Avon Sponsor Evoactive Trackday Events
Michelin Scoops Fleet Excellence Award
TIC and Mitutoyo Combine to Launch Safety Check for Retailers
Goodyear Eliminates Dividend
Bridgestone Buys Shares in Nokian Tyres
Tyre Dealers Fly Away with Goodyear
Trainee of the Year Award for Andrew
Michelin to Acquire Stake in Hankook
Galaxy Acquires Rumaguma
Motorsport Award for Avon
Tyre Neglect on the Increase in Scotland
Stapletons Awarded Investors in People Accolade
Bandag Announce Year End Results
Mixed Results for Pirelli
Sales and Profit Improvements for Nokian Tyres

Avon Sponsor Evoactive Trackday Events

Avon Tyres have announced that they have combined with performance car magazine Evo to sponsor the magazine's Evoactive trackday events.

Evoactive, in association with Avon Tyres is hosting 15 events during 2003 - 12 main track days and three trackday introductory courses. Avon will supply a variety of tyres for the Caterhams and radicals being used for demonstration laps. Caterham already fits Avon as standard to several of its models, whilst TVR also fits Avons to its Tamora.

Michelin Scoops Fleet Excellence Award

At the Fleet Excellence Awards, held in London on 21st January, Michelin received the award of Eco Product of the Year for their Energy range of tyres. Michelin's Energy tyres polled over a quarter of the votes in this category, giving immense satisfaction to Peter Philpott, European car fleet manager.

He added: "We are delighted with the award, because it confirms that we are heading in the right direction in reducing whole life costs. Working with Michelin's unique fleet panel has enabled us to specifically develop the Energy range to meet the requirements of the fleet industry. This has resulted in longer-lasting tyres without compromising the high levels of grip and safety demanded by today's drivers."

The next generation of Michelin fuel-efficient Energy tyres are due to be launched in February, offering even better performance to fleets and drivers alike. Pictured is Peter Wood, Michelin's key account manager - car fleets, receiving the award from Penny Mallory.

TIC and Mitutoyo Combine to Launch Safety Check for Retailers

The Tyre Industry Council has tied up with Mitutoyo Automotive Technology to launch a national, five-point tyre safety check procedure for tyre retailers. The five-point check will encourage "best-practice" and it is hoped that it will quickly become the benchmark for the retail tyre industry. The checks include tread depth, pressure, alignment and general condition.

The TIC will actively promote the free five-point check to motorists at the time of the police roadside tyre check campaigns although it is expected that the procedure will be offered to motorists by retailers throughout the year. The TIC is currently seeking support from the Association of Police Officers (ACPO) for the tyre safety check.

Goodyear Eliminates Dividend

Goodyear has announced that it is to eliminate its quarterly dividend. The dividend represents an expected annualised cash flow benefit of approximately $84 million, compared to the previous 12 cents per share dividend rate.

"The elimination of the dividend is an important step in a series of actions the company is taking to improve its financial flexibility in light of recent disappointing results and challenging economic conditions," said Robert J. Keegan, president and chief executive officer. "This action follows recent actions that we have taken to improve our cost structure and strengthen our balance sheet."

Bridgestone Buys Shares in Nokian Tyres

Bridgestone Europe NV/SA has announced that it has agreed to purchase two million shares in the Finnish tyre company Nokian Tyres plc. The purchase is made in a deal with Nokia Corporation, whereby Nokia sells its 18.9% shareholding in Nokian Tyres to Bridgestone, for a total investment of 78.34 million euro.

Commenting on the deal, Mr. Shoshi Arakawa, Chairman and CEO of Bridgestone Europe, stated that it is investing in "an excellent company". "Nokian Tyres has an excellent record of growth and profit. Its expertise is in developing and marketing products for Nordic markets, especially winter tyres. I am convinced that there are numerous synergies between our two companies, and that we can be strategic partners for the future". The intention of Bridgestone is that Nokian Tyres will continue to operate and grow as an independent company. The companies will explore opportunities to compliment each others business in the areas of product development, testing, and distribution.

