Delphi Accepts $3.4 Billion in Financing
Auto parts supplier Delphi Corp. said Monday it has accepted a $3.4 billion investment from a group of private equity companies to support its emergence from bankruptcy protection. Under the deal, affiliates of Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund I, as well as Merrill Lynch & Co. and UBS Securities LLC, would invest the company. The investment group will invest a minimum of $1.4 billion and a maximum of $3.4 billion in the struggling company in exchange for common and preferred stock that will be issued in the first half of next year.
Federal-Mogul Reports Sales Increased by Nearly $50 Million
Federal-Mogul today reported its financial results for the three and nine month periods, which ended Sept. 30. Federal-Mogul reported net sales of $1,549 million for the quarter. Compared with the quarter ended Sept. 30, 2005 , sales increased $49 million. Lower sales volumes were more than offset by the impact of the second quarter acquisition of Federal-Mogul Goetze India Limited and favorable foreign currency of $30 million and $29 million, respectively. For the nine month period, net sales decreased by $18 million to $4,781 million due to unfavorable foreign currency. The impact on sales of the second quarter acquisition was more than offset by reduced net sales volumes, according to the company.
NASTF Issues Open Letter, Seeks Industry Involvement
The National Automotive Service Task Force (NASTF) recently issued an ‘open letter’ to the industry, reaching out to all industry association, organizations and businesses involved in the automotive service industry to ask for their participation on the task force.
Clarke’s Task: Boosting GM Market Share
After enacting sharp cost-cutting efforts over the past year, General Motors Corp. Chief Executive Rick Wagoner said Tuesday he will hand over direct control of the money-losing North American automotive operations to a GM veteran with a strong background in manufacturing and labor relations.
Keegan Says Goodyear is Moving in the Right Direction
In his address at Goodyear Tire & Rubber Co.’s 2006 annual shareholder meeting, Chairman and Chief Executive Officer Robert Keegan said the tiremaker remains committed to the strategic direction implemented three years ago to fundamentally change the company. “Innovation, quality and a sharp market focus continue to drive Goodyear in the right direction,” he said. “We believe we are taking the required steps to drive improving future performance.”
Tower Automotive Files Agreements with Two Retiree Groups on Future Benefits
Tower Automotive has submitted for approval to the U.S. Bankruptcy Court settlements with two groups representing current and future retirees. Both settlements include modifications to retiree health care benefits that the company says are imperative to successful restructuring and emergence from bankruptcy. The settlements cover retired salaried employees company-wide as well as current and future retirees of the recently-closed Milwaukee facility.
Activant Sold to Two Private Equity Firms
Activant Solutions has signed a definitive agreement to be acquired by two private equity investment firms, Hellman & Friedman and Thoma Cressey Equity Partners. The firms will acquire Activant Solutions Holdings Inc. and all its subsidiaries from HM Capital Partners LLC. Terms of the deal were not disclosed. Activant declined to comment on the sale. Those involved in the deal are prohibited from commenting, according to the 8-K filing. However, one recent news report indicated that 100 percent of the company, as well as the management team, were included in the deal.
Advance Auto Parts Reports Record Fourth Quarter Earnings
Advance Auto Parts today announced record revenue and earnings for its fiscal fourth quarter, which ended Dec. 31, 2005. Earnings per diluted share for the fourth quarter were 36 cents, a 24 percent increase compared to earnings per diluted share of 29 cents last year. All per-share amounts referenced in this release reflect the company’s 3-for-2 stock split, which took effect September 26, 2005.
NGK Spark Plugs Celebrates 40 Years of U.S. Operations
NGK Spark Plugs (USA), Inc. is celebrating three important milestones this year. 2006 is the 10th anniversary of the company’s expanded facility in Michigan, and also marks the 40th anniversary of its operations in the U.S. This year is also the 70th anniversary of NGK Spark Plug Company LTD. in Japan. To commemorate these milestones, NGK has announced a special promotion called “10/40/70.”
Valspar Celebrates Automotive Aftermarket Industry Week
Automotive Aftermarket Industry Week in Las Vegas, NV sets the stage for two significant milestones in Valspar’s history. A long time exhibitor of SEMA, NACE and AAPEX, Valspar will celebrate the corporation’s 200th anniversary as a global coatings manufacturer – while House of Kolor marks its 50th Anniversary as the “original” custom-finishes manufacturer.