BorgWarner Announces 40 Percent Increase to Quarterly Dividend
The board of directors of BorgWarner has declared a quarterly dividend of $0.25 per share on all of the company’s issued and outstanding common stock. The dividend has been increased by 40 percent over the previous dividend amount.
Who’s Buying Whom?
Who owns the suppliers of today? New owners include leveraged buyout firms, putting a new spin on the old consolidation trend. In the wake of Dana’s announcement to sell off its aftermarket businesses comes the speculation of who will buy it. Water cooler conversations in the office haven’t exactly been at a fevered pitch. That’s a dramatic change from just a few short years ago when SPX was trying to make a hostile purchase of Echlin (which ultimately ended up in the hands of Dana), or when Federal-Mogul was buying up companies as part of former CEO Dick Snell’s major consolidation plan. Those were the good old days of major aftermarket acquisitions. Now, we’re left to ponder the fate of the Dana Automotive Aftermarket Group. The big question is: Who among the current base of manufacturers is a candidate to make such a large acquisition?
Prestolite Electric Sells UK Facility
Prestolite Electric Holding, has sold the Acton (London, England) manufacturing facility of Prestolite Electric Limited, the company’s UK subsidiary. Prestolite sold the subsidiary to Lemon Land Limited for approximately $47 million. The Acton facility had a book value of $9 million. In connection with the purchase, Prestolite retained the right to occupy the facility through the end of 2004.
Earl Scheib Elects Independent Chairman, Adopts New Nominating Process
The board of directors for Earl Scheib Inc. has elected Robert Smiland as independent chairman of the board. Smiland replaces interim chairman Christian Bement, who continues as the company’s CEO. Additionally, the board has reconfigured its director-nominating process to establish that nominations will be reviewed and approved by the three current independent directors.
Johnson Controls’ Earnings Up 17 Percent
Johnson Controls Inc. said quarterly earnings rose 17 percent, with both its automotive parts and building controls businesses reporting double-digit sales gains. Johnson Controls also eliminated a few dozen jobs at its Milwaukee controls division, even as it plans to expand the business by about 100 jobs, the company said Wednesday.
Visteon’s Biggest Loss Pushes Stock Down
Wall Street pounded Visteon Corp. stock Friday after the former parts division of Ford Motor Co. reported by far the biggest quarterly loss in its short history as an independent company and underwhelmed investors with its expectations for the first quarter of 2004. Visteon reported a loss of $863 million, or $6.87 per share, for the final three months of 2003, bringing the full-year loss to $1.2 billion, or $9.65 per share. Over the last three years, Visteon has lost about $1.7 billion.
Tenneco Automotive Expands ‘Expert Plus’ Rewards Program
Tenneco Automotive’s Monroe shocks and struts and Walker exhaust brands have expanded the Expert Plus automotive service promotions and technician rewards program for 2004. Expert Plus is a comprehensive offering of national trade and consumer promotions, marketing materials, merchandising tools and installation incentives for automotive repair facilities and professional technicians. The program attracted more than 20,000 members in 2003.
OE and Replacement Tire Shipments Increased in 2003
Medium truck tire shipments in 2003 – both OE and replacement – saw their biggest increases in years, according to preliminary tire shipment data released by the Rubber Manufacturers Association (RMA). Meanwhile shipments of passenger and light truck tires saw only modest growth. Despite a wild year of carmaker and dealer incentives, it doesn’t appear the OE market had such a good 2003. Compared to 2002 shipments, OE P-metric tire shipments actually fell 4.9 percent, totaling 54.54 million units. Meanwhile, OE shipments of LT-metric tires fell 4.2 percent vs. 2002, reaching just 7.95 million units for the year.
Lund International Announces Executive Appointment
Automotive accessories manufacturer Lund International has named Edmund Schwartz COO and CFO for the company, effective immediately. Schwartz previously served as CFO for Lund International from September 1999 to November 2001. He has also served as CFO of a large international public company and a leading consumer goods manufacturer.
Suppliers to Benchmark the Cost of Auto Industry Absenteeism
A dozen U.S. auto suppliers hope next month to finish a two-year effort to determine the cost of lost productivity due to absenteeism and “presenteeism” -people who are on the job but not functioning at appropriate productive levels. The group, dubbed the Automotive Supplier Action Committee, says it focused upon the industry’s hourly workforce, where absenteeism is roughly 10 percent, or about three times that of other industries.