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Avon Tyres Racing Presents F3 Awards
Goodyear Files Antitrust Lawsuit for Price Fixing
Independent Research Confirms Quality of Retreaded
Tyres
Bandag Acquires Speedco Inc.
Continental Continues Positive Trend in First
Quarter 2004
Crème de la Crème Customer Care with Café Dunlop
New TIC Promotional Campaign
New Website for Avon Motorcycle Tyres
British Land Speed Record Team in New World Record
Attempt
Michelin Posts 3.9% Sales Growth in First Quarter
Avon Tyres Racing Presents F3 Awards
 At
the recent BARC awards ceremony, Anon Tyres Racing presented
two prestigious Formula 3 prizes, for Rookie of the Year and
the F3 Team award. Each of the winners received paintings
of their cars by the respected motorsport artist, Andrew Kitson,
who was specially commissioned by Avon Tyres Racing.
The award for F3 Rookie of the Year went to Danny Watts of
Hi-Tech Racing and was presented by Avon Tyres Racing's Sales
and Marketing Manager, Roger Everson. T Sport won the F3 Team
Award and team owner and manager Russ Eacott, accepted the
award from Trevor Swettenham, Avon Tyres Racing's F3 Manager
(pictured here).
Goodyear Files Antitrust Lawsuit for Price
Fixing
Goodyear Tire & Rubber Company has filed an antitrust lawsuit
against suppliers of EPDM alleging price fixing and anti-competitive
conduct in violation of the federal Sherman Act antitrust
laws. The lawsuit was filed May 7 in the United States District
Court for the Northern District of Ohio in Akron, Ohio.
EPDM (Ethylene Propylene Diene Monomer) is a synthetic rubber
that is used in rubber-containing products to improve their
strength, and EPDM has excellent resistance to heat, oxidation,
ozone and weather aging due to its stable, saturated polymer
structure. Goodyear uses EPDM in tyres, hoses and belts.
Companies being sued by Goodyear include Bayer, Uniroyal
Chemical Company, DuPont Dow Elastomers, DSM and Polimeri
Europa., amongst others.
Independent Research Confirms Quality
of Retreaded Tyres
An independent research report carried out by AEA Technology
on behalf of the Department of Trade and Industry and the
Retread Manufacturers Association (RMA) has produced findings,
which are set to boost the image of retreaded tyres for passenger
vehicles. The report, which was commissioned to independently
gather and consider the facts surrounding retreaded tyres
and to provide a first step for the retreading industry to
fight for the greater use of retreads, concluded what the
RMA already knew - that retreads are high quality products
subject to stringent controls and that they are safe, economical
and capable of producing performance characteristics not inferior
to those of new tyres.
In particular the report concluded that:
- There is no technical reason why the handling of retreads
should be any different from that of new tyres.The rubber
compounds used for retreading are similar to new tyre compounds
and there is no basis to assume a change in the tyre's structure
during the retreading process. There is also no information
anywhere on claims, spurious or otherwise, to suggest that
retreads handle any differently to new tyres.
- Because tread pattern design is the main influence on
road noise, there are also good reasons for arguing parity
between new tyres and retreads in terms of noise levels.
The report also produced substantial evidence to support
the assertion that retreads are absolutely safe. Firstly,
the report drew attention to the fact that all retreads by
law are now subject to the same type approval tests as new
tyres. These involve endurance tests, commonly known as drum
tests, which are carried out at the tyre's approved load and
speed rating.
AEAT also point out that the use of retreaded tyres is not
discriminated against by insurance companies on UK vehicle
insurance policies. Bearing in mind the degree of detail used
by insurance companies to calculate risk, AEAT concludes that
this is good evidence to conclude that retreads provide no
safety risk to consumers.
Sheila Ikin, Director of the RMA commented: "We welcome the
findings in the report by AEA Technology, which confirm the
quality and safety of retreaded tyres. We hope that this evidence
will now go some way towards negating once and for all the
unjustly negative image sometimes attached to retreads and
will encourage more consumers to appreciate the safety, economic
and environmental benefits that they offer".
