The recent news that Continental AG will close its Aachen, Germany tyre factory underlines the fact that it is aiming to cut 13,000 of 59,000 jobs in Germany as part of a major group-wide cost-cutting programme. Now, the German Manager Magazin is reporting that Continental is also considering the sale of parts of the wider group. Indeed, Continental is said to be in talks “already with prospective customers”. The Rubber Technologies business sector, which includes Continentals Tire and ContiTech division is also said to be affected.
The direction the Driver & Vehicle Licensing Agency will take over the next three years has been set out in its new strategic plan, which was released yesterday. Amongst the highlights of The Strategic Plan for 2014/15 – 2016/17 are total efficiency savings of approximately 30 per cent (compared with 2013/14 levels) by 2016/17, and an expansion and acceleration of DVLA online services.
Bridgestone Corporation’s consolidated financial statements for the second quarter and first half of 2013 show a considerable increase in net sales, operating and net income during the period. Net sales amounted to 1,705 billion yen (£11.4 billion) between 1 January and 30 June 2013, 14.4 per cent higher than in the same period of 2012. Operating income rose 42.3 per cent to 190.4 billion yen (£1.3 billion) and net income was up 55.5 per cent to 117.0 billion yen (£784.3 million). Net income per share increased from 96.17 yen to 149.52 yen (£1.00).
Although enjoying an 8.4 per cent increase in sales to 258.2 billion yen (£2.1 billion) in the six months to September 30, 2011, Yokohama Rubber experienced a decline in both operating and net income during this period. The company says rising raw material costs, an appreciating yen and an increase in selling, general and administrative expenses were chiefly responsible for the decline in operating income, which fell 8.3 per cent to 7.6 billion yen (£61.2 million) year-on-year between April 1 and September 30. These factors in turn led to net income falling 75.8 per cent to 294 million yen (£2.4 million). Yokohama notes however, that its actual operating income figure was 26.7 per cent higher than its earlier projection of 6.0 billion yen, the better result being achieved thanks to increased product selling prices and cost cutting measures.Net sales during the second quarter of the current financial year, between July 1 and September 30, 2011, increased 6.6 per cent to 128.8 billion yen (£1.0 billion). In this three month period operating income actually increased by 45.7 per cent, to 3.4 billion yen (£27.8 million), however second quarter net loss grew substantially year-on-year, from 222 million yen to 2.5 billion yen (£20.4 million).
Michelin’s tyre business is experiencing strong growth, yet an article published by the Financial Times indicates that the French company’s guide business – which accounts for less than one per cent of Michelin’s total annual sales – is losing more than 15 million euros a year. Cost cutting measures have already been taken as a result of this, including the business unit’s relocation from Paris’ prestigious 7th arrondissement, a stone’s throw from the Hôtel des Invalides, to an address outside the city. Yet the company appears unsure how best to approach the 111-year old institution.
According to a statement released by Kumho Asiana, the group dismissed seven of its 18 CEO-level executives on January 12. The company had previously said it would cut the number of executives in its ranks by 20 per cent and raise more than Krw 1.3 trillion (£695 million) through cost cutting measures and asset sales.
(Tire Review) Amerityre Corp. has been notified by NASDAQ that its current financial status “was out of compliance” and that its stock may get delisted. NASDAQ claims Amerityre is not meeting the exchange’s Equity Standard Listing Rules, because it does not have a minimum of $2.5 million in shareholder equity, $35 million in market value of listed securities or $500,000 in net income from continuing operations for the most recent fiscal year. To remain listed, Amerityre must deliver by 20 October a “specific plan” on how it will meet and sustain those requirements, NASDAQ said. For its part, Amerityre said it “anticipates that its implementation of cost cutting measures combined with anticipated increases in revenues and successful fundraising efforts will be sufficient to bring it back into compliance with the minimum stockholders' equity requirements”.
On September 25 Yokohama Rubber let it be known that its projected consolidated net loss for the first half of the current fiscal year is now smaller than previously anticipated. Projections for the six months from April 1 to September 30, 2009 have been whittled down from the 8.0 billion yen announced on May 12 to 5.0 billion (£33.9 million).
Company management and employee representatives at Schaeffler KG’s facility in Schweinfurt, Germany have reached an understanding on a package of staff cost cutting measures. According to Schaeffler, this
measure has been taken due to weaker demand creating the necessity to make adjustments amounting to a total of 50 million euros. The savings will be generated through naturally occuring labour turnover, voluntary redundancy and part time work for older employees, plus a shortening of working hours and an extension of government subsidised short-time work. Apprentices at the site will be retained.
Tim Parker, the former Kwik-Fit and AA boss has been as a deputy mayor of London. His track record led to the trade unions dubbing him “the Prince of Darkness” after he departed from Kwik-Fit £25 million richer and the AA over £40 million better despite thousands of job cuts. Tim Parker’s deputy mayor role will see him become chief executive of the GLA Group, which comprises the authority itself, the London Development Agency and Transport for London, which he will chair.
It is widely reported that Parker became a multimillionaire after implementing often painful cost cutting programmes such as at the AA where he cut 3,500 jobs in the first 100 days following its take over by CVC Capital. However, on this occasion the Porsche driving multimillionaire has agreed to work for Boris Johnson for just £1.
JK Industries Ltd, the manufacturer behind the JK Tyre and Vikrant brands, recorded a turnover of 6.52 billion rupees (£83 million) between October and December 2005, a 30 per cent increase over the corresponding quarter of the previous year.
The quarter-end results also showed that the company’s Operating Profit (EBIDTA) has increased 100 per cent to 380 million rupees and the Profit Before Tax also registered an increase at 48.2 million rupees against a loss of 49.3 million rupees in the corresponding quarter of the previous year. Net profit was up at 24.7 million rupees against loss of 92 million rupees during the same period year ago.
Although Goodyear’s earnings were roughly as expected Goodyear’s recent positive results contained some surprises, Deutsche Bank analysts have reported. Despite 4 per cent growth in unit sales and an 8 per cent increase in average transaction prices, Goodyear was only marginally profitable in its North American tyre division in the fourth quarter, say the analysts. “We have doubts about Goodyear Tires’ ability to cut costs, increase volume, or improve variable margins in this region. In fact, there was evidence that cost cutting is losing steam,” they said adding: “Our model suggests that first half EPS will be close to breakeven. Improvement in the second half requires significant ramp up of cost savings.”
Goodyear North American Tire division president, Jon Rich, said his unit’s 2004 financial results would show its first annual profit in three years, according to a Tire Review report. Mr Rich made his comments at the company’s annual dealer meeting in Dallas. Aggressive cost cutting and high sales of Goodyear’s Assurance passenger tyre line led to the improvements in both sales and profits, he explained.
According to US media sources Continental’s decision to lock its Mayfield tyre plant has been finalised. Together workers and unions had undertaken a last attempt to divert Continental from resolving the situation through closure but their cost cutting suggestions to make the factory more competitive were to no avail.
DaimlerChrysler’s Mercedes unit has concluded negotiations with unions. The agreement between the two sides allows Mercedes to realise cost savings of 500 million euros that will take effect in 2006 and 2007, the company says.