Current Issue
×

Top Stories

Title Issue Date Category Formats Records Price
Polyurethane-filled holes improve Wilson's swing
View Description View Full Details
CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons.The new golf clubs incorporate Power Holes, which are through-holes that surround the club's...
View Full Details »
CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons. CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons. $CHICAGO—Polyurethane is at the heart of the latest generation of Wilson's Distance D300 irons.
Editorial: Two deals show medical to remain a hot business area
View Description View Full Details
As the rubber industry entered into the new year, it’s clear that the medical industry will remain one of great activity. That was exemplified by two acquisitions closed late in 2016 where...
View Full Details »
As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity. As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity. $As the rubber industry entered into the new year, it's clear that the medical industry will remain one of great activity.
Withdrawal from NAFTA would cost U.S. jobs, study finds
View Description View Full Details
DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement (NAFTA) and pursue more protectionist trade policies likely would have a negative effect...
View Full Details »
DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement and pursue more protectionist trade policies likely would have a negative effect on the U.S. auto industry, a new study reveals. DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement and pursue more protectionist trade policies likely would have a negative effect on the U.S. auto industry, a new study reveals. $DETROIT— President-elect Donald Trump's vows to renegotiate the North American Free Trade Agreement and pursue more protectionist trade policies likely would have a negative effect on the U.S. auto industry, a new study reveals.
Semperit, Sri Trang demerge Thai gloves JV
View Description View Full Details
VIENNA—Austrian rubber company Semperit A.G. and its Thai partner Sri Trang Angro-Industry P.L.C. have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series...
View Full Details »
VIENNA—Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners. VIENNA—Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners. $VIENNA—Austrian rubber company Semperit and its Thai partner Sri Trang have agreed to demerge their Siam Sempermed rubber gloves joint venture, following a series of legal disputes between the partners.
Nexen, Toyota Tsusho establish sales JV
View Description View Full Details
TOKYO—Nexen Tire Corp. has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese...
View Full Details »
TOKYO—Nexen has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese automobile manufacturers. TOKYO—Nexen has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese automobile manufacturers. $TOKYO—Nexen has established a sales subsidiary in Japan to handle its growing replacement tire business there, and to reinforce its OE supply relationships with Japanese automobile manufacturers.
Kanodia sentenced for Cooper-Apollo insider trading scheme
View Description View Full Details
BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed...
View Full Details »
BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed acquisition of Cooper Tire by Apollo Tyres. BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed acquisition of Cooper Tire by Apollo Tyres. $BOSTON—A Brookline, Mass.-based entrepreneur and private equity investor has been sentenced to 20 months in prison for initiating an insider trading scheme in connection with the failed acquisition of Cooper Tire by Apollo Tyres.
Wacker to add fumed silica plant at Tennessee campus
View Description View Full Details
CHARLESTON, Tenn.—Wacker Chemie A.G. intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston. Construction is...
View Full Details »
CHARLESTON, Tenn.—Wacker intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston. CHARLESTON, Tenn.—Wacker intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston. $CHARLESTON, Tenn.—Wacker intends to invest $150 million to establish a new pyrogenic silica facility on the same site as its existing plant in Charleston.
Thailand building auto test center to support tire, NR sectors
View Description View Full Details
BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing ...
View Full Details »
BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing tire and natural rubber industries. BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing tire and natural rubber industries. $BANGKOK—The Thailand Board of Investment plans to invest $100 million to build an automotive testing center that the government views as a "top priority" for supporting the nation's growing tire and natural rubber industries.
Nexteer, Continental to form joint venture
View Description View Full Details
DETROIT—Nexteer Automotive Corp. and Continental Automotive Systems Inc. will form a joint venture to supply safety systems for autonomous cars.In an announcement Tuesday at the North...
View Full Details »
DETROIT—Nexteer and Continental Automotive Systems will form a joint venture to supply safety systems for autonomous cars. DETROIT—Nexteer and Continental Automotive Systems will form a joint venture to supply safety systems for autonomous cars. $DETROIT—Nexteer and Continental Automotive Systems will form a joint venture to supply safety systems for autonomous cars.
Toyo plans North American expansion
View Description View Full Details
WHITE, Ga.—Toyo Tire & Rubber Co. Ltd. plans to expand its North American research and development center, setting up a dedicated business development unit for the market. The firm, in...
View Full Details »
WHITE, Ga.—Toyo Tire plans to expand its North American research and development center, setting up a dedicated business development unit for the market. WHITE, Ga.—Toyo Tire plans to expand its North American research and development center, setting up a dedicated business development unit for the market. $WHITE, Ga.—Toyo Tire plans to expand its North American research and development center, setting up a dedicated business development unit for the market.
Digital Edition
Digital Edition
Published on September 5, 2005

