The document provides details on Meritor's FY 2007 second quarter earnings and performance update. It reports earnings of $0.17 per share from continuing operations before special items. It also lowers full-year EPS guidance to a range of $0.70 to $0.80 due to softer demand. Additionally, it outlines Meritor's Performance Plus initiative to achieve $150 million in savings by 2009 through restructuring and cost reductions.
- The company reported first quarter earnings per share from continuing operations of $0.16 before special items, impacted by an axle/ERP launch issue and a VW Brussels work stoppage.
- Issues have been largely resolved but may impact next quarter.
- Guidance for full year 2007 EPS before special items remains at $1.15 to $1.25.
- The company is focused on improving performance in key areas through its Performance Plus initiative.
Merrill Lynch Global Power & Gas Leaders Presentationfinance14
The document is a presentation by Exelon Corporation to investors at the Merrill Lynch Power & Gas Leaders Conference on September 25, 2007. It summarizes Exelon's strategic direction of protecting current value while growing long-term value through operational excellence, supporting competitive markets, and evaluating new growth opportunities. It highlights Exelon's strong financial performance with 12% annual operating EPS growth since 2000, and expectations for continued growth through 2011 driven by its generation business and ComEd's regulatory recovery plan. The presentation also reviews Exelon's financial policies and balance sheet capacity, positioning it well for future opportunities.
The document summarizes the agenda and presentations for Celanese Corporation's 2007 Investor Day. The agenda included presentations on Celanese's business segments and strategies for growth, operational excellence, and value creation. Celanese aimed to pursue premier performance and deliver superior value creation through industry-leading growth and a geographically balanced global position across diversified end markets.
The document summarizes BB&T's 2nd Annual Manufacturing and Materials Conference held on March 20, 2008. It discusses Celanese, a leading global integrated producer of chemicals and advanced materials. Celanese has executed a strategy since 2000 to focus on businesses with sustainable competitive advantages, invest in advantaged positions, and aggressively pursue growth. Today Celanese has a more resilient portfolio with less volatility and is on track to meet growth objectives of $350-400 million in increased earnings by 2010 through organic growth and initiatives in Asia, revitalization, innovation, and operational excellence.
This document summarizes a presentation given by Celanese at the Morgan Stanley Global Basic Materials Conference on February 19-21, 2008. It discusses Celanese's business segments including Advanced Engineered Materials, Consumer and Industrial Specialties, and Acetyl Intermediates. It highlights Celanese's geographically balanced positions, track record of growth through acquisitions and investments, and goals to increase operating EBITDA through focused growth initiatives in Asia, product revitalization, and innovation.
Dean Foods reported financial results for the fourth quarter and full year of 2008. The company had strong profit growth in the fourth quarter, with adjusted operating income increasing 27% compared to the fourth quarter of 2007. For the full year, Dean Foods recovered from a weak first quarter, with adjusted operating income growing 7% despite high dairy commodity costs. The company significantly reduced debt in 2008 and expects continued earnings growth in 2009, led by the DSD Dairy and WhiteWave-Morningstar segments. Dean Foods is well positioned for 2009 despite volatility in dairy markets.
The document summarizes an analyst meeting held by FirstEnergy on February 1, 2007 in New York City. It includes an agenda for the day's presentations and presentations on key topics. Tony Alexander, the CEO, presented on the company's strong financial and operating performance in 2006, including record generation output and improved safety results. Leila Vespoli then discussed the company's regulatory strategy, including managing the transition to competitive markets in Ohio, Pennsylvania, and New Jersey.
The document discusses maintenance and reliability in operations management. It outlines key topics like improving individual components, providing redundancy, implementing preventive maintenance, and increasing repair capabilities. The document uses the example of Orlando Utilities Commission, which takes its power plants offline for weeks of maintenance each year and overhauls systems every three years to complete over 1,800 tasks, to illustrate the strategic importance of maintenance and reliability.
- The company reported first quarter earnings per share from continuing operations of $0.16 before special items, impacted by an axle/ERP launch issue and a VW Brussels work stoppage.
- Issues have been largely resolved but may impact next quarter.
- Guidance for full year 2007 EPS before special items remains at $1.15 to $1.25.
- The company is focused on improving performance in key areas through its Performance Plus initiative.
Merrill Lynch Global Power & Gas Leaders Presentationfinance14
The document is a presentation by Exelon Corporation to investors at the Merrill Lynch Power & Gas Leaders Conference on September 25, 2007. It summarizes Exelon's strategic direction of protecting current value while growing long-term value through operational excellence, supporting competitive markets, and evaluating new growth opportunities. It highlights Exelon's strong financial performance with 12% annual operating EPS growth since 2000, and expectations for continued growth through 2011 driven by its generation business and ComEd's regulatory recovery plan. The presentation also reviews Exelon's financial policies and balance sheet capacity, positioning it well for future opportunities.
The document summarizes the agenda and presentations for Celanese Corporation's 2007 Investor Day. The agenda included presentations on Celanese's business segments and strategies for growth, operational excellence, and value creation. Celanese aimed to pursue premier performance and deliver superior value creation through industry-leading growth and a geographically balanced global position across diversified end markets.
The document summarizes BB&T's 2nd Annual Manufacturing and Materials Conference held on March 20, 2008. It discusses Celanese, a leading global integrated producer of chemicals and advanced materials. Celanese has executed a strategy since 2000 to focus on businesses with sustainable competitive advantages, invest in advantaged positions, and aggressively pursue growth. Today Celanese has a more resilient portfolio with less volatility and is on track to meet growth objectives of $350-400 million in increased earnings by 2010 through organic growth and initiatives in Asia, revitalization, innovation, and operational excellence.
This document summarizes a presentation given by Celanese at the Morgan Stanley Global Basic Materials Conference on February 19-21, 2008. It discusses Celanese's business segments including Advanced Engineered Materials, Consumer and Industrial Specialties, and Acetyl Intermediates. It highlights Celanese's geographically balanced positions, track record of growth through acquisitions and investments, and goals to increase operating EBITDA through focused growth initiatives in Asia, product revitalization, and innovation.
Dean Foods reported financial results for the fourth quarter and full year of 2008. The company had strong profit growth in the fourth quarter, with adjusted operating income increasing 27% compared to the fourth quarter of 2007. For the full year, Dean Foods recovered from a weak first quarter, with adjusted operating income growing 7% despite high dairy commodity costs. The company significantly reduced debt in 2008 and expects continued earnings growth in 2009, led by the DSD Dairy and WhiteWave-Morningstar segments. Dean Foods is well positioned for 2009 despite volatility in dairy markets.
The document summarizes an analyst meeting held by FirstEnergy on February 1, 2007 in New York City. It includes an agenda for the day's presentations and presentations on key topics. Tony Alexander, the CEO, presented on the company's strong financial and operating performance in 2006, including record generation output and improved safety results. Leila Vespoli then discussed the company's regulatory strategy, including managing the transition to competitive markets in Ohio, Pennsylvania, and New Jersey.
The document discusses maintenance and reliability in operations management. It outlines key topics like improving individual components, providing redundancy, implementing preventive maintenance, and increasing repair capabilities. The document uses the example of Orlando Utilities Commission, which takes its power plants offline for weeks of maintenance each year and overhauls systems every three years to complete over 1,800 tasks, to illustrate the strategic importance of maintenance and reliability.
The document summarizes the company's FY 2007 fourth quarter earnings presentation. It discusses financial results for Q4 and full year 2007, including earnings per share, sales, costs, margins and cash flow. Key highlights were earning $0.53 per share for the full year, completing restructuring actions, and providing guidance of $1.40-$1.60 EPS for 2008. Challenges in meeting European commercial vehicle demand were outlined along with actions to address issues.
The document summarizes the key points from a presentation given by Chip McClure, Chairman and CEO of ArvinMeritor, at the 2009 AANY Conference sponsored by Deutsche Bank. The presentation provides an overview of ArvinMeritor's strategic priorities and actions taken to improve performance and liquidity given deteriorating market conditions. It outlines the plans to separate the commercial vehicle solutions and light vehicle solutions businesses, pursue a sale of the body systems unit, and explore options for exiting the chassis systems business. Frequently asked questions are also addressed.
This document discusses Celanese Corporation's performance in 2008 and strategies going forward. It contains the following key points:
1. Celanese reported strong financial results for the third quarter and year-to-date 2008, despite challenging market conditions.
2. The company has executed a strategy focused on specialty businesses and divesting non-core assets to create a more resilient portfolio.
