Global rubber prices tumbled towards their weakest in more than five years, as Thailand, world’s top producer, plans to clear the stocks it had purchased from farmers to support prices, ratcheted up pressure in an already depressed market. Benchmark Tokyo rubber futures today sank more than 3% in May contract. In all the 6 contracts, commencing from May, prices have dropped in a range of 1-3%. Thailand had planned to release about 200,000 tonnes of…
HANOVER, Germany—Continental A.G. reported double-digit gains in operating and net income for the quarter that ended March 31 on 4.4 percent better sales. Pre-tax operating income rose 21 percent to $1.25 billion on sales of $11.6 billion, yielding an operating ratio of 10.8 percent, an increase of 1.5 percentage points from 2013. Net income jumped 33.3 percent to $813.3 million, Conti reported. “In the opening months of the year, we once again demonstrated that we…
KUALA LUMPUR: Hartalega Holdings Bhd’s net profit was lower at RM49.1mil in the fourth quarter ended March 31 against RM62.2mil previously due to a reduction in average selling prices (ASP), among others. The glove manufacturer said its operating profit margins reduced from 29.5% to 23.9% due to a reduction in the average selling price, higher staff cost due to recruitment for the Next Generation Integrated Glove Manufacturing Complex (NGC) project, and an increase in electricity…
(Reuters) – After years of massive expansion, tearing up forests and swallowing land in neighboring countries to create rubber plantations, Vietnam is reaping what it sowed: a swelling of output that has made it the third-largest rubber producer. Later this year rubber farmers will tap maturing trees from new plantations, but with global oversupply and limited storage capacity, Vietnam’s burgeoning output could spark a price war in a market already at multi-year lows. With little…
ULYANOVSK OBLAST, Russia—Bridgestone Corp. broke ground in Ulyanovsk Oblast on its planned $375 million passenger tire plant, which is scheduled to start production in the first half of 2016. The firm said production capacity is expected to reach roughly 12,000 units a day by the second half of 2018. The plant will produce radials primarily for markets in Russia and neighboring countries. A measurable portion of the output will be winter tires. The Japanese tire…
Rubber production in Thailand, the world’s biggest supplier, will probably increase for a fourth year in 2014 because of an increase in acreage, according to the Office of Agricultural Economics. Output may rise 4.3 percent to 4.03 million metric tons from a year earlier, the Bangkok-based office said in a statement today. Tapping area is expected to increase to 15.8 million rai (2.5 million hectares) from 11.6 million rai in 2009, it said. Futures traded…
KUALA LUMPUR: The cooperation between the three major rubber producers – Malaysia, Indonesia and Thailand – in the form of International Tripartite Rubber Council (ITRC) is expected to stabilise the declining price of natural rubber. Plantation Industries and Commodities Minister Douglas Uggah Embas said the ITRC is a forum to discuss the stabilisation of rubber production and help strengthen rubber prices. “The ITRC had proposed the implementation of agreed export tonnage scheme to control exports…
Nexen Tire has confirmed it is investing $800 million in the construction of a new tire factory in the city of Nosovice, Czech Republic. Tyres & Accessories understands that the factory will be on-stream by the end of 2017 and will initially manufacture some 6 million passenger car, van and SUV tires per year. The scale of the factory is described as covering some 660,000 square meters. Nosovice itself is described as a village with…
Double Coin Holdings has posted operating revenue of about CNY 14.33 billion for 2013, up 18.4% from the previous year. The company attributed the increase to expanded production of tires at its Anhui branch, as well as products and increased trades of other subsidiaries. Net profit attributable to shareholders rose by 4.6% to CNY 306 million. Earnings per share was CNY 0.344. Double Coin said it projects sales of 7 million steel-belted tires in 2014,…
FRANKFURT, Germany—Continental A.G. management expects to report improved operating income in the first quarter on 3- to 4-percent higher sales, CEO Elmar Degenhart told a gathering of business media today in Frankfurt. The company’s start leaves management “confident as regards the outlook for fiscal 2014,” Degenhart said, noting that Conti expects global demand for consumer and commercial vehicles to rise about 2 percent this year. Conti’s goal for 2014 is 5-percent sales growth, he said….
