Hayes Lemmerz Reports Q3
Hayes Lemmerz has reported financial results for the three months ended October 31, 2003. The Company said that earnings from operations totalled 13.9 million US dollars for the quarter, with gross profits remaining consistent, as compared to the same period in 2002. This is despite the increased depreciation expenses and lower OEM production requirements. Net sales for the three month period totalled 530.9 million US dollars, compared to 535.4 million US dollars for the comparable period in 2002. The Company reported a net loss of 10.0 million US dollars, compared to net income of 3.7 million US dollars for the comparable three months in 2002.
Continue ReadingBridgestone appears in good shape again in America
Bridgestone/Firestone has survived the largest tyre recall in the history of the tyre industry in North America, and yet has switched again into forward gear. Under the guidance of its charismatic boss John Lampe, the company is now working hard on an improvement of the results, so that the record loss extending far beyond a billion dollars for 2001 will soon be forgotten. Two years ago Lampe succeeded at Las Vegas in bringing around 4,000 tyre dealers on the side of his company and the brands Bridgestone and Firestone. And he has lost none of his persuasive power. At this year’s SEMA Show in Las Vegas Lampe presented to thousands of dealers new Firestone products and advertising campaigns, aimed to affect these Firestone customers emotionally. It became clear that the new rise of the tyre brand Firestone cannot be stopped, not even in North America. Talking to T&A, Lampe briefly reminded us of the tough times. At the peak of the crisis the company counter-steered with the brand Bridgestone. But then again Lampe doesn’t want to hear, that Bridgestone has been made a cheaper tyre brand as planned: “A more differentiated view is necessary. With a volume line we were cheaper, because we wanted to absorb Firestone decreases, but for example with the Potenza, which represents the top line, we have always held the price and could hold it. Since the Firestone recall we carried out changes, with which we can annually sell eight million additional Bridgestone tyres by now. Today we sell more Bridgestone and Firestone tyres than before. Before and after! Talking to John Lampe that is to be heard several times. In Lampe’s world this means: before and after the tyre recall. During the last three years a change took place towards the brands Bridgestone, Firestone and Dayton. 65 per cent of all tyres sold carry a Bridgestone or a Firestone signature; today already predominantly that of Bridgestone. And that will continue, because nowadays the OE business is exclusively carried out with Bridgestone tyres and in the longer term this should affect the company’s replacement business. Approximately 40 per cent of all passenger car and 4 x 4 tyres, that are sold in America, went “before” into the OE business. Today there is only about 30 per cent. Lampe: “Three years ago we were in a rather despairing financial situation and had to do something for relaxation. The OE business was profitable at no time. And of course we could not afford to always produce volume to whatever costs, but we have very much paid attention to profitability. Our market share is now lower than “before,” but we have the more profitable dimensions. Also Michelin acted very selectively, and into these gaps pushed some European and Asian manufacturers.”
Continue ReadingGoodyear: Nobody knows what the future has in store
Because of the continuing market weakness and on-going high losses in North America, Goodyear’s situation in “Bob” Keegan’s 25 months as COO and president and in the 11 months as CEO remains extremely serious and worrying. Unlike competitors such as Michelin, Goodyear could not even increase market share by capitalising on the Firestone disaster. Even worse: Bridgestone, with Firestone – a tyre brand that many predicted would not survive the crisis - is back on the road and advancing strongly. Cooper, during the third quarter 2003, added around almost ten per cent, while Goodyear could increase sales by only approximately four per cent, while the total market grew by more than six per cent. Also Goodyears figures continue to be under pressure, because the sporadic price increases could not compensate for past rises in raw material prices, margins remained lower than expected and the fixed costs “moved in the wrong direction” despite all restructuring measures, says Rod Lache, Analyst at the Deutsche Bank in New York. Also the sales development in North America is not satisfactory: in 2002 Goodyear sold eight million tyres fewer in the US market compared with the year before, and in 2003 everything points to a further sales reduction of more than two million tyres. This is a clear sign of continuing acceptance problems on the market. Following this it is no surprise that analysts still do not recognise any signs of a turnaround in the recently submitted business figures for the first nine months of this year and that the visible trends give further reasons for concern regarding the future of the company. Talking to Tyres & Accessories, Bob Keegan was still optimistic. It cannot be denied that fewer tyres than before have been sold. The biggest challenge is to generate growth in the highest market segment. This is the goal of the strategy “How Do We Win” with its seven quintessential points and its personnel policy that has already been explained to analysts in the early summer. Keegan: “I took a few good decisions concerning executive positions in order to be able to realise the necessary changes. My goal was not merely one of only bringing in outsiders. In all areas of the company we have a good mixture of old and newly-hired, high-level personnel. Jon Rich, who has to bear the load of the turnaround, has the same pattern of thinking as me.” Keegan was convinced that he has now brought together the correct executive team. “Managers who led the company into the crisis, are not necessarily the right staff to lead it out again. We needed a change of course, in order to be able to win. I feel very comfortable with the people, who now carry this responsibility along with me.
