Tough Year For Amcast
Joseph Grewe, CEO at Amcast said, The year to August 2002 had been a tough year, but things were getting better. North American wheel division continued to perform well with sales up 25 percent, more than doubling their operating income. Automotive sales increased by 30 per cent in total for the final quarter of the year against the same quarter in the previous year. Improved performance of the wheels operations and cost cutting exercises were offset by losses incurred at the Richmond plant affected by launch problems with five major new product launches. An underestimation of demand from the motor manufacturers forced Amcast to increase purchases and develop new unplanned capacity to meet the requested production flow.Despite the general good news the company performed slightly worse in 2002 than in 2001. Largely due to the problems at Richmond and continued poor performance from Speedline. Flow Control also saw a drop in income of 51 percent due to a lower market and one time IT expenses. However, the company reports that five out of eleven production facilities operated profitably in 2002 against only three out of eleven for 2001.
Continue ReadingRevenue Increases 28 Per Cent For Superior Q3
Superior Industries reported a 28 per cent increase in revenue for the third quarter 2002 against the same quarter for 2001. For the nine months to September 2002 revenue increased 23 per cent from 474,417,000 dollars in 2001 to 585,864,000 dollars. Net income over the same period increased by 39 per cent.
Continue ReadingSuperior Industries See Expansion in OE – End of Aftermarket
At Superior Industries 3rd quarter conference call the company announced expected growth of 15 per cent every year for the next three years. This was based on the expected demand from the OE market where the company was seeing growth in supplying the key manufacturers. Shipments to DaimlerChrysler were up to 6 per cent, whilst there was a 15 per cent growth in supplies to non-Ford/GM companies. Market share at Ford/GM continued to increase. However, the aftermarket revenue for the third quarter stood at 903,000 Dollars. Superior accepted that this was an indication that this sector of the market was nearing an end for the company.Current US capacity is around 14.5 million units, plus potentially 2 million from Hungary. In order to meet new demand the company was expanding production capacity at Rogers, Arkansas and at two other plants. Plus there was the possibility of another new plant being developed in the next two years, possibly in China producing wheels exclusively for the export market.
Continue ReadingContinental May Move More Production East
Continental has said that it plans to improve profitability by utilising cheap eastern European labour. CEO Manfred Wennemer told reporters in Moscow that the company would not invest in fully automated plants in the west, but would shift production to factories in countries with low labour costs. The 50 per cent target is not magical, neither would 60 or 70 percent represent a limit. Labour in the Czech republic is 25 per cent of that in Hanover, and Romanian labour is only 10 per cent of that in Germany.
Continue ReadingComponents Business Boosts Cooper 3Q Results
Cooper Tire & Rubber has published its third quarter figures. Turnover rose 6 per cent to $839 million (3Q 2001: $791 m). For the first nine months, sales have totalled $2.5 billion, with a net income of $88 million, up 87 per cent on the same period last year. Tyre sales were almost static in 3Q at $464 million ($462 m), while auto component sales were up 14 per cent at $381 million. The companys overall net income for the quarter was $23 million, compared to a loss in 3Q 2001 of $20 million, due largely to charges relating to settlement of class action litigation.
Continue ReadingSmarTire And Pirelli Agree On TPMS
Pirelli has reached an agreement with SmarTire for the application of tyre pressure monitoring systems. The system will be marketed under the brand X-Pressure and should be commercially available across key European markets. Francesco Gori, Head of Pirelli Tyre Division says, This agreement opens a new phase in the evolution of Pirelli which integrates the tyre with the vehicle. It may come that the tyre will have dialogues with the vehicles control systems.
Continue ReadingThird Quarter Loss For GM
General Motors has posted a loss for the third quarter, despite a strong performance. The loss occurred because GM wrote off almost all of its $2.4 billion stake in Fiat, saying that the 20 per cent stake in the Italian manufacturer is now worth only $220 million. Fiat claims that this seriously undervalues its auto operations.
