We take a trip to the tire maker’s state-of-the-art new factory in Hungary, which at the end of phase 1, will have a production capacity of around 5.5 million passenger car and light truck tires and 675,000 commercial vehicle tires annually. More in the July issue of TTI
Shares of tire manufacturer Cooper Tire & Rubber Co (NYSE:CTB) fell as much as 11.3% in trading Thursday after reporting earnings for the first quarter of 2017. Shares were still down 9.9% at 2:40 p.m. EDT and showed no signs of recovery.
Unit volume increased 2.9% versus a year ago, but net sales fell 1% to $643 million and net income dropped almost in half to $30.6 million, or $0.57 per share. Analysts were expecting $687.9 million in revenue and $0.74 per share in earnings.
Management pointed to a competitive pricing environment and a $50 million increase in raw material costs as the reason results were down in the quarter. These hit Cooper Tire & Rubber especially hard because it uses a last in-first out accounting method in the U.S., meaning it used high cost materials while low cost materials sit on the balance sheet.
Most of the pressures facing Cooper today are out of its control, but that’s not much consolation for investors. Management is also adjusting by raising prices, which it hopes will stem some of the pressure on the bottom line. On the bright side, international volume was strong and if that continues it should offset some of the pressure in the U.S. Long-term, Cooper is still a leading tire supplier with a profitable business long-term, so today’s dip in earnings and shares is a great buying opportunity for investors.
Hankook Tire Co. has earned a Red Dot Design Award 2017 for its Laufenn I FIT the studless winter tire.
“Following last year’s multiple wins from Red Dot Design, this award once again solidifies Hankook Tire’s commitment and determination to lead future driving through progressive innovation and creative design,” said Seung Hwa Suh, vice chairman and CEO of Hankook Tire. “We will continue to contribute to advancement in driving with aspiration for innovative technology, both through Hankook and Laufenn’s dedicated technology leadership.”
The Red Dot Design Award is an international design prize awarded by the Design Zentrum Nordrhein Westfalen, Germany.
AKRON, Ohio, April 11, 2017 /PRNewswire/ — Directors of The Goodyear Tire & Rubber Company (NASDAQ: GT) have declared a quarterly dividend of 10 cents per share of common stock. The dividend is payable June 1, 2017, to shareholders of record on May 1, 2017. The payout represents an…
UVALDE, Texas, April 5, 2017 /PRNewswire/ — Continental has announced the investment of approximately $10 million in a new indoor tire test center located in Uvalde, Texas, at the company’s U.S. proving grounds.
“The new test center will support our vision of being the preferred technology partner for Continental’s Original Equipment customers for tires, as well as increasing our speed in developing new technologies specifically designed for the Americas market,” said Dr. Boris Mergell, head of research and development for Passenger and Light Truck Tires at Continental.
Strategically located on Continental’s proving grounds for tires in Uvalde, the new test center is designed to provide indoor test capacity for all tires manufactured in Continental’s North and South American plants.
“Our developments for Original Equipment customers in the Americas will be positively impacted, as we will be able to increase our testing capacity in the region,” said Dr. Juan Botero, vice president of key account management for Original Equipment Passenger and Light Truck Tires for Continental Tire the Americas. The test facility is expected to be fully functional in April, 2019.
Hefei, China – Continental has opened a €250-million expansion of its tire plant in Hefei, Anhui province, according to local government websites.
Phase 3 of the Hefei expansion project started in November 2015. It is expected to increase passenger car tire capacity from 5 million units/year today to 14 million units/year by 2019.
By May 2015, the company had produced 10 million passenger car and light truck tires, mostly for the China market.
SEOUL, South Korea, March 20, 2017 /PRNewswire/ — Nexen Tire, a leading global tire manufacturer, held the ‘2017 Purple Summit, Manchester,’ to demonstrate its commitment to its worldwide partners.
Located 300 km north of the Arctic Circle in Ivalo, Finland, Technotrac is Hankook Tire’s new state-of-the-art winter tire testing facility.
The opening of Technotrac, says Hankook, marks a major milestone for the tire manufacturer, proving that its winter tires are tried and tested in the world’s most severe winter conditions.
Geneva, Switzerland – Pirelli Tyre SpA has developed a digital platform that integrates tire operating data available through its cyber technology with telecommunications technology to deliver real-time tire performance feedback to the driver through a mobile phone app.
The platform, dubbed “Conesso,” is available initially to owners of cars fitted with P Zero and Winter Sottozero tires, which are equipped with Pirelli’s sensor-driven cyber tire technology.
Pirelli unveiled the technology — along with the market availability of its custom colour-sidewall option — at the 2017 Geneva International…
Hankook (OTC:HAOOF), the Korean tire manufacturer, is very profitable and stealing market share from competitors. The stock is cheap and the company wants to grow 15% in 2017.
The stock trades at 57,300 won, there are 123.85 million shares, and the market cap is 7.1 trillion won ($6.1 billion). It takes 1151 won to buy one dollar. The stock pays a 400 won dividend and yields 0.7%. Earnings per share last year was 2,844 won and the price to earnings ratio was 20.