3. Going forward, Celanese aims to accelerate growth in specialty businesses like Consumer Specialties and leverage its integrated operations and global positions.
The document outlines a chapter about the design of goods and services. It discusses key topics like product strategy options, product life cycles, product development, and defining products. The learning objectives are to understand concepts such as the product life cycle, product development systems, time-based competition, and how products and services are defined. It also provides examples of companies that implement different product strategies.
This PowerPoint presentation covers key topics in developing operations strategy in a global environment, including:
- Developing missions and strategies to achieve competitive advantage through operations.
- The ten strategic operations management decisions companies must make.
- Issues in operations strategy and developing and implementing strategy globally.
- Four global operations strategy options: international, multidomestic, global, and transnational.
- Factors to consider in global product design, process design, facility location analysis, and managing the impact of culture and ethics.
This annual report from Smurfit-Stone Container Corporation discusses the company's financial highlights and business strategy for 2007. Some key points include:
- Net sales increased 3.7% to $7.42 billion while losses from continuing operations decreased to $103 million from $70 million in 2006.
- The containerboard, corrugated containers, and reclamation segment profit increased 16% to $604 million in 2007.
- The company invested $384 million in upgrading equipment in 2007 and expects to invest another $400 million in 2008 to modernize operations.
- The CEO discusses how the company has improved financial flexibility by reducing debt by $1.2 billion in the past two years and
EITF 08-1 and 09-3, Reporting Implications and Revenue Recognition RoadmapProformative, Inc.
Proformative presents EITF 08-1 and 09-3, Reporting Implications and Revenue Recognition Roadmap. Special thanks Joe Talley, Partner, Deloitte.
To download full presentation, visit http://bit.ly/cibS97
This document outlines a presentation on outsourcing as a supply chain strategy. It includes an introduction to outsourcing, types of activities that can be outsourced, and strategies for evaluating outsourcing options. Key methodologies discussed include using factor rating to evaluate country and provider risks, and using break-even analysis to determine cost-effectiveness of outsourcing. Advantages, disadvantages, and ethical issues related to outsourcing are also covered.
The document outlines concepts related to Just-in-Time (JIT) and lean operations, including:
1) JIT aims to have materials arrive where and when needed to eliminate waste using techniques like partnerships between suppliers and purchasers, small lot sizes, and reduced setup times.
2) The Toyota Production System emphasizes removing variability and waste through continuous improvement, respect for employees, and standard work practices.
3) Implementing JIT, TPS, and lean concepts can improve a company's throughput and competitiveness by exposing problems, reducing costs and inventory, and improving quality.
The document outlines the key topics to be covered in Chapter 2, which includes operations strategy in a global environment. Some of the major sections covered are global company profiles of Boeing and other multinational corporations, achieving competitive advantage through operations, developing missions and strategies, and global operations strategy options. The learning objectives are also provided which indicate students should be able to define operations management concepts and strategies used by global companies.
Sanmina-SCI provides a total manufacturing solution for its customers through vertical integration of world-class components and synchronized manufacturing. The company offers PCB fabrication, backplanes, cables, and plastic injection molding capabilities. This vertical integration allows customers access to these components and streamlines their manufacturing process. Sanmina-SCI has strategically located facilities around the world and over 20 years of experience partnering with companies to meet their advanced technology needs.
Lear Corporation reported its second-quarter 2007 results and full-year 2007 financial outlook. Key points include:
- Second-quarter core operating earnings were $229 million, up $65 million from the previous year, driven by cost performance and new business gains.
- For full-year 2007, the company expects core operating earnings in the range of $600-640 million and free cash flow of $275 million.
- Production assumptions for North America in 2007 forecast a 1% decline for the total industry and 4% decline for the Big Three automakers.
The document outlines key topics in operations management including:
1. It provides learning objectives for the chapter on operations and productivity such as defining operations management, distinguishing between goods and services, and calculating productivity metrics.
2. It gives examples of organizational charts for different types of companies to illustrate the operations, marketing, and finance functions.
3. It describes the 10 critical decisions that operations managers must make, such as design of goods/services, quality management, and supply chain management.
The document outlines the key concepts and methods of forecasting covered in Chapter 4 of an operations management textbook. It discusses forecasting time horizons, types of forecasts, qualitative and quantitative forecasting approaches, and specific quantitative time-series and associative forecasting methods like moving averages, exponential smoothing, and regression analysis. The document aims to help students understand the strategic importance of forecasting and how to develop forecasts using various techniques.
The document outlines concepts related to capacity planning, including:
1. It defines design capacity, effective capacity, and utilization, and provides an example to calculate these metrics for a bakery.
2. It discusses different approaches to managing capacity, such as leading or lagging demand, and making incremental vs. one-time capacity expansions.
3. It introduces break-even analysis as a technique to evaluate capacity alternatives by finding the point where total costs equal total revenue. Key variables in the analysis include fixed costs, variable costs, price, and production volume.
The document provides an overview of Premier Oil's 2011 annual results presentation. It discusses key highlights from 2011 including increased production to 60,000 boepd, increased reserves and resources to 527 mmboe, and increased financial strength. The presentation outlines Premier's path to reaching 100,000 boepd of production from existing projects in its portfolio and provides operational and exploration updates.
- The document summarizes ArvinMeritor's FY 2007 first quarter earnings conference call from January 30, 2007.
- Key highlights included earnings of $0.16 per share from continuing operations before special items, though results were impacted by an axle launch issue and work stoppage. Guidance for FY 2007 EPS remained at $1.15 to $1.25.
- Issues in the first quarter included lower North American production, an axle launch problem, and a work stoppage at VW Brussels. Improvement areas included higher margins in light vehicle systems and emissions technologies.
This annual report summarizes the company's financial performance in 2007.
1) Revenues increased 10% to $5 billion compared to 2006, with segment operating margins improving to almost 20%.
2) Diluted earnings per share from continuing operations increased 29% to $3.70 compared to 2006. Free cash flow from continuing operations was $531 million, approximately 93% of income from continuing operations.
3) The company continued its strategy of expanding into new markets, enhancing global market access through acquisitions and regional expansion, and maturing its productivity culture.
Rockwell Automation reported strong financial results for fiscal year 2007. [1] Sales increased 10% to $5 billion and segment operating margins improved to almost 20%. [2] Diluted earnings per share increased 29% to $3.70. [3] Free cash flow was $531 million, reflecting high quality earnings. The company continued expanding into new markets like process control and diversifying its customer base globally. It also made strategic acquisitions to enhance its technology and market position. Rockwell Automation remains focused on driving organic growth while maintaining productivity to reinvest in future opportunities.
This document summarizes CSX Corporation's presentation at the Citigroup Transportation Conference in November 2007. The presentation outlines CSX's positive fourth quarter revenue outlook, strong financial results, and strategies to drive earnings growth. CSX aims to achieve 10-12% annual operating income growth and a mid-low 70s operating ratio by 2010 through productivity improvements, value pricing, and total service integration.
1) CSX reported positive fourth quarter revenue outlooks for several industries including agricultural products, chemicals, coal, and metals, while noting automotive and food & consumer as neutral or unfavorable.
2) CSX has delivered strong financial results in recent years and is targeting 10-12% annual operating income growth and 15-17% annual earnings per share growth through 2010.
3) Key strategies like restructuring, productivity initiatives, and value pricing have driven margins higher, with the operating ratio goal of the mid-low 70s by 2010.
The document summarizes the company's FY 2007 fourth quarter earnings presentation. It discusses financial results for Q4 and full year 2007, including earnings per share, sales, costs, margins and cash flow. Key highlights were earning $0.53 per share for the full year, completing restructuring actions, and providing guidance of $1.40-$1.60 EPS for 2008. Challenges in meeting European commercial vehicle demand were outlined along with actions to address issues.
The document summarizes the key points from a presentation given by Chip McClure, Chairman and CEO of ArvinMeritor, at the 2009 AANY Conference sponsored by Deutsche Bank. The presentation provides an overview of ArvinMeritor's strategic priorities and actions taken to improve performance and liquidity given deteriorating market conditions. It outlines the plans to separate the commercial vehicle solutions and light vehicle solutions businesses, pursue a sale of the body systems unit, and explore options for exiting the chassis systems business. Frequently asked questions are also addressed.
This document discusses Celanese Corporation's performance in 2008 and strategies going forward. It contains the following key points:
1. Celanese reported strong financial results for the third quarter and year-to-date 2008, despite challenging market conditions.
2. The company has executed a strategy focused on specialty businesses and divesting non-core assets to create a more resilient portfolio.
