Metaldyne Corporation Business report FY2007
From January 2004 through March 2008, the Company received approximately 240 new business awards that support future product programs beginning from 2004 through 2011. The awards extend for up to 10 years, and include metal-formed components, assemblies and modules for OEMs and Tier I customers' chassis, driveline and engine applications. As of March 30, 2008, in addition to programs already in production, the Company's forecasted cumulative revenue in 2011 is approximately $402 million of awarded programs and approximately $309 million of programs the Company has identified as highly probable of being awarded but for which it has not yet received a firm purchase order.
In February 2007, the Company announced it has been awarded a $70 million contract from a global automaker to supply chassis products for multiple 2007-2008 model-year car and truck platforms. The first program is currently in production in the United States; the second begins production in Mexico later in 2007; and, a third launches in China in 2008. Metaldyne will supply front and rear knuckle assemblies and front lower control arm assemblies that reduce cost, weight and complexity, and improve noise, vibration and harshness (NVH).
In May 2007, the Company announced it has been awarded a multi-year contract from Chrysler Group to supply environmentally - friendly exhaust manifolds for future vehicle platforms. Metaldyne will supply fabricated exhaust manifolds that will help reduce emissions allowing Chrysler Group to meet PZEV (Partial Zero Emissions Vehicle) requirements for states that follow California's emission standards. The unique single-wall design is comprised of a very large chamber that allows the exhaust gases to mix faster, and increase the operating temperature of the catalytic converter sooner. (From a press release on May 17, 2007)
In February 2008, the Company announced it has won a contract to supply key powertrain and chassis components to support a future vehicle produced by China's Chery Automobile Co., Ltd. This business win follows the official opening of Metaldyne's first manufacturing facility in Suzhou in 2007. Chery has embraced this opportunity to develop key vehicle components with Metaldyne including suspension components, oil pumps and powdered metal forged connecting rods. (From a press release on Feb. 5, 2008)
In May 2007, the Company announced plans to discontinue operations at its chassis facility in Greenville, N.C. The transaction plan, which is expected to be completed in December 2007, will result in the closing of the Greenville facility. The facility currently has 69 employees. Metaldyne stated that recent production cuts at some of Metaldyne's North American customers led to this decision. Current manufacturing production lines will be transferred to its chassis facility in Greensboro, N.C.
In May 2007, the Company announced it will close its Farmington Hills, Mich., plant by April 2008 to adjust for the excess capacity in its plants caused by production cuts from its North American customers. The facility has 170 employees and produces chassis and powertrain products for several customers. These products will be moved to other Metaldyne facilities. (From a press release on May 2, 2007)
R&D expenditure totaled approximately $24.4 million in FY2007 (ended March 2008).
|in thousand dollars||Year Ended Mar.30, 2008||81
Apr. 1, 2007
Jan 10, 2007
|Year Ended Jan. 1, 2006|
Post Acquisition Basis
|Pre Acquisition Basis|
Capital expenditures in fiscal year ending
March 30, 2009 are expected to be in the range of $50-60 million, lower
than prior years when significant capital was spent to transform the
business to new technologies, automation and to expand geographically.
In June 2007, the Company officially opened its plant in Suzhou, China, marking the first operation for the company in that country. The Company invested $10 million in the project and expects revenues of more than $100 million when the plant reaches full capacity in a few years. With the Company's expected growth in China, the Company will make a decision on a second plant by the end of 2007. Located 46 miles (75 kilometers) northwest of Shanghai, the 92,000-sq.-ft. (8547-sq.-m.) plant will manufacture crankshaft damper assemblies, knuckle and control arm assemblies, aluminum diecast valve bodies and powder metal products. Current OEM customers include Beijing Benz DaimlerChrysler, Chery, Dongfeng-Peugeot-Citroen, Shanghai General Motors and Soueast (pronounced Southeast) Motors. The facility currently has 54 employees and is expected to grow to 97 by the end of 2007. At full capacity it will employ 350-400 people.