Cooper Net Income Rises In Fourth Quarter
Cooper Tire & Rubber has reported a 50 per cent rise in net income in the 4th quarter of 2002, compared to the same period in the previous year. Net income was $23 million on a turnover of $842 million (4Q 2001: $16 m/$777 m). For the year, the Tire Group posted a turnover of $1.8 billion ($1.7 bn) with unit sales up 5 per cent and the operating profit rose 88 per cent to $137 million, although the 2001 figure was affected by class action settlement charges totalling $72 million. Excluding these charges, operating profit for the year declined by $8 million or 5 per cent. Sales for the Automotive Division last year rose 7 per cent to $1.6 billion. Thomas A. Dattilo, Cooper chairman, president and CEO, said that the group had achieved its targets for the year and the outlook for 2003 was challenging.
Continue ReadingGoodyear Gets Financial Breathing Space
Goodyear has been in talks with its main bank lenders to modify certain loan agreements and covenants. Robert Keegan, president and CEO, said that this action should provide us the financial resources, including access to capital markets, to meet the ongoing needs of our business and drive our turnaround. Under the agreements, Goodyear will have an extended time to make a required $500 million contribution to its pension fund and will have full access to $1.1 billion in two revolving credit facilities.
Continue ReadingBridgestone And MRF Tie In Indian JD Power Test
For the second year running, Bridgestone and MRF Tyres have tied in first place in the JD Power Asia Pacific 2003 India Tire Customer Satisfaction Index Study, which examines customer satisfaction with originally-fitted tyres after 12 to 18 months of ownership. 2,700 owners were quizzed on 15 different attributes. The overall average score improved by 28 points over last year, reflecting the efforts made to enhance customer satisfaction. Top score was 768 (maximum = 1,000) and Bridgestone and MRF were closely followed by JK Tyres (766, just above the industry average of 764). Goodyear scored 751 and CEAT was the lowest, with 730.
Continue ReadingAvon Wins Racing Contract
Avon Tyres have been chosen as the control tyre for the 2003 FIA Sportscar Championship SR2 class. The company has developed both wet and slick tyres for the SR2 cars. Avon Tyres Racing has already supplied tyres to some teams for the past four years and is looking forward to extending its involvement with all teams.
Continue ReadingVW To Recall 850,000 Vehicles
A faulty ignition coil has caused VW to recall 850,000 vehicles, built from 2001 onwards. Those models affected are equipped with 1.8L turbo, V5, V6 and W8 petrol engines. Industry experts estimate the cost of parts and labour to be around 100 Euros per vehicle, or 85 million Euros in total. Over 60 per cent of the affected vehicles are in the USA.
Continue ReadingNo Quarterly Dividend From Goodyear
The Board of Goodyear Tire & Rubber has agreed to eliminate the companys quarterly dividend. President and CEO Robert Keegan described the decision as an important step in a series of actions the company is taking to improve its financial flexibility.
Continue ReadingSixth US Plant For Toyota
Toyota is set to announce plans to build its sixth vehicle assembly plant in North America. The new factory - probably sited at San Antonio, Texas - is expected to cost $800 million and have a production capacity of 150,000 pickup trucks a year. It will begin producing vehicles by 2005.
Continue ReadingProduction Record At Fulda
The Goodyear plant at Fulda, Germany, set a production record of exactly 7,141,095 units in 2002. The plant, which employs 1,648 staff, manufactures high, ultra high, offroad, light truck, truck and agricultural tyres carrying the Fulda name, as well as tyres for other brands from the Goodyear group.
Continue ReadingOliver Kahn Keeps For Bridgestone
Following the 2002 World Cup football championship in Japan and Korea, goalkeeper Oliver Kahn has been a perfect example of steadiness, if not invincibility. Now, the German national player will be seen at Japanese tyre outlets as the face of a new sales promotion for Bridgestone. The campaign, which will only be seen in Japan, is costing Bridgestone about 10 million Euros and also features three television spots filmed in Munich and featuring the player.
Continue ReadingRoyal Visit To Pirelli
King Carl VI of Sweden was welcomed to Pirelli by Marco Tronchetti Provera, chairman and chief executive officer, where he visited Pirelli Labs and viewed the MIRS-CCM plant. Carl Gustav XVI was accompanied on his visit by a delegation from the Royal Swedish Academy of Engineering Sciences.The Pirelli Labs span 13,000 square metres in the Milan-Bicocca area and represents one of the most advanced research centres in the world. Projects include research in materials for energy generation and distribution and for new tyre production.The MIRS plant was opened in July 2000 as a pilot project and in three years has become a fully operational system installed in Germany, UK, Italy and the USA. Recently Pirelli added the continuous compound mixing (CCM) process to the facility allowing an unprecedented qualitative control of materials.The visit concluded with a lunch at the Castle Bicocca degli Arcimboldi where Marco Tronchetti Provera presented King Carl VI Gustaf with the first of the PZero Tempo wristwatches, numbered 001. The King presented Marco Tronchetti Provera with a crystal plate to commemorate the visit.
Continue ReadingBrodsky Group Withdraws from Alliance
After lengthy negotiations The Harvey Brodsky Group has decided to withdraw its offer to purchase 51% of the stock of Alliance Tire, Israel.
Continue Reading1200 To Go At Michelin Spain
In an attempt to maintain strong results in Spain and to meet future challenges Michelin Spain has announced plans to reduce its staff by 1200 employees over the next three years. The reduction will come from a number of measures which will include early retirement and redeployment. The plan will see the closure of Michelins steel wheel plant in Aranda in 2005. Work will be transferred to plants in France and Germany. 600 workers will be affected by this move. The rest of the losses will be at Valladolid and Lasarte. Once detail agreement with the unions has been arranged the plans will be submitted to the Spanish government for approval in compliance with Spanish law.
Continue ReadingWeaker 2003 For Bridgestone Australia
Raw material price uncertainty is likely to pull down Bridgestone Australias profits for 2003. This follows significant rises in the prices of natural and synthetic rubber. The company reported a profit of 12.6 million Australian Dollars for 2002, a 41.2 per cent rise on the previous year. Total revenue rose from 513 million dollars to 517 million dollars. The improvements in profitability came from non-tyre related business and reduced borrowing costs. A company spokesman said that the tyre business in Australia remained marginal and directors are concerned that significant improvements in productivity and reduction in manufacturing costs will be required to sustain this business into the future.
Continue ReadingScottish Plant To Manufacture New Michelin Tyre
Michelins Dundee plant is to manufacture the new Michelin Energy 3 tyre being launched this week. This is good news for the workers at the Baldovie plant. The future of the plant had recently been the subject of speculation as Michelin moved production to cheaper labour cost centres in Eastern Europe. However the announcement of the selection of Dundee to manufacture the new tyre brings a boost in confidence. Plant manager, Trish Bailey said, This is a very positive signal for the Dundee factory going into the future. The new tyre is at the very heart of the Michelin range and we are going to play a very important role at the centre of its production. This will contribute to job security for the workers in Dundee.
Continue ReadingNational Into The Black
One year after a management buyout, National Tyres and Viking International (the ex-Continental-owned UK tyre retail chain and wholesaler), reported a 2002 profit of 750,000 Pounds. This compares with a joint loss of almost 44 million Pounds in 2001, before the buyout. The turnaround was due to reduced costs and increased turnover, with 2002 sales up 25 per cent, from 80 million to 100 million Pounds.
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