Bandag Acquires Speedco Inc.
Bandag Inc have announced that they have acquired an 87.5%
majority interest in Cayuga, IN based truck lubrication business
Speedco Inc from its founders and Shell Oil products US. Bandag
say the company will be operated as a separate business unit.
Speedco's three founding partners, who retain a 12.5% minority
stake in the business, will continue in their current roles.
Mark Clark, will remain as President and Chief Executive Officer,
Jeff Clark has been named Vice President, Finance and Administration
- Treasurer, and Jim Dudley will serve as Vice President,
Planning and Development.
In total Bandag paid approximately $56 million for its 87.5%
interest and to retire $20.1 million of debt, which resulted
in $0.9 million of interest expense in 2003. Speedco generated
unaudited revenues of approximately $46 million and pre-tax
income of around $4.8 million in 2003. Bandag expects earnings
per share to improve between $0.10 and $0.15 in 2004 due to
the acquisition.
Continental Continues Positive Trend in
First Quarter 2004
Continental AG continued its positive business development
in the first quarter of 2004 with consolidated sales rising
by 8% on the prior year before foreign exchange effects and
changes in the scope of consolidation. Including these factors,
sales increased 5.8% to EUR2,986.1 million (2003: EUR2,821.6
million). "Considering that the dynamics of the global automotive
industry activity remain restrained, this demonstrates our
strong position amongst international competition," according
to Manfred Wennemer, Chairman of the Continental Executive
Board.
EBIT increased substantially to EUR246.7 million, up 34.5%
from last year's figure of EUR183.4 million. Return on sales
amounted to 8.3 per cent compared with 6.5% a year ago. "All
divisions contributed their share," stressed Dr. Alan Hippe,
Member of the Executive Board responsible for finance. Consolidated
net income after taxes went up 48.2% from EUR87.4 million
to EUR129.5 million, with earnings per share rising from EUR0.67
to EUR0.96.
Sales of the Passenger and Light Truck Tyre division were
up 6.8% before foreign exchange effects. Including exchange
rate effects, sales increased by 2.2 % from EUR899.7 million
to EUR919.4 million. Its operating result (EBIT) rose 37.3%
from EUR 56.9 million to EUR78.1 million.
The Commercial Vehicle Tyres division boosted its sales by
9.9 % disregarding foreign exchange effects and changes in
the scope of consolidation resulting from the acquisition
of Continental Sime Tyre. Including these effects and changes,
sales went up 20.0% to EUR339.3 million, compared with EUR282.7
million a year ago.
Looking forward, Wennemer said "We anticipate that total
passenger car production this year will remain at the level
of 2003, and that truck production will rise slightly in Western
Europe and increase strongly in the NAFTA region." Price pressure
will continue, especially in the USA. "For 2004 as a whole,
we are expecting a further increase in our consolidated sales
and operating result before potential restructuring costs
in North America."
Crème de la Crème Customer Care with Café
Dunlop
To be a premium brand you have to offer premium service and
Dunlop's new Café Dunlop is offering customers a taste of
luxury. The first cafés have opened at dealerships in Scotland
and there are plans to open more in England in the future.
Café Dunlop is already enhancing the purchase experience of
these dealership's customers, allowing them to chill out and
enjoy a wide variety of speciality coffees including lattes
and cappuccinos while they have their tyres changed. Dunlop
has also created a specially designed Café Dunlop for events
and exhibitions, allowing people to experience the modern
and edgy Dunlop brand beyond the tyre purchase. With plenty
of comfy seating inside and outside the café, people can sit
and relax with their coffee, enjoy non-intrusive background
music and soak up the atmosphere.The events Café Dunlop will
be appearing at include Le Mans 24 Hrs with the TVR owners
club and the Independent Porsche Owners Club event at Walton
Hall in Warwickshire.
New TIC Promotional Campaign
The Tyre Industry Council has planned a series of radio advertisements
to support the growing number of regional tyre safety campaigns
in the UK. The radio campaigns, featuring 30 second tyre safety
messages, has been made possible by a commitment from the
BRMA tyre company members who have agreed to contribute financially
to the radio advertising campaigns.
