Current Issue
×

Top Stories

Title Issue Date Category Formats Records Price
Elkem Silicones shows off LSR Select at MD&M West
View Description View Full Details
ANAHEIM, Calif.—Elkem Silicones USA Corp. has been working on its new process for liquid silicone rubber for a few years, and now it's ready to show the industry. The company officially...
View Full Details »
ANAHEIM, Calif.—Elkem Silicones USA has been working on its new process for liquid silicone rubber for a few years, and now it's ready to show the industry. ANAHEIM, Calif.—Elkem Silicones USA has been working on its new process for liquid silicone rubber for a few years, and now it's ready to show the industry. $ANAHEIM, Calif.—Elkem Silicones USA has been working on its new process for liquid silicone rubber for a few years, and now it's ready to show the industry.
Natural rubber, latex drive Momentum's growth
View Description View Full Details
UNIONTOWN, Ohio—Momentum Technologies Laboratories Inc. expanded both its facility and capabilities to handle natural rubber and natural latex requests. The additions, which included new...
View Full Details »
UNIONTOWN, Ohio—Momentum Technologies Laboratories expanded both its facility and capabilities to handle natural rubber and natural latex requests. UNIONTOWN, Ohio—Momentum Technologies Laboratories expanded both its facility and capabilities to handle natural rubber and natural latex requests. $UNIONTOWN, Ohio—Momentum Technologies Laboratories expanded both its facility and capabilities to handle natural rubber and natural latex requests.
Lord to add production in Germany
View Description View Full Details
HUECKELHOVEN, Germany—Lord Corp. plans to expand operations at its facility in Hueckelhoven in response to what it sees as a fast-growing electric vehicle market. The firm will invest about ...
View Full Details »
HUECKELHOVEN, Germany—Lord plans to expand operations at its facility in Hueckelhoven in response to what it sees as a fast-growing electric vehicle market. HUECKELHOVEN, Germany—Lord plans to expand operations at its facility in Hueckelhoven in response to what it sees as a fast-growing electric vehicle market. $HUECKELHOVEN, Germany—Lord plans to expand operations at its facility in Hueckelhoven in response to what it sees as a fast-growing electric vehicle market.
Kraton considers divestment of Cariflex business
View Description View Full Details
HOUSTON—Kraton Corp.'s Cariflex polyisoprene products unit is a strong and growing business, the company said in its 2018 financial statement. And that is part of the reason why Kraton is...
View Full Details »
HOUSTON—Kraton's Cariflex polyisoprene products unit is a strong and growing business. That is part of the reason why Kraton is thinking about selling it. HOUSTON—Kraton's Cariflex polyisoprene products unit is a strong and growing business. That is part of the reason why Kraton is thinking about selling it. $HOUSTON—Kraton's Cariflex polyisoprene products unit is a strong and growing business. That is part of the reason why Kraton is thinking about selling it.
Wacky World of Rubber: Goodyear's Aero concept tire takes mobility to new heights
View Description View Full Details
It takes a visionary with a truly creative mind to look at the world of tomorrow's tomorrow and see the challenges humanity will face. Moreover, it takes a special person to peer into the future...
View Full Details »
Goodyear's newest concept tire is taking mobility to new heights and defying gravity along the way. Goodyear's newest concept tire is taking mobility to new heights and defying gravity along the way. $Goodyear's newest concept tire is taking mobility to new heights and defying gravity along the way.
Freudenberg takes majority stake in Xalt Energy
View Description View Full Details
MIDLAND, Mich.—Freudenberg Sealing Technologies has upped the ante on its commitment to electrified technologies. Almost one year after acquiring a 31 percent stake in Midland-based Xalt...
View Full Details »
MIDLAND, Mich.—Freudenberg Sealing Technologies has upped the ante on its commitment to electrified technologies. MIDLAND, Mich.—Freudenberg Sealing Technologies has upped the ante on its commitment to electrified technologies. $MIDLAND, Mich.—Freudenberg Sealing Technologies has upped the ante on its commitment to electrified technologies.
Michelin to foster hydrogen fuel-cell development with new joint venture
View Description View Full Details
PARIS—Michelin and Faurecia Group, a leading French automotive systems supplier, have agreed to form a joint venture that will develop, produce and market hydrogen fuel-cell systems for...
View Full Details »
PARIS—Michelin and Faurecia Group have agreed to form a joint venture that will develop, produce and market hydrogen fuel-cell systems for light vehicles, utility vehicles, trucks and other applications. PARIS—Michelin and Faurecia Group have agreed to form a joint venture that will develop, produce and market hydrogen fuel-cell systems for light vehicles, utility vehicles, trucks and other applications. $PARIS—Michelin and Faurecia Group have agreed to form a joint venture that will develop, produce and market hydrogen fuel-cell systems for light vehicles, utility vehicles, trucks and other applications.
GW Plastics expands in Ireland
View Description View Full Details
SLIGO, Ireland—GW Plastics Inc. has continually re-invested in its operations during the course of the last five years. Add another investment to the list. The firm recently disclosed a $6....
View Full Details »
SLIGO, Ireland—GW Plastics recently disclosed a $6.8 million investment to increase product development, precision tooling, thermoplastic and liquid silicone injection molding at its site in Sligo. SLIGO, Ireland—GW Plastics recently disclosed a $6.8 million investment to increase product development, precision tooling, thermoplastic and liquid silicone injection molding at its site in Sligo. $SLIGO, Ireland—GW Plastics recently disclosed a $6.8 million investment to increase product development, precision tooling, thermoplastic and liquid silicone injection molding at its site in Sligo.
Tariffs, looming recession could have major impact on auto makers, sales
View Description View Full Details
When Jonathan Smoke, Cox Automotive's chief economist, joined the auto industry from the housing market two years ago, there was talk that the return of off-lease vehicles would upend used-vehicle ...
View Full Details »
Economists and analysts predict a downturn in the next year or so, though there's little consensus on the degree. If and when it comes, the downturn could have a significant impact auto makers. Economists and analysts predict a downturn in the next year or so, though there's little consensus on the degree. If and when it comes, the downturn could have a significant impact auto makers. $Economists and analysts predict a downturn in the next year or so, though there's little consensus on the degree. If and when it comes, the downturn could have a significant impact auto makers.
Trelleborg enhances medical capabilities with Sil-Pro deal
View Description View Full Details
DELANO, Minn.—Service continues to be a priority for Trelleborg A.B.'s Sealing Solutions unit, and its latest acquisition only furthers that goal. The firm in January finalized a deal to...
View Full Details »
DELANO, Minn.—Service continues to be a priority for Trelleborg's Sealing Solutions unit, and its latest acquisition only furthers that goal. DELANO, Minn.—Service continues to be a priority for Trelleborg's Sealing Solutions unit, and its latest acquisition only furthers that goal. $DELANO, Minn.—Service continues to be a priority for Trelleborg's Sealing Solutions unit, and its latest acquisition only furthers that goal.
Digital Edition
Digital Edition
Published on September 3, 2007

Hot 1st half gives tire makers optimism for '07

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

Tags

Date Published September 3, 2007
Category

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.

ERROR: Object template cce_CCI_SITE is missing!