Despite the continuing slowdown in the United States and Europe and the rise in raw material costs, many tyre makers could achieve impressive results during the first six months of the year 2012-13.
Michelin
Michelin's net income increased 37.2 % during the first half of the current financial year, even though its sales increased only 5.95 % during the period. The French tyre maker’s net sales in the six months to June 30 amounted to 10.71 billion euros, up from 10.11 billion a year earlier. From this total, 5.5 billion euros was generated from the sale and distribution of passenger car and light commercial vehicle tyres, 3.27 billion from truck tyres, and 1.9 billion from speciality businesses. Operating income rose 35.9 % to 1.32 billion euros and operating margin grew from 9.6 % to 12.3 %. Net income for the period increased from 971 million euros in the first half of 2011 to 1.42 billion euros.
Goodyear
Goodyear Tire & Rubber Company nearly doubled its net income to $92 million for the second quarter despite net sales revenue dipping 8.4 % to $5.15 billion and tyre unit volume falling 9 %. Goodyear’s sales for the first six months of 2012 were $10.7 billion, down 3 % from $11 billion in the 2011 period.
North American Tire’s second quarter 2012 sales increased 2 % from last year to $2.5 billion, a second quarter record. Europe, Middle East and Africa Tire’s second quarter sales decreased 18 % from last year to $1.6 billion. Latin American Tire’s second quarter sales decreased 21 % from last year to $503 million.
MRF
Tyre manufacturer MRF Ltd has posted a 4.5 times rise in net profit for the third quarter (April-June) to Rs 14.46 million from Rs 3.20 million in the year-ago period. Total income for the quarter stood at Rs 300.83 million against Rs 257.31 million.
For the nine-month period ended June 30, net profits rose 81.9% to Rs 40.76 million from Rs 22.40 million in the same period last year. Total income grew to Rs 887.66 million from Rs 712.34 million during the nine-month period.
In view of the decline in natural rubber prices in recent months, operating margins expanded from 5.9 % last year to 10.7 % this quarter. The company said its Board of Directors have approved an interim dividend of Rs 3 per equity share.
Pirelli
Pirelli closed the first half of 2012 with revenues of 3,021.8 million euros, an increase of 8.3 % compared with the 2,789.3 million euros published for the same period in 2011. Pre-tax profits (EBIT) after restructuring charges came in at 400.7 million euro, an increase of 38.1 % compared with 290.1 million euros in the first half of 2011.
Titan
Titan International reported record second quarter sales and operating profit. Sales during the three months to June 30 were at US$459.2 million, 14 % higher than in the corresponding quarter of 2011. Gross profit increased 28 % to $82.1 million, or 17.9 % of net sales. Second quarter income from operations was $81.0 million, up 82 % compared with last year’s second quarter result of $44.4 million. Adjusted net income for the second quarter was $28.8 million, compared to $23.7 million in the second quarter of last year.
JK Tyre
JK Tyre & Industries closed the first quarter with a net sales of Rs.14,430 million against Rs.14,088 million in the year-ago period. The net profit was Rs.247 million (Rs.110 million). "There has been a considerable improvement in profitability due to various steps such as enhancing our focus on higher realisation market segments and launching many new products apart from several cost compression measures," JK Tyre & Industries Vice Chairman & Managing Director Raghupati Singhania said.