3. Going forward, Celanese aims to accelerate growth in specialty businesses like Consumer Specialties and leverage its integrated operations and global positions.
The document outlines a chapter about the design of goods and services. It discusses key topics like product strategy options, product life cycles, product development, and defining products. The learning objectives are to understand concepts such as the product life cycle, product development systems, time-based competition, and how products and services are defined. It also provides examples of companies that implement different product strategies.
This PowerPoint presentation covers key topics in developing operations strategy in a global environment, including:
- Developing missions and strategies to achieve competitive advantage through operations.
- The ten strategic operations management decisions companies must make.
- Issues in operations strategy and developing and implementing strategy globally.
- Four global operations strategy options: international, multidomestic, global, and transnational.
- Factors to consider in global product design, process design, facility location analysis, and managing the impact of culture and ethics.
This annual report from Smurfit-Stone Container Corporation discusses the company's financial highlights and business strategy for 2007. Some key points include:
- Net sales increased 3.7% to $7.42 billion while losses from continuing operations decreased to $103 million from $70 million in 2006.
- The containerboard, corrugated containers, and reclamation segment profit increased 16% to $604 million in 2007.
- The company invested $384 million in upgrading equipment in 2007 and expects to invest another $400 million in 2008 to modernize operations.
- The CEO discusses how the company has improved financial flexibility by reducing debt by $1.2 billion in the past two years and
EITF 08-1 and 09-3, Reporting Implications and Revenue Recognition RoadmapProformative, Inc.
Proformative presents EITF 08-1 and 09-3, Reporting Implications and Revenue Recognition Roadmap. Special thanks Joe Talley, Partner, Deloitte.
To download full presentation, visit http://bit.ly/cibS97
This document outlines a presentation on outsourcing as a supply chain strategy. It includes an introduction to outsourcing, types of activities that can be outsourced, and strategies for evaluating outsourcing options. Key methodologies discussed include using factor rating to evaluate country and provider risks, and using break-even analysis to determine cost-effectiveness of outsourcing. Advantages, disadvantages, and ethical issues related to outsourcing are also covered.
The document outlines concepts related to Just-in-Time (JIT) and lean operations, including:
1) JIT aims to have materials arrive where and when needed to eliminate waste using techniques like partnerships between suppliers and purchasers, small lot sizes, and reduced setup times.
2) The Toyota Production System emphasizes removing variability and waste through continuous improvement, respect for employees, and standard work practices.
3) Implementing JIT, TPS, and lean concepts can improve a company's throughput and competitiveness by exposing problems, reducing costs and inventory, and improving quality.
The document outlines the key topics to be covered in Chapter 2, which includes operations strategy in a global environment. Some of the major sections covered are global company profiles of Boeing and other multinational corporations, achieving competitive advantage through operations, developing missions and strategies, and global operations strategy options. The learning objectives are also provided which indicate students should be able to define operations management concepts and strategies used by global companies.
Sanmina-SCI provides a total manufacturing solution for its customers through vertical integration of world-class components and synchronized manufacturing. The company offers PCB fabrication, backplanes, cables, and plastic injection molding capabilities. This vertical integration allows customers access to these components and streamlines their manufacturing process. Sanmina-SCI has strategically located facilities around the world and over 20 years of experience partnering with companies to meet their advanced technology needs.
Lear Corporation reported its second-quarter 2007 results and full-year 2007 financial outlook. Key points include:
- Second-quarter core operating earnings were $229 million, up $65 million from the previous year, driven by cost performance and new business gains.
- For full-year 2007, the company expects core operating earnings in the range of $600-640 million and free cash flow of $275 million.
- Production assumptions for North America in 2007 forecast a 1% decline for the total industry and 4% decline for the Big Three automakers.
The document outlines key topics in operations management including:
1. It provides learning objectives for the chapter on operations and productivity such as defining operations management, distinguishing between goods and services, and calculating productivity metrics.
2. It gives examples of organizational charts for different types of companies to illustrate the operations, marketing, and finance functions.
3. It describes the 10 critical decisions that operations managers must make, such as design of goods/services, quality management, and supply chain management.
The document outlines the key concepts and methods of forecasting covered in Chapter 4 of an operations management textbook. It discusses forecasting time horizons, types of forecasts, qualitative and quantitative forecasting approaches, and specific quantitative time-series and associative forecasting methods like moving averages, exponential smoothing, and regression analysis. The document aims to help students understand the strategic importance of forecasting and how to develop forecasts using various techniques.
The document outlines concepts related to capacity planning, including:
1. It defines design capacity, effective capacity, and utilization, and provides an example to calculate these metrics for a bakery.
2. It discusses different approaches to managing capacity, such as leading or lagging demand, and making incremental vs. one-time capacity expansions.
3. It introduces break-even analysis as a technique to evaluate capacity alternatives by finding the point where total costs equal total revenue. Key variables in the analysis include fixed costs, variable costs, price, and production volume.
The document provides an overview of Premier Oil's 2011 annual results presentation. It discusses key highlights from 2011 including increased production to 60,000 boepd, increased reserves and resources to 527 mmboe, and increased financial strength. The presentation outlines Premier's path to reaching 100,000 boepd of production from existing projects in its portfolio and provides operational and exploration updates.
- The document summarizes ArvinMeritor's FY 2007 first quarter earnings conference call from January 30, 2007.
- Key highlights included earnings of $0.16 per share from continuing operations before special items, though results were impacted by an axle launch issue and work stoppage. Guidance for FY 2007 EPS remained at $1.15 to $1.25.
- Issues in the first quarter included lower North American production, an axle launch problem, and a work stoppage at VW Brussels. Improvement areas included higher margins in light vehicle systems and emissions technologies.
This annual report summarizes the company's financial performance in 2007.
1) Revenues increased 10% to $5 billion compared to 2006, with segment operating margins improving to almost 20%.
2) Diluted earnings per share from continuing operations increased 29% to $3.70 compared to 2006. Free cash flow from continuing operations was $531 million, approximately 93% of income from continuing operations.
3) The company continued its strategy of expanding into new markets, enhancing global market access through acquisitions and regional expansion, and maturing its productivity culture.
Rockwell Automation reported strong financial results for fiscal year 2007. [1] Sales increased 10% to $5 billion and segment operating margins improved to almost 20%. [2] Diluted earnings per share increased 29% to $3.70. [3] Free cash flow was $531 million, reflecting high quality earnings. The company continued expanding into new markets like process control and diversifying its customer base globally. It also made strategic acquisitions to enhance its technology and market position. Rockwell Automation remains focused on driving organic growth while maintaining productivity to reinvest in future opportunities.
This document summarizes CSX Corporation's presentation at the Citigroup Transportation Conference in November 2007. The presentation outlines CSX's positive fourth quarter revenue outlook, strong financial results, and strategies to drive earnings growth. CSX aims to achieve 10-12% annual operating income growth and a mid-low 70s operating ratio by 2010 through productivity improvements, value pricing, and total service integration.
1) CSX reported positive fourth quarter revenue outlooks for several industries including agricultural products, chemicals, coal, and metals, while noting automotive and food & consumer as neutral or unfavorable.
2) CSX has delivered strong financial results in recent years and is targeting 10-12% annual operating income growth and 15-17% annual earnings per share growth through 2010.
3) Key strategies like restructuring, productivity initiatives, and value pricing have driven margins higher, with the operating ratio goal of the mid-low 70s by 2010.
The document is a presentation from Lehman Brothers on Celanese Corporation's High Yield Bond and Syndicated Loan Conference on March 14, 2008. It discusses Celanese's businesses, strategies, and financial performance. Specifically, it outlines Celanese's portfolio of businesses, geographic presence, growth objectives through 2010 aimed at increasing operating EBITDA by $350-400 million, strong cash flow generation, Asia growth strategy centered around a new complex in Nanjing, opportunities in advanced engineered materials and consumer/industrial specialties, and technology enhancements opening $1 billion in new opportunities in industrial specialties.
MeadWestvaco reported financial results for the fourth quarter and full year of 2007. For the full year, sales increased 6% to $6.9 billion and business segment profit rose 7% to $584 million. The company sold non-strategic forestlands, completed a $400 million share buyback, and strengthened its global packaging platform. Input costs increased significantly but the company implemented price increases across all major grades to offset these costs. For the fourth quarter, sales rose 4% while business segment profit declined 3% due to higher input costs and weaker demand in some segments.