The six BRMA members: Bridgestone, Cooper-Avon, Continental,
Goodyear Dunlop, Michelin and Pirelli have agreed to the contribution
for campaigns in the North-East and North-West of England
plus Scotland and Northern Ireland - the major TIC Associates
in each of the regions have agreed to match the financial
contribution. The first series of TIC ads will be heard on
major radio stations in the North-East of England this month
(May) in support of the successful North-East England Tyre
Safety Campaign.
New Website for Avon Motorcycle Tyres
Cooper-Avon Tyres has launched a new website geared to motorcycle
enthusiasts and buyers of Avon motorcycle tyres. The graphically
intense site, www.avonmotorcycle.com,
provides visitors with an opportunity to select their region
of the globe and find the Avon Motorcycle tyres available
to them.
Riders can also access the online fitment guide to select
the tyre that is best suited to their modern or classic bikes.
They can then use the dealer locator facility to find their
nearest Avon stockist. Users can also access tyre maintenance
tips, which include information on the importance of running
tyres at the correct pressures, tread pattern depths and visual
inspection of tyres.
For the keener enthusiast, there is information on tyre identification,
construction, manufacturing and even an insight into a day
in the life of a tyre tester. Plus there is all the news on
the latest Avon motorcycle products and developments. Currently
available in English, major European language versions of
the site will be available later this year.
British Land Speed Record Team in New
World Record Attempt
On June 9th a British team will attempt to make history by
doing over 300 mph in an electric car. The Primetime Engineering
team - holders of the outright British Land Speed Record in
their jet car - travel to the Chott-el-Jerid salt flats in
Southern Tunisia to make an attempt on the 245mph World Electric
Land Speed Record.
Driver Mark Newby and Engineer Colin Fallows will be taking
their 'ABB e=motion' car to Tunisia in an attempt to outdo
all comers. It has already achieved 146mph in just 1,000 yards
(the longest distance available to the team in the UK). 'ABB
e=motion' went faster in just over half a mile than the current
139mph UK electric record holders did after a 2 mile run up,
so hopes for a new World Record are high. One of these 146mph
passes was made 'live' as part of a special feature on the
BBC's Six O'Clock Evening News last Autumn.
The 650hp car is 32' long, and, according to computer simulation,
should be capable of 304mph. 'ABB e=motion', designed, built
and developed by Colin Fallows, features two spindle motors
available from ABB controlled by an ABB ACS 800 drive unit.
Power is supplied by 58 Exide Technologies/CMP Orbital Series
800 batteries delivering a total of more than 600v and 2300amps.
Final drive to the 25" tall Goodyear Landspeed tyres is via
a bespoke belt and pulley system designed by Poole-based Transmission
Developments. 'ABB e=motion' leaves Dover on June 1st for
the overland journey to Tunisia, and the Record Attempt will
take place on June 9th at the special track provided by the
Tunisian authorities near to the southern town of Tozeur.
Michelin Posts 3.9% Sales Growth in First
Quarter
Michelin has taken advantage of better than predicted worldwide
tyre markets advancing net sales for the first quarter of
2004 by 3.9% over the same period in 2003 to 3.8 billion euros.
This is reflected in a 7.6% sales volume expansion. Michelin
warns however, that various non-recurring factors have contributed
to this advance. Ahead of indicated price increases, dealers
across the globe have expanded their inventories. In North
America the market has recovered as the economy shakes off
the effect of the Iraq conflict in the first quarter 2003.
In France particularly, the implementation of the 'End-of-life
Tyre Disposal Legislation' from March this year has seen distributor
stocks expanded to meet predicted purchasing. This good start
to the year may indicate that global markets can post better
growth than had initially been anticipated. However, the continued
upward costs of raw materials and the pressures of currency
exchanges do not allow this improvement to be confirmed ahead
of results. In Europe the car and light truck market showed
a 5.3% improvement over the same period in 2003 whilst the
truck replacement market in Western Europe advanced by 6.9%.
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