Yokohama’s tyre business’ Q12020 earnings dent due to COVID 19 impact

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  • May 23, 2020
Yokohama’s tyre business’ Q12020 earnings dent due to COVID 19 impact

Yokohama reported a decline in the sales and business profits for its tyre segment for the first quarter, ending March 2020.

The company’s tyre business’ sales declined 12.71% to 87.410 billion yen in Q12020.  It reported a net loss of 503 million yen in Q12020.

The company said the downturn in business profit reflected a decline in unit sales volume, an increase in production costs associated with reduced production volume, and inventory-adjustment costs occasioned by a tyre recall in North America.

Both domestic and international markets saw a fall in sales. “That decline reflected production adjustments necessitated by a decline in Japanese demand associated with the novel coronavirus (COVID-19) outbreak and by suspended operation at vehicle plants in overseas markets,” said Yokohama.

Sales revenue also declined in replacement tyres. Sales of winter tyres in Japan were weak on account of warmer-than-usual winter temperatures at the outset of the year, and Japanese business in replacement tyres also suffered from the adverse effect of the COVID-19 outbreak on consumer spending. Business in replacement tyres was generally sluggish in overseas markets, too.
ATG, a part of Yokohama looking into agri, industrial and OTR tyres, also had a fall in sales and profits due low demand.

ATG’s sales stood at 15.54 billion yen in Q12020,  a fall of 17%, from 18.86 billion yen in Q12019. Profit fell by 22% to 1.78 billion yen in Q12020.

The massive business disruption caused by COVID-19 will necessitate revisions in the full-year fiscal projections that Yokohama issued in February 2020. However, the full extent of that disruption is impossible to determine at this time, and the company will therefore withhold for the time being the release of revised business projections and of proposed dividends. Yokohama will release its revised business projections and proposals for dividends as soon as management secures a firm grasp of the fiscal outlook.

Several measures are under way at Yokohama to maintain a sound financial position in the face of the COVID-19 challenge. Those measures include fortifying short-term liquidity through optimal fund raising, paring cash expenditures by deferring capital spending and trimming costs, and reducing compensation for directors, officers, associate officers, and managers.

 

AZuR Welcomes NRW Strategy's Explicit Focus On Used Tyres

AZuR Welcomes NRW Strategy's Explicit Focus On Used Tyres

The AZuR network has welcomed North Rhine-Westphalia’s first circular economy strategy, viewing the explicit inclusion of used tyres as confirmation of its longstanding engagement. The strategy aims to move the state from linear value chains towards a circular economy and strengthen its position as a leading European location for such practices, with priority areas spanning circular construction, chemicals, technology, circular cities and a high-performing secondary raw materials sector.

Used tyres occupy a dedicated page within the strategy, granting political visibility to a material flow that already requires integrated approaches. These range from extending the service life of suitable tyres through repair and retreading to recovering secondary raw materials via mechanical and chemical recycling alongside complementary processes. The document identifies used tyres as a significant material flow in the state and highlights steel and rubber recovery as well as retreading.

The state government has signalled its intention to expand circular approaches to tyre reuse and recycling, expressly incorporating public procurement and the vehicle fleets of public companies. This reflects a core principle of the tyre circular economy, whereby suitable tyres should remain in use as long as possible, with repair, retreading and regrooving extending service life before mechanical and chemical recycling recover industrially reusable materials.

AZuR is paying particular attention to the political focus on retreading. The strategy notes that retreading is established for commercial vehicle tyres while passenger car retreading has declined, and the state government declares its intention to support retreading projects and further recycling processes. For the network, the inclusion of used tyres creates a starting point for linking the entire tyre circular economy with raw material security, secondary raw material markets, public procurement and industrial competitiveness.

AZuR maintains close contact with the relevant state ministries, contributing the experience and solutions of its network partners across the entire tyre value chain. It will continue this exchange and feed practical experience into implementation of the strategy, with the goal of keeping tyres and their contained raw materials in circulation for as long as economically viable.

Continental Unveils ContiMotion EVO As Successor To Popular Sport Touring Tyre

Continental Unveils ContiMotion EVO As Successor To Popular Sport Touring Tyre

Continental has introduced the ContiMotion EVO, the successor to its well-regarded ContiMotion sport touring tyre. The new model targets motorcyclists seeking a balanced blend of riding enjoyment, safety and longevity. It arrives with multiple product enhancements over the previous generation.

Technical upgrades include new carcass materials that deliver greater stability and consistency, translating into improved handling and more agile dynamics. Updated compounds further boost performance in both wet and dry conditions. The tyre also features Continental's EasyHandling technology for predictable steering, a hybrid silica tread compound for reliable grip, an advanced compound and dedicated pattern for extended mileage and ZeroDegree steel-belt construction with new carcass materials for high-speed stability.

The ContiMotion EVO suits sporty weekend riders and touring enthusiasts alike. It fits motorcycles such as the BMW R12 nineT, Triumph Daytona 660, Ducati Supersport 950, Honda CB 650R, Suzuki GSX-8TT and Yamaha MT-09. It can also be paired with the existing ContiMotion.

