Nitto Tire U.S.A. Inc. has hired Jeff Bootz as vice president of sales. Bootz comes to Nitto Tire from its sister company, Toyo Tire U.S.A., and he begins his new role with Nitto on May 1, 2017.
Goodyear Tire & Rubber Co. reported a net loss of $58 million on net sales of $4.5 billion for its first quarter ended March 31, 2014. That compares to income of $26 million on sales of $4.9 billion for the same period last year.
Goodyear attributed the net loss to a Venezuelan foreign currency charge. “Despite the Venezuelan charge in the quarter, our operating results remained strong and in line with our expectations and we are reaffirming our 2014-2016 financial targets,” says Richard Kramer, chairman and chief executive officer.
Segment operating income was up 24% quarter to quarter, from $302 million to a record $373 million. Goodyear says the growth in segment operating income shows its strategy is working.
The company says first-quarter 2014 sales reflect $202 million in lower sales in other tire related businesses, most notably third-party chemical sales in North America; $126 million in unfavorable foreign currency translation; and $98 million in lower price/mix, principally due to lower raw material costs, partially offset by $44 million in higher tire unit volumes.
Here are the first-quarter 2014 results for the North American Tire business unit (with the comparison to 1Q 2013 in parentheses).
Tire units: 14.6 million (down 1.3%)
Sales: $1.9 billion (down 13.2%)
Segment operating income: $156 (up 22.8%)
Segment operating margin: 8.3% (versus 5.9%)
Goodyear says the 13% decrease in North America’s first-quarter 2014 sales reflect a 1% decrease in tire unit volume, mainly related to adverse winter weather conditions; lower price/mix; and a $201 million decline in sales in other tire-related businesses, most notably third-party chemical sales. Original equipment unit volume was down 5%. Replacement tire volume remained flat.
North America’s first-quarter operating income of $156 million was a 23% improvement over the prior year and a first-quarter record. Operating income was positively impacted by lower conversion costs of $47 million and favorable price/mix net of raw materials of $3 million.
“While our global presence exposes us to significant foreign currency fluctuation along with other economic volatility, the strength of our North American and European businesses more than offset several headwinds in our emerging markets, including the impact of Venezuela on our Latin American business,” Kramer said in an investor conference call.
Kramer told investors that the extreme cold weather in North America affected sales of some of the company’s biggest OE and replacement customers and reduced volumes by 9% in the month of January. The situation improved throughout the quarter with March volumes increasing 5%. The momentum carried into April with Goodyear seeing volume strength similar to the latter part of 2013, according to Kramer.
“As we assess volumes in North America, we believe the first quarter was simply a pause in what we see as improving tire demands in 2014. Not only did we see strong shipments in March, but we also saw Goodyear brand share growth in the quarter.”
The company reaffirmed its 2014-2016 financial targets, which include segment operating income growth of between 10% and 15% per year. Additionally, the company expects a 2% to 3% increase in unit volumes for 2014 over 2013.
Rising raw material costs significantly affected Cooper Tire & Rubber Co.'s financial results for the worse in the first quarter of 2017.
Toyo Tire U.S.A. Corp. is adding F-load range tires to the brand’s Open Country line of light truck products to meet the needs of late model truck owners and dealers.
What does it take to be Modern Tire Dealer's Tire Dealer of the Year? Business success, marketing know-how and industry expertise are the foundation. Community involvement and management skills are important, too. And our 2017 award brings something special to the recognition.
Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Recently we asked, "Do you sell tires to consumers online via your website?"
Meineke Car Care Centers LLC honored its top owners and operators during its annual convention, including the group's first three-time winner of the Franchisee of the Year award.
TBC Brands LLC has introduced the first studdable winter tire for the Sumitomo brand. The Sumitomo Ice Edge is certified for severe snow performance and will be available in 57 passenger, CUV and SUV sizes for the 2017 season.
Net sales for Michelin Groupe were up 9.9% in the first quarter of 2017, led by early buying of tires ahead of the company’s price increase which went into effect April 1.
Big O Tires LLC franchisees celebrated growth in all business metrics at their annual convention April 4-5, 2017, in San Diego, Calif.
The nation’s largest network of independent tire dealers increased overall passenger and light truck tire unit sales in 2016 by 7.8% and same-store sales by 5.5%. With a net gain of 44 new Tire Pros stores last year, Ron Sinclair reminded dealers, “We have power!”
The tire pressure monitoring system (TPMS) on 2007 to 2016 GM/Cadillac Escalade Series system uses the remote control door lock receiver (RCDLR), body control module (BCM), four radio frequency (RF) transmitting pressure sensors, and the serial data circuit to perform the sensor learn mode functions.
The new BFGoodrich Winter T/A KSI from Michelin North America Inc. is designed for passenger and crossover utility vehicles (CUVs) in the Canadian market.
Registration is open for ASA Automotive Systems Inc.’s 2017 Software User Conference and Info Expo in St. Louis, Mo., scheduled for April 30 to May 2.
Bosch Automotive Service Solutions has released Bravo 2.9, the latest update to its diagnostics software for the OTC Encore professional scan tool.
Women in Auto Care, formerly the Car Care Council Women’s Board, has released a new website as part of its recent rebranding initiative.