Wabco Supplies 500 IVTM Systems to Greek Bus Company
The public bus company of Greece’s second largest city, Thessaloniki, is to equip more than 500 of its buses with Wabco’s Integrated Vehicle Tire Pressure Monitoring (IVTM) systems.
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Hankook Receives Government Aid for New Poland Plant
Product News(Akron/Tire Review) Hankook has received final confirmation of an offer from the Polish Information and Foreign Investment Agency for the tiremaker to build a $500 million tire plant in Poland. Hankook could receive approximately $60 million in government aid and incentives, according to media reports.
Alcoa Posts First Quarter Results
Product NewsAlcoa has announced first quarter revenues of $6.3 billion, a four per cent increase from the sequential quarter. Income from operations was given as $273 million, or $.31 a share.
According to the company its income measures include negative impacts totaling $0.09 per share for the tax impact on Alcoa’s sale of its Elkem investment ($39 million after tax); restructuring charges ($25 million after tax); and costs of integrating the recently acquired Russian business ($12 million after tax). The fourth quarter of 2004 included a gain of $37 million, or $0.04, on the Juruti transfer, while the first quarter of 2004 include a gain of $58 million, or $0.07, on the sale of specialty chemicals.
Private Venture Capital Company Acquires Credential
Product NewsCredential Environmental Limited, one of the UK’s leading automotive waste collector/reprocessors, has been acquired by private venture capital company Ailsa3 Ventures. The Leeds based investment company has taken a 76 per cent stake in Credential, with management retaining the balance of the equity. Nigel Taunt, managing director of Impax Capital structured the deal.
Test lanes – The Way Forward
Product NewsTest lanes are working well in Ireland and are becoming increasingly popular, so why are we so slow to catch on in the UK? asks Beissbarth UK’s managing director, Philip Hodges.
He said: “There is no doubt that test lanes are the future. They make absolute sense on every level from efficiency through to profitability. A lot of companies which haven’t invested will lose out because they won’t be able to offer the best service, and consumers always demand the best. Garages are reluctant to look at what they can earn from investing in new equipment and are stuck on how much the initial outlay costs.”
The End of the Line for One GM Brand?
Product NewsAfter issuing a profit warning last week, General Motors has suggested that it may phase out one of its weaker brands if sales fail to meet projections, company vice chairman Bob Lutz said on Wednesday. A Detroit News report described GM’s Buick and Pontiac as “damaged brands” due to lack of investment over the years, something that GM is working to correct with an array of new vehicles coming to market, Mr Lutz told a Morgan Stanley automotive conference in New York.
But if some of its brands fail to meet sales projections, “then we would have to take a look at a phase-out. I hope we don’t have to do that. What we’ve got to do is keep the brands we’ve got.” According to the report sales for both Pontiac and Buick have lagged in recent years.
MOT Industry Calls for Reduced MOT Test Fees
NewsThe MOT Trade Forum is urging the Minister of Transport, David Jamieson, to amend the MOT Test fee structure and introduce a reduced but mandatory fee and a new scale of re-test charges.
The Forum’s membership represents the interests of the country’s 19,500 MOT testing stations and has proposed a complete overhaul of the MOT Test fee structure that would both reward motorists who keep their vehicles in good condition and encourage those running badly maintained and potentially dangerous vehicles to improve their maintenance standards.
Hankook Leans Towards Slovakia
Product NewsMedia reports are continuing to circulate about exactly where in Eastern Europe Hankook will make its proposed $500 million investment. Numerous previous reports have stated that the company is interested in manufacturing in this region, and that the shortlist has narrowed to two countries (Poland and Slovakia). Now a Polish newspaper has added further information. A Rzeczpospolita report suggests that the Korean company is leaning towards Slovakia because of a governmental policy offering “flat tax” incentives to foreign investors.
Beru Expands Ludwigsburg Development Facility
Product NewsAutomotive supplier Beru AG has announced that it will spend 5 million euros expanding its research and development facilities in Ludwigsburg. The plans will see the company’s R&D and test centre enlarged by a new extension building. As a result of the extension, the company will gain about one thousand square meters of usable space. In addition to quality management and control, the new building will also accommodate development for the company’s glow plugs and diesel engines as well as applications technology activities. Construction work will start in July 2005. The new building should be completed and put into operation by the end of the financial year in March 2006.