Sales up, profits mixed for top tire firms

Have a question? Need some help?
Click here to view the FAQ

Tags

Date Published September 5, 2005
Category

The plague of raw material price increases took their toll on global tire makers' bottom lines in 2004, but other factors also are influencing profits so far this year.

Profitability was mixed but sales consistently up for the largest tire makers, in the first half of 2005. Pirelli S.p.A. led the pack with the largest percentage sales increase, 13.1 percent to $2.75 billion. Groupe Michelin posted the smallest gain at 0.1 percent to $9.03 billion. Bridgestone Corp. reported the highest sales for the period, at $11.4 billion, up 8.9 percent from the same period last year.

Profitability was more tenuous and is expected to continue to be so for the rest of the year.

Bridgestone nearly doubled its net earnings to $919.5 million, but a large amount of that came from a pension fund change in Japan. The company's operating earnings in the Americas rose 23.9 percent to $173.6 million as sales grew 10.9 percent to $4.94 billion, putting the Americas business unit on par with Japan in terms of sales volume.

Still, the tire maker cautioned shareholders the company faces a ``challenging'' business environment for the rest of the year with increasing raw material costs chipping away at profitability.

Michelin controls costs

Michelin-which posted a 5.5-percent gain in net earnings to $465 million-anticipates operating margins will exceed last year's despite the rising raw material costs. The tire maker said its price mix as well as its tight control over costs enabled it to maintain operating income at last year's level.

Michelin ``not only managed to compensate for a 3.6-percent decline in sales volumes but also for the escalation in raw material costs that turned out to be more severe than in the first half of 2004,'' the tire maker said. The firm expects raw material price increases of 14-15 percent through year-end.

Goodyear also made similar strides, offsetting rising raw material costs through improved mix, productivity gains and three price increases. Good-year, marking its fifth consecutive quarterly profit in the second quarter, posted net earnings of $137 million in the half, an improvement over a $48 million loss for the same period last year.

The Akron-based tire maker posted net sales of $9.76 billion in the half, up from $8.82 billion a year ago.

Goodyear warned about raw material costs-which company officials expect to grow about 10 percent through year-end-as well as its high debt load and unfunded pension requirements. On the other hand, strong-selling new products, more available cash, higher revenue per tire and other factors bode well for Good- year, officials said.

Cooper Tire & Rubber Co. faced similar raw material challenges, but its main problem in the first half of the year was the strike at its Texarkana, Ark., plant this spring. Cooper posted a net loss of $1.67 million in the half, down from earnings of $58.3 million last year.

Sales grew 3.6 percent to $1.02 billion from $989.2 million, boosted by improvements in price and mix. Lower unit sales-from both weaker demand and the work stoppage-offset mix gains.

``We made some good progress once the strike was behind us, and that progress was clearly evident in June, but it was not enough to offset the broad impact on sales and disruption of our manufacturing operations in the first two months of the quarter,'' said Thomas Dattilo, chairman and CEO of Cooper.

Cooper gets lukewarm grade

Analyst Jonathan Steinmetz at Morgan Stanley retained his underweight position on Cooper as the tire maker's results and outlook came in below his forecast.

``We do not see a near-term end to the margin pressure as we believe the company will need to sacrifice price to regain lost market share, raw material costs show no signs of weakening and competitive conditions remain intense,'' he wrote in a note to investors.

Continental A.G. also continued to struggle in North America and doesn't expect to reach its earlier target of break-even by the fourth quarter. Sales for the company overall rose 10.6 percent to $8.2 billion and net earnings rose 59.3 percent to $494.4 million. But volumes fell in the U.S. passenger and light truck tire operation.

``The deviation from our target figures is not large,'' said Allan Hippe, president of Continental Tire North America Inc. and finance director for Continental A.G. ``But many factors would have to turn out positively in order for us to just break even. At the same time, this shows we are not in the middle of a catastrophic scenario, but rather that things are just progressing more slowly than expected.''