Summarize： www.chinabuses.org: Since entering August of 2013, global tyre giants began to release their financial reports of the first half year. Despite of rising and falling data, all enterprises are optimistic about the market performance in the second half and financial reports also do prediction about the annual accomplishment.
Michelin, France: Decline in business
On Aug.1st, Michelin released its financial reports of the first half of which the whole data was not that excellent.
Influenced by the downturn first-quarter sales volume, the whole sales income of Michelin in the first half decreases 5.1% to 10.159 billion Euros compared to the same period of 2012. With falling price of tyre, net profit decreases 44.6% to 507 million Euros
Michelin tyre sales volume of the first half decreases 1.5%. Furthermore, sales volume of the first quarter decreases obviously 4.3%. Benefiting from recovering European and American market demanding, its sales volume turns to positive with increasing 1.2%.
Based on market segments, net sales of Michelin passenger car and light truck tyre, and other relative distributed business is 5.321 billion Euros showing decreasing sign year on year. It is analyzed that all of these is because of relocating of targeted price. Additionally, it is also influenced by contract price modulation and decreasing sales volume.
Net sales of truck and relative distributed business are 3.121 billion Euros decreasing a little bit. The two main reasons are the decreasing raw material price and product price, and unfavorable currency effect and decreasing sales volume of original and replacing tyres.
What’s more, influenced by price modulation, falling sales volume and unfavorable currency effect, net sales of special tyre business decrease 11.3% to 1.717 billion Euros.
In spite that downturn has become the theme of the first half year, Senard, CEO of Michelin, said, “Performance of Michelin in the first half accords with our goal of 2013.” And as for the recovering sales of European and American market, Michelin predicted that the sales of the second half would be better than the fist half. On account that decrease of raw material cost would offset tyre price, profit of the second half is expected to bounce.
Continental, Germany: Decreasing profit percentage
Recent released data by Continental shows that sales in the first half of 2013 exceed 16.5 billion Euros increasing 0.44% year on year. Its EBIT decreases 1.4% to 1.6 billion Euros and its profit percentage is 9.8% lower than 10.0% of 2012. Adjusted EBIT decreases 4.2% to 1.8 billion Euros than the same period of last year.
In the first half year, automobile group achieves sales of over 10 billion Euros with adjusted profit percentage of 7.8% lower than 8.3% of 2012. Rubber group realizes its sales of 6.5 billion Euros with adjusted profit percentage of 16.3%, which is the same compared with 2012.
Elmar Degenhart, President of Board of Executive Director of Continental, said that sales of Continental in the third quarter would keep its stable increasing trend. In the second half of 2012, increase of Asian market and NAFTA would slow down to the standard. Furthermore, since tyre market demanding becomes weak, price of natural rubber and synthetic rubber would decrease which would offset about 300 million Euros economic burden of rubber group.
Recently, Continental established its goal of this financial year: adjusted EBIT exceeds 10% with sales increasing to 34 billion Euros.
Goodyear, the United States: Record revenue
Revenue of Goodyear in the first half is 730 million USD, increasing 16% as a new record.
It is analyzed that combined effect of decreased raw material price an product price contributes 250 million USD revenue to Goodyear. In addition, cost-saving measure against inflation contributes to revenue of 73 million USD, which totally offset increasing cost, decreased sales volume and changeable exchange rate.
It is released from Richard Kramer, CEO & President of Goodyear that the company estimated that tyre sales volume would keep the same as 2012. Record global revenue of 2013 would be about 1.5 billion USD. Continuous improvement of emerging markets and stable recovery of mature markets would contribute 3% to 5% sales increase in the third quarter.
Sumitomo Rubber, Japan: Sales increase
Sumitomo Rubber has not released its financial report of the first half of 2013 but has estimated its revenue of 2013.
According to estimated data of Sumitomo Rubber, its revenue of 2013 would be 7.62 billion USD, increasing 7% compared to the same period of 2012. Its revenue profit and net profit would be 73.1 million USD and 41 million USD respectively, increasing 5% and 16% respectively.
Among different business departments, sales of tyre department would be estimated to increase 7% to 6.63 billion USD with a 5% increase of profit year on year. In accordance with analysis, such an prediction is based on increasing demanding of overseas parts market and replacing tyre market. However, the two markets mentioned above may be decreasing the demanding in Japan.
Moreover, increase of tyre business benefits from its capacity expansion. In 2013, global capacity of Sumitomo Rubber would improve 4% to 51.6 million tons.
