500+ former Unipart Automotive employees now with Andrew Page, Parts Alliance
When Unipart Automotive went into administration, Andrew Page and The Parts Alliance struck a deal to take over 33 branches, saving around 320 jobs. Since then Euro Car Parts has hired 65 more ex-Unipart staff, while promising another 1,500 jobs to be created in the comig 18 months. According to the latest reports from The Parts Alliance, this number has risen to around 500 ex-employees of Unipart Automotive. And the parts buying and distribution group says that extra jobs are planned for more of the reported 1,244 staff members made redundant by Unipart Automotive’s demise.
In the first half of the year Pirelli was unable to maintain its year-on-year turnover, however it increased its profitability significantly and profited from the premium segment’s growing significance to the Italian tyre maker; the premium segment now accounts for more than 56 per cent of total turnover, as opposed to 50.5 per cent last year. And while total volumes increased by 1.8 per cent in the period between 1 January and 30 June, premium volumes shot up 21.6 per cent.
Although volumes at Lanxess increased two per cent year-on-year in the second quarter of 2014, this could not fully offset the five per cent decline in selling prices it experienced. Therefore, the company’s overall sales fell 5.7 per cent year-on-year to €2.02 billion. “The continuing low earnings level and increasing competition show the need for further action to improve competitiveness, said Board of Management chairman Zachert.
Breuers steps down from Lanxess role as restructuring gets in swing
Preparation for certain aspects of the restructuring awaiting Lanxess AG has already begun, and come at a time when the company is able to report improved year-on-year performance. The group-wide programme initiated by the company’s Board of Management on 24 July 2014 will see the number of Lanxess business units shrink from 14 to ten and will involve cuts to the company’s global administrative workforce. The business unit mergers will take effect 1 January 2015.
Apollo Tyres’ Q1 profit increase falls short of expectations
On 6 August the Board of Directors at Apollo Tyres Ltd approved the company’s unaudited results for the first quarter of its 2014-15 financial year. For the three-month period ending 30 June 2014, Apollo Tyres Ltd, on a consolidated level, reported net sales of Rs 32.35 billion (£314.29 million), 1.4 per cent higher than a year earlier. Operating profit rose 13.4 per cent to Rs 4.58 billion (£44.50 million) and net profit was up 37.3 per cent to Rs 2.28 billion (£22.15 million).
Kanwar speaks on Cooper and future growth at Apollo AGM
Onkar Kanwar has used the opportunity afforded by his company’s 41st Annual General Meeting to share Apollo Tyres’ view of why the planned acquisition of Cooper Tire & Rubber never materialised. The Apollo chairman also spoke on upcoming plans and the market opportunities and challenges the tyre maker has identified.
Superior Industries International reports lower year-on net income in the second quarter of 2014, despite net sales remaining the same. The company achieved net income of US$5.0 million, or $0.18 per diluted share, for the second quarter of 2014, compared with net income of $6.3 million, or $0.23 per diluted share, for the second quarter of 2013.
Bridgestone representatives at the launch of the new Firestone Destination HP SUV tyre in Valencia were particularly keen to stress the importance of the event beyond the product itself. While the product, representing an important segment for the company’s second line brand, provided plenty of the technological improvements usually expected of a new flagship tyre in metrics such as dry and wet braking, rolling resistance and noise, this was also a “rejuvenation” of a name that has kept a relatively lower profile outside USA in recent years.
European Commission approves Bekaert acquisition of Pirelli steel cord business
The European Commission has approved the proposed acquisition of the steel tyre cord business of the Italian company Pirelli by its Belgian-based rival NV Bekaert SA under the EU Merger Regulation. According to an official statement dated 31 July, the commission concluded that the acquisition “would not raise competition concerns as the merged entitys customers, which are large, multinational tyre companies, have countervailing buyer power which is further strengthened by over-capacity in the steel tyre cord market.”
In the first quarter of its 2014-15 financial year, the three-month period to 30 June 2014, net sales at Balkrishna Industries Limited (BKT) rose 17.6 per cent year-on-year to Rs 9.49 billion (£92.4 million). The company’s net profit grew 12.7 per cent to Rs 1.15 billion (£11.2 million) during the three-month period, yet despite this the company’s share price dropped more than five per cent to a day’s low of Rs 715 after the quarter results were announced. Analysts had expected profits of around Rs 1.32 billion for the quarter.
Continental integrating Emitec into Powertrain division
The 100 per cent acquisition of exhaust technologies specialist Emitec by Continental took effect yesterday. Continental has bought out former 50/50 joint venture partner GKN and will integrate Emitec into its Powertrain division. The Emitec operation will be combined with Continental’s Fuel Supply business unit to form the new Fuel & Exhaust Management business unit.
Analysts: Conti’s rubber outperformance is good, but guidance is in line
Financial analysts have offered their response to Continental’s second quarter financial results, welcoming outperformance (particularly in the tyre division), but also pointing out that increases in guidance simply bring the firm in line with consensus expectations.
Freight forwarding company Maritime Cargo Services has recently been made an Authorised Economic Operator (AEO) in the UK by the European Union. The AEO certificate is an internationally recognised quality mark indicating the security of a company’s role in the international supply chain, with “efficient and compliant” customs controls and procedures.
Continental raises EBIT forecast, increases income in Q2
Continental Corporation has again increased its earnings forecast for the 2014 fiscal year. Upon publishing the company’s second quarter and first half results, Executive Board chairman Dr. Elmar Degenhart said Continental is now aiming for an adjusted EBIT of 11.0 per cent rather than the 10.5 per cent announced in March (when it was increased from 10.0 per cent). This 11.0 per cent target is supported, the company says, by the ongoing trend towards favourable natural rubber prices.
Goodyear revenues fall short of expectations, but income up in Q2
Shares in Goodyear Tire & Rubber fell up to 8.7 per cent yesterday after the company reported second quarter net sales that were US$40 million below estimates. Prices tumbled to a daily low of $25.07 as Goodyear announced it achieved March to June quarter net sales of $4,656 million, 4.9 per cent lower than in the corresponding quarter a year ago.