MRTI, Kumho raise prices
AKRON-Michelin Retread Technologies Inc. (MRTI) and Kumho Tire U.S.A. have announced price increases.
MRTI will increase its prices by an overall average of 6 percent on retread rubber products sold in the U.S. due to the continued escalation of raw material costs. The price hike will go into effect on April 1.
Kumho will raise prices on its passenger, light truck and commercial truck tires, effective May 1. The price increases will range from 3 to 5 percent depending on the tire line. David Hudrlik, vice president and director of sales for Kumho, cited continuing price increases for raw materials and rising shipping costs as the reasons for the price hikes.
Kumho last raised prices in November 2003.
Goodyear reduces debt, raises capital
AKRON-Goodyear has completed its $650 million private offering of senior secured notes, allowing the tire maker to pay down some debt and fund general corporate expenses.
Goodyear said proceeds of the notes were used to repay the remaining amount outstanding under the firm's U.S. term loan facility, reduce its $750 million U.S. revolving credit facility to $680 million, as well as for general corporate purposes. The notes, due in 2011, include $450 million of senior secured notes at 11 percent and $200 million of senior secured floating rate notes.
The completion of this financing is in addition to a recently negotiated $650 million term loan that was added to last year's financing package.
Akron-based Goodyear also missed its March 15 deadline to file its 2003 10-K as its investigation continued into possible improper accounting issues in Europe. The tire maker also has yet to file its amended 2002 10-K following last year's restatement of more than five years worth of earnings. The SEC has launched a formal investigation into that restatement.
TIA accepting board nominations
BOWIE, Md.-The Tire Industry Association (TIA) is accepting nominations for service on its 2004-2005 board of directors and for the position of secretary.
There are 10 three-year board positions open and three one-year slots available, the association said.
``Any member in good standing or an official representative of a state tire dealer association may recommend another member in good standing,'' explained TIA President Larry Morgan. ``Self-nominations are also welcome.''
To be eligible for the position of secretary, an individual must have served on TIA's board for two consecutive years at the time of election.
All nominations should be submitted by April 16 by completing and returning to TIA the board of directors nomination form, available on the group's Web site, www.tireindustry.org., or by calling TIA at (800) 876-8372 or (301) 430-7280 to request a board nomination form.
Insurance costs rise for Cooper
FINDLAY, Ohio-Cooper Tire & Rubber Co. last year spent $10.3 million more in insurance premiums after it went to a new insurance structure when its old policy expired, the tire maker said in a report to the Securities and Exchange Commission.
The change, which included the establishment of a captive insurance company, increased Cooper's coverage by $35 million, the company said.
Cooper said in its 10-K filing that it had established a new excess liability insurance program in April 2003.
The program covers product liability claims on or after April 1, 2003, and is occurrence-based coverage. Premium costs for coverage in excess of the self-insured amounts were $10.3 million higher than under the previous program.
Coker to receive Meguiar's award
IRVINE, Calif.-Joseph ``Corky'' Coker, president of Coker Tire Co. and current chairman of the Specialty Equipment Market Association (SEMA), has been chosen to receive the 2004 Meguiar's Award.
Sponsored by Meguiar's Inc., an Irvine-based maker and marketer of vehicle surface care products, the award honors the Collector Car Hobby's Person of the Year.
Candidates are evaluated on their contribution to the growth, quality, visibility and respectability of the hobby, plus their assistance with federal, state and local legislation affecting the hobby and their overall community involvement.
Mr. Coker will receive the award June 19 at a gala event at the Kodak Theater in Hollywood, Calif.