News from Notch Consulting, Inc.

August 12, 2020

Earnings down double-digits for Toyo 1st half sales

Filed under: Auto, General, Tires — Notch @ 8:39 pm

On August 7,

Toyo Tire released financial results for the second quarter of fiscal year 2020, projecting double digit declines.  Toyo posted 48.3% lower operating income for the six months ended June 30 on 15.7% lower sales. The company’s operating ratio fell from 8.6% to 5.3% and operating income fell to $73.4 million on sales of $1.39 billion. Net earnings fell to $4.8 million, down from 93.1%. Negative effects of lower sales and higher production costs were cited for the decline. Toyo said that tire demand hit bottom in April, and the replacement market has begun to recover in some regions, including North America. As auto manufacturers have resumed production, the size of the demand decline for tires for new vehicles has been shrinking.

Festival of Automotive to be held virtually for 2020

Filed under: Auto, Conferences, General — Notch @ 7:56 pm

The Festival of Automotive conference will be held virtually next week from August 18-20. The meeting will encompass both the WardsAuto Interiors Conference and the WardsAuto UX Conference. Registration is now open for the 3-day event, which features informative sessions and insightful speakers.

Bridgestone expects 2020 sales to drop 23% year-on-year

Filed under: General, Tires — Notch @ 7:53 pm

On August 7, Bridgestone Corporation released financial results for the first half of 2020, attributing the negative effects of the COVID-19 pandemic for the 68.3% drop in operating income. Bridgestone forecasts the trend will continue for the full year, with sales falling about 23% shy of fiscal 2019 revenue.  Bridgestone reported a net loss of $203.7 billion, with an operating income of $477.2 million for the first half of the fiscal year on sales of $16.1 billion. Primary reasons for the lower earnings include reduced volumes and currency depreciation impacts. Gains from lower raw materials and operating expenses and improved price/mix effect helped offset the negative factors. Bridgestone noted a “particularly large depression in European and North American markets,” which prompted ongoing caution with regard to market conditions in those regions despite signs of recovery since the beginning of June 2020. The company said it expects moderate recovery in the near term but a “demand drop due to 2nd wave of COVID-19 forecasted over Q4,” with less impact of second wave expected compared to first wave.

 

Notch updates Carbon Black World Data Book

Filed under: Carbon Black — Notch @ 8:56 am

Notch Consulting has published a new annual edition of the Carbon Black World Data Book, the most widely read and referenced report on this $16 billion industry. The report provides extensive proprietary data on carbon black capacity, capacity utilization, production, trade, markets, and pricing. The subscription package includes the annual report (with Excel spreadsheet), quarterly supply and demand updates (October 2020, January 2021, April 2021), monthly pricing, and special topic reports. The new report includes a special report on the effect of COVID-19 on tire, rubber, and carbon black markets. Here is an overview. For more information or samples, contact Notch.

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