30/7/09
Source: http://au.sys-con.com/node/1054046
WABCO Holdings Inc. (NYSE: WBC), a global technology leader and tier-one supplier to the commercial vehicle industry, today reported that Q2 2009 sales totaled $316 million, down 59 percent from prior year and down 53 percent in local currencies due to the unprecedented continued severe slump in global demand for new commercial vehicles.
"As emerging markets such as China, Brazil and India are expanding their share of WABCO's total revenue, our strategy of investing in global expansion is proving to be increasingly powerful. As of Q2 2009, our second largest customer worldwide is China National Heavy Truck Corporation (CNHTC), the largest producer of heavy duty trucks in China," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "On June 3, 2009, we took majority control of WABCO-TVS in India, the leader in its market, further strengthening WABCO's capabilities to connect with and grow in the world's emerging markets."
"Emerging markets have been hit less hard by the industry's current downturn and are likely faster to recover, further powering WABCO's future growth. The European market suffers from both depressed demand for new commercial vehicles as well as a decline of around 15 percent in production due to inventory sell-off by original equipment manufacturers. Market conditions in the United States are weak but we expect these conditions to recover soon on a growth path," said Esculier.
WABCO reported a Q2 2009 gross profit margin of 21.4 percent versus 27.5 percent a year ago. Excluding separation and streamlining costs, performance gross profit margin was 22.6 percent versus 27.5 percent a year ago.
WABCO reported a Q2 2009 operating loss of $7.6 million versus operating income of $84.4 million a year ago. Performance operating income was a loss of $5.5 million, down from operating income of $93.2 million in prior year.
WABCO reported Q2 2009 Earnings Before Interest and Taxes (EBIT) at a loss of $15.3 million, down from $85.0 million of income a year ago. Performance EBIT loss was $1.6 million, down from $93.7 million of income a year ago.
"Even as the global commercial vehicle industry is facing its worst downturn in history, and despite the company's sales decline of 53 percent in local currencies versus a year ago, WABCO almost reached break-even at the operational level in Q2 2009, showing our powerful ability to perform," said Esculier. "Our achievements in Q2 2009 demonstrate that WABCO continues to move quickly to mitigate adverse market conditions while also making outstanding progress on our strategy of excellence in execution, global expansion and technology leadership."
"In Q2 2009, we achieved cost savings of $33 million in operating expenses, resulting in a reduction of approximately 25 percent year on year. Our WABCO Operating System also delivered $10.9 million of materials and conversion productivity, with materials productivity representing 5.4 percent of total materials cost and close to a record level, despite an unusually severe sourcing environment. As another mark of excellence in execution, in Q2 2009, we achieved zero defective parts-per-million on a greater number of production lines than ever before, which contributed to an overall improvement in quality," said Esculier.
On a U.S. GAAP basis, Q2 2009 reported a net loss of $17.4 million or $0.27 per diluted share versus net income of $67.0 million or $1.00 per diluted share a year ago. Excluding separation and streamlining costs, the one-time impact from the Indian joint venture transactions, and discrete and other one-time tax items, Q2 2009 resulted in a performance net loss of $4.7 million or $0.07 per diluted share versus performance net income of $75.5 million or $1.13 per diluted share a year ago.
WABCO generated $61.1 million in net cash from operating activities in Q2 2009 and $43.4 million of free cash flow.
"After three consecutive quarters in deeply depressed market conditions, we continue to generate strong operating cash flow, with $61.1 million in Q2 2009, further indicating WABCO's ability to execute efficiently and with maximum flexibility as we tightly manage working capital by reducing inventories and improving accounts receivable, among other measures," said Esculier.
"Despite the current global economic slump, WABCO continues to make outstanding strategic achievements, which we highlight as examples of our passion to rise to new challenges," said Esculier.
Recent Highlights
On July 15, 2009, WABCO announced that its new ESCsmart(TM) system is now approved for use in all 27 countries in the European Union and in 20 other countries worldwide where electronic stability control (ESC) for commercial vehicles is applied in accordance with the United Nations Economic Commission for Europe's Regulation 13 for braking. WABCO's ESCsmart system is the industry's most efficient method to certify ESC for trucks and buses. It is the industry's first technology that uses computational simulation to homologate ESC systems, avoiding the traditional approach to ESC homologation, which requires original equipment manufacturers to physically test all variants of vehicles. It substantially increases flexibility and saves significant time and labor for truck and bus makers.
