Visteon Projects Profit After Losses
Visteon Corp. expects to earn a small net profit this year after losing at least $1.6 billion from 2001 to 2003, executives said Thursday. If Visteon turns a profit this year, it would be the first since 2000, the year the auto parts maker separated from Ford Motor Co. In a briefing for Wall Street analysts in conjunction with the North American International Auto Show, Visteon laid out its financial expectations for the first time in at least a year.
Lear Bases Rosy Outlook on Economy, New Sales
Auto-interiors supplier Lear Corp. said Thursday it would grow its profit in 2004 as the company reaps the benefits of new business and an improving economy. Lear, in a presentation with analysts in conjunction with the North American International Auto Show, said it expects to earn $5.85 to $6.25 per share this year, in line with the analyst consensus estimate of $6.11. The forecast also beats the 2003 earnings-per-share consensus estimate of $5.51.
Motor Industry Chiefs See More Mergers and Acquisitions Ahead, Especially in Asia
Automotive executives are losing their taste for strategic alliances and expect to see an increase in mergers and acquisitions in the industry over the next five years, particularly in Asia, according to the results of the fifth annual survey of the automotive industry by consultancy KPMG LLP. Consolidation was seen as occurring globally, but respondents in particular focused on Asia, where 73 percent said they expect an increase. Sixty percent pointed to an increase in Europe, while 50 percent of those polled saw stepped up M&A activity in North America.
Bridgestone Americas’ Lampe To Retire
John Lampe, chairman, CEO and president of Bridgestone Americas Holding, who led the company’s remarkable recovery after devastating tire recalls in late 2000 and early 2001, announced today that he is retiring effective Mar. 31. He will be succeeded as chairman and CEO of BAH by Mark Emkes, currently chairman, CEO and president of Bridgestone/Firestone North American Tire (BFNAT). Lampe announced his retirement this afternoon during a company-wide live Web cast and conference call. In addition, Lampe and Emkes granted Tire Review an exclusive in-depth interview about the retirement and the company’s future plans earlier this morning.
Hawk Corp. Announces Restructuring Plan
Hawk Corp. has initiated a new plan to focus on its two primary business segments — friction products and precision components, in an effort to improve the company’s global competitive cost position and support long-term growth initiatives in these segments. As part of the repositioning plan the company intends to achieve cost savings at its friction products segment by moving operations at its Brook Park, Ohio, location to a new U.S. production facility. Hawk also said it plans to sell its motor segment and engage the services of an investment banker to advise the company as it reviews strategic alternatives relating to Hawk’s Tex Racing business unit.
MEMA Names New Director of Finance and Administration
Wendy Earp has been promoted to director of finance and administration for MEMA. She formerly served as the association’s controller, a position she has held since May 2001. Earp succeeds Joseph “Joe” Griscti, who is retiring after 22 years of service to the association and industry.
Two Michigan Manufacturers Name New Directors of Investor Relations
Lear Corp. has appointed Anne Bork director of investor relations. In her new role, Bork will be responsible for supporting the company’s global investor-relations activities. She will report to Mel Stephens, Lear’s vice president of investor relations and corporate communications. TRW Automotive has also named a new director of investor relations. Patrick Stobb has joined TRW from Visteon where he held the position of manager of investor and shareholder relations since June 2002. Prior to that, he held a number of finance positions with both Visteon and Ford.
Richard Nawrocki Elected to Intermet Board of Directors
Intermet has added Richard Nawrocki to its board of directors. Nawrocki is president, CEO and board member of CMI-Management Services, a Southfield, Mich.-based holding company that manages a portfolio of diversified investments, corporations and subsidiaries, including metal-forming companies Tech Cast and CMI-Schneible.
SEMA Creates Specialty Equipment Insurance Alliance
SEMA has expanded its member benefits with the creation of the Specialty Equipment Insurance Alliance (SEIA). The Alliance provides business insurance coverage to SEMA member companies through the services of Driver Alliant Insurances Services, one of SEMA’s benefit partners. Headquartered in San Diego, Calif., Driver Alliant has been a SEMA member company since 1993, and has provided services to SEMA members for a decade. An insurance provider with extensive experience working with trade groups such as SEMA, Driver Alliant works with each SEMA member on an individual case basis.