ALSIP, IL — Universal Automotive Industries has begun the second phase of a planned program to integrate the operations from its acquisition of TRW Automotive in January 2004. The purchase effectively doubled Universal’s size.
Arvin Scott, Universal Automotive’s president and CEO, said phase two focuses on information technology and getting all operations on the same systems platform. Scott said the company hopes to complete the second phase by this summer. The initial phase of the integration process was completed ahead of schedule, according to Scott. It consisted of plant consolidations in Illinois and California, along with elimination of certain redundancies in administrative and other areas. He said Universal also identified certain products previously purchased by the TRW business from third party suppliers that it will be able to manufacture in its existing facilities.
“Aside from doubling our size, the combination is expected to provide improved operating efficiencies and economies of scale,” Scott said. “Moreover, customers will benefit from a significantly broader array of product offerings now available from one company, including recognized brand names, as well as private label products.”
Scott said that approximately $5 million in costs have been identified and are being taken out of the combined operations. He also said the number of SKUs has increased to more than 40,000 from less than 10,000 as a result of the acquisition.
“While there is much hard work ahead, we are excited about what the future holds for Universal and confident about our long-term growth opportunities,” Scott said. “Barring unforeseen circumstances, we anticipate steadily improving operating results, with a return to profitability over the next twelve months.”
For more information, go to: www.universalbrake.com.
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