On July 7, 2009, WABCO announced that the company was awarded a major contract to supply anti-lock braking systems (ABS) to KAMAZ, the largest manufacturer of commercial vehicles in the Russian Federation. In addition, KAMAZ has contracted WABCO to supply air disc brakes and actuators for their commercial vehicles.
WABCO disclosed in June 2009 that a new report by The Smart Cube, a global independent research firm, has identified WABCO as one of the five strongest and most financially stable companies in the U.S. automotive parts industry. Facing its most difficult operating environment in history, the automotive parts industry provides an opportunity for a few suppliers to emerge leaner, stronger, more financially stable and more competitive than ever before, according to The Smart Cube's analysis of financial metrics of 98 companies that are domiciled and publicly listed in the United States.
On June 3, 2009, WABCO reported that the company executed its previously announced plan to take majority control of award-winning WABCO-TVS (India) Ltd.
On May 22, 2009, WABCO's factory in Qingdao, China, was awarded "Enterprise of the Year 2008" for its outstanding contribution to economic development by the Qingdao Municipal Government, further strengthening WABCO's reputation as a brand of reference in China.
WABCO announced in Q2 2009 that the company has been awarded a contract by a major original equipment manufacturer in Europe to supply EcoSmart(TM) systems to equip their heavy duty truck engines for series production starting in 2011. WABCO's EcoSmart system is a breakthrough in air compression technology for trucks and buses that substantially improves fuel efficiency and reduces emissions. The EcoSmart clutch compressor optimally disengages a truck or bus compressor from the engine when the vehicle's air system reaches full pressure.
In Q2 2009, the company's joint venture in North America, Meritor WABCO, was awarded new business from Crete Carrier, one of North America's largest trucking companies. Crete Carrier placed orders for 2,000 trucks equipped with SmartTrac(TM) stability control systems and OnGuard(TM) collision mitigation systems for delivery in 2009. Crete Carrier had purchased 390 OnGuard units in 2008 and reportable accidents significantly decreased compared with vehicles operating without such units. OnGuard is the only collision mitigation system available in North America.
As of Q2 2009, the Meritor WABCO PAN 22 Air Disc Brake is available for trailers through Hendrickson, the leader in North America for trailer suspensions. Combining best-in-class braking torque output with low weight and long pad life, Meritor WABCO's PAN 22 Air Disc Brake is expected to become available through other trailer suspension and axle manufacturers in North America.
As reported in Q2 2009, WABCO extended its technology leadership in electronic braking systems (EBS) for trailers by introducing two breakthrough technologies to enhance the performance of EBS on extra long trailers and truck-trailer combinations with two or more trailers. WABCO's new Controller Area Network (CAN) Repeater and Router are the industry's first application of high-speed data transmission using CAN in-vehicle communications to improve braking performance of trailers.
Also in Q2 2009, WABCO announced several breakthrough features in its Intelligent Trailer Program, further enhancing electronic braking and air suspension functionalities through new OptiLoad(TM), OptiTurn(TM), Tilt Alert(TM) and Bounce Control(TM), all of which increase vehicle performance while enabling safer operation, more efficient loading and unloading, and more cost efficient maintenance.
Full Year 2009 Operating Framework
Due to continued uncertainties associated with market forecasts for commercial vehicles, WABCO is presently not providing full year 2009 earnings guidance. Based on market developments, the company has updated its operating framework for 2009 to include an estimated decline in 2009 sales of 35 to 40 percent in local currencies, resulting in a full year reported operating margin of negative 3.2 percent or better, including streamlining and separation related costs, and a positive operating margin on a performance basis. The company also expects to generate strongly positive free cash flow, excluding streamlining and separation related costs.
WABCO has also notified works councils that the company intends to terminate 300 additional positions in Germany.
"WABCO continues to anticipate and mitigate adverse market conditions without compromising our commitment to excellence in execution, global expansion and technology leadership," said Esculier. "We anticipated this economic crisis nearly a year ago, and now more than ever, we feel confident about adapting and executing what is necessary in the short term while preserving and powering the global capabilities and growth potential of WABCO."
22/7/09
Source: http://trailer-bodybuilders.com/chassis/truck-sales-up-0722/
Sales of commercial trucks edged up slightly midway through 2009, according to figures compiled by Wards Communications.
