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Analytics firm said LT tires led sluggish 2017 U.S. replacement market
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NEW YORK—Despite a unit sales decline of 3.1 percent last year, light truck tires led a sluggish U.S. consumer tire market in 2017 vs. 2016, according to the latest data issued by analytics...
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NEW YORK—Despite a unit sales decline last year, light truck tires led a sluggish U.S. consumer tire market in 2017 vs. 2016, according to the latest data issued by analytics firm GfK Group. NEW YORK—Despite a unit sales decline last year, light truck tires led a sluggish U.S. consumer tire market in 2017 vs. 2016, according to the latest data issued by analytics firm GfK Group. $NEW YORK—Despite a unit sales decline last year, light truck tires led a sluggish U.S. consumer tire market in 2017 vs. 2016, according to the latest data issued by analytics firm GfK Group.
Surge in business is a boon for commercial vehicle industry
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The commercial vehicle industry is enjoying a surge in business as the U.S. economy grows, construction projects increase and consumers buy more merchandise. For now, "trucking is enjoying a very...
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The commercial vehicle industry is enjoying a surge in business as the U.S. economy grows, construction projects increase and consumers buy more merchandise. The commercial vehicle industry is enjoying a surge in business as the U.S. economy grows, construction projects increase and consumers buy more merchandise. $The commercial vehicle industry is enjoying a surge in business as the U.S. economy grows, construction projects increase and consumers buy more merchandise.
Michelin debuts new high-performance adhesive
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CLERMONT-FERRAND, France—Michelin will be leaving an old industry standard behind with some of its lines of tires later this year. After more than nine years of research and development,...
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CLERMONT-FERRAND, France—After more than nine years of research and development, Michelin is launching a new high-performance resin adhesive designed for bonding textiles. CLERMONT-FERRAND, France—After more than nine years of research and development, Michelin is launching a new high-performance resin adhesive designed for bonding textiles. $CLERMONT-FERRAND, France—After more than nine years of research and development, Michelin is launching a new high-performance resin adhesive designed for bonding textiles.
A. Schulman sets June meeting to vote on merger
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FAIRLAWN, Ohio—A. Schulman Inc. has set June 14 as the date for a special meeting for shareholders to vote on a merger agreement with global plastics, chemicals and refining company...
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FAIRLAWN, Ohio—A. Schulman has set June 14 as the date for a special meeting for shareholders to vote on a merger agreement with global plastics, chemicals and refining company LyondellBasell. FAIRLAWN, Ohio—A. Schulman has set June 14 as the date for a special meeting for shareholders to vote on a merger agreement with global plastics, chemicals and refining company LyondellBasell. $FAIRLAWN, Ohio—A. Schulman has set June 14 as the date for a special meeting for shareholders to vote on a merger agreement with global plastics, chemicals and refining company LyondellBasell.
Tekni-Plex expands medical portfolio with Dunn Industries acquisition
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WAYNE, Pa.—Tekni-Plex Inc. is expanding its capabilities in specialty extruded medical tubing by acquiring Dunn Industries Inc. Financial details were not disclosed, but Tekni-Plex said the ...
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WAYNE, Pa.—Tekni-Plex is expanding its capabilities in specialty extruded medical tubing by acquiring Dunn Industries. WAYNE, Pa.—Tekni-Plex is expanding its capabilities in specialty extruded medical tubing by acquiring Dunn Industries. $WAYNE, Pa.—Tekni-Plex is expanding its capabilities in specialty extruded medical tubing by acquiring Dunn Industries.
Raw material prices still volatile
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WASHINGTON—Volatility in raw materials prices for tires and rubber goods has moderated since last year, but is far from gone, according to manufacturers and industry analysts. Tire...
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WASHINGTON—Volatility in raw materials prices for tires and rubber goods has moderated since last year, but is far from gone, according to manufacturers and industry analysts. WASHINGTON—Volatility in raw materials prices for tires and rubber goods has moderated since last year, but is far from gone, according to manufacturers and industry analysts. $WASHINGTON—Volatility in raw materials prices for tires and rubber goods has moderated since last year, but is far from gone, according to manufacturers and industry analysts.
Bridgestone, Goodyear to create 50/50 wholesale venture
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AKRON—Bridgestone Americas and Goodyear are combining their respective wholesale tire distribution assets into a 50/50 joint venture, called TireHub L.L.C., that will operate through 80-...
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AKRON—Bridgestone Americas and Goodyear are combining their respective wholesale tire distribution assets into a 50/50 joint venture, called TireHub, that will operate through 80-plus distribution centers nationwide. AKRON—Bridgestone Americas and Goodyear are combining their respective wholesale tire distribution assets into a 50/50 joint venture, called TireHub, that will operate through 80-plus distribution centers nationwide. $AKRON—Bridgestone Americas and Goodyear are combining their respective wholesale tire distribution assets into a 50/50 joint venture, called TireHub, that will operate through 80-plus distribution centers nationwide.
Impact of steel tariffs looms over industry
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WASHINGTON—Tire manufacturers still are assessing the possible effects of 25 percent tariffs on tire-quality steel wire rod imports to the U.S., but all indications are that the impact...
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WASHINGTON—Tire manufacturers still are assessing the possible effects of 25 percent tariffs on tire-quality steel wire rod imports to the U.S., but all indications are that the impact could be sweeping. WASHINGTON—Tire manufacturers still are assessing the possible effects of 25 percent tariffs on tire-quality steel wire rod imports to the U.S., but all indications are that the impact could be sweeping. $WASHINGTON—Tire manufacturers still are assessing the possible effects of 25 percent tariffs on tire-quality steel wire rod imports to the U.S., but all indications are that the impact could be sweeping.
Photo gallery: Ace shows off expansion
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RAVENNA, Ohio—At Ace Products and Consulting's open house on April 12, visitors showed up to see the facility after the company finished its most recent expansion. Ace added 3,500 square...
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RAVENNA, Ohio—At Ace Products and Consulting's open house on April 12, visitors showed up to see the facility after the company finished its most recent expansion. RAVENNA, Ohio—At Ace Products and Consulting's open house on April 12, visitors showed up to see the facility after the company finished its most recent expansion. $RAVENNA, Ohio—At Ace Products and Consulting's open house on April 12, visitors showed up to see the facility after the company finished its most recent expansion.
Continental developing aquaplaning warning system
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FRANKFURT, Germany—Continental A.G. engineers are developing an aquaplaning alert system that uses signals from surround-view cameras and tire-mounted electronic sensors to warn the...
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FRANKFURT, Germany—Continental engineers are developing an aquaplaning alert system that uses signals from surround-view cameras and tire-mounted electronic sensors to warn the vehicle's driver and engage active stabilization measures. FRANKFURT, Germany—Continental engineers are developing an aquaplaning alert system that uses signals from surround-view cameras and tire-mounted electronic sensors to warn the vehicle's driver and engage active stabilization measures. $FRANKFURT, Germany—Continental engineers are developing an aquaplaning alert system that uses signals from surround-view cameras and tire-mounted electronic sensors to warn the vehicle's driver and engage active stabilization measures.
Digital Edition
Digital Edition
Published on September 3, 2007

