First Quarter results From Hayes Lemmerz
Hayes Lemmerz International Inc. (NYSE:HAZ) has announced results for the first quarter – ended April 30 2001. Sales were down on the previous first quarter, from $595 million to $541 million, but showed an increase on the $475 million from the fourth quarter of 2000. Diluted earnings per share was a loss of $(0.27), against earnings of $0.51 in the first quarter last year. This compares to a loss of $(0.58) for the fourth quarter of 2000.
Continue ReadingFurther Firestone Recall By Ford
Ford has announced that it will replace up to 13 million Firestone tyres fitted to Ford Explorer SUVs. This is double the number of tyres recalled last year and the cost to Ford will be around $3 billion, with the exercise taking nine months. It was this decision which precipitated the announcement from Bridgestone/Firestone that it would sever all ties with Ford; an announcement which caused Bridgestone shares in Tokyo to fall by over 9 per cent.
Continue ReadingFactory Closure And Reduced Profits For Bridgestone Corp.
At a press conference, Bridgestone President Shigeo Watanabe revealed that the company was to close its plant at Decatur, Illinois, where 1,500 people are employed. The plant closure will lead to a loss of $210 million, offset to some extent by cost savings of $100 million. Bridgestone will also incur an additional special loss this year, amounting to $549.6 million and the group has revised its worldwide consolidated net profit forecast from 48 billion Yen to 10 billion. For Bridgestone Japan, the company is predicting a net loss of 130 billion Yen for the calendar year 2001, the first loss for the group since it was first listed on the Tokyo Stock Exchange in 1961. Bridgestones shares fell nearly 2 per cent on the news, to stand at 1,273 Yen.
Continue ReadingHow Easy Is It To Buy On-Line?
The Internet, we are told, will revolutionise our working and private lives. Many companies trumpet the fact that they have websites, but what happens if you want to purchase a tyre over the Internet? Our article sets out to do just that, with mixed results. Some companies were easier to find than others, while the ease of ordering tyres on-line varied considerably. Some of our findings might surprise you.
Continue ReadingCourt Decision Welcomed By Ford And Firestone
In the US, a federal judge turned down lawyers requests to order a recall of Ford Explorers and Firestone tyres. The judge ruled that only the National Highway Traffic Safety Administration has the authority to order such a recall. Bridgestone/Firestone has already indicated that it would fight any such order from the NHTSA in the courts. In a rare moment of unanimity, both Ford and BF Inc. welcomed the judges decision.
Continue ReadingNew Forest Tyre by Nokian
Finnish tyre manufacturer Nokian is expanding its range of forest tyres with the new Forest King E, which is designed to meet the demands of the OE- and aftermarket segments. The tyre has been developed for forest machinery up to a maximum weight of 14 tons and is available in sizes 700/45-22.5, 600/55 -26.5 and 700/50-26.5. For heavier machines, Nokian manufactures the new PR-20-tyres, which are available in sizes 600/55-26.5 and 700/50-26.5.
Continue ReadingNew VP Of Corporate Research At Goodyear
Goodyear Tire & Rubber has appointed John Lawrence (58) as vice president for corporate research. Formerly director of materials science, Lawrence replaces recently-retired Richard Steichen. Lawrence joined Goodyear in 1970 as a senior research chemist.
Continue ReadingContinental Candidate For Takeover?
HelabaTrust (the investment and research subsidiary of Landesbank Thueringen-Hessen) believes that Continental could be a candidate for a takeover. Reasons given are the enormous debts of 3.6 bn Euro and the weak level of the shares.
Continue ReadingLighter Steel And Alloy Wheels
Hayes Lemmerz is the worlds leading global manufacturer of automotive and commercial highway wheels and one of only a few companies producing wheels from both steel and aluminium. Regarding steel wheels, the company, whose headquarters are in the USA, is the worldwide market leader. Regarding aluminium wheels, Hayes Lemmerz is among the leading manufacturers in Europe. Recent years have seen a move from steel to aluminium wheels in original equipment. Looking purely at price, the steel wheel is absolutely unrivalled, but obviously the two criteria of weight and styling have proved more important to the car manufacturers. Realising that it was not enough that the steel wheel is cheaper, the manufacturers decided to become competitive also in the matter of weight. With its newest development of a steel structure wheel, Hayes Lemmerz has attained this target; this kind of wheel is now fitted in a 16 inch size on the newest Ford Mondeo model. But it must be said that is was not only an achievement of the wheel company but also for the producers of new kinds of steel which gives the wheel more rigidity and stability than before and offers the opportunity to make the wheels thinner and therefore lighter. Regarding styling, Hayes Lemmerz tries to mimic the smart aluminium wheels with new finishes that look like aluminium or chrome or are even coloured. Another opportunity is to create a very well-fitting wheel cap. Being also one of the most sophisticated aluminium wheel manufacturers, Hayes Lemmerz tried to develop lighter alloy wheels too. One competitor (Stahlschmidt & Maiworm) has already made much progress with hollow spokes and this kind of wheel is fitted on the top models of Porsche, Audi, and Mercedes-Benz. The idea of Hayes Lemmerz engineers was not to use the spokes but the rim bead section for cavities: they call the invention Hollow-Hump Technology.