Truck dealers sold 25,128 trucks with GVW ratings above 10,000 pounds in June, up 5% from May. The gain, however, was not nearly enough to give sales much of a boost when compared with June 2008. Sales were off 31% when compared with year-earlier levels.
June’s 31% decline was slightly better than normal by 2009 standards. Halfway through the year, dealers sold 147,144 trucks with GVW ratings above 10,000 pounds. This represents a 37% decrease from the first six months of 2008.
Midway through 2009, retail sales of Class 3 trucks were off least—down 29% when compared with the first six months of 2008. Classes 4, 5, and 6 were all down between 51% and 54%. Class 7 truck sales were off 30%, while Class 8 trucks were down 33%.
Retail sales of light-duty trucks—Classes 1 and 2—also were down sharply during the first half of 2009. Sales of Class 1 trucks were off 32% compared with the first half of 2008, while sales of Class 2 trucks were down 38% year to date.
14/7/09
Source: http://bulktransporter.com/fleet/trucks/wabco-debuts-smart-trac-0714/
Meritor WABCO Vehicle Control Systems has introduced SmartTrac, a suite of antilock braking, automatic traction control, and stability control systems for commercial vehicles. SmartTrac uses advanced electronic control units with enhanced capabilities, to help North American truck operators with more options to meet operational needs.
The SmartTrac family of stability control systems is available immediately as a factory-installation option at several truck, tractor, and trailer OEMs. This line encompasses anti-lock braking systems (ABS), automatic traction control (ATC), and stability control systems designed for vehicle applications such as commercial trucks and trailers, construction, fire and rescue, bus and coach, and military.
SmartTrac integrates the company’s active safety systems technologies:
--Electronic Stability Control (ESC) (released in 2005 by Meritor WABCO) combines Roll Stability Control (RSC) with the added capability of yaw or rotational control.
--Roll Stability Control (RSC) continually monitors conditions that can lead to a rollover and can automatically de-throttle the engine and apply the engine brake, and drive and trailer axle foundation brakes to reduce tractor-trailer speed when lateral acceleration limits are about to be exceeded.
--RSSplus is an advanced two-modulator valve, trailer-only, stability control system. It continually calculates the trailer’s roll stability threshold based on load and measures actual lateral acceleration (side-to-side movements) and individual wheel speeds. When conditions indicate a rollover may occur, the system automatically intervenes by reducing engine torque, and engaging the engine retarder, while automatically applying drive axle and trailer brakes to slow the vehicle and assist the driver in maintaining control.
--Monitoring and telematics: Communicating over the tractor’s data bus, status messages can be relayed to an onboard computer with telematics capabilities. Fleet managers at home can correlate stability control and braking events with precise time and location data.
--Improved diagnostics and event recording: The SmartTrac family of ECUs can capture data about braking and stability control events and create a record of accurate, detailed information.
11/7/09
Source: http://www.wheelsunplugged.com/ViewNews.aspx?newsid=3812
TRF Limited is gearing up to spend Rs. 50 crore for shifting the production of its trailer undergears facility from Australia to Jamshedpur, where it would begin rolling out parts such as axle and suspensions. It is widely believed that its products will be catering to the needs Tata Motors for rigid body applications such as tippers, refrigerated vans, garbage compactors or trailers. However, its assembly work at Australia, which is currently run by its Singapore-based subsidiary- York Transport Equipment (Asia) Pte-will continue.
TRF Limited is part of the Tata Group of Companies, comprising over 90 enterprises in seven business sectors having operations in 40 countries. Founded in the last quarter of the 19th century, at a time when India had just embarked on the road to independence, the Group's business opportunities are aligned with nation building.
TRF undertakes turnkey projects for power and steel plants, ports, fertilisers and mining sectors. Over the last five decades, TRF's products and services have developed a market for themselves in the infrastructural sector in India and overseas. The company has several international collaborators and technology associates.
As mentioned above, TRF also owns a subsidiary, York TEA, Singapore, which produces and distributes trailer undergears, and has a market presence in 27 countries.
9/4/09
Source: http://machinist.in/index.php?option=com_content&task=view&id=2027&Itemid=2
Jamshedpur : York Transport Equipment (India) Pvt Ltd [YTEI], a subsidiary of TRF Ltd, launched the first axle from its manufacturing facility located in TRF’s premises in Jamshedpur, India.
