor Wheel Service Distribution (MWSD) managing director John Ellis tells Tyres & Accessories. “There’s a commercial side to everything, but there is a real debate going on now, and that hasn’t even started in Europe yet.”
Continue ReadingMichelin to capitalise on Blackcircles.com, ATS Euromaster ‘synergies’
Michelin chief operating officer, Florent Menegaux told Tyres & Accessories that the manufacturer would promote synergies with ATS Euromaster following its acquisition of Blackcircles.com. Speaking to Tyrepress following the announcement of its £50 million purchase, Michelin’s chief operating officer said that the UK’s biggest online tyre retail operation would gain “access to ATS Euromaster branches in the UK”, which numbered 343 in the recent T&A survey of the retail landscape.
Continue ReadingMagna Tyres adds a further distributor in Germany
Following news in March that it had entered into a relationship with German wholesaler Reifen Helm, Magna Tyres now reports that as of May 2015 it operates a strategic alliance with wholesaler Reifen Lorenz. This regional wholesaler, like Reifen Helm, is considered an “ideal partner” for the further expansion of Magna Tyres’ OTR activities in Germany. Reifen Lorenz will distribute both the Magna brand and the new MTP range of OTR tyres.
Continue ReadingGoodyear dissolving agreement with German workforce – a prelude to redundancies or plant closures?
According to Germany’s Osthessen News, Goodyear Dunlop Tires Germany GmbH intends to rescind the contract it holds with 7,500 German employees. The contract, which has been in force for 17 years and renegotiated four times during this period, guaranteed the retention of the company’s seven sites in Germany and protection from business-related redundancies. Ines Sauer, Works Council chair at Goodyear Dunlop’s Fulda facility, told Osthessen News that she and the German operation’s Central Works Council were informed of Goodyear Dunlop’s plans to end the contract late last month.
Continue ReadingEastwood Tyres acquisition extends Camoplast Solideal’s Asia Pacific footprint
Camoplast Solideal Inc. has acquired New Zealand-based distributor Eastwood Tyres. The deal, Camoplast Solideal’s first bricks and mortar venture in the country, sees it assume immediate responsibility of the Eastwood facility in Auckland, including all staff, inventory, receivables, and equipment.
Continue ReadingMichelin buys Blackcircles.com for £50 million
Michelin has bought Blackcircles.com, the number one internet tyre sales company in the United Kingdom, for £50 million. Based in Edinburgh, Blackcircles.com generated £28 million in revenue in 2013. Run by Mike Welch, its founder, Blackcircles.com has enjoyed growth of around 20 per cent per annum since 2008. The company reports that the first quarter of 2015 saw the company achieve revenues 34 per cent higher than Q1 2014.
Continue ReadingDelticom: Tirendo’s business concept not successful
At Delticom’s Annual General Meeting in Germany yesterday, shareholders were informed that the online tyre retailer would distribute a dividend of € 0.25 per share for the 2014 financial year – only half that of the previous year. This smaller dividend particularly reflected a three-quarter drop in net profit – a decline “mainly due to the higher cost base after the Tirendo acquisition.” Andreas Prüfer, head of the company’s board of management, also told shareholders that the Tirendo business concept “of achieving 50 per cent or 100 per cent growth in the online tyre market through high advertising and personnel expenses did not prove successful.”
Continue Reading