MeadWestvaco reported financial results for the fourth quarter and full year of 2007. For the full year, sales increased 6% to $6.9 billion and business segment profit rose 7% to $584 million. The company sold non-strategic forestlands, completed a $400 million share buyback, and strengthened its global packaging platform. Input costs increased significantly but the company implemented price increases across all major grades to offset these costs. For the fourth quarter, sales rose 4% while business segment profit declined 3% due to higher input costs and weaker demand in some segments.
This document discusses Celanese Corporation's presentation at the Citi 5th Annual Small and Mid-Cap Conference on March 18, 2008. It begins with forward-looking statements and information on non-GAAP financial measures. Then, it provides an overview of Celanese as a leading global producer of chemicals and advanced materials. Finally, it outlines Celanese's strategies and growth opportunities in its key business segments to achieve its 2010 objectives of increasing operating EBITDA by $350-400 million.
Avery Dennison held an investor meeting on March 6, 2007 to discuss the company's business segments and growth strategies. The meeting focused on Pressure sensitive materials, Office and Consumer Products, and Retail Information Services. For pressure sensitive materials, growth opportunities included emerging markets, new applications in beverage labeling, and increased penetration in durable goods labeling driven by RFID adoption. For office products, the strategy centered around growing branded printable media through new product features, marketing programs, and category expansion. Overall, Avery Dennison aims to deliver above-average returns through attractive end markets, innovation, and strategic advantage in key regions.
Mary Lehmann, Vice President and Treasurer of the company, presented at the UBS 2007 Leveraged Finance Conference on May 9, 2007. In the presentation, Lehmann provided an overview of the company's financial guidance for 2007, highlighted improvement factors for 2008-2009, and discussed the Performance Plus initiative to achieve top quartile financial performance among peers through cost improvements and revenue enhancement. Lehmann also provided an update on the pending sale of the Emissions Technologies unit and addressed questions regarding the company's balance sheet and pension obligations.
Mary Lehmann, Vice President and Treasurer of the company, presented at the UBS 2007 Leveraged Finance Conference on May 9, 2007. In the presentation, Lehmann provided an overview of the company's financial guidance for 2007, highlighted improvement factors for 2008-2009, and discussed the Performance Plus initiative to achieve top quartile financial performance. Key points included projected 2007 EPS of $0.70 to $0.80 before special items, cost savings of $150 million by 2009 from restructuring under Performance Plus, and anticipated growth in North American commercial vehicle demand starting in 2008.
direc tv group The DIRECTV Group, Inc. Investor Dayfinance15
The document summarizes an investor presentation given by DIRECTV executives. It provides an overview of DIRECTV's financial performance from 2005-2007, noting increasing revenue, operating profit, and subscriber growth over that period. It also reviews DIRECTV's space segment, including its young satellite fleet and plans to launch two new satellites to support further channel expansion, especially in high-definition programming. Finally, the presentation discusses DIRECTV's leadership in technology and plans to continue investing in its consumer premise equipment and use of home networks.
This presentation discusses CSX Corporation's performance and outlook. It notes that CSX has created significant shareholder value in recent years. The company is targeting double-digit growth through 2010 by executing on its strategy and continuous improvement. While the economy is moderating, the rail renaissance environment remains strong due to tight transportation capacity and pricing power. CSX is making infrastructure investments to leverage long-term growth in intermodal volumes driven by increasing port traffic. The company's capital philosophy focuses on productivity to support its goal of long-term value creation.
This presentation discusses CSX Corporation's performance and outlook. It notes that CSX has created significant shareholder value in recent years. The company is focused on delivering double-digit growth through 2010 by executing its long-term strategy and meeting new financial targets. The rail renaissance environment remains strong due to tight transportation capacity and pricing power, though the economy is moderating. CSX is making capacity investments to leverage growth around major ports and intermodal volumes. The company aims to continue its financial and operational momentum while delivering value for shareholders.
El Paso Corporation reported strong second quarter earnings, with Exploration and Production ahead of target. The company's pipeline group also performed well above the second quarter of last year, supported by increased throughput. El Paso continues to advance its portfolio of committed growth projects across its pipeline network. Overall, the company is on track to achieve its financial and operational targets for 2007.
El Paso Corporation reported strong financial results for the second quarter of 2007, with EBIT of $470 million and diluted EPS of $0.22. Exploration and Production was ahead of target for the quarter and on target for the full year. The Pipelines business was also ahead of target for the quarter and on target for the year with more opportunities on the horizon. Adjusted diluted EPS, excluding one-time costs, was $0.29. The company remains focused on delivering meaningful results through its core businesses of Pipelines and Exploration and Production.
Public Service Enterprise Group (PSEG) operates power generation, transmission and distribution businesses. The document discusses opportunities for growth across PSEG's businesses in areas like renewable energy, carbon reduction initiatives, and New Jersey's Energy Master Plan. PSEG is well positioned for growth through its diverse portfolio of assets and investments aligned with trends in tightening capacity, environmental compliance, and energy policy debates. PSE&G in particular is positioned for steady growth through its base investment plan and additional opportunities in transmission expansion, renewable strategies, and advanced metering infrastructure.
Public Service Enterprise Group (PSEG) operates power generation, transmission and distribution businesses. The document discusses opportunities for growth across PSEG's businesses in areas like renewable energy, carbon reduction initiatives, and New Jersey's Energy Master Plan. PSEG is well positioned for growth through its diverse portfolio of assets and investments aligned with trends in tightening capacity, environmental compliance, and energy policy debates. Financial results have shown strong earnings growth with opportunities to further increase shareholder value.
- The company reported strong financial performance in 2007 with 10% sales growth and 25% earnings per share growth. Free cash flow conversion was 129%.
- All business segments reported sales growth in the fourth quarter ranging from 9-14% except Transportation Systems which grew 6%.
- For the full year 2007, the company executed $1.2 billion in acquisitions and $4 billion in share repurchases while increasing its dividend by 10%.
Similar to arvinmeritor 2 007_Q2_Earnings_Slides_Final (20)
CMC is a global steel and metals company with over 14,000 employees worldwide. It manufactures, recycles, markets, and distributes steel and metal products through a network of over 200 locations globally. CMC operates steel minimills, fabrication plants, service centers, and recycling facilities. It aims to be vertically integrated and diversified in its product offerings and geographic reach.
The document provides an overview of CMC's business model which focuses on vertical integration, product diversification, and global geographic dispersion. It then discusses CMC's current market conditions and outlook across different geographic regions and product lines, including details on earnings expectations, capital investment projects, and quarterly financial statistics. The document also reviews factors influencing costs and selling prices for CMC's various steel manufacturing operations in North America.
The document provides an overview of CMC, a global steel and metals company. It discusses CMC's business model which focuses on vertical integration, product diversification, and global geographic dispersion. It also summarizes CMC's track record of conservative management and 30 consecutive years of profitability. Finally, it outlines CMC's five operating segments and overall strategy of achieving a global reach through regional focus and growth in key markets.
CMC is a global steel and metals company with over 14,000 employees worldwide. It manufactures, recycles, markets, and distributes steel and metal products through a network of over 200 locations globally. CMC operates steel minimills, fabrication plants, service centers, and recycling facilities. It aims to vertically integrate its operations from scrap processing to steel fabrication to provide a hedge against steel and metal price fluctuations.
The document provides an overview of CMC's business model, current market conditions, earnings results, and operational metrics for the third quarter of 2008. It discusses CMC's strategy of vertical integration, product diversification, and global geographic dispersion. It also reviews earnings, sales, margins, capital investments, and performance across CMC's different business segments.
The document provides an overview of CMC's business model, current market conditions, earnings results, and operational metrics for the third quarter of 2008. It discusses CMC's strategy of vertical integration, product diversification, and global geographic dispersion. It also reviews demand trends, input costs, earnings, investments, segment performance, and operational details.
This document provides an overview of Commercial Metals Company (CMC) and its quarterly performance. It discusses CMC's business model, including its vertical integration and product and geographic diversification. It also summarizes CMC's financial performance from 2003-2007, highlighting increasing sales, earnings, and shareholder returns over that period. Current market conditions and CMC's outlook are briefly addressed.
The document provides an overview of CMC's business model and current market conditions for the 4th quarter of 2008. It summarizes CMC's key business segments, product lines, capital projects, financial statistics, and discusses challenges in the global steel market including falling prices, reduced demand, and excess inventory. It analyzes factors such as raw material costs, sales prices, margins, and operating profits across CMC's divisions.
The document provides an overview of CMC's business model and current market conditions for the 4th quarter of 2008. It summarizes CMC's key business segments, current projects, liquidity position, financial statistics, and discusses challenges in the global steel market including falling prices, reduced demand, and excess inventory. It analyzes performance and outlook for CMC's Americas and international operations.
