The Yokohama Rubber Co., Ltd. could phone up the team at Guinness World Records, were it so inclined. Each and every one of the company’s earnings figures for the six months to 30 June 2021 were the highest ever for the first half of a fiscal year.
Following the publication of stronger than expected second-quarter 2021 financial results that returned the bottom line to profitability despite pandemic- and seismic-rubber-related headwinds, Toyo published a statement ramping up its full-year 2021 estimates. See accompanying table (below) for further details.
Toyo Tire Corporation achieved second-quarter 2021 net sales of 186,392 million yen (£1.217 billion; 1.438 billion euros; US$1.687 billion), an increase of 23.8 per cent compared with the same period in 2020. Compared with low levels last year, Toyo’s profitability also increased. Operating income amounted to 26,958 million yen, up 240.0 per cent.
Apollo Tyres reported substantially improved key results at the start of its new financial year, which runs from 1 April 2021 to 31 March 2022. The Indian tyre maker, owner of the Vredestein brand since 2009, reported a 59.5 per cent increase in sales during the three months to 30 June.
Continental AG presented figures for a strong first half of the year, and while its overall sales rose by 22 per cent to 20.2 billion euros, those of its Tire division increased 28.1 per cent. Furthermore, this division was the company’s profit-maker, delivering almost 63 per cent of its EBIT despite accounting for just 42 per cent of sales.
The difference a year can make. Almost 12 months to the day after reporting an operating loss of 13.7 million euros for the first half of 2020, Nokian Tyres has announced achieving an operating profit of 126.1 million in the six months to 30 June 2021 with an earnings per share of 0.72 euros. It achieved this result on the back of net sales that were up 37.7 per cent year-on-year to 758.0 million euros. Nokian Tyres notes that when looking at comparable currencies, net sales increased by 41.5 per cent.
The Michelin Group has shared details about what chief executive officer Florent Menegaux calls “a very good first half.” In an environment shaped by an enduring health crisis, a robust market recovery was tempered by major disruptions in the global supply chain. In this context, Michelin increased tyre volumes by 22.8 per cent, sales 19.6 per cent year-on-year, and achieved €1,421 million in segment operating income for the period.
Pirelli has reported a marked increase in both sales revenues and pre-tax profits (EBIT), which were up 18.4 per cent and 19.6 per cent respectively. As a result of the increase, first-quarter 2021 revenues totalled 1,244.7 million euros. Meanwhile, the proportion of sales generated by so-called high value products now accounts for 72.6 per cent of total revenues, up 3 basis points compared with the first quarter of 2020.
The Continental Group has released preliminary key data for Q1 2021 ahead of issuing its quarterly statement on 6 May. This preliminary data indicates that Continental achieved consolidated sales of 10.259 billion euros during the quarter, 3.5 per cent higher than the same period of last year, with an adjusted EBIT margin of 8.1 per cent.
Sales of Michelin tyres were 7.5 per cent higher in the first quarter of 2021 compared with a year earlier. This rise in sales volumes was driven by 20 per cent year-on-year market growth for truck tyres in the first quarter of 2021 and nine per cent market growth for car and light truck tyres.
Prometeon Tyre Group (PTG) has declared its two-year turnaround process over and underpins this with its recently-released annual results for 2020. Giorgio Bruno, chief executive officer of Prometeon Tyre Group and Gregorio Borgo, chief operating officer, state that the “turnaround path is ended” and that PTG is “stronger and more resilient,” having been able to “improve margins, protect cash and strengthen asset structure, despite the pandemic.”
Pirelli has joined its global premium-brand tyre manufacturer counterparts in announcing a significant decline in 2020 revenue, around one-fifth down year-on-year (-19.2 per cent). As you would expect, the company said the sharp contraction was due to the Covid-19 pandemic emergency. The more optimistic news for Pirelli was the relative resilience of the high-value car tyre segment, which, at -14.4 per cent, beat the overall revenue figure significantly.
The corona crisis has left its mark on Bridgestone Corporation, with the Japanese firm reporting for the 2020 fiscal year its first net loss in 69 years, a loss of 23.3 billion yen (£159.2 million). The operating result also fell significantly: While revenue decreased 14.6 per cent to 3.0 trillion yen (£20.5 billion), adjusted operating profit plummeted 35.0 per cent to 222.9 billion yen (£1.5 billion), representing a 7.4 per cent return on sales.
Against the backdrop of the global coronavirus pandemic, Michelin Group reported sales of 20.5 billion euros in 2020, down 15.2 per cent. Segment operating income was 1.9 billion euros, representing 9.2 per cent of sales. Net income amounted to 625 million euros and was thus 63.9 per cent lower than in the previous year.
Jukka Moisio is “extremely proud” the Nokian Tyres team’s response to the challenges it faced in 2020. But no amount of pride can compensate for sales and income lost due to lockdowns and other restrictions. As expected, the Finnish tyre maker reported reduced sales and earnings for the year.