Christoph Ettenhuber, Head of Business Field Motorcycle Tires, Continental, said, “With the ContiMotion EVO, we’re offering a versatile sport touring tyre. It combines intuitive handling with reliable grip in both wet and dry conditions – all while delivering impressive mileage for everyday use. The ContiMotion EVO has been upgraded in key areas without losing the fundamental renowned qualities of its predecessor. Riders benefit from a tyre that is noticeably more agile. The ContiMotion EVO is compatible with a wide range of popular naked bikes, roadsters and modern classics.”

Goodyear Returns As Title Sponsor For Silverstone ELMS Round

Goodyear Returns As Title Sponsor For Silverstone ELMS Round

Goodyear takes centre stage at Silverstone this weekend as title sponsor of the Goodyear 4 Hours of Silverstone, the second consecutive year it has headlined the European Le Mans Series event following its return to the calendar last year after a six-year break.

The manufacturer will equip 37 cars across LMGT3, LMP2 and LMP2 Pro/Am with its Racing Eagle tyres. LMGT3 entrants will use the Medium compound, chosen for its adaptability across varying conditions and driving styles, while LMP2 and LMP2 Pro/Am crews run their own Medium specification, a staple of the series since debuting at Le Castellet last season. Wet-weather Racing Eagle tyres remain available should conditions demand.

Silverstone's fast nature is set to shape tactics, with fuel consumption a likely determinant of pit-stop windows. Goodyear anticipates LMGT3 outfits will favour single-stinting to maximise pace on fresh rubber at every stop, whereas LMP2 and LMP2 Pro/Am squads could split between single and double-stinting approaches.

Off-track, Goodyear has arranged several activations. Vector Sport's #10 car ran a special Goodyear Racing livery last weekend at Caffeine & Machine's Warwickshire venue and will race in the same colours. The company also backs Friday's ELMS Charity Run, where Racing Eagle tyre stacks will mark each kilometre and runners finish beneath an inflatable Goodyear arch, with proceeds going to the Luca Guintoli Foundation, supporting families affected by childhood cancer. Goodyear Racing Eagle tyres additionally feature in NASCAR action at World Wide Technology Raceway in Madison, Illinois.

Stephen Bickley, Goodyear Endurance Program Manager, said, “Silverstone should be a fairly straightforward race from a tyre strategy perspective. The high-speed nature of the circuit means fuel consumption will be high, so fuel strategy is likely to be the main factor influencing pit stop timing. The tyre allocations broadly give teams the flexibility to change tyres at every stop, so there is less of a need to stretch a set of tyres purely to save time in a pit stop. We therefore expect teams across both categories to largely focus on single-stinting tyres. The biggest variable at Silverstone is always the weather, which can quickly change stint lengths and pit stop timing.”

New AZuR Certificate Verifies Fleet CO₂ Savings From Tyre Management

New AZuR Certificate Verifies Fleet CO₂ Savings From Tyre Management

The new AZuR CO₂ savings certificate gives commercial vehicle fleet operators a way to quantify and prove the emissions reductions they achieve through smarter tyre strategies. The tool turns calculated savings into transparent, verifiable documentation, allowing businesses to showcase their resource efficiency efforts. The certification sits within AZuR's wider vision of a closed-loop tyre economy, in which quality tyres are kept in service as long as possible through repair, retreading and regrooving, and materials are recovered through proper recycling channels only once further use is ruled out.

Three distinct levers form the basis of the assessment, and fleets may adopt them separately or together. Reusing sound tyre casings through retreading cuts demand for virgin materials and stretches each tyre's service life. Reprofiling technology from Bear-Machines adds as much as a quarter more mileage to compatible commercial tyres, depending on the tyre and how it is used, while simultaneously trimming fuel burn. Digital tyre management powered by CO2OPT analyses a fleet's tyre usage patterns through artificial intelligence, guiding the selection and deployment of suitable tyres; under the right operating conditions, this can shrink fuel consumption and its associated emissions by as much as 10 percent.

Reliability of the reported figures rests on a defined calculation framework applied to each fleet's own data. The retreading portion draws on life cycle assessment work from Fraunhofer UMSICHT, while the remaining measures follow their own established methodologies and fleet-specific inputs. The result is auditable evidence linking implemented tyre management practices to calculated CO₂ reductions.

Beyond emissions figures, the certificate reveals how deeply a fleet has embraced circular practices by showing its share of retreaded tyres. Three tiers structure this indicator: Category A covers fleets above 50 percent, Category B spans 25 to 50 percent and Category C captures 5 to 20 percent. Documented savings and a practical circularity measure are thus combined in a single certification.

Early adopters already illustrate the concept in action. Over a 12-month window, SIS Internationale Speditions GmbH calculated 31.99 tonnes of CO₂ saved through retreading, CO2OPT software and the fuel savings that followed, with retreaded tyres on more than half its vehicles, earning Category A. The Steinkühler Group, meanwhile, reached 44.72 tonnes of calculated savings in the same period using retreading, reprofiling, CO2OPT and resulting fuel reductions, landing in Category C.

Christina Guth, Network Coordinator, Alliance for the Future of Tires (AZuR), said, “Many companies are already investing in lower-emission vehicles and alternative drive systems. However, it is often overlooked that tyres can also make a quantifiable contribution to reducing greenhouse gas emissions. With the AZuR CO₂ savings certificate, we demonstrate how retreading, reprofiling and intelligent tyre optimisation can be combined in a joint tyre management strategy.”