Tyre Dealers Fly Away with Goodyear

Tyre dealers across the UK are dusting off their phrase books, packing their suitcases and preparing to check in, following the launch of a new promotion. Goodyear is offering two return flights to a selection of top European destinations to dealers who sign up to the promotion. To participate, dealers have to purchase a minimum of thirty 16inch or larger Goodyear High Performance Tyres or Wrangler F1 tyres.

As well as a full marketing package including POS poster, show card, drop-in co-op advertising panels and local radio support, dealers will also receive a further 15 free flight cards. Each free flight card is then passed on to retail customers buying 2 or more tyres from the Goodyear High Performance Range.

Dealers and customers will be able to select from a host of destinations including Paris, Brussels, Amsterdam, Nice, Venice, Rome, Prague and Malaga. Flights can be taken from a number of major airports including Heathrow, Birmingham and Manchester on airlines such as British Airways, Air France and KLM.

Ron Pike, Goodyear Communications Manager, said: "The free flights promotion is a fantastic offer for both tyre dealers and end consumers. We have already had a superb response from hundreds of dealers who have signed up and expect this promotion to significantly boost tyre sales across the country." Tyre dealers wishing to sign up to the Goodyear free flights promotion should call Trevor Burfield on 07770 682378 - this offer is for a limited period only.

Trainee of the Year Award for Andrew

The first ever winner of Lodge Tyre Company's Trainee of the Year Award has been named as 18 year old fitter Andrew Henderson. Andrew, who began working for the tyre outlet on Bayton Road in Exhall 18 months ago, was chosen ahead of other trainees from Lodge Tyre Company branches across the West Midlands and Staffordshire for his outstanding performance over the last year.

"Andrew has been a model trainee and his dedication to the job is second to none", said managing Director Martin Lodge. "Not only has he shown excellent customer service and tyre fitting skills, but also he has spent a great deal of time gaining extra professional qualifications. Customers love his friendly approach and this has made him stand out from the crowd".

The Trainee of the Year Award is given in memory of Mark Ravenscroft, a former Lodge Tyre Company trainee, who was tragically killed in a road accident early last year.

Michelin to Acquire Stake in Hankook

Michelin has announced that it is to buy a 10 percent stake in Korean tyre manufacturer Hankook Tire with a view to establishing a strategic alliance. The purchase price, which was based on Hankook's share price at the time of the transaction, is estimated to be in the region of US $ 33 million. As a result of the agreement, which allows Hankook to use Michelin's PAX-system run-flat technology, Hankook's share price shot up nearly 5% to 2,750 won.

Galaxy Acquires Rumaguma

Galaxy Tire & Wheel has acquired a majority shareholding in Rumaguma, the Serbian manufacturer of agricultural and off-road tyres. According to press reports Rumaguma is currently operating at 65 per cent of capacity. The excess capacity will be used to manufacture Galaxy and Constellation tyre products.

Motorsport Award for Avon

Avon Racing has been presented with the annual British Racing and Sports Car Club John Nicol Trophy. This honour is awarded to the individual or organisation making the greatest contribution to motorsport during the previous 12 months.

Pictured from left to right are John Grant, Chairman MSA, Bernard Cottrell, Chairman BRSCC, Roger Everson, Sales and Marketing Manager, Avon Racing.

Tyre Neglect on the Increase in Scotland

The lack of consistent enforcement of the tyre law has resulted in the number of defective tyres on Scottish roads jumping to 16% according to figures released by the Tyre Industry Council. The survey of some 2,500 cars and vans undertaken by the TIC during last year's Scottish Tyre Safety Week showed that 16% of the vehicles checked had at least one defective tyre. A further 17.4% had a worn tyre between 1.7mm and 2mm. the comparable figures for 2001 were 10% and 17%.

Stapletons Awarded Investors in People Accolade

The STS Group, the retail division of the Stapleton's Tyre Services Limited, was been presented with the prestigious Investors in People award at a special ceremony held in St Albans. The company, which has 51 retail centres, achieved the coveted accreditation for its retail division after an assessment of its training, employee development and communications.

Stapleton's Tyre Services' managing director, Mike England and Lesley Williams, HR manager, received the award at a special dinner held by Hertfordshire Business Link at Sopwell House Hotel, St Albans.

