Yokohama Rubber Announces Consolidated Semiannual Results
The Yokohama Rubber Co., Ltd., announced its consolidated results for the first half of fiscal 2004. The high value of the yen and sluggishness in the market for replacement tyres in Japan led to an overall decline in Yokohamas tyre sales, but sales of hydraulic hoses and golf products increased. Sales of the tyre group amounted to 960.3 million Euro, a 0.8 per cent slide, and operating income decreased 27.5 per cent, to 15.1 million Euro. Demand in the Japanese market fell considerably, as both unit- and value-based sales of replacement tyres contracted. Sales of tyres on an original equipment basis were basically unchanged. Reflecting the current operating environment and these results, in fiscal 2004 Yokohama forecasts consolidated net sales of 3.02 billion Euro, a 0.1 per cent decrease, and net income of 75.6 million Euro, a 1.4 per cent decrease.
Continue ReadingPirelli takes up the challenges in the United States
Although the results of the Pirelli group have improved during the first nine months of this year, it is the tyre business that really shines. What was taunted by analysts as the “old economy” two years ago now represents the pearl of the company. That tyres participate in the company’s turnover with “only” around 45 per cent, but with an EBIT of 174 million Euro for the first nine months in the face of expected 194 million EBIT for the company as a whole says it all. As in previous years Pirelli’s General Manager Tyres Francesco Gori travelled to Las Vegas in order to deepen contacts to the market, from which the Italian tyre manufacturer still expects a lot in the future. On the largest tyre market of the world, the USA, Pirelli was not very lucky during the last 20 years. From all of this nothing is left. There is nothing in common and the two keep out of each others way. Nevertheless, Pirelli did not give up the US market. After the MIRS factory started in Rome/Georgia earlier this year, ever more strongly, the Italians will generate a turnover of approximately 250 million Euro this year with American customers and for the second time in a row will end a financial year in Northern America with a profit. This is all the more remarkable as that the initial costs of the MIRS factory are to be borne. This time Pirelli is taking the difficult and time-consuming route into the market via the OE manufacturers. But a glance on Pirelli’s OE business, which shines with high growth rates, is worth while: here Pirelli proceeds rather selectively; anyway, the Italians do not supply bread and butter tyres with weak margins. On the one hand it concerns high-quality ultra high performance and expensive Off-Road tyres, which are manufactured in Rome, and on the other hand the company supplies tyres from the Brazilian factories into the American original equipment to customers such as Ford and Chrysler. Beginning next year, Gori says, a considerable volume will also come from the newly built Brazilian tyre factory in Salvador (Feira de Santana, Bahia). This factory is considered as particularly efficient and economical, so that the OE business in Northern America might be good fun not only under volume criteria, but will be profitable as well. And concerning sales prospects Pirelli shouldn’t have any real worries, because right now there are dozens of dimensions that are homologated with General Motors, these will be followed by orders. Thus the growth in the North American OE market will continue. However, also on the American replacement market Gori has set himself and his staff ambitious goals. According to Gori the tyre manufacturer succeeded in finding new dealers, that were interested in Pirelli, and these in sufficient numbers. Tyre dealers observe the market very closely and notice quickly, in which direction trends go and with whom they should form a coalition, in line with Gori’s perception. The good position within the OE business, in addition with predominantly high-quality tyres, let Pirelli become ever more a valuable partner for the replacement business. In the last few years Pirelli grew in North America annually by almost 20 per cent and this is what Gori wants to realise for the coming years, too. However, with all optimism Gori refers to the extremely hard competition in North America, where each manufacturer wants to maintain ground. Pirelli could improve drastically all services, delivery speed, etc., and even concerning the prices the tyre manufacturer was able to position the brand better than last year. “But,” acknowledges Gori, “we are still far away from what we want and what we have to reach.” North America is the big challenge for Pirelli, here the Italians find larger growth prospects even over years, which must be exhausted. The termination of the co-operation with Cooper was in reality, at least it looks that way today, a completely new beginning in Northern America. Concerning the costs of distribution and services over the whole of the continent, Gori calms down: there was no problem, everything is on schedule.
