Pirelli earnings slump slightly MILAN, Italy—Despite lower sales, price erosion in key markets and the negative effects of currency exchange rates, Pirelli S.p.A.'s tire sector reported slightly lower operating earnings for the nine months ended Sept. 30 vs. those of a year earlier.
Pirelli's tire unit reported consolidated operating earnings of $151.6 million, down 2.8 percent from 1998, while sales slipped 7.3 percent to $2.06 billion.
The sales decline reflects in part the loss of business in the agricultural tire sector, which now is part of a joint venture majority owned by Sweden's Trelleborg A.B.
Overall, Pirelli's sales increased 15 percent to $5.08 billion, while profits dropped 12.5 percent to $248 million.
TANA expands its tire training
LAS VEGAS—The Tire Association of North America is expanding its Internet-based training for mounting and demounting passenger and light truck tires.
A new training course will be available to all businesses that have a computer with a CD-ROM and will reduce the costs of training tire technicians, TANA said.
The CD-ROM training program has four sections: Tire and Wheel Terminology, Tire and Wheel Service, Wheel Assembly Balancing and Radial Tire Repair. The program features a pre-test, practice test and a final test.
The software also includes:
The latest updates from industry leaders and tire technician experts;
A user-friendly format; and
Affordability. The CD-ROM is free for TANA members and costs $199 for non-members.
Maxxis to fit Ford OE spare
LAS VEGAS—Maxxis International USA has gained its first North American original equipment contract.
Maxxis will supply the temporary spares on the 2000 models of the Ford Crown Victoria and the Mercury Grand Marquis.
Maxxis, a division of Taiwan's Cheng Shin Rubber Inc., also has signed an agreement with PACE Motor Sports that will make Maxxis the official light truck tire of the 2000 American Motorcyclist Association EA Sports Supercross Series.
The firm will use the sponsorship efforts to promote its Bravo Series of truck tires and increase its brand awareness.
Bridgestone buys stake in venture
SEOUL, South Korea—Kumho Group has agreed to sell its share of a tire-making joint venture in Tianjin, China, to Bridgestone Corp. for an as-yet undisclosed price.
The agreement comes after Kumho failed to reach a joint venture agreement with Italy's Pirelli S.p.A. for the financially strapped tire unit and coincides with Bridgestone's failure to get Chinese government approval for a new factory.
The transaction would give Bridgestone two plants in China, following its purchase earlier this year of majority control of Shenyan Santai Tire Co. Ltd.
ACCC celebrates 10th anniversary
LAS VEGAS—American Car Care Centers observed its 10th anniversary Nov. 1 at the MGM Grand Hotel in Las Vegas during Automotive Aftermarket Industry Week.
A total of 450 attendees, including 300 dealers, came to mark the milestone, according to Dave Crawford, ACCC director of marketing. The group honored its 74 charter members and looked back at its programs and accomplishments in the past decade.
The marketing group's five original members included American Tire Distributors, Strauss-Frank, Siegel Tire, Wholesale Tire Distributors and Bauer-Built Inc.
"It's come a long way," Mr. Crawford said. "A lot of it was just ideas. Today, it's a rock solid program. It's got true, bottom-line advantages for the dealer that comes on the program."