Financial Overview
|
(in million dollars) |
| |
FY 2008 |
FY 2007 |
Rate of change(%)
|
Factors |
| Overall |
| Net Sales |
1,904.3 |
2,126.7 |
(10.5) |
- |
| Operating Income |
(252.3) |
(38.7) |
- |
| Automotive Wheels |
| Net Sales |
1,848.4 |
2,051.9 |
(9.9) |
1) |
| Operating Income |
(262.3) |
36.7 |
- |
| Other Products |
| Net Sales |
55.9 |
74.8 |
(25.3) |
2) |
| Operating Income |
10.0 |
(75.4) |
- |
NOTE: In the Company's annual report on FY2008, the public accounting firm cited conditions that raise substantial doubt about the Company's ability to continue as a going concern.
Factors
1)
-Net sales in the Automotive Wheels segment decreased by $203.5 million from $2,051.9 million during fiscal 2007 to $1,848.4 million during fiscal 2008. Lower volumes, partially offset by favorable mix, accounted for $281 million of the decrease, but was partially offset by $86 million of favorable foreign exchange rates relative to the U.S. dollar. Higher metal pass-through pricing increased sales $36 million. The sale of the Hoboken, Belgium facility also resulted in a decrease of $42 million of sales.
2)
-Net sales in the Other segment decreased $18.9 million from $74.8 million during fiscal 2007 to $55.9 million during fiscal 2008. The sale of the Wabash, Indiana powertrain facility in fiscal 2007 resulted in a decrease in sales of $28 million in fiscal 2008 as compared to the prior year. Sales were $8 million higher due to a new program in the current year for intake manifold sales for the GMC Acadia, which are produced at its powertrain plant in Nuevo Laredo, Mexico.
Divestitures
-The Company announced that it will close its aluminum wheel facility in Gainesville, Georgia by the end of December 2008. The closure is the result of global overcapacity in the light vehicle aluminum wheel market and increasing aluminum wheel imports into North America from low cost countries. The Gainesville facility employs roughly 290 people. Some of the production at the Gainesville facility will be moved to its aluminum wheel facility in Mexico. (From a press release on May 12, 2008)
-The Company announced the sale of Belgium subsidiary to BBS International GmbH ('BBS'), a subsidiary of Punch International nv ('Punch') of Belgium. In addition, the Company has entered into a definitive agreement with Punch to sell the real estate and certain equipment of its subsidiary located in Gainesville, Georgia. This acquisition is expected to be completed following cessation of its production at the Gainesville factory. (From a press release on Jun 16, 2008)