This document summarizes notes from the 4th Annual Global Steel CEO Forum held by Goldman Sachs on December 4, 2008. It discusses the current challenging market conditions for the steel industry due to the global liquidity crisis, including falling prices, production cutbacks, and declining demand. Updates are provided on conditions and outlook for different markets, including further price declines and inventory reductions in North America, continued cutbacks and oversupply in Europe and the Middle East, and China's efforts to stimulate domestic demand and infrastructure spending to boost its economy and steel demand. Breaking the negative cycle depends on the effectiveness of global government intervention programs and restoration of confidence.
The document discusses how Commercial Metals Company (CMC) is different from other steel companies. It notes that CMC focuses on long steel products, has diversified its business across five segments including steel mills, fabrication, recycling, and marketing, and has a track record of consistent profitability and financial strength over 26 years. The document aims to show investors that CMC's strategy and performance set it apart from other steel industry firms.
The document discusses how Commercial Metals Company (CMC) is different from other steel companies. It notes that CMC focuses on long steel products, has diversified its business across five segments including steel mills, fabrication, recycling, and marketing, and has a track record of consistent profitability and financial strength over 26 years. The document aims to show investors that CMC's strategy and performance set it apart from other steel industry firms.
The document discusses how Commercial Metals Company (CMC) is different from other steel companies. It notes that CMC focuses on long steel products, has diversified its business across five segments including steel mills, fabrication plants, recycling, and marketing/distribution, and has a track record of consistent profitability and financial strength over 26 years. The document aims to show shareholders that CMC's business strategy and performance set it apart from other steel industry firms.
This document is Commercial Metals Company's 2005 Annual Report. It summarizes the company's financial performance for fiscal year 2005, including record net earnings of $286 million on net sales of $6.6 billion, up from $132 million on $4.8 billion the previous year. It discusses positive results across the company's business segments, including Domestic Mills, Domestic Fabrication, Recycling, and Marketing & Distribution. The annual report also provides an overview of the company's operations, strategic focus on vertical integration, and capital expenditure plans.
This document is the 2005 annual report for Commercial Metals Company. It summarizes the company's financial performance for fiscal year 2005, which saw record net earnings of $286 million on net sales of $6.6 billion, up from $132 million on $4.8 billion the previous year. The company's domestic mills and fabrication segments significantly outperformed the prior year due to higher steel prices and strong end-user demand. While operations in Poland saw a decline from the prior year, performance improved in the fourth quarter. Overall, the company benefited from favorable market conditions across most of its businesses.
This document is Commercial Metals Company's 2005 Annual Report which summarizes the company's financial performance for fiscal year 2005. Some key points:
- The company achieved record net earnings of $286 million on record net sales of $6.6 billion in fiscal year 2005, up from $132 million in net earnings on $4.8 billion in net sales in fiscal year 2004.
- All of the company's business segments - Domestic Mills, Domestic Fabrication, Recycling, and Marketing & Distribution - experienced strong financial performance and profitability in 2005.
- The company continued its strategy of vertical integration and diversification which has helped it perform well in changing market conditions.
- For
This annual report summarizes Commercial Metals Company's financial performance in fiscal year 2006. Some key points:
- Record net earnings of $356 million on $7.6 billion in net sales, up from $286 million on $6.6 billion the prior year.
- All five business segments (domestic mills, CMCZ, domestic fabrication, recycling, and marketing/distribution) performed well due to favorable market conditions and the company's vertical integration strategy.
- Domestic mills set new records for sales, production, and shipments as metal spreads increased. The copper tube mill's operating profit increased significantly year-over-year.
This annual report summarizes Commercial Metals Company's financial performance in fiscal year 2006. Some key points:
- Record net earnings of $356 million on $7.6 billion in net sales, up from $286 million on $6.6 billion the prior year.
- All five business segments (domestic mills, CMCZ, domestic fabrication, recycling, and marketing/distribution) performed well due to favorable market conditions and the company's vertical integration strategy.
- Domestic mills set production and shipment records while benefiting from high metal spreads. CMCZ also improved significantly through organizational changes and new investments.
Commercial Metals Company reported record financial results for fiscal year 2006 with net sales of $7.6 billion, net earnings of $356 million, and diluted earnings per share of $2.89. All five of CMC's business segments performed well, with domestic steel mills, CMCZ (the Polish steel operation), and recycling being especially strong. Market conditions were favorable, especially for non-residential construction, and CMC executed well. The company also invested in new facilities, acquisitions, and branding initiatives. CMC has high confidence in its future due to the continued expected strength of its end markets and its vertically integrated business model.
Commercial Metals Company had a profitable year in 2007, approaching the record profits of 2006. The company made several strategic acquisitions, announced plans to build a new micro mill, and reorganized internally to take advantage of growth opportunities. All five of the company's business segments performed well. Safety remains a major focus.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
1. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
FY 2007 Second Quarter
Earnings Presentation and
Performance Plus Update
Chip McClure, Chairman, CEO & President
Jim Donlon, Senior Vice President & CFO
Jay Craig, Vice President and Controller
Carsten Reinhardt, President, CVS
Phil Martens, President, LVS
May 1, 2007
1
2. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Forward-Looking Statements
This presentation contains statements relating to future results of the company (including certain projections and
business trends) that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of
1995. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,”
“anticipate,” “estimate,” “should,” “are likely to be,” “will” and similar expressions. Actual results may differ
materially from those projected as a result of certain risks and uncertainties, including but not limited to global
economic and market cycles and conditions; the demand for commercial, specialty and light vehicles for which the
company supplies products; risks inherent in operating abroad (including foreign currency exchange rates and
potential disruption of production and supply due to terrorist attacks or acts of aggression); availability and cost of
raw materials, including steel; OEM program delays; demand for and market acceptance of new and existing
products; successful development of new products; reliance on major OEM customers; labor relations of the
company, its suppliers and customers, including potential disruptions in supply of parts to our facilities or demand
for our products due to work stoppages; the financial condition of the company’s suppliers and customers,
including potential bankruptcies; possible adverse effects of any future suspension of normal trade credit terms by
our suppliers; potential difficulties competing with companies that have avoided their existing contracts in
bankruptcy and reorganization proceedings; successful integration of acquired or merged businesses; the ability
to achieve the expected annual savings and synergies from past and future business combinations and the ability
to achieve the expected benefits of restructuring actions; success and timing of potential divestitures; potential
impairment of long-lived assets, including goodwill; competitive product and pricing pressures; the amount of the
company’s debt; the ability of the company to continue to comply with covenants in its financing agreements; the
ability of the company to access capital markets; credit ratings of the company’s debt; the outcome of existing and
any future legal proceedings, including any litigation with respect to environmental or asbestos-related matters;
rising costs of pension and other post-retirement benefits and possible changes in pension and other accounting
rules; as well as other risks and uncertainties, including but not limited to those detailed herein and from time to
time in other filings of the company with the SEC. These forward-looking statements are made only as of the
date hereof, and the company undertakes no obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise, except as otherwise required by law.
2
3. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Chip McClure
Chairman and CEO
Overview
3
4. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Highlights
• Earned $0.17 per share from continuing operations
before special items
• Emissions Technologies business now reported in
discontinued operations; Aftermarket Ride Control in
continuing operations
• FY 2007 EPS guidance before special items reduced to
a range of $0.70 to $0.80
• Performance Plus will achieve $150 million with
restructuring and cost reductions alone by 2009
4
5. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Second Quarter 2007 Summary
CVS BUSINESS GROUP
• Lighter than expected trailer builds and softer demand for
Aftermarket products
• Freight and tonnage lower
• Housing down
• Economy soft
• Higher truck volume issues in Europe
• Stretched supply chain
• Quality actions
LVS BUSINESS GROUP
• Higher margins
• Improvements in operating performance paying off
• Stronger mix of European/Asia Pacific sales
• Chassis Systems reinforced with the addition of Gabriel Ride Control
• Electronic ride control development well underway positioning Chassis Systems
for future growth
5
6. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Status of Emissions Technologies Sale
• Transaction is on track to close this quarter
• Received anti-trust approvals from all jurisdictions
• All major elements of the deal are as reported on
February 2
• Proceeds to be used to improve balance sheet and
fund restructuring and growth initiatives
6
7. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Profitable Growth Strategy
Sharpen focus on core areas for sustainable, profitable growth
Increase Globalization
• Triple sales in Asia with Asian OEMs within
five years
• $1B+ added sales in Asia Pacific
• $1B in sourcing
• Establish healthy mix of local OEMs and global
OEMs in region
• Grow technical and product development
within China and India
• Build new technical center in Shanghai, China
• Double size of technical center in Bangalore, India
• Appointed dedicated full-time leader
• President of Asia Pacific – Rakesh Sachdev
• Opened a wholly-owned facility in Wuxi
Positioned for Growth
7
8. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Profitable Growth Strategy
Sharpen focus on core areas for sustainable, profitable growth
Deliver Value to Customers
• Increase systems, controls and electronics capabilities
Introduce New and Enhanced Technologies
• Generate compelling new “gotta have” products that create
exceptional value for customers
Triple Aftermarket Sales
• Organic growth
• Bolt-on acquisitions
• Global expansion
• Remanufactured products
Positioned for Growth
8
9. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
2008-2009 Opportunities
Success factors…
Market Addressing Pension and
Healthcare Issues
• Rebounding truck volumes
ahead of 2010 emissions • Changed U.S. retirement plan
change effective Jan. 1, 2008
• Implemented consumer-driven
Launched Performance
healthcare initiatives in Jan.
