Reiff posts a net loss for 2013
Germany’s Reiff Group, whose business portfolio includes tyre and wheel wholesale and retail activities, has reported that “two negative influences” affected its business in 2013: A one-off effect of €4.9 million and a drop in margins in its tyre business. Group turnover fell 3.6 per cent year-on-year to €509 million, with €358 million coming from its tyre and auto business. The company reported a net loss of €8.7 million; in 2012, it achieved a net profit of €0.6 million.
Continue ReadingTread patterns influence driving behaviour – report
While much attention has been placed on road rage and its causes, one factor has been overlooked – until now. A newly-released report has found a remarkable correlation between road rage incidents and choice of tyre. Aggressive tread patterns do, it seems, make for aggressive drivers.
Continue ReadingAnalysts: Foreign exchange outlook the only bad news in Pirelli results
Financial analysts have responded positively to Pirelli’s full-year 2013 financial results, with some reiterating their “outperform” guidance. The upbeat response was markedly different to the warnings of some market observers 24 hours earlier, which suggested the emerging market exposure (and its linked foreign exchange fluctuations) and Russian volatility in particular could undermine the company’s 2014 and 2015 outlook.
Continue ReadingPirelli reports increased sales but flat profits in 2013
Pirelli & C. SpA today reported full-year 2013 consolidated revenues of 6,146.2 million euros on 31 December, an increase of 1.2 per cent from 6,071.5 million euros a year earlier. Tyre revenues, which account for almost all of the company’s sales totalled 6,115.8 million euros in 2013, an increase of 1.4 per cent from 6,031.3 million euros. Full year tyre-derived pre-tax profits (EBIT) were 822.0 million euros, an increase of 1.2 million euros (+0.1 per cent) compared with 820.8 million euros in the same period a year earlier, with a margin equal to 13.4 per cent (13.6 per cent in 2012). However, whether it will be enough to allay pre-release market fears that emerging market exchange rates and particular Russian market instability remains to be seen.
Continue ReadingMandatory conversion for Goodyear preferred stock
Goodyear Tire & Rubber announced today that all outstanding shares of its 5.875 per cent mandatory convertible preferred stock will convert to Goodyear common stock shares at the close of business on 1 April 2014. On this mandatory conversion date, each preferred stock share, unless previously converted, will automatically convert into 2.7574 shares of common stock.
Continue ReadingPirelli may reduce 2014 sales goal due to Russia, emerging market pressures
While Pirelli’s recent sale of a 13 per cent shareholding to Russian petrochemical giant Rosneft brings it access to 2,800 petrol station/tyre points of sale, some industry observers are also warning that the political environment and the deal itself are on shaky ground. On the one hand the collaboration is expected to put Pirelli on a par with the premium leader in Russia, Finnish tyremaker Nokian Renkaat, in terms of a distribution network size there is more than one way to skin a cat in terms of distribution and other factors could end up affecting Pirelli’s overall sales targets. The company is set to publish its full year 2013 results this evening, along with its 2014 outlook commentary.
Continue ReadingSeat to produce first-ever SUV
Seat has announced that it is to manufacture its first-ever SUV; it will come to market in 2016 and is already in development at Seat’s Martorell facility, Barcelona. “This is an excellent piece of news, since it takes Seat into a new territory, in one of the largest and fastest growing segments in the world,” […]
Continue ReadingEC to investigate anticompetitive practices in automotive exhaust sector
Only days after five companies were fined a total of €953 million for participating in a cartel within the automotive bearing market, the European Commission has reported its concerns that a number of companies in the automotive exhaust systems segment may have violated EU antitrust rules that prohibit cartels, restrictive business practices and/or abuse of a dominant market position. On 25 March, officials from the European Commission undertook unannounced inspections at the premises of companies active in this sector. The Commission officials were accompanied by their counterparts from the relevant national competition authorities.
Continue ReadingFederal aiming for 10% of Russian tyre market by 2019
Taiwanese tyre maker Federal Tyres states it has “set its sights on ten per cent market share in Russia” and aims to double the number of wholesalers it works with there (currently nine in eight cities, including Moscow, St Petersburg and Ekaterinberg) every year for the next five years to help achieve this objective by 2019. The company has been present in the Russian market since 2004 and its products are available at over 10,000 retailers across the country. It has now launched a brand new website, www.federaltyresrussia.com, VKontakte page, vk.com/federaltyresrussia, and 2014 campaign slogan that capitalises on Federal’s sponsorship of Manchester United: “Awaken the Champion inside” (Пробуди в себе Чемпиона).
Continue ReadingDouble Coin profits up almost 5% in 2013
Double Coin Holdings has posted operating revenue of approximately CNY 14.33 billion (£1.4 billion) for 2013, up 18.43 per cent from the previous year. The company attributed the increase rise to expanded production of tyres at its Anhui branch, as well as products and increased trades of other subsidiaries. Net profit attributable to shareholders rose 4.63 per cent to CNY 306 million (£30.1 million). Earnings per share was CNY 0.344 (£0.03).
Continue ReadingPrice rise for Lanxess rubber chemicals
From 1 April 2014, global prices for Lanxess rubber chemicals will increase in response to raw material price rises and unfavourable exchange rate effects. The adjustment will impact all product lines, including Vulkanox antidegradants, Vulkacit accelerators as well as specialty chemicals such as bonding agents (Cohedur), retarders (Vulkalent), plasticizers (Vulkanol), zinc oxides (Zinkoxyd aktiv) and DBD based peptizers (Renacit). The price increases will range from €0.10 to €0.70 per kilogramme (US$0.15 to $1.00) depending on the product and region.
Continue ReadingNexen investing US$800 million in new Czech Republic tyre factory
After weeks of speculation South Korean tyre manufacturer Nexen Tire has confirmed that it is investing US$800 million in the construction of a new tyre factory in the city of Nošovice, in the east of the Czech Republic.
Continue ReadingRussia a growing part of Pirelli’s business?
For Pirelli, Russia is “still a developing market”, and as we found out a week or so after Tyres & Accessories interviewed global marketing vice-president Matteo Battaini at the recent Geneva Motor Show, Rosneft’s purchase of 13 per cent of Pirelli’s shares means Russia is also still a developing part of Pirelli’s ongoing business strategy.
Continue ReadingRosneft reaches for Pirelli – but the power stays with Marco Tronchetti Provera
Working on a share price of €12, which translates into a market capitalisation of €5.8 billion, Pirelli boss Marco Tronchetti Provera has arranged the sale of 13 per cent of all Pirelli shares to a majority state-owned Russian energy giant. With this transaction, Rosneft is set to become the largest single Pirelli shareholder. But even though his own shareholding will reduce to less than five per cent when the ink dries on the deal, Tronchetti will retain more or less free rein at Pirelli. While some market observers currently fear that the political situation in Crimea and the Ukraine may harm the deal, and others set their hopes upon the introduction of sanctions against Russia getting in the way, this article focuses on other questions – who Pirelli actually belongs to, who has the say at Pirelli, and how it is possible to control the Pirelli Group despite only having a minority shareholding?
Continue ReadingNew Goodyear European president Darren Wells lands in Geneva
Top-ranking Goodyear executive Darren Wells was parachuted into the leadership of Goodyear Dunlop Europe Middle East and Africa EMEA in October 2013. Having come from the position of Goodyear global CFO, the move was pitched as something of a reshuffle of the company’s global leadership. Set against the backdrop of the recent Geneva motorshow, Tyres & Accessories talked profitability, strategy and efficiency with the newly installed president.
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