Tire Operations Buoy Continental
Continental AG’s adjusted EBIT is reportedly 15% (100 million euros) above estimates produced by Deutsche Bank. With net debt below 6.5 billion euros, impressed analysts commented "these better results are entirely attributable to the tire operations." The tire division contributes 28% of the group’s sales and 42% of adjusted EBIT, which reported a higher result
Kumho Looking to Sell Daewoo Share
Creditors of South Korea’s Kumho Asiana Group, parent company of Kumho Tire Co., are said to be considering selling a 1.46 trillion won stake in Daewoo Engineering & Construction Co. held by the group’s affiliates via a block trade. Group company Kumho Industrial Ltd. holds 14.6% of Daewoo Engineering & Construction and other units own
The Price Crisis Part IV: China Stretches Rubber Demand
China has announced that it would put a cap on new vehicle registration in Beijing. It is the price the country is paying for its rapid economic growth. The high demand for personal vehicles has resulted in urban gridlock. It also has led to the inevitable rise in demand for more tires. The result has
TCIL Ready to Get Government Release
India’s Department of Disinvestment has begun the process of completely divesting the government’s stake in the Tyre Corporation of India (TCIL), the first outright sale of a public sector company to take place in India since 2003-04. The Economic Times comments that, should all go to plan, the divestment should be complete this year. Commenting
The Price Crisis Part II: Fighting Uphill Task
India’s tire industry is going through testing times. Amid ballooning prices of raw materials, particularly rubber, it is trying to cater to the demand of the surging auto industry by expanding production capacities. It is still awaiting government decision on regular rubber imports and even moved the court for redressal of grievances, says Rajiv Budhraja,
Gajah Tunggal on Stock Index
The Indonesia Stock Exchange reports that tiremaker PT Gajah Tunggal Tbk has been added to its LQ45 list as of February. The list recognises 45 companies that have fulfilled a number of criteria, including highest market capitalisation within the last 12 months and highest transaction value in a regular market during the same timeframe. The
Bridgestone Price Hike Won’t Cover Costs: Analysts
Bridgestone Americas’ decision to impose a drastic 12% increase of North American truck and bus tire prices in only likely to recoup roughly a fifth of the increased rubber costs the tire manufacturer has had to pay recent, Deutsche Bank analysts reported. "In view of the likely penetration rate for the price hikes, we calculate
The Price Crisis: A Special Report
As with any consumer good industry, tire prices have seen near consistent twice-annual increases for as long as anyone can remember. In tougher times, perhaps only one price hike; don’t want to chase away the consumer, after all! January would bring one increase, and June the second. In both cases, those increases were erased within
Kentucky Dealer Puts Charity Effort in Motion
Lexington, Ky.-based S&S Tire has created a unique way to give back to five local and national charities. The tire dealer has launched "Caps 4 a Cause," a new line of pre-packaged TPMS-friendly universal valve stem caps that support five causes. Available only at the 13 retail S&S Tire and Auto Service Centers, the caps
Continental Looking at Loan Reworks
Various news reports say that Continental AG is in negotiations with banks to refinance some $7.2 billion in loans that will come due in 2012. Reports indicate that the talks are initial in nature, and Continental has not decided a course. Some analysts suggested that Continental could get cheaper loan terms due to its financial