Plus Initiatives 2007
• Significant cost savings
Solid Balance Sheet
• Improve operating efficiency
• Develop products and • Reduced debt
technologies • Increased liquidity
Restructuring
Diversified
• Enhanced global footprint
• Customer base
• Consolidate LVS/CVS
• Global presence
engineering facilities
• Product portfolio
• Overhead
Sound Investment
9
10. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Jim Donlon
Chief Financial Officer
Q2 Results & 2007 Outlook
10
11. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Second Quarter Income Statement from
Continuing Operations – Before Special Items (1)
(in millions, except per share amounts) Three Months Ended March 31,
Better/(Worse)
2007 2006
$ %
Sales $ 1,627) $ 1,629) $ (2) 0%
Cost of Sales (1,490) (1,477) (13) -1%
GROSS MARGIN 137) 152) (15) -10%
SG&A (99) (89) (10) -11%
OPERATING INCOME 38) 63) (25) -40%
Equity in Earnings of Affiliates 7) 7) -) 0%
Interest Expense, Net and Other (28) (35) 7) 20%
INCOME BEFORE INCOME TAXES 17) 35) (18) -51%
Provision for Income Taxes (2) (7) 5) 71%
Minority Interests (3) (4) 1) 25%
INCOME FROM CONTINUING OPERATIONS $ 12) $ 24) $ (12) -50%
DILUTED EARNINGS PER SHARE
Continuing Operations $ 0.17) $ 0.34) $ (0.17) -50%
11
(1) See Appendix – “Non-GAAP Financial Information”
12. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Segment EBITDA Before Special Items (1)
Quarter Ended March 31,
(in millions)
Better/(Worse)
2007 2006 $ %
EBITDA
Light Vehicle Systems $ 30) $ 16) $ 14) 88%
Commercial Vehicle System 59) 88) (29) -33%
Segment EBITDA 89) 104) (15) -14%
Unallocated Corporate Costs (1) -) (1) -100%
ET Corporate Allocations (11) (6) (5) -83%
Total EBITDA $ 77) $ 98) $ (21) -21%
EBITDA Margins
Light Vehicle Systems (2) 5.2% 2.8% 2.4 pts
Commercial Vehicle System 5.5% 8.3% -2.8 pts
Segment EBITDA Margins 5.4% 6.4% -1.0 pts
Total EBITDA Margins 4.7% 6.0% -1.3 pts
(1) See Appendix – “Non-GAAP Financial Information” 12
(2) Adjusted to reflect the impact of reduced volumes in our Brussels operation
13. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Income Statement Special Items Walk
Ride Control Before
Fair Value Production Debt Tax
GAAP Special Items
Restructuring Adjustment Disruptions Extinguishment Impact
Q2 2007 Q2 2007
Sales $ 1,627 $ - $ - $ - $ - $ - $ 1,627
Gross Margin 143 - - (6) - - 137
Operating Income 17 37 (10) (6) - - 38
Income (Loss) Before Income Taxes (10) 37 (10) (6) 6 - 17
Income (Loss) From Continuing Operations (13) 23 (6) (4) 4 8 12
DILUTED EARNINGS (LOSS) PER SHARE
Continuing Operations $ (0.19) $ 0.32 $ (0.08) $ (0.05) $ 0.06 $ 0.11 $ 0.17
Diluted Shares Outstanding 70.2 71.2 71.2 71.2 71.2 71.2 71.2
EBITDA
Light Vehicle Systems $ 8 $ 29 $ (10) $ 3$ - $ - $ 30
Commercial Vehicle Systems 60 8 - (9) - - 59
Segment EBITDA 68 37 (10) (6) - - 89
Unallocated Corporate Costs (1) - - - - - (1)
(11) - - - - - (11)
ET Corporate Allocations
$ 56 $ 37 $ (10) $ (6) $ - $ - $ 77
Total EBITDA
13
14. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Discontinuation of Emissions Technologies
In millions; excludes asset impairment
1H After Divestiture
1H Before Divestiture
Revenue
COGS 38
Continuing
ET Specific SG&A
Operations
Corporate Costs (18)
Corporate Costs (18)
x
EBITDA 20 EBITDA (18)
Revenue
Discontinued
COGS 38
Operations
ET Specific SG&A
EBITDA 0 EBITDA 38
14
15. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Discontinued and Held-for-Sale Operations
Emissions
In millions LVA Europe
Technologies
Assets $ 1,103 $ 139
Liabilities 740 65
Net Assets $ 363 $ 74
Memo: 2006 Sales $ 2,942 $ 171
15
16. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Free Cash Flow (1)
Quarter Ended
In millions
March 31,
2007 2006
Income (Loss) from Continuing Operations $ (13) $ 32
Net Spending (D&A less Capital Expenditures) 6 9
Pension and Retiree Medical Net of Contributions (63) 12
Performance Working Capital (2) 11 (56)
Off Balance Sheet Securitization and Factoring 17 5
Restructuring, Disc. Ops. and Other (29) (67)
Free Cash Flow $ (71) $ (65)
(1) See Appendix – “Non-GAAP Financial Information”
(2) Change in payables less changes in receivables, inventory and customer tooling 16
17. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Global Pension Plan Funded Status
In millions
2006 Year-End Underfunded Status $ (409)
Discount Rate (-50 bps in U.S and Canada) (85)
UK Elective Contribution (1) 40
Other Plan Year Activity (2) 124
Plan Freeze 30
ET Divestiture 35
Estimated 2007 Underfunded Status $ (265)
(1) $10 million pull-ahead and $30 million incremental 2007 contributions applied to
significantly reduce underfunding levy over next six years
(2) Includes other plan contributions and asset returns net of interest and service cost 17
18. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Fiscal Year 2007 Outlook
Continuing Operations Before Special Items
FY 2007
Full Year Outlook (1)
(in millions except tax rate and EPS)
̶
Sales $ 6,000 $ 6,200
̶
EBITDA 275 295
̶
Interest Expense (95) (105)
̶
Effective Tax Rate 8% 12%
Income from Continuing ̶
$ 50 $ 57
Operations
̶
Diluted Earnings Per Share 0.70 0.80
̶
Free Cash Flow 50 100
(1) Excluding gains or losses on divestitures, restructuring costs, and other special items
18
19. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
FY 2007 Outlook vs. Prior
Continuing Operations Before Special Items
Sales Estimated
(millions) EPS (1)
Previous Guidance $5,900 – $6,100 $1.00 – $1.10
Weaker North America Truck Market (50) – (75) (0.10) – (0.15)
Lower Achievement of NA Offsets (25) – (50) (0.05) – (0.10)
Stronger European Truck Volumes 125 – 175 0.10 – 0.15
Lower EU Productivity & Volume Penalties (0.15) – (0.20)
Unrecovered Commodity Cost Increases (0.05)
Updated FY 2007 Guidance Range $6,000 – $6,200 $0.70 – $0.80
(1) Excluding gains or losses on divestitures, restructuring costs, and other special items
19
20. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Jay Craig
Controller
• Performance Plus Overview
• Overhead
20
21. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
How is the Program Structured?
