2005 Omnibus Appropriations Bill to Help Strengthen Several Industry Initiatives
The fiscal 2005 Omnibus Appropriations Bill, recently approved by Congress on Nov. 20, will help strengthen the country’s stance against intellectual property rights (IPR) violations with the creation of a new federal post to coordinate federal anti-IPR theft efforts. Broad industry support for stronger intellectual property enforcement abroad resulted in the creation of a new Intellectual Property (IP) czar post, which will be appointed by the president. The new IP czar will serve as coordinator for international intellectual property enforcement and lead the National Intellectual Property Law Enforcement Coordination Council (NIPLECC).
Delphi Admits Accounting Flaw
Delphi Corp., the world’s largest auto supplier, said a preliminary internal accounting review found the company improperly recorded a $20-million payment from Electronic Data Systems Corp (EDS) in 2001. In a filing Wednesday with the Securities and Exchange Commission (SEC), the Troy, Mich., company said it also booked $26 million in credits from EDS in 2000 and 2001 for future information technology services when the amount should have been recognized over a longer period of time.
Kumho Planning Dual IPO
London’s Financial Times has confirmed that Kumho Tire Co. will make an initial public stock offering, but is planning a dual IPO on stock exchanges in both Seoul and either New York or London.
Supreme Court Hears Arguments on Beef Check-Off Program, Decision Could Impact Future of Tire Industry Check-off Program
The U.S. Supreme Court heard oral arguments Dec. 8 on a popular promotional and educational program that could have dramatic implications on the future of any tire industry check-off program.
SKF Signs Multi-Year Contract With Richard Childress Racing; Includes Technical Partner Agreement
SKF has expanded its involvement in the NASCAR NEXTEL Cup Series, signing a multi-year sponsorship agreement with Richard Childress Racing (RCR). With the start of the 2005 NASCAR season, SKF will hold sponsorship positions on the No. 07 of Dave Blaney, the No. 29 of Kevin Harvick and the No. 31 of Jeff Burton. The agreement also includes a technical partnership between RCR and SKF engineers.
Save the Date: Aftermarket eForum Set for July 19-21
The Aftermarket eForum, the only conference devoted exclusively to information technology and e-commerce issues in the aftermarket, is set for Tuesday, July 19, through Thursday, July 21, at the Hyatt Regency O’Hare, Chicago, Ill. The eForum will feature keynote presentations, breakout sessions, vendor exhibits and networking and business development opportunities for aftermarket suppliers, distributors, retailers and service retailers.
Cooper Tire Extends Termination Date On Sale of Auto Parts Business
Cooper Tire & Rubber Co. has extended the deadline to complete the sale of its Cooper-Standard Automotive unit to a group led by Cypress Group and Goldman Sachs Capital Partners. The original deadline of Dec. 15 has been moved back to Jan. 31, 2005, though Cooper official said they expect to close the sale by the end of this year.
Hayes Lemmerz Looks to Sell its Commercial Highway Hub and Brake Drum Business
Hayes Lemmerz International is exploring the potential divestiture of its Commercial Highway Hub and Brake Drum business. This includes the operations in Berea, Ky., Chattanooga, Tenn., and the MinCer operations in Mexico City, Mexico. The sale would not include the company’s Automotive Brake Business that manufactures brake components for the passenger car and light truck market.
AutoZone Announces First Quarter Results
AutoZone reported sales of $1.286 billion for its first fiscal quarter, which ended on November 20, up 0.3 percent over fiscal 2003. Same store sales, or sales for domestic stores open at least one year, decreased 3 percent for the quarter. Gross profit, as a percentage of sales, for the quarter improved by 44 basis points while operating expenses, as a percentage of sales, increased by 40 basis points. This resulted in an operating margin of 16.8 percent, up 4 basis points from last year. Operating profit increased 0.6 percent over the prior year.
ASC Sees Growth Thanks to Technology
ASC Industries, a Canton, Ohio-based manufacturer of automotive water pumps, has reports significant business growth due to its high-tech manufacturing environment. A number of years ago, ASC created a high-tech manufacturing environment, which Swaldo said has proven that efficiency pays dividends. The company recently added another fully-automated robotic water pump assembly line, yet has not had to eliminate a single job, a claim that Ted Swaldo, president of ASC Industries, is proud of.
Blackstone Group Exec Joins Advance Auto Parts Board of Directors
Advance Auto Parts has elected William Oglesby, senior managing director for The Blackstone Group, to its board of directors.
Tower’s Skipped Dividend May Foretell Bankruptcy, Report Says
Tower Automotive’s postponed payment of a dividend and failure to amend a credit agreement “has increased significantly” the risk that the company might file for bankruptcy, an investment analysts’ report has warned. Tower, based in Novi, Mich., said Friday it was postponing payment of a $4.4 million dividend tied to a convertible bond.