Continue ReadingBridgestone develops wafers for semiconductors
The Bridgestone Corporation has announced that it has developed single crystal silicon carbide (SCSC) wafers for use in semiconductor devices. SCSC offers advantages over silicon in semiconductor performance,
Continue ReadingGoodyear blimp grounded after accident
The Spirit of America, one of three Goodyear airships operating in North America, has been involved in a minor accident. On Wednesday, the blimp broke loose from its moorings while landing at its base in Carson, California and drifted for 300 yards before crashing into a compost pile. There were no serious injuries and Goodyear says it is too early to say how bad is the damage, or how long the Spirit of America will be out of commission.
Continue ReadingHomologation for the Pirelli P 7 on the Volvo V50
The Volvo V50 making its world debut at the Bologna Motor Show is the most recent testimonial to the fourth generation of the high performance Pirelli P7 range. This latest version of the tyre is designed to provide luxury saloons and station wagons with a perfect blend of performance and driving comfort.
Continue ReadingGoodyear OE on Fleetwood RVs
In the USA, Fleetwood RV and Goodyear have announced that Goodyear tyres will be fitted as OE on Fleetwoods range of recreational vehicles. Goodyear makes a range of tyres specially for RVs, for 19.5“ and 22.5“ rims. The announcement was made at the 41st RVIA show and a seminar was organised to inform Fleetwood dealers on the range and benefits of Goodyear RV tyres.
Continue ReadingYokohama plans tyre plant in Thailand
Yokohama is set to invest 5.5 billion Yen (US$ 50.8 million) to build a new factory in Thailand, producing steel radials for trucks and buses. The new factory – Yokohamas second for CV tyres outside Japan (the first is in the USA) – will initially produce 300,000 tyres annually, with this figure doubling to 600,000 units by 2007. The tyres will be marketed world-wide.
Continue ReadingQuality award for Goodyear Philippines
Goodyear Philippines Inc. has been recommended to receive the latest global quality certification standard, ISO/TS 16949:2002. The standard specifies quality system requirements for design, development, production and installation of automotive-related products. Goodyear Philippines is the first of the companys factories in the ASEAN region to achieve the new standard.
Continue ReadingSingh Joins Goodyear’s Global Sourcing Organization
To ensure cost-effective supply of new products worldwide, a Goodyear marketing executive has joined the companys new global sourcing organization. Dipinder DP Singh (44), the former director of global market intelligence and strategy, has been appointed director of global requirements planning. He reports to Chris W. Clark, senior vice president, global sourcing. Singh will work with the sales and marketing teams in each of the companys business units to develop strategic initiatives to support global sourcing decisions.
Continue ReadingBBS better than the industry average
With the forecast of a turnover of 190 million Euro in 2003, wheel producer BBS (Germany) will significantly improve on its 2002 results (175 m). For the first nine months of this business year the company has announced an increase in turnover of 9.1 per cent and so was better than the industry average. The gain comes from OE business with an increase of 14 per cent, whereas aftermarket and income from motorsports and licensing was below the 2002 figure. The share of foreign business has fallen to 49.2 per cent. BBS expects to make a small profit in 2003.
Continue ReadingDayton under threat again
The future of Oklahoma Citys Dayton Tire plant is threatened by a dispute between two power supply companies.
Continue ReadingTBC Corporation Completes Acquisition of NTB
TBC Corporation, one of the USAs largest marketers of automotive replacement tyres, has announced that it has completed its acquisition of National Tire & Battery from Sears, Roebuck and Co.
Continue ReadingThyssenKrupp Deepens Ties With Alfred Herbert
ThyssenKrupp Elastomertechnik GmbH, the worlds largest manufacturer of tyre machinery and a part of the Euro 35 billion ThyssenKrupp group, has deepened its alliance with the RS Lodha-managed Alfred Herbert India Ltd by signing an additional technical collaboration agreement.
Continue Reading3-5 per cent price hike for Indian tyres
The Indian tyre industry is gearing up for 3 per cent to 5 per cent price hike starting in December.
Continue Reading