Analysts are expecting growth in UK car output during 2014 and beyond as newly introduced models move to full-scale production. This all comes despite a 0.3 per cent dip in output during the January 2014 compared with January 2013. Exports are also said to be showing signs of recovery, with around 50 per cent of exports go to EU.
Moody’s Investors Service has affirmed Goodyear Tire & Rubber Company’s, Corporate Family Rating at Ba3 and Probability of Default Rating at Ba3-PD. In addition Moody’s has revised the company’s rating outlook to positive from negative. The Speculative Grade Liquidity Rating was affirmed at SGL-2. The news is likely to be interpreted as a signal of improved financial performance at Goodyear, following the publication of good financial results from the US tyremaker yesterday (13 February 2014). The timing of the announcement is also interesting in light of the new that Goodyear and Sumitomo are dissolving their joint venture.
Michelin has reported full year 2013 net sales of 20.247 billion euros, down 5.7 per cent (or 1.2 billion euros) on last year. Meanwhile operating income was fell roughly 10 per cent to 2.234 billion euros and net income plummeted some 23 per cent to 1.127 billion euros. According to Dow Jones analysts’ consensus was that this figure would fall less – by 22.0 per cent, and operating profit to retreat by 5.8 per cent.
According to filings submitted to the US Securities and Exchange Commission, private equity firm MHR Fund Management has acquired nearly five per cent of Titan International’s shares and has options to boost its holdings to 10.9 per cent. On 9 January, MHR purchased 2.6 million shares in the tyre maker for approximately US$39.5 million. In addition, the company paid almost $28.2 million for options that give it the right to buy 3.24 million more shares for $26.3 million.
The apparent UK tyre market is estimated to have grown by 3 per cent in 2013 at the behest of growing automotive market, according to Tyre Industry, a new market Report from market intelligence provider Key Note. Read a little further and there are suggestions that the 2014 – 2018 period could be some of the UK tyre market’s best years yet.
While Britain has been batter by storms this winter, and while the environment minister announced today (6 January) that some 1700 homes have been flooded this season, it has been relatively warm with much of Britain being buffeted by storms and at the same time experiencing high single-digit temperatures. Tragic for some. Inclement for most. But not the kind of weather that traditionally leads to increased winter tyre sales. Nevertheless, the latest data from market analysts GfK suggests that November sales are significantly up on both the previous month and when compared with the same time last year.
The tyre market in Saudi Arabia is expected to grow at a CAGR of 12 per cent between 2013 and 2018. That’s according to research published 6 January by TechSci market analysts. According to the TechSci, the strong growth rate comes as a result of continuous growth in automotive sales coupled with the increasing demand for tyres in the replacement market. The report, “Saudi Arabia Automobile Tyre Market Forecast and opportunity, 2018”also says that the majority sales in the country’s tyre market are contributed by the passenger vehicle segment.
Terex Corporation has agreed to sell its truck business to Volvo Construction Equipment for approximately $160 million. The truck business manufactures and sells off-highway rigid and articulated haul trucks. The deal includes the firm’s Motherwell, Scotland manufacturing facility. The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in the first half of 2014.
IBM has published an angry response to the lawsuit filed by Bridgestone America’s alleging IBM’s computer system threw the tyremaker’s “entire business operation into chaos.” IBM insists that its Bridgestone’s mismanagement of the project that caused the problems, according to Business Insider International.
The Petrol Retailers Association (PRA) has recently outlined initiatives to the Minister for Energy & Business, Michael Fallon, that will improve fuel supply resilience and encourage investment in petrol forecourts at zero cost to the Treasury. More than 5000 sites (62 per cent of UK total) are still owned by independent businesses but numbers have been declining for many years.
Deutsche Bank Equity Research Automotive has adjusted its 2013 and 2014 earnings outlook for Bridgestone Corporation. In a company update published on 18 November, analyst Kurt Sanger wrote that overall, Bridgestone’s strong third quarter performance highlighted the company’s “operational excellence through cost controls.”
October volumes in mature markets have risen by three per cent, according to Michelin. While North American passenger car tyre volumes increased a little more than in Europe to reach an aggregate rise of two per cent, Europe led truck tyre increases at nine per cent versus North America’s six per cent.
The Grizz, aka Maurice Taylor, would have growled at Titan International’s designation as Zacks Investment Research’s ‘Bear of the Day’ on 13 November. Explaining why Titan was Zacks’ Ursidae of choice yesterday, Tracey Ryniec, a strategy analyst with the investment industry firm, opined that Titan International continues to suffer from a build-up in tyre inventory in the farm and construction industries and weak pricing.
Nexen’s third quarter figures have underperformed market expectations. According to Deutsche Bank research published 1 November, Nexen’s operating profit results were 13 per cent below consensus expectations.
Financial analysts have described Nokian’s latest third quarter financial results as “better than expected”, however they also pointed out that any optimism will be have to be balanced against the details of a recent profit warning. The profit warning referred to forthcoming fourth quarter figures, which are expected to be “weak”, with pre-tax profits (EBIT) estimates projecting a -13 per cent decline.