Goal
Top Quartile Financial Performance Among Peer Companies
Steering Committee
Corporate Officers
Operational Excellence Commercial Excellence
Approach
Cost Improvements Revenue Enhancement
Product
Strategy & Aftermarket
Materials Mfg. Overhead ER&D
Growth
C. P. Martens &
Sponsors C. Reinhardt J. Craig P. Martens J. Craig
Reinhardt M. Lehmann
Talent Excellence
Foundation
Sponsor: R. Ostrov
Program Office
Sponsors: J. Craig and J. Donlon
21
22. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Project Approach and Timing
Design
Set Targets
Implement
Improvement
Initiatives Initiatives
Time
Span Nov. – Dec. 2006 Jan. – Dec. 2007 Jan. 2007 – Dec. 2009
• Implement initiatives
• Generate/identify
• Set overall work
improvement
module targets
Main • Track realization of
measures potential
• Plan work modules in
Tasks
• Assign responsibility
detail • Institutionalize tools and
and timeline methods
• Create baseline and
• Implement quick
tracking approach
wins
22
23. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Performance Plus Profit Improvements
Run rate by 2009 in millions
Base Risk Net
COST
Reduce 8%-10%
$200-300 $150
Elements ~$350-$450
$5 Billion Base
(Addressable Costs)
REVENUE Grow $1.2 Billion
~$50-$150 TBD TBD
7-13% Margins
Elements
Improvement ~$400-$600
23
24. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Performance Plus High-Confidence Improvement –
Adjusted for Emissions Technology
EBITDA Before Special Items
2006 2007 2008 2009
Updated $365 $275-$295 $335-$380 $385-$445
Baseline
High-Confidence
75 150
Cost Savings
Growth Actions TBD
TBD
Total $365 $275-$295 $410-$455 $535-$595
24
25. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Performance Plus Restructuring
North
(millions except plants) Europe Total
America
Restructuring Expense $170 $155 $325
Restructuring Cash $155 $125 $280
Number of Plants Affected 9 4 13
Cumulative Annual Run-
$80 - 85 $50 - 55 $130 - $140
Rate Benefits by 2012
25
26. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Calendarization of Expenses and Benefits
(millions) 2007 2008 2009 Total
Restructuring Expense $65 $115 $100 $325
Restructuring Cash $50 $100 $80 $280
Cumulative Annual Run-
$5 $25-$30 $75-$80 $130-$140
Rate Benefits by 2011
26
27. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Detailed Cost Reduction Targets
Cost Reductions (millions) 2008 2009
Overhead $ 65 $ 100
Materials 100 200
Manufacturing (20) 65
Risk (70) (215)
High Confidence Net of Risk $ 75 $ 150
27
28. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Progress to Revenue Improvement Target
Revenue growth in millions by 2010
Target
Identified
$1,000
Initiatives
Being
$400
Implemented
$0 $200 $400 $600 $800 $1,000 $1,200
28
29. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Operational Excellence
Overhead Material Manufacturing
Optimization
29
30. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Operational Excellence
• Shared Services
• Integration of staffs and
consolidation of
corresponding facilities
• Purchased services
• Utilities
• Legal services
• Consulting, auditing and
transaction fees
• Waste disposal
Overhead
30
31. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Overhead
In millions
2009 EBITDA
Lever / Sub-Team Opportunities
Target
- Travel and Entertainment
Non-Manufacturing $35 – $40
- Reduction in Energy Consumption
- Temp Labor
- Supplier Consolidation
- Re-bid Contracts
Indirect Materials 10 – 20
- Demand Management
- Commonization (SKU Reduction)
- Outsourcing
Activity / Process - Outsourcing
45 – 50
Labor - Foot Print Rationalization
Total $90 - $110
31
32. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Temp Labor Benchmarking Data Indicates a
9-19% Savings Opportunity
• Supplier Consolidation Total run-rate savings of $4M - 10M
• Reduce light industrial labor $US Millions
suppliers from over 38 to 2-3
preferred suppliers
4 - 10
• Reduce non industrial labor
suppliers from over 47 to 2-3
preferred suppliers 2-5
• Implement immediate transition
to new suppliers to maximize 2-5
savings
• Demand Management
• Standardize job titles to ensure
“not to exceed” rates
• Ensure correct jobs are chosen
for each request Total Supplier Demand
Savings Consolidation Management
• Reduce overtime through better
capacity planning
32
33. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Non-Production Materials
Loctite part with annual
1 Eliminate pricing variation spend of $570 K
• Identical part numbers
-20%
4,980
• Utilize lowest cost supplier 4,462
3,971
• Incremental opportunity for volume discount
2 Standardize or substitute parts Supplier 1 Supplier 2 Manufacturer
Part substitution: clear safety glasses
• Different items with similar function 5.65
• Examples include cutting tools, abrasives,
hand tools, fasteners
69%
3.60
3 Manage demand
1.76
• Inventory tracking techniques
• Vendor management
Part 1 Part 2 Part 3
33
34. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Carsten Reinhardt
President, CVS
• Material Optimization
• Manufacturing
34
35. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Operational Excellence
• Consolidate purchasing
activities to increase scale
• Renegotiate rigorously for
cost reductions
• Fully utilize value analysis/
value engineering tools
• Identify, qualify and source
leading cost competitive
suppliers
• Concentrate business with
Material key supplier partners
Optimization
35
36. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Material Optimization
In millions
Lever / Sub- 2009 EBITDA
Opportunities
Team Target
- Material / process standardization
- Design improvements for lower cost
Design
$70 – $75
- Key tools: competitive teardowns and
Optimization
supplier conferences
- Leverage spend across regions and product
lines to gain scale
55 – 60
LCCC Sourcing
- Invest time and resources to develop world-
class suppliers
- Understand detailed supplier cost structure
and “should-be” costs
Clean-Sheet
40 – 45
- Take a total cost approach
Negotiations
- Transparent and stable relationships with
suppliers to jointly eliminate waste
- Reduce freight rates across all modes
25 – 30
Freight
- Reduce frequency, costly modes, expedites
Total $190 – $210
36
37. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Completing Wave 1 of 3 (2/3 of Opportunities)
Today
Wave 1
Axles Wave 2
Apertures
Brakes Wave 3
Freight
Wheels
Trailers
Suspension
Aftermarket
Other CVS
Ongoing implementation
Axles 33% Brakes 9% Trailers 7%
Percent of
Apertures 25% Wheels 1% Aftermarket 7%
opportunity
Freight 8% Suspension 3% Other CVS 7%
66%
Planned
Early January Mid May End July
start date
37
38. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Progress on Opportunity Levers
Opportunity Progress to date Potential
35 %
• 12 ‘Teardowns’ focused on different axle models
1 Design 30+ Idea Generation Sessions (IGS) with current
Optimization suppliers and Internal Resources
• 200+ ideas generated
• More than 150 ideas finalized to be pursued
• RFQs to ‘short-listed’ suppliers for 25+ components 30 %
2
LCCC
• 200 ‘new’ suppliers being assessed
Sourcing
• Supplier workshops in India, China and Mexico in
Addition to NA and Europe
• Clean-sheet assessments completed for 20+ 20 %
3
Clean-Sheet components to understand ‘should be’ cost
Negotiations • Information requested from all key suppliers
• Discussions on-going to close gaps
• Analyzed rates for all shipments for harmonization
15 %
4
• Kicked off repackaging efforts to maximize shipping
Freight
density on selected components
Total 100 % 38
39. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Competitive Teardowns
1
39
40. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Thrust Bearing and Composite Bushing
1
Current Part (Europe) Proposed Part
• 6 different parts • 2 parts (add bushings)
• Total cost $75 • Total estimated cost $25
• Approx. volume – 100,000
Potential Annual Savings: $5 Million
40
41. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
1 North America Shift Forks
• 1.63 lbs
• 1.39 lbs • 1.26 lbs
• 3.75 $/lbs
• 2.79 $/lbs • 4.84 $/lbs
• Material: D25-1
• Material: D25-2 • Material: D25-2
• Nitro carburized
• Induction hardened • Nitro carburized
Potential Annual Savings: $650 K
41
42. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
LCCC Opportunity by Commodity
2 HCC
LCCC
Axles Brakes
100% 100%
Casting 87% 69%
13% 31%
Forging 66% 73%
34% 27%
Steel 87% 100%
13% 0%
Bearings 75% 100%
25% 0%
Stampings 58% 100%
42% 0%
Other 57% 85%
43% 15%
42
43. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Clean-Sheet Negotiations for Example Part
3
Ring Gear
USD per unit
Key Insights
Detailed understanding of $76.77
the cost components that
-15%
make up the total ‘price’ $64.99
Key assumptions
Profit
Internal process expertise
• Blank weight
being sought to understand
• Blank Material
the ‘ideal’ processes and Overhead
and rate
‘should be’ cost
• Profit as % ROIC
Labor • Annual volume
‘Cost transparency’ being
• Region of
sought from all current Material
production for
suppliers to understand and
labor rate
eliminate ‘waste’ from the
• Labor OEE
value chain
• Equip OEE
Current Clean
Price Sheet
Potential Annual Savings: $700 K
43
44. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Three Key Levers for Freight Cost
4
Price Management for Full Truck Loads
Eliminate outliers
• Reduce freight
Price rates across all
modes of
Management
transportation 2. Reduce
average rates
(selectively re-
1. Harmonize rates
bid routes)
(lane by lane, carrier
• Ship less frequently by carrier)
• Select optimal
Demand
mode
Management • Maximize freight
density
• Redesign logistics
Performance organization
• Track compliance
Management
and key metrics
44
45. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Wave 1 Ideas Alone Exceed Target
Risk-adjusted Values for Initiatives Identified through April 26
Target
Freight
Apertures
Axles
Key Highlights
• Dedicated sub-teams focused on all three areas
• Weekly tracking of performance for each team
• Teams generating more ideas than the target to account for risk
45
46. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Operational Excellence
• Optimize footprint
• Improve equipment utilization
• Fully institutionalize Six
Sigma and lean principles
• Leverage new technologies
for world-class efficiency
• Improve supply logistics and
flow
Manufacturing
46
47. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Manufacturing Optimization
In millions
2009 EBITDA
Lever / Sub-Team Opportunities
Target
Restructuring $35 – $40
- Optimize manufacturing footprint
- Improve productivity through consistent
Lean 25 – 30
implementation of lean manufacturing
principles
Total $60 - $70
47
48. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Footprint Restructuring Highlights
(Excludes ER&D and Overhead Actions)
• Affects 13 plants in North America and Europe
• Expected to affect 2,400 employees in high-cost sites (of
the 2,800 for all restructuring activities), while creating
800 positions in low-cost sites
• Restructuring costs of $250 million
• Annual run-rate savings of $45-55 million by 2009
(excludes one-time transition costs not in restructuring)
and $85-90 million by 2011
• Payback of 2.8 years is longer than 2005 program
because the easiest actions were done first
48
49. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Standardized Lean Transformation Is
Underway
• Developed production system
using following guiding
principles
• Single production system
Management
across CVS and LVS systems
• Standard processes and Operating
systems
performance metrics
Mindsets,
• Capture in a “playbook” Behaviors &
Capabilities
• Build organization
capability
49
50. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Lean Transformation at Fletcher, NC Plant
• Early productivity
5% productivity gain
Fletcher Total Plant Productivity
Percent Start of lean program
improvements evident
45
across Fletcher facility
43
in week 11 of 23 of
lean transformation
41
• Capacity improvements
39
will position plant to
37
capitalize on future
35
market upswing
-4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11
Weeks
• Example improvement
6% productivity gain
levers include
Assembly Line Productivity
Percent
65
• Strong performance
management
system
60
• Bottleneck breaking
55
• Standard work
• Line balancing
50
-3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11
Actual
Weeks
Annual Operating Plan
50
51. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Investing in Future Production Technology
• Exiting several non-core manufacturing processes
• Investing in leading technology for core processes
• Example: Gear production process will be the global benchmark
Traditional Near Net
forging forging
Investing in
CNC process
to enable Near
Net forging
51
52. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
North America Class 8 Volumes
(Thousands of vehicles)
FY2007 = 224K vehicles FY2008 = 250K vehicles 310
89
70 70
71
220
60
50
36
28
FY2009 FY2010
Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4
CY2007 = 185K Vehicles
52
53. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
ATA Truck Tonnage Index
Monthly Index Seasonally Adjusted; 2000 = 100.0
3 MMA Monthly Linear (3 MMA)
130
120
110
100
90
80
97
99
01
03
05
07
n-
n-
n-
n-
n-
n-
Ja
Ja
Ja
Ja
Ja
Ja
Ton-Miles Have Softened Recently, but Trend Remains Positive
53
55. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
North America Class 8 Truck Market Outlook
CY in thousands 2006 2007 2008 2009
Industry Analysts (3) 359 222 278 351
Industry Participants (23) 359 209 262 332
ArvinMeritor 359 185 272 326
55
56. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Global Medium and Heavy Truck Demand
Europe Asia/Pacific
• Truck demand very strong in • World’s largest market for
2007 medium and heavy trucks
• Economic growth continues • Market volumes continue at
robust pace
• EU expansion includes 9 new
countries with aggressive fleet • Regional economic growth very
modernization robust even if it slows somewhat
• Market continues to be insulated • Economic growth in China
from significant technology continues to lead the world at
introductions, i.e. Euro 4 (’06) 10%+ rate
and Euro 5 (’09) • Industrial production remains
• Major customers bullish on strong despite slight expected
volume projections reductions in growth rate in India
and China for 2008 and 2009
56
57. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Phil Martens
President, LVS
• Product Strategy & Growth
• Engineering, Research &
Development
57
58. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Commercial Excellence
Aftermarket
Engineering
Product Strategy
Research and
&
Development
Growth
58
59. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Commercial Excellence
• Grow profitability by
increasing revenues and
margins
• Right products
• Right technologies
• Right global markets
• Grow systems capabilities
globally
Product
Strategy &
Growth 59
60. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Strategic Imperatives of Growth
Pre-Requisite: Clear Focus on
Operational Excellence
1. Increase value added through greater
systems capability
2. Expand through new product introductions
3. Balance business exposure to deep cycles
in OE truck markets
60
61. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
LVS EBITDA Margin Improvement Showcases
Improving Operational Excellence
Fiscal Q2 2007 Compared to Fiscal Q2 2006
EBITDA Margin (1)
Fiscal Q2 2006 2.8 %
1.6
Cost Reductions Net of Pricing
North America Volume (1.1)
Other Volume 1.5
Other Improvements 0.4
Net Improvement 2.4%
Fiscal Q2 2007 5.2%
(1) Excluding gains or losses on divestitures, restructuring costs, and other special items
61
62. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Focus on Value-Added Products
Functionality/
Features
Black Box/
Proprietary
Knowledge
Potential Cross-System
Cross-System
Integration
Integration
Electronic
Electronic
Customer Value
Full System Control/
Full System Control/
Integration Feature
Integration Feature
Enhancement
Enhancement
Modules/
Modules/
Sub-
Sub-
Assemblies
Assemblies
Mechanical
Mechanical
Goal: Transition from
Components/
Components/
Commodity to Integration
Commodities
Commodities
Strategies to Maximize
Returns Projected Movement
Over Time
Supplier Value
62
63. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Business Units Now Organized by Systems to
Drive Synergies and New Product Development
Doors
Electronic
Motion
Aperture
Roofs
Systems
Electronics Adjacencies
and
Suspension
controls
Stability
Vehicle
Chassis Wheels
that Systems
enhance Braking
system
Axles
Propulsion
performance
Drivetrain Drivelines
Hybrid Drives
63
64. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Organizational Synergies Accelerating New
Product Introductions
2008 2009 2010
HIP NAL LER
EDCM HGL PSD
PTS
Apertures
NAM
NEM
ROL
LFI
15 new
15 new CG
programs in
programs in AST
2008
2008 10 additional
10 additional
Chassis
LVCP programs in
AA
programs in
ARC
2009-2010
ELvl AS
2009-2010
30% of Apertures
AD LVMD 30% of Apertures
sales from new
sales from new
products by 2010
products by 2010
Wheels
780
HVA HVA
CLAD
CC
EUF
64
65. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Chassis Systems Functional Integration– Clear
Focus on Vehicle Stability
1 Front and Rear Cross-Car Modules - Complete system
2 integration and assembly for JIT delivery to OEM’s
3 Air Suspension Systems - System integration and
foundation for innovations such as active and package
constrained air suspension systems
3
4 Active Roll Control Systems -
1
• Hydraulically controlled stabilizer bar
systems provide increased safety and
improved ride and handling
• Self contained system reduces complexity
and allows for easier packaging
5 4
5 Adaptive Damping Systems -
Modular to a standard damper, the
in-piston, continuously variable
2
shock or strut improves ride and
handling
65
66. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Active Roll Control
• Actively adjusts stabilizer bar rate using
hydraulics
• Benefits
• Improves ride and handling capability
• Increases safety Single Wheel Bump
• Induce negative roll torque Active Roll
Standard
• Provides roll damping Control
• Integrates into stability control
systems
• Lower system complexity
• Easier to package
Cornering
• System is scalable