Big O helps TBC earnings MEMPHIS, Tenn.—Riding an 8-percent increase in tire shipments to independent dealers, TBC Corp. announced increased fourth-quarter and year-end sales and earnings.
Net income for the Memphis-based company rose 35.4 percent to $4.15 million in the fourth quarter, ended Dec. 31. Sales grew 28.2 percent to $165.7 million.
The fourth quarter was the first full quarter in which TBC received a contribution from recently acquired Big O Tires, said President and CEO Louis S. DiPasqua.
The strong ending quarter helped boost year-end sales 10.4 percent to $604.6 million. Net earnings for the year, however, rose only 1.6 percent to $15.5 million.
Legal troubles hurt Brad Ragen
CHARLOTTE, N.C.—A number of adverse legal settlements in 1996 contributed to a year-end loss of $2.9 million for Brad Ragan Inc.
President and CEO Michael R. Thomann said the loss was anticipated following a $4.8 million pretax charge against earnings in the second quarter for costs and expenses associated with the settlement of two class-action lawsuits related to the company's retail installment credit sales.
Sales for the year, ended Dec. 31, rose less than 1 percent to $252 million.
In the fourth quarter, the company reported a net loss of $563,000, despite a 4.3-percent increase in revenues to $64 million.
Toyo seeking OE contracts in U.S.
CYPRESS, Calif.—Toyo Tire & Rubber Co. is looking to become an original equipment tire supplier in the U.S.
The parent of Cypress-based Toyo Tire (U.S.A.) Corp. said it plans to open an office in Detroit in early March with the objective of developing a position as a supplier of original equipment tires and automotive parts to American and Japanese automakers for vehicles produced in the U.S.
Toyo currently supplies OE tires for Infiniti, Mazda, Mitsubishi, Nissan and Toyota vehicles made outside the U.S.
``We look forward to extending our OE presence by providing tires of the highest quality for vehicles produced in the U.S. as well," said Kazuo Nagai, president of Toyo Tire (U.S.A.).
Staffing the new Toyo OE office will be Tetsuya Kunida, senior manager and current OE coordinator for Toyo Tire (U.S.A.), and Mogens Andreassen, manager.
The new office will be located at 26200 Town Center Dr., Suite 135, Novi, Mich. 48375. Phone: (810) 449-86-96; Fax. (810) 449-1682.
Sumitomo lowers profit forecast
KOBE, Japan—Sumitomo Rubber Industries said it expects full year profits for 1996 to be about $72 million (9 billion yen), about the same as the previous year, but 10 percent below earlier forecasts.
Tire revenues are expected to show a 6-percent increase, to $1.28 billion (159 billion yen) despite lower prices and higher raw material costs, thanks to the weakened yen.
Michelin N.A. wins ad award
GREENVILLE, S.C.—Michelin North America won a gold award in the recent Outstanding Merchandising Achievement competition for its X-One tire moving-image display.
Featuring the Michelin "baby" in three separate poses, the display employs ``dissolve unit'' technology to show the babies in different weather conditions, touting the X-One's wear and road-handling abilities, Michelin said.
More than 1,500 point-of-purchase displays were entered into the contest, hosted by the Point-of Purchase Advertising Institute.