“This investment decision is fully in line with our long-term policy of maintaining BERU’s competitiveness by means of permanent innovation. Each year we invest around 10 per cent of our sales revenues for this purpose. This investment rate is one of the highest in the industry. In Ludwigsburg, we are expanding our R&D capacities in diesel cold-start technology and ignition technology for gasoline engines. We are delighted that this also enables us to create several highly qualified new jobs,” commented Marco von Maltzan, chairman of the executive board.
US Investors Hold 5 per cent of Lanxess
Product NewsTyre industry supplier Lanxess, a spin-off of German company Bayer AG, was brought to the stock exchange at the end of January. Now, US investment group Greenlight has announced that it has already purchased more than five per cent of Lanxess’ shares.
Canadian Tire Announces 16 per cent Dividend Increase
Product NewsThe Canadian Tire Corporation board of directors has approved quarterly dividend payments of $0.125 to $0.145 per share, an annualised increase of 16 per cent. The company says its policy is to dividend payments equal to approximately 15 to 20 per cent of the prior year’s normalised basic net earnings per share, after giving consideration to the period end cash position, future cash flow requirements and investment opportunities.
Amtel Appoint Financial Director
Product NewsViktor Nekrasov has been appointed the financial director of Amtel holding and the chief financial officer of the parent company Amtel Holdings Holland.
In his new role he will be responsible for corporate finance, merger and takeover deals, as well as controlling the company’s financial activities.
Titan Ranked Second For Stock Appreciation
Product NewsTitan International has been ranked second in terms of stock appreciation in a list compiled from New York Stock Exchange (NYSE) companies. In 2004 the companies share price increased 393.5 per cent, second only to WR Grace & Co. The price of Titan’s stock grew from $3.06 on 31 December 2003 to $15.10 by the end of 2004.
“We congratulate W R Grace for their outstanding stock performance,” said Titan president and CEO, Maurice Taylor Jr. “Seeing Titan’s market value reach the levels where we knew it should be is rewarding. An investment of $3,000 in TWI stock on the first trading day of 2004, would have been worth approximately $15,000 on the last day of 2004. The effort and commitment of our employees and stockholders have made it possible to return to profitability and to achieve this remarkable progress and recognition within the investment community.”
Titan’s announcement marks a distinct turnaround in the company’s financial performance. Little over a year ago Titan was in danger of being de-listed from the NYSE for having a very low share price.
Bridgestone’s Shares Fall: Update
Product NewsDeutsche Bank analysts have cast doubt on the negative predictions published in the Japanese business press. According to the market observers, reports that Bridgestone’s recurring profit is set to fall 17 per cent year-on-year may not be as accurate as they seem. Although the article cites high raw material costs and yen appreciation, it fails to take into account tyre price increases, which started being implemented in Japan last year. The analysts explained that in the last few year Bridgestone has recorded strong earnings, defying the Nikkei’s projections. As a result the bank says it will not change its earning projections or rating, adding that if the share price dips below 2000 yen this would represent “an attractive investment opportunity.”
Investment Firm Acquires Performance Fibres Business Unit
Product NewsSun Capital Partners has announced that one of its affiliates has purchased Honeywell International’s Performance Fibres business unit. The terms of the transaction were not disclosed. The new business, Performance Fibers, is a global leader in high-performance industrial fibres and related materials, with operations in the US, France, Korea and China.
“We are excited about the future of this business and the many growth opportunities we see in the global market for industrial fibres and related technologies,” said Greg Rogowski, Performance Fibers’ president and chief executive officer. “We plan to continue our leadership in this industry and to grow by providing our customers with the technology innovation they require and the quality and reliability they expect.” M Steven Liff, Principal at Sun Capital Partners, Inc, a leading private investment firm specialising in leveraged buyouts added, “Performance Fibers is a global leader, and by combining our business expertise at Sun Capital with the strengths of Greg Rogowski and his management team, we expect to enhance Performance Fibers’ position in its market niche. Through our investment, the company will be able to take advantage of numerous opportunities that will strengthen its core competencies.”