Speaking on the occasion of the launch, Mr Sudhir Deoras, Managing Director, TRF Ltd and Chairman, York Group, said that York Transport Equipment (India), would build capacity to produce over 100,000 axles in the future.
York’s most popular axle in India is the 5021 axle, which is a 6” square axle with 14mm wall thickness. These axles are specifically designed for trailer application and can carry 12 tonnes at speed of 105 kmph. York's products meet European ECE quality standards, certified by RWTUV (German) and have compliance approvals with the Australian Design Rules. YTEI plans to soon start manufacturing other variants of these axles viz., 5021 with wider track of 1950mm, 5021 with Antilock Braking System (ABS) ready. Another popular axle 2021, a 5” round axle widely used in air suspension applications would also be produced very soon.
York’s products have been sold to trailer builders in India since the last over five years. Tata Motors is a major user of York axles and other products in the trailers that they sell along with their prime movers. In view of fast growing demand for trailers and the need to be close to the rapidly growing customer base in India, York Group, a subsidiary of TRF Ltd, since October 2007, has set up York Transport Equipment (India) Pvt Ltd [YTEI].
The York Group has a wide range of products, which includes:
- Axles (5” round, 6” square) from 12 to 17.5 ton
- Disc Brake axles, Self Steer Axles and ABS ready axles
- Mechanical leaf spring suspension (both under slung and over slung) from 12 to 17.5 tonnes
- Mechanical Bogie suspension from 20 to 40 tonnes capacity
- Walking beams suspension from 24 to 40 tonnes capacity
- Air suspension from 9 to 12 tonnes capacity.
York Transport Equipment (Pte) Ltd., Singapore, is a leading manufacturer of trailer axles, mechanical and air suspensions and other trailer accessories in Asia Pacific, Australia-New Zealand, Middle East and Africa regions. York has three manufacturing units at Singapore, Melbourne in Australia and QingDao in China.
9/7/09
Source: http://machinist.in/index.php?option=com_content&task=view&id=2195&Itemid=2
Mumbai: TRF, a Tata enterprise, has signed an agreement to acquire Dutch Lanka Trailer Manufacturers Limited (DLT), a trailer manufacturing company based in Sri Lanka. In the first phase, TRF will acquire 51% of Equity Shares at a consideration of US$ 8.67 million. It would also sign a Call & Put Option Agreement for acquisition of balance 49% of Equity Shares at a consideration of US$ 8.33 million.
DLT has manufacturing facility in Sri Lanka and sells trailers in as many as 30 countries. Through its Joint Venture with TATA International Ltd. in India, it manufactures & sells Trailers in India.
Dutch Lanka Engineering (Private) Limited, 100% subsidiary of DLT also has a subsidiary in Oman which manufactures and sales trailers in Middle East markets.
Recently, TRF had entered into a shareholders agreement along with Tata Capital and Jasper Industries to form a joint venture viz, Adithya Automotive Applications with the main objects of engaging in the business of automotive applications to provide end solutions through fabrications and machining for vehicles to be used as tippers, load bodies, trailers, refrigerated bodies, etc.
York Transport Equipment (India) Pvt Ltd [YTEI], a subsidiary of TRF Ltd, launched the first axle from its manufacturing facility located in TRF’s premises in Jamshedpur, India a few months back. Singapore based York Transport Equipment (Pte) Ltd also has manufacturing units at Singapore, Melbourne in Australia and QingDao in China.
In June, 2009, the company turned a new page in its history by deciding to issue bonus shares in the ratio of 1:1 (ie, one share for every one share held by the existing shareholders of the company.
Rs 48 crore equipment order for power project
Recently the company also bagged an order worth Rs48 crore for the design, engineering, supply and commissioning of coal handling plant equipments from BGR Energy Systems for the 2x600MW Kalisindh Thermal Power Project in Rajasthan. Some of the major equipments that will be supplied under the order are: wagon tipplers with side arm chargers, stacker cum re-claimers, apron feeders, ring granulators, and grizzly feeders. The company will also make available the necessary spares under the contract.
This sizeable order for the supply of the thermal power project equipments will serve as one measure that will enable the company to fulfil its aspiration to grow rapidly – five times in five years — and become a Rs2,500-crore company by 2013, by enhancing focus on material handling business and entering new businesses as necessary.
