Michelin sells 3 warehouses
NEW YORK-Michelin North America Inc. has sold three of its warehouses-two in the U.S. and one in Canada-for nearly $50 million to a real estate investment trust as part of its plan to outsource distribution.
Michelin disclosed in early August it was going to outsource its distribution in the U.S. and Canada, signing a six-year, multi-million dollar agreement with TNT Logistics North America.
In mid-August, Michelin sold its distribution centers in Laurens, S.C., Temperence, Mich., and St. Albert, Alberta, to units of Lexington Corporate Properties Trust, a New York-based real estate investment trust. Lexington then signed multi-year lease arrangements with TNT Logistics.
Lexington, through a joint venture with an unnamed institutional investor, paid $45.9 million for the Laurens and Temperence facilities, which combined occupy 1.91 million square feet.
In Canada, Lexington Realty Advisors Inc. bought the 123,000 sq.-ft. St. Albert warehouse for $2.9 million and is now leasing it to TNT.
In early August, TNT took over operation of Michelin's 18 tire distribution centers in the U.S. and Canada-occupying a total of 7 million square feet of space.
Yokohama to break even in 2003
TOKYO-Yokohama Tire Corp. expects to trim its losses this year to $9 million and break even in 2003-three years earlier than previously hoped for-parent Yokohama Rubber Corp. Ltd. said in its fiscal 2002 annual report.
Yokohama Tire cut its loss this past year to $19.1 million from $79.8 million in 2000, the company said, as the unit pared down manufacturing costs and expanded sales of higher value high-performance tires.
Yokohama Rubber's sales in North America rose 12.1 percent last year to $555 million, the report said. Operating earnings were $4.35 million vs. a loss of more than $13 million a year earlier.
The company also plans to improve its bottom line by lowering interest-bearing debt and logistics and fixed costs.
The $79.8 million net loss in fiscal 2001 included a charge of $38.5 million to cover the write-off of Yokohama Tire's goodwill, a move made to ``ease financial burdens for years to come.''
On a corporate basis, Yokohama Rubber reported net income of $58.9 million on sales of $3.2 billion for the year ended March 31. Operating income of $181.5 million was a 14.4-percent improvement over fiscal 2001.
Ford to change tire labels on SUVs
DEARBORN, Mich.-Ford Motor Co. will mail new tire pressure labels to owners of 81,774 two-wheel-drive Ford Expedition and Lincoln Navigator sport-utility vehicles.
The recommended pressure for the rear tires is 33 psi, whereas the old labels erroneously said 30 psi, Ford said. The front-tire psi is listed correctly at 26 psi, the auto maker added.
Some of the vehicles involved in this action are also the target of Continental Tire North America Inc.'s recall of more than 595,000 Continental ContiTrac and General Grabber tires, but the timing of the two actions is a coincidence, a Ford spokesman said.
Michelin begins fall promotion
GREENVILLE, S.C.-Michelin North America Inc. is offering consumers its newest travel publication and a set of Samsonite luggage free with the purchase of any set of Michelin brand tires.
Between Aug. 25 and Oct. 5, Michelin tire buyers will receive the Michelin North America Road Atlas and Samsonite Wheeled Carry-On luggage. The atlas and carry-on represent more than $120 in added value. In addition to supplying the carry-on, Samsonite is also giving participating consumers the opportunity to order a three-piece luggage set to complement the free carry-on at $129.95.
``We wanted to accentuate the fact that our tires and our travel publications are each great on their own, but together they make an unbeatable combination,'' said Sylvie Masclaux, Michelin brand promotions manager.
Toyo opens Pa. warehouse
CYPRESS, Calif.-Toyo Tire (U.S.A.) Corp. is expanding its presence in New England and along the eastern Seaboard with a new warehouse, in Allentown, Pa., which started operations Aug. 12.
The leased 93,600-sq.-ft. distribution center will serve dealers in New York, New Jersey, Pennsylvania, Maryland, Virginia, Delaware and throughout New England, according to Toyo.
It is the company's fifth warehouse in the U.S., joining centers in Nashville, Ill., Ontario, Calif., Atlanta and Dallas.