Different Opinions From Analysts Regarding Goodyear Shares
Following a conference given by Goodyear boss Sam Gibara in New York, there was a difference of opinion among analysts. While Deutsche Bank recommended Goodyear shares now as a buy - the bank also recommends Michelin, Continental and Cooper as buys because it foresees improvements for the whole industry. On the one hand there have been price increases to the dealers while, on the other hand oil prices were 15% cheaper than last year. Analysts from UBS Warburg however see Goodyear shares as a hold. The turnaround plans presented by Goodyear are clear and the analysts believe that these can be achieved. On the other hand they refer to the fact that the Goodyear management has made many promises in the past that they could not fulfil. Therefore from their point of view the message is wait and see. They say that the fair price for Goodyear shares at the moment is 25 US-$; at the stock exchange the shares are worth 24.50 US-$.
Continue ReadingModernization Cordenka Converting Plant In Obernburg Completed
The modernization program of Cordenkas tire cord converting plant in Obernburg (Germany) has recently been completed. Cordenkas converting concept focuses on saving the tire manufacturer additional processing steps by supplying Cordenka rayon filament for the reinforcement of high-performance tires as cord or cord fabric.
Continue ReadingGoodyear Is Forced To Announce More Lay Offs
Goodyear made a loss of 174 million US-$ in Q4 and announced, we feel bound to say as usual, the lay off of about 3,500 employees worldwide in order to reduce costs in the region of about 100 million US-$.
Continue ReadingFall In Profits For Pirelli
Pirelli has announced a 32 per cent fall in operating profits for 2001 to 295 million Euro (2000: 437 m). Revenue was broadly similar at 7.5 billion Euro (7.48 bn). The company blamed a slump in the telecoms cable sector. Pirellis shares have been up and down, falling 18 per cent in the past month. Rumours of bad results led to a 4 per cent fall last week, but when the results were published, there was a partial recovery of 1.6 per cent.
Continue ReadingDelisting For Dunlop Africa?
Dunlop Africa, the only tyre company listed on the Johannesburg Stock Exchange is moving closer to delisting. Its competitors being subsidiaries of global players Goodyear, Bridgestone/Firestone and Continental. The proposal is due before the Competition Commission this week and if accepted, Dunlop will delist from the JSE Securities Exchange on February 25. The group announced its plans in December, citing Dunlops status and the lack of liquidity in its shares as the reasons for delisting. The company believes that the transparency required by the listing specifically the need to release results every six months disadvantaged Dunlop with its competitors.
Continue ReadingGoodyear To Replace Up To 200,000 Ambulance, Van Tyres
The Goodyear Tire & Rubber Co. will voluntarily replace up to 200,000 size LT245/75R16 tyres on passenger vans and ambulances, starting in March, as a preliminary investigation of the tires by the National Highway Traffic Safety Administration (NHTSA) concludes. NHTSA believes tread separations in the four-ply tyres may have led to 11 fatal accidents and numerous injuries. The program involves 16-inch Load Range E tyres made between 1996 and 2000 and encompasses 51 different lines. Goodyear says the tyres are not defective. NHTSA began investigating Load Range E tyres in November 2000. Goodyear is contacting registered tyre owners through direct mail and other methods. It will replace the tyres with same size, six-ply units. This is a proactive tyre replacement program, say Goodyear officials.
Continue ReadingPhilippines Plant Closure For Goodyear
Goodyear has announced the closure of its factory at Marikina in the Philippines on February 1st. Overcapacity and weakening demand were cited as the reasons. The plant employed 175 people and produced 1,200 tyres a day. Goodyear Asia Region tyre manufacturing director Harold Smith said that the Philippines tyre market was highly competitive with a flood of low-cost imports from China and South East Asia. The company has another factory in the Philippines, at Las Pinas, and some associates from Marikina may transfer there.
Continue ReadingAfrican Expansion For Maxiprest
South African tyre distributor and retreader Bridgestone/Firestone Maxiprest is set to expand with distribution ventures in Namibia and Mozambique. The company has taken a 51 per cent stake in Namibian distributor Quality Tyre and a 60 per cent stake in another tyre distributor, based in Mozambique. BF Maxiprest already has subsidiaries in Zambia and Zimbabwe.
Continue ReadingA New Nokian Winter Tyre For Fast Driving
Nokian Tyres has launched its new WR high performance winter tyre. It has been developed with the particular needs of drivers in Central Europe and North America in mind and replaces the Nokian NRW winter tyre. One particular size in the comprehensive range, 235/50 R18W, is intended for top speed driving, up to 270 km/hour, and is – according to the Finish tyre manufacturer – the worlds fastest winter tyre. The products will be available worldwide for consumers in the Autumn of this year. This reflects the design expertise of the Nordic tyre factory, Nokian says.
Continue ReadingGood Fourth Quarter For Cooper
Cooper Tire and Rubber Company reported fourth quarter Net Income of 16 million dollars, or 22 cents per share, on a revenue of 777 million dollars. This compares to a revenue of 820 million or 9 cents per share for the fourth quarter of 2000. However, excluding charges for restructuring earnings per share for the quarter were 25 cents for 2001 (37 cents for 2000). Net Income for the year totalled 69 million dollars (excluding settlement of class-action suits and non-recurring costs) on 3.2 billion dollars of sales. This compared to a Net Income for 2000 of 129 million dollars.
Continue ReadingRecall For BMW 5-Series
BMW in North America is in the process of recalling around 1,300 of its 2002 5-series cars with standard suspension and fitted with ContiTouringContact CH95 EcoPlus tyres, 225/65R16 95H, with DOT Codes 4001, 4101, and 4201. The outer sidewall surface of the tyres could have been damaged by a sharp object and the cars are being recalled as a precautionary measure. Dealers will replace the damaged tyres free of charge.
Continue ReadingNet Sales of Federal Corporation Hit Record High in 2001
Federal Corporation, based in Taiwan, reported that, as a result of the success of its innovative quality ultra high performance tyre products coupled with the outstanding sales performance of its worldwide distribution network, the company grossed over $89,373,000 in 2001. This is an annual sales record for the company and a 13.26 percent increase on the year 2000.
Continue ReadingSales Increase For Michelin
Michelin Group net sales have shown a 2.5 per cent increase for 2001 to 15.77 billion Euro, a slower rate of growth than for the previous five years. However volumes sold have fallen by almost 3 per cent with all markets on a downward trend except passenger car and light truck. Michelin estimate that the operating margin for the year 2001 will lie between 6.2 and 6.8 per cent of net sales.
Continue ReadingRainbow’s End At Arc-En-Ciel
The French buying group, Arc-en-Ciel, is to make a transformation from a buying group to a retailing group. The change starts with a new name, Group Eurotyre, and will result in a three-tier level of excellence for members. Those failing to reach the specified standards will be asked to leave the organisation by the end of 2002. One reason for the change of direction has been a realisation of the limits on the viability of the buying group imposed by heavy and increasing competition.
Continue ReadingSir Tom In Bid To Buy Kwik-Fit
Sir Tom Farmer is making a bid, rumoured to be in the region of 650 million pounds, to buy back Kwik-Fit from Ford. The bid is supported by the Royal Bank of Scotland and the HSBC. However, there is serious competition from other interested parties and the result of the sale is not a foregone conclusion.
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