Continue ReadingNew Distribution Warehouse For Michelin
Michelin is to invest 12m Euro in a new tyre warehouse at its Alava plant in Spain. The 30,000 square metre warehouse will employ 40 staff and will be for the exclusive distribution of the production from the Alava factory. The warehouse should be operational in 2002.
Continue ReadingAnalysts Recommend Michelin Shares As A “Buy”
Cheaper oil prices and the result of the Firestone recall in the US make Michelin shares a buy, according to analysts from the Deutsche Bank. Despite weakening demand in the US - the worlds biggest tyre market – Michelin is gaining market share and selling more tyres than ever. Market observers believe that it will be possible to obtain better prices for tyres in the region of 3 to 5 per cent.
Continue ReadingTyreserve Throws Down The Gauntlet
Tyreserve is a new company aiming to create a big impression in the UK car fleet servicing market, which is reckoned to be worth around 200 million Pounds a year. The company is a wholly-owned subsidiary of national wholesaler Stapletons Tyre Services and is being launched at the beginning of April, backed up by an investment by Stapletons of two million Pounds. The fleet car market is extremely competitive, with the market leader being Kwik-Fit, followed by ATS Euromaster, FTM Tyrefit and National Tyres & Autocare. These first three have a market share of around 85% and, last year, Kwik-Fit acquired the shares of FTM. FTM is an association of independent retailers, banding together to provide a national fleet service and facilities. Tyreserve is aiming at FTM as its main target – when FTM was acquired by Kwik-Fit, there was some unease expressed by some independents, who wondered how this would affect the status quo. It promises to be an interesting time, with a new player entering the market and, presumably, the existing players determined to defend what they already hold. What makes it more interesting is that the main directors of Tyreserve were all working up until recently for Kwik-Fit Fleet. At least two names will need no introduction to the UK tyre trade – Managing Director David Goodyear and Network Director Charles Hespin.
Continue ReadingWinter Tyre Sales Stable In Germany
Sales of Winter Tyres for 2000 were in line with those for the previous year. Roughly 16 million winter tyres were supplied to dealers in Germany last season. 1999 was a record year with sales of 16.1 million winter tyres. However, the Continental Group has been successful in increasing its market share of that figure to around 33%.
Continue ReadingTyrexpo Europe 2001 Preview
It is exhibition time once again in the UK, with Tyrexpo Europe 2001 being held in the Grand Hall at Olympia from March 14th to 16th. In terms of space, this is the largest-ever show in the events 23-year history. The exhibitor list underlines the shows growing internationalisation over recent years, with companies coming from (naturally, given the name of the show) western and eastern Europe, the USA and Canada and the Far East. Manufacturing tyres has become an increasingly global business, and so has wholesaling, with companies searching the globe for new sources of products and also for customers. Wholesalers are well represented at Tyrexpo. An industry not enjoying good times at the moment is that of retreading, especially for passenger car tyres. It is no surprise, therefore, that the number of retreaders taking space at the show is below that of previous events. However, the industry is not totally unrepresented, with machinery manufacturers and suppliers of consumables taking space. Two areas which are becoming more prominent are those of tyre recycling and internet trading. Legal moves such as the banning of tyres for landfill and the End of Life Vehicle Directive are concentrating industry minds on recycling, and there are tyre collectors and disposers among the exhibitors. Few doubt that the internet will have a growing effect on the tyre – and every other – business, and Tyrexpo Europe provides the opportunity for some of the companies offering internet trading to show what they can offer. Our preview gives a flavour of the variety of exhibitors by giving details of some of what is on show. TYRES & ACCESSORIES and our sister magazine NEUE REIFENZEITUNG, are sharing a stand and we look forward to seeing friends old and new.
Continue ReadingPoor Profits For Vredestein
Vredesteins profits for the year 2000 have fallen to only 200,000 Euro (compared with 10.4 million in 1999). High raw material costs and the disappointing sale of winter tyres were cited as the main reasons.
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