Continue ReadingCorvette Racing switches to Michelin
For the second time in two weeks, Michelin has announced that a major racing team will switch to its tyres. The announcement that three-time GTS class-winning Corvette Racing will switch from Goodyear to Michelin racing slicks in the American Le Mans Series follows the confirmation that Formula One team BAR-Honda will run on Michelin rubber in 2004. The No. 3 and No. 4 Chevrolet Corvette C5-Rs will begin Michelin tire tests this week in preparation for the nine-race ALMS schedule and the 24 Hours of Le Mans. Michelin-shod teams took the top ten positions and won all four classes at the world-famous endurance race in 2003, which also marked the companys sixth consecutive overall win.
Continue ReadingCooper Tire has recovered after small downturn
The near 90 years old tyre manufacturer Cooper, has so far always been noticeable with two digit operational profits, has held its ground even after the rather difficult economic conditions in the United Stated after “September 11”. Whilst Cooper has been more or less in the doldrums during the first six months of the current year, the company again gathered way under the guidance of CEO Thomas A. Dattilo. Cooper could convince the market of the fact that this tyre and rubber company will find the way back to its old earning power. In the fourth quarter of 2002 there have been preferred sales because of announced price increases for 2003, so that the manufacturer was inevitably lagging behind its sales figures during the first months of this year. Since September however Cooper progresses again relatively steeply with light truck tyres. In particular, the last quarter showed strong upward tendencies. While the market grew by around four per cent, Cooper in turn created a growth of nine per cent by special arrangements with customers, so that up to the end of the year many arrears can be caught up. This at least is what Tom Dattilo explained to T&A in an interview at the SEMA show in Las Vegas.
Continue ReadingMichelin to supply Volvo and Mack
Michelin North America has announced a three-year supply agreement Volvo Trucks North America and Mack Trucks. As a result of this continuing relationship, Michelin fleet customers will be able to specify the Michelin line-haul products they value on every Mack line-haul truck and Volvo VN highway tractors.
Continue ReadingContinental struggles for turn-around on North American tyre market
Earlier this year it was clear that the CTNA (Continental Tires North America, previously General Tire) would again have to report a three-figure million loss. In the meantime it seeped through that this number is closer to 150 million Euro than “only” around 100 million Euro. This frighteningly high loss shows: In the European tyre business the company makes huge earnings and if the American losses have finally come to an end, the tyre section is not just strongest in turn-over (despite the expected next year’s higher growth in the Automotive business unit), but also the yield-strongest. Tyres still have good expectations in the company; among other things this assumption was underpinned by the majority purchase of the tyre business of the Malaysian company Sime Darby Berhad with two tyre factories with an already existing production capacity of four million passenger car, one million small truck as well as 300,000 heavy truck tyres. Talking to T&A at the SEMA Show in Las Vegas, Manfred Wennemer (55) and Martien de Louw (57), who is responsible for Continental’s passenger car tyre unit as well as CTNA, affirmed that the American tyre business will reach break-even by the end of 2005. Wennemer specifies: “With the CTNA we will reach break-even in the last quarter of 2005 even though naturally we would be pleased, if we could reach it even earlier.” Continental was not represented at the SEMA show with its own stand, unlike Bridgestone/ Firestone, Cooper, Goodyear, Michelin and Pirelli and other competitors, probably a cost-based decision. All too tragically this might not have been, because more important than meetings in the company’s booths at the show are meetings accompanying the SEMA show in the surrounding luxury hotels of the craziest city of the world. Martien de Louw and his executive team had invited the customers to an evening in the Mandalay Bay hotel, where hundreds of Continental’s “Best Friends” arrived. De Louw used this opportunity to present his complete executive team. Manfred Wennemer, who travelled to Las Vegas, too, was accessible “on the floor” for everyone, without pushing his colleague de Louw into the background. Optimism was noticeable in Las Vegas; but in order to see that the distance remaining to be covered remains rough and stony, requires no clairvoyance.
Continue ReadingHayes 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 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 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 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.
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