Delphi Earnings Decline
Auto-parts maker Delphi Corp. said Tuesday its fourth-quarter net earnings sank to $82 million as it paid for a major restructuring program it launched in October, which included 8,500 job cuts. Net income for the quarter was 15 cents a share, down from $119 million, or 21 cents, in the same period a year earlier.
ArvinMeritor Secures $200-Million Suspension Module Contract
ArvinMeritor’s Light Vehicle Systems (LVS) business group has been awarded a new, annual $200-million light vehicle suspension systems contract for the final assembly of front- and rear-cross car modules to begin production in the fourth quarter of October 2005. The identity of the customer, and terms of the contract were not disclosed.
TI Automotive Names Ernst Kuhlen to New Position
TI Automotive has named Ernst Kuhlen director of global fuel delivery pumps and modules. Kuhlen will be responsible for development and implementation of the company’s global pump-and-module product strategy. Based in Neuss, Germany, he will report to Manouchehr Kambakhsh, vice president for global engineering. Previously engineering director for pumps at Pierburg AG in Neuss, Kuhlen joined TI Automotive as part of the company’s recent purchase of Pierburg’s pump business.
Save the Date: MEMA Legislative and Public Policy Summit – Advancing American Manufacturing, May 5-6
MEMA and its market segment associations – AASA, HDMA and OESA – will host the inaugural “MEMA Legislative and Public Policy Summit: Advancing American Manufacturing” on Thursday and Friday, May 5-6 in Washington, DC. The Summit has been created to raise awareness among Washington policymakers of the supplier industry’s many contributions to the nation’s economy. MEMA intends to bring members to Washington, DC, to collectively share their priorities and concerns with members of Congress and the Bush administration. While in Washington, they will discuss best practices in government affairs for our industry, and provide updates and dialogue on legislative, regulatory and political developments from senior administration officials, members of Congress and other experts.
Herman Trend Alert: Overtime to Increase
Under ideal conditions, employers have just the right number of employees to perform the work that needs to be done. Overtime payroll costs are minimal, incurred only in those rare instances when there is some unusual circumstance or a critical employee is ill or on vacation. Over the past few years, companies have reduced employment to minimum staffing levels. People have been asked to work extra hours from time to time on an “as-needed” basis. This strategy has been a preferred alternative to hiring more people and increasing fixed payroll costs.
Lear Probe Looks for Nepotism
Auto-interiors supplier Lear Corp. said Tuesday the Securities and Exchange Commission has opened an informal investigation into its employment of corporate officers’ relatives and insider business transactions. The Southfield, Mich., parts maker said the SEC might look at several years of SEC filings that outline familial connections within the company, which include more than a dozen workers and upper-level executives. The latest filing, the company’s 2003 proxy statement, reveals that CEO Robert Rossiter had at least seven relatives working for Lear or for a company associated with Lear in 2002.
Magna President and CEO Resigns, Expected to Run for Canada’s Conservative Party
Belinda Stronach, president and CEO of diversified automotive supplier Magna International, has resigned. According to recent news reports, Stronach is expected next week to announce her candidacy for the leadership of Canada’s Conservative Party. Her father, Magna Founder and Chairman Frank Stronach, has assumed the position of interim president.
Noble International Completes LWI Acquisition, Plans to Sell Monroe Engineering Subsidiary
Noble International has completed its acquisition of Clinton Township, Mich.-based Laser Welding International (LWI), a supplier of laser-welded blanks to General Motors. The acquisition which was first announced late last week, now includes the proposed sale of LWI’s subsidiary, Monroe Engineering Products. Noble paid $14.7 million for LWI, with an additional $1 million payable if certain new business is awarded to Noble within the next twelve months.
Eaton Increases Dividend by 12.5 Percent and Announces 2-for-1 Stock Split
Eaton Corp.’s board of directors has approved a two-for-one stock split. As a result of the split, shareholders of record at the close of business on February 9, will receive one additional common share for every share held.Eaton’s board of directors has also declared a 12.5 percent increase in the quarterly dividend from $0.48 per common share to $0.54 per common share, on pre-split shares.
Monro Muffler Brake Reports 26 Percent Increase in Third Quarter Net Income
Monro Muffler Brake has announced record sales and net income for the third quarter and nine months, which ended December 27, 2003. During the third quarter, sales totaled $64.5 million compared to $60.7 million last year. Comparable store sales experienced a four percent increase following a 3.8 percent comparable store sales increase in the same period for the prior year. The key drivers of the comparable store sales increase included an approximate 10 percent increase in the brake category, a 2 percent increase in exhaust sales, a 25 percent increase in scheduled maintenance and a 12 percent increase in commercial sales.