Hot 1st half gives tire makers optimism for '07

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Date Published September 3, 2007
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Following a strong first half, the world's largest tire manufacturers expect to post improved financial results for all of fiscal 2007.

The caveats, however, are possible higher raw materials costs and the lackluster state of the North American markets.

Bridgestone Corp., Michelin and Continental A.G. are among the most bullish, each predicting substantial earnings improvements for the year.

After reporting double-digit sales and earnings growth in the first half, Bridgestone raised its full-year net and operating profit forecasts-for a second time this year-to $1.54 billion and $1.74 billion, 28.1- and 12.7-percent increases over 2006, respectively.

Bridgestone attributed its positive forecast to a weaker yen and improved sales in the first half.

For the year, Michelin is banking on strong demand for truck tires in Europe, Asia and South America to boost earnings and help offset $80 million in additional costs related to higher raw materials prices this year, the company said in its first-half earnings results.

Conti management likewise is optimistic, based on the firm's double-digit growth in first-half sales and profits.

Goodyear continues to work on improving its balance sheet in the later stages of its multiyear turnaround plans. The tire maker was $118 million in the red for the half versus profits of $76 million last year, but the company's net income in the second quarter jumped to $56 million from $2 million.

Management is optimistic despite a less-than-satisfactory performance in the first half. Sales fell 6.2 percent as tire unit volume slipped 14.5 percent in North America, its largest operating unit.

Goodyear still faces some aftereffects from last year's strike by the United Steelworkers as well as its decision to exit certain segments of the private label tire business.

Cooper Tire & Rubber Co., which returned to profitability in the first quarter after eight quarters in the red, surged to a net profit of $38.4 million in the half.

Executives attributed the improvement to cost reduction and profit boosting plans announced in September 2006 as well as improved price and mix in North America and increased tire unit sales elsewhere.

Hankook officials said the South Korean tire maker remains on track to meet its goals this year as sales rose 13 percent in the half to $1.85 billion.

In addition, both Yokohama Rubber Co. Ltd. and Toyo Tire & Rubber Co. Ltd.-which have March 31 fiscal year-ends-revised upward their earnings projections for the year after reporting improved first-quarter results.

For the first six months ended June 30, Bridgestone, Continental, Cooper, Hankook, Michelin and Pirelli & C. S.p.A. achieved improvements in operating earnings, and Bridgestone, Conti, Cooper, Michelin and Sumitomo Rubber Industries Ltd. posted net earnings gains as well.

Only Goodyear posted declines in both, although its results don't include its Engineered Products division, which was sold for $1.48 billion Aug. 1.

Rod Lache, an analyst with Deutsche Bank, expects margin improvement in 2008 at Goodyear. Based on numbers provided by management, Lache wrote in a note to investors that the tire maker's margins could improve by 8 percent or better compared with his 5.7-percent estimate for 2007.

Four tire makers-Bridgestone, Conti, Cooper and Hankook-reported double-digit sales increases for the half, with Cooper posting the largest gain of 17.9 percent to $1.44 billion.

Bridgestone reported a 21.3-percent jump in operating profit to $827.3 million as sales grew 13.4 percent to $13.1 billion. Net earnings surged 61.3 percent to $429 million.

Cooper swung to a net profit of $38.3 million in the half from a loss of $25.9 million a year ago.

Conti's tire segments also saw improvements as sales were up 4.5 percent to $4.17 billion and operating earnings grew 62 percent to $559.1 million.

Michelin reported a 4.7-percent increase in sales to $11.3 billion and a 57.6-percent improvement in net earnings to $587.9 million.

For the full year, Michelin foresees industry shipments of passenger original equipment and truck OE and replacement tires in North America to

fall short of 2006 shipment levels, while shipments of replacement passenger and light truck tires should grow 2 percent.

Sumitomo suffered a 6.2-percent drop in operating income to $140.9 million as sales slipped 0.3 percent to $2.06 billion.

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