Continue ReadingIndian Businesses Seek Cut In Duty On Tyres
In New Delhi, the Chamber of Commerce and Industry has called for a halving of excise duty on tyres and tubes from 32 per cent to 16 per cent.
Continue Reading“Personalityres” From Continental
Continental says it is looking at the possibility of introducing a range of tyres, incorporating colourful designs such as denim and leopard print. The concept is aimed at encouraging people to view their tyres as fashion accessories. The new product, which is a long way from production, is called Personalityres.We know the item reads like an April Fools Day joke, but it is true, although we dont know when (if ever) we will see such tyres, as the technical difficulties have been ignored. It has been featured on TV, radio and national press, so if Conti was trying to get publicity, it succeeded!
Continue ReadingAsia Vital To Auto Industry – Report
Automotive consultants Autopolis pinpoint Asia as critical to the worlds car and truck manufacturers in the coming years. While sales are expected to continue falling in Europe and North America, over the next decade sales in Asia (excluding Japan) will grow at over seven times the global average, autopolis predicts, with the fastest growth in China and Thailand. Sales of vehicles in China for the year 2010 are predicted to be 4.75 million; more than double the figure for the year 2000.
Continue ReadingMaloya Futura Sport W
Maloya, the Swiss subsidiary of Vredestein, has introduced a W-rated tyre, the Futura Sport W. The tyre comes in two 45-series sizes, for 17 rims and has a directional tread and silica tread compound.
Continue ReadingBridgestone Is Running Ahead Of Competition In The USA
The year 2000 tyre recall, with all its consequences and financial difficulties, is more or less over. Sales in North America are strong, plus the performance of the Firestone brand has been stabilised, while the Bridgestone brand managed a growth of 30%, said John Lampe, CEO of Bridgestone/Firestone Americas Holding Inc. yesterday on TV. The fact that Lampe (who has turned out to be a charismatic leader by virtue of his tough battle with his biggest customer Ford, admired by all Bridgestone/Firestone employees in America) appeared on TV this week is another blow for the morale of Goodyear people. Last week they were told by CEO Gibara and his successor from the 1st of January next year, Keegan, that the Corporation has lost market share and has been unable to produce good results on its home market so far. This is forcing the company into the next round of restructuring and cost saving measures. According to Gibara the company is no longer able to pay the health costs at the same high rates as in the past, but has to reduce these costs immediately. This is a consequence, said Gibara, of fierce competition. Employees also fear that the company might lay off thousands more associates in order to reduce costs.
Continue ReadingPrice-Fixing Investigation Into Chemical Firms
Three companies which supply chemicals for tyre manufacturing are being investigated for possible price fixing. Investigations are on-going in both the USA and Europe into Bayer AG, Flexsys NV and Crompton Corp. Experts estimate that sales of rubber-processing chemicals in the USA are worth around $900 million annually.
Continue ReadingFiat Auto To Lay Off Up To 8,000
Later today, Fiat Auto will reveal its restructuring plans to unions. There is speculation that up to 8,000 workers - 20 per cent of Fiat Autos workforce - could be laid off. Fiat Auto lost 813 million Euros in the first half of the year and there are rumours that the company will be sold to GM. Two years ago, GM acquired 20 per cent of Fiat Auto and the Italian company has the option to sell the remaining 80 per cent to GM after January 2004.
Continue ReadingMaxxis To Build Plant In Thailand
Maxxis International, perhaps better known in the tyre world as Cheng Shin Rubber, is to build a new factory in Thailand to produce passenger and light truck tyres. Phase 1 of the multi-phase project will be completed in late 2004, when the factory will be producing 10,000 tyres a day, employing 1,700 staff. The site, in Rayong City, south of Bangkok, covers 72 acres. This new venture is the latest in a series of expansions for Maxxis; it is expanding its factory in mainland China, has moved to a larger distribution centre in California and expanded its US HQ in Suwanee, Georgia.
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