5/7/09
Source: http://www.theoaklandpress.com/articles/2009/07/05/business/doc4a4ff37ee2af9117448110.txt
Like other automotive suppliers, Troy-based ArvinMeritor has taken its share of lumps during the recession, but it’s also pushing ahead with new technology and a diversification strategy that will broaden its sources of revenue.
At the same time, the company is reducing its exposure to the volatile light vehicle market but won’t give it up altogether.
“ArvinMeritor’s longevity is based on a rich heritage of product performance, customer service and engineering expertise,” said Chip McClure, the company’s chairman and chief executive officer said earlier this year as the company celebrated its centennial.
Since the company’s earliest roots as Timken-Detroit Axle in 1909 — through its evolution as Rockwell, Meritor Automotive and ArvinMeritor — it has been a leading supplier of commercial and light vehicle systems, modules and components to the global transportation industry.
“These characteristics, combined with our commitment to develop industry-leading products and provide customized services to meet the needs of our customers around the world, describe our long history of ‘forward thinking, ’ ” McClure said.
ArvinMeritor today is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry.
It serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets and light vehicle manufacturers.
Earlier this year, ArvinMeritor’s first hybrid drivetrain system was launched in a Wal-Mart Transportation vehicle.
Wal-Mart operates nearly 7,200 heavy-duty trucks in North America and has committed to doubling its fleet efficiency by 2015. Wal-Mart is testing and evaluating the newly configured vehicle in regular linehaul service at one of its distribution centers throughout 2009.
The Meritor dual-mode hybrid drivetrain combines both mechanical and electrical propulsion systems. Under 48 miles-per-hour, vehicle propulsion is delivered entirely through an electric motor with power from lithium ion batteries.
These batteries are recharged through regenerative braking and/or an engine-driven generator.
“While most hybrid systems today are best suited for start-stop applications, our hybrid drivetrain is specifically designed for linehaul, over-the-road trucks, the largest segment of the commercial vehicle population,” said Carsten J. Reinhardt, president of ArvinMeritor’s Commercial Vehicle Systems business.
ArvinMeritor has also taken on defense work and is also focusing on remanufacturing equipment for the heavy-duty trucks and buses.
The new remanufactured transmissions will be sold under ArvinMeritor’s Mascot product brand and include Allison AT, MT, HT, 1000, 2000, 2400, 3000, and 4000 series automatics, company officials said.
The remanufactured units can operate on a wide range of vocational truck and bus applications where the expected service life of the vehicle is long but the operating demands on the transmission are high, they added.
ArvinMeritor’s new all-makes steering gears and pumps remanufacturing program includes more than 600 parts numbers from brands such as Vickers, Hoburn, Luk, Sheppard, Eaton, Saginaw, TRW and ZF.
“Remanufacturing also provides the environmental benefit of extending the productive life of a part that might otherwise be scrapped,” said Doug Wolma, general manager of remanufacturing,
McClure said the new hybrid technology and other initiatives that have emerged from ArvinMeritor’s workshops are a barometer of the company’s vitality at a difficult time.
Since last October, the company has had to cut costs by nearly $500 million, he said.
“The difficult conditions we continue to experience in our commercial and light vehicle markets has required us to take aggressive steps,” he said.
“Many of these actions have regrettably impacted our employees, but the ArvinMeritor leadership team is committed to successfully manage the company through the continuing economic turbulence,” he said.
The cuts have included the elimination of more than 2,000 jobs, the closing of plants in Ontario and Kentucky as well as workforce reduction of more than 1,800 global employees as well as pay reductions for salaried employees worldwide.
In addition, ArvinMeritor suspended merit pay increases for fiscal 2009, eliminated matching contribution to the U.S. 401(k), eliminated company-paid training and education program, suspended its quarterly dividend and reduced capital spending as well as all non-critical discretionary spending.
ArvinMeritor has gone through multiple evolutions in the past 100 years, but its always been passionate about its strategies for growth and remains committed to growing its capabilities and strengthening its market position even in the current challenging economic climate, McClure said.
“The future of manufacturing must rely on advancing through innovation, exploration and commercialization, which requires an increasingly sophisticated workforce and government policies to generate continued growth,” he said during the recent economic summit sponsored by the Detroit Economic Club.
“Prosperity comes from building, creating and producing,” said McClure.