Bandag Announce Year End Results

Bandag Inc. have announced their financial results for the year ending December 31st, 2002, which show a net income for the year of $2.8 million after the effect of a change in accounting resulting from the adoption of SFAS 142, compared to net income of $43.8 million for the previous year. Income before the effect of the accounting change in 2002 was $50.1 million, an increase of 14.4%. However, in connection with the adoption of SFAS 142, there was no amortisation of goodwill in 2003, compared to amortisation of $8.0 million in 2001. Therefore on a comparable basis Bandag's income declined by $1.7 million. Turnover for the year showed a 5.1% decline from $949.3 million to $900.5 million.

In announcing fourth quarter and full year results, Martin G Carver, Bandag Chairman and CEO said, "Bandag's traditional business improved as the year progressed. Even though Bandag's distribution subsidiary, Tire Distribution Systems Inc. (TDS) faced several challenges throughout the year, as a result of divestitures and other strategic actions, it emerged by year end as a smaller, more efficient operation within the Bandag Strategic Alliance. "We are encouraged by some signs of fourth quarter strength in the marketplace", he continued, "particularly in North America. All things considered, International did better than anticipated. Our European restructuring is moving forward. And, while the coming year will continue to challenge TDS, we believe we are making slow and steady progress and expect improvement as the year progresses. However, these encouraging factors need to be weighed against the uncertain implications to our business of the global political situation and the possibility of larger conflict in the Middle East".

Despite the positive comment by Carver, the decrease of $1.7 million in annual net income was entirely down to results in the fourth quarter, which showed a comparable decrease in net income of $1.8 million for the quarter. On a consolidated basis, sales and cost of products sold in the fourth quarter 2002 decreased by 6% and 5% respectively and gross margin declined by 0.6 percentage points. Several factors influenced these results including increased sales deductions of ca. $4.7 million related to dealer marketing programmes, an increase in raw material costs, which had remained stable through the first nine months of the year (4% in North America alone), restructuring charges in Europe of $3.0 million, income of $2.4 million and $1.4 million in North America and Europe due to decreased LIFO inventory levels and an improvement in TDS's margin of two percentage points.

Mixed Results for Pirelli

Pirelli has announced mixed results for 2002. Group's revenues amounted to Euros 6,300 million, down 11% on last year (Euros 7,509 million). The decrease was attributed wholly to a crisis in the telecommunications infrastructures market. Tyre sector profitability, however, continued to grow strongly, confirming last year's trends.

Sales and Profit Improvements for Nokian Tyres

Nokian Tyres have announced strong improvements in Group net sales and operating profits. Profit before taxes was up 29.5% to EUR 48.0 million (2001:EUR 37.0 million) on Net sales of EUR 479.2 million (up 13.2%).

According to Nokian, the situation in the company's main markets and key products was more favourable than a year ago, although the uncertainty in the global economy continued to impact on the tyre business. The demand for passenger car winter tyres and high performance summer tyres, forestry tyres and special heavy tyres increased in key markets. The strongest growth areas for Nokian Tyres included the Nordic countries, Sweden in particular, as well as East Europe, Russia and the USA. Raw material prices were lower than the previous year throughout the year, but the last quarter saw an upturn in the prices.

Net sales generated from the Nokian passenger car tyre business grew 17.5% from the previous year and amounted to EUR 242.8 million (EUR 206.6 million). The operating profit also improved, totalling EUR 51.4 million (EUR 41.5 million). Sales of Nokian passenger car tyres developed favourably in the key markets in Europe, Russia and the USA, and market shares improved. The development was particularly positive in Sweden, a significant target for the company because of the change in the competitive scene. Market shares also improved in Norway.

The demand for Nokian WR, the new winter tyre designed for Central European markets, was boosted by the top ratings in winter tyre tests of German magazines. Approximately 100,000 Nordman branded winter tyres were manufactured at Amtel factories in Russia, which sold very well. Other contract manufacturing proceeded as planned.

Winter tyres and other products with high profit margins accounted for a large portion of total sales. Winter tyres represented 73% and new products 44% of the product area net sales.