Midas Completes Debt Refinancing
Midas has entered into a three-year, $115 million credit facility to refinance its existing debt. The new facility consists of a $55 million revolving loan and a $60 million term loan from a group of lenders led by Bank One, NA.
DST Asks: Where Do Your Profits Come From — Products or Customers?
Last week we asked: Internally does your current computerized business system provide comprehensive data for managing stocking decisions? This question begs another related question: Where do you make your profits, from your products or from your customers?
Collins & Aikman Ends Inquiry, Shares Rise
Collins & Aikman Corp. on Thursday said it completed an internal accounting inquiry and will not restate previously issued financial statements, sending its shares up 18 percent. The company also said its fourth-quarter loss more than tripled to nearly $10 million. Last August, the Troy, Mich., company said it was investigating business transactions between the company and two of its directors, just days after its CEO resigned.
ASC Industries Launches Canadian Print Advertising Campaign
ASC Industries is expanding its international advertising reach through a new agreement with Canadian magazine publisher The Automotive Group, which focuses on the automotive aftermarket. ASC said it will concentrate its advertising in The Automotive Group’s warehouse distributor and technician-oriented publications: Jobber News and SSGM (Service Station and Garage Management).
DST Asks: Can Your Business Measure Return on Customer Investment?
Although most businesses have the means for measuring their Return On Investment, DST has coined the term Return on Customer Investment as a more accurate method of determining profitability of the customer base. Many firms believe that their largest customers, or the ones they have been supplying for the longest time, are the most profitable ones, but access to pertinent data can contradict those assumptions.
Cooper Tire Signs Supply Agreement with Hangzhou Rubber Co.
Cooper Tire and Rubber has signed an outsourcing agreement with Hangzhou Zhongce Rubber Co., located in Hangzhou, China. Hangzhou will supply approximately one million passenger radial tires to Cooper for sale in the U.S. Last October, Cooper announced an agreement with Hangzhou to supply Cooper with radial medium truck (RMT) tires which had previously been made at Cooper’s Albany, Ga., plant. The Albany facility will add passenger capacity to replace the RMT production.
Bridgestone Profit Jumps
Tiremaker Bridgestone Corp. said its profit nearly doubled in 2003 as sales rose in Europe and payments related to a massive U.S. tire recall three years ago declined. But the tire company forecast lower profits for this year, citing higher rubber prices and increasing marketing expenses in Japan in the face of weak demand.
Goodyear Completes $650 Million Loan
Goodyear Tire & Rubber has completed a new $650 million secured term loan that was arranged by JPMorgan and Citigroup. The company said it intends to use approximately $335 million of the proceeds of the loan to partially repay its existing $583 million U.S. term loan. Proceeds will also be used to repay other indebtedness and for general corporate purposes.
Automotive Communicators Discuss Preparing For and Dealing With Crisis
The Automotive Public Relations Council (APRC), the professional peer group of the Motor & Equipment Manufacturers Association, will examine the issue of “Dealing with Crisis” during its annual Spring Conference. Slated to take place Wednesday, April 21, at the Dearborn Hyatt Regency in Dearborn, Mich, this event will provide insight on how automotive public relations professionals should plan and execute successful crisis communications strategies.
Genuine Parts Co. Reports 2003 Results
Completing its 76th year in operation, Genuine Parts Co. (GPC) has reported sales and earnings for the year, which ended December 31, 2003. Sales in 2003 were $8.4 billion, up 2.3 percent compared to the previous year. Net income for the year, before the cumulative effect of changes in accounting principles related to cash consideration from vendors and goodwill, was $354 million, compared to $368 million, for the same period in the prior year, a decrease of 4 percent.