Pirelli

Analysts on Pirelli results: 'Fewer tyres,more profits'

Following the publication of second quarter/first half 2011 financial results showing Pirelli doubled nett profits year-on-year, financial analysts have lauded Pirelli 'over any other auto part or tyre maker in the EU". Morgan Stanley analysts attributedthe tyre manufacturer's greater than 10 percent outperformance on second quarter pre-tax profit's estimates (EBIT) and increased margin guidance for 2011, which is said to imply more than 5 percent upgrade in consensus, to it's 'ever impressive pricing power'.

The main story the analysts are telling is that while Pirelli's 1.4billion euros of sales were 2 percent shy of consensus expectations, EBIT of 147 million euros was 11 percent above expectations. According to Morgan Stanley, the implied 10.6 margin is 124 basis points better than expected, driven by 16 percent growth in price/max. Or, in other words, less tyres and more profit. Pricing power at Pirelli is seen as 'particularly remarkable' due to the fact that it comes after 10 percent growth in 2010. Overall the analysts concluded that this is a 'winning strategy in today's under-supplied tyre markets'.

Latest News

Continental's share of commercial segment set to escalate
Thursday, 08 September 2011
Continental Tyre SA launched its highly anticipated new generation truck tyres to the market in the first quarter in 2011. According to the company, the new product range features some of the latest innovative technology, alongside the advantages of their newly-patented ‘Airkeep’ technology which promises to reduce the incidence of on-road breakdowns.

2011 could well turn out to be the most challenging year yet, at least where the tyre business is concerned. Amid rumours of one or possibly even two more new tyre price hikes before the year is through, consumers justly have cause for

concern. Largely driving this trend are escalating raw material costs, an alarming trend which shows no signs of abating. >> Read more

Goodyear's astonishing new eagle has landed
Wednesday, 20 July 2011

When driving, it pays to be prepared for the unexpected. You'll be thankful for a lifetime.

Goodyear's brand new, remarkably innovative EAGLE F1 ASYMMETRIC 2 tyre – with pioneering ActiveBraking technology that delivers up to 3 metres shorter stopping distance – has just been launched in Europe to international applause. And it has just landed on South African soil too.

>> Read more

Rabbit feed a source of rubber?
Wednesday, 20 July 2011
Dandelions hold the key!

Children love to blow their seeds into the wind and rabbits think they are a qourmet delight. Now dandelions have aroused the interest of the rubber industry as well.

>> Read more

Continental Treads New Ground
Wednesday, 20 July 2011
The picturesque coastline of the Algarve in Portugal, was the magnificent backdrop for the launch of two impressive products for the passenger tyre segment this year, courtesy of Continental Tyre. The tyre maker assures remarkable improvements in rolling resistance and wet and dry braking performance courtesy of a new casing, compound, tyre contour and tread pattern design, elements that reflect considerable progress on the part of the company's tyre engineers. >> Read more

Bridgestone
Wednesday, 20 July 2011

Bridgestone to boost us production with $135m investment

A US$135million being made in Bridgestone's Aiken County FActory in the US is expected to increase its output of passenger and light truck tyres by additional 4 750 units a day starting from the second quarter of 2013. The investments will create 122 new full-time and contractor positions and expand the main Aiken County plant and mixing building by 25 000sqm.

>> Read more

Continental
Wednesday, 20 July 2011

Kaluga chosen as site for conti's russian plant

In a recent press statement, Nikolai Setzer, head of Continental AG's Passenger and Light Truck Tires Division and Continental AG Executive Board member, said that kaluga plant will focus onmeeting the company's strategic goal of achieving above-average and profitable growth,particularly in emerging markets. The billion euro investment Setzer announced will cover a number of projects, including expanding capacity in Brazil, the US and Europe. Approximately 220 million euros will be invested in the new kaluga plant alone and production is slated to start at the end of 2013.

(typress.com)

>> Read more

Apollo
Wednesday, 20 July 2011

Apollo chairman elected to Tia hall of fame

The Tire Industry Association (TIA) has elected Onkar S. Kanwar, chairman, Apollo Tyres Ltd to its Hall of Fame. TIA Executive Vice President Roy Littlefield lauded Kanwar saying, 'his remarkable career has helped to make the tyre industry what it is today. He exemplifies everything that is great about this industry".

(TireBusiness.com)

>> Read more

Triangle
Wednesday, 20 July 2011

Triangle to work with University of Akron in rubber and elastomer research projects.

The city of Akron boasts strong credentials for being the tyre industry capital of the United States. Back in the US industry glory days, it went by the name of the 'Tire City' and was home to the four major domestic players, Goodrich, Goodyear, Firestone and General Tire.

>> Read more

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