Moody’s Cuts ArvinMeritor Rating
ArvinMeritor Inc. said its debt rating was lowered to non-investment grade by Moody’s Investors Service and that the move will boost the company’s borrowing costs. Moody’s cut its rating on the Troy-based company’s long-term debt to Ba1, one level below investment grade, from Baa3, ArvinMeritor, said in a filing with the Securities and Exchange Commission. The company makes truck axles and automotive exhaust systems. Moody’s said the downgrade reflects ArvinMeritor’s “relatively poor performance” in 2003 and the first quarter of 2004, a result of lower vehicle production and slow demand for heavy trucks.
Executive Interview with Jim Taylor, CEO of Thomas Group
Our latest edition of “Executive Interview” features Jim Taylor, CEO of the Thomas Group. Taylor joined the Thomas Group in 2001 as vice president and CFO. From 1997 to 2001, Taylor served as president of the Chancellor Group, a Dallas, Texas, management consulting firm, where he assisted companies in restructuring, raising funds and completing initial public offerings. Join us as Taylor tells us more about the Thomas Group culture and how it works for its clients.
Tower Takes Charges, Posts Loss
Tower Automotive Inc., the world’s largest maker of vehicle frames, had a fourth-quarter loss of $24.7 million because of expenses for restructuring operations and writing down assets. The loss was 43 cents a share, compared with profit of $17.3 million, or 29 cents, a year earlier. Sales rose 5.2 percent to $717 million from $681.6 million, the Novi-based company said.
GM, Kia Face Growing Investigation
General Motors Corp. and Kia Motors Corp. are facing an expanded U.S. auto safety investigation and possible recalls because of fuel leaks that may occur on more than 760,000 vehicles. Gasoline may leak into the engine on 483,000 Cadillacs and Oldsmobile Auroras models for 1995 through 1997, the National Highway Traffic Safety Administration said. A total of 278,266 Kia Spectra and Sephia sedans from the 2000 and 2001 model years are being checked for spills during refueling, which led to the recall of 100,000 Sephias made before 2000.
SEC Investigates Goodyear
The federal Securities and Exchange Commission is investigating accounting problems at Goodyear Tire & Rubber Co., the world’s largest tire maker said. News of the investigation sent Goodyear shares down 96 cents, or nearly 10 percent, to close at $8.96 on the New York Stock Exchange. The stock had been rebounding recently as the company pushed a new line of tires that analysts said could help make Goodyear profitable again.
SEMA To Host Trademark Webinar
SEMA is hosting a webinar conference on “Trademarks” on Thursday, February 12 at 10 a.m. (PST). Conrad Wong of the SEMA Washington, D.C., office will address the following issues: Learn what a trademark is; What constitutes a trademark infringement; The benefits of a federal trademark registration; How to communicate with the Patent and Trademark Office, and more.
Yost to Retire as ArvinMeritor CEO
Auto-parts supplierArvinMeritor Inc., which lost its bid to buy Dana Corp. last year, said Monday it is searching to replace chief executive Larry Yost, who plans to retire. The Troy-based company offered few details about the search, but company spokeswoman Lin Cummins said Yost has wanted to retire for some time. Yost led the company through several transitions including the 2000 merger of Arvin Inc. and Meritor Automotive Inc. He had been CEO of Meritor before he became chairman and CEO of ArvinMeritor.
Intermet Reports Losses
Intermet Corp. lost $92.8 million, or $3.30 per share, on sales of $183.3 million in the fourth quarter. The Troy, Mich.-based manufacturer of cast-metal automotive components earned $430,000, or 3 cents per share, on sales of $180.47 million in the same quarter of 2002.
BorgWarner Profits Up
BorgWarner Inc., the largest maker of automatic-transmission parts for vehicles, said fourth-quarter profit rose to $50 million. BorgWarner Inc., the largest maker of automatic-transmission parts for vehicles, said fourth-quarter profit rose to $50 million.
New Ideas Should Help Old Favorite
After getting whacked by big upheavals in the automotive supply world, the wobbly SAE World Congress, Detroit’s biggest and most important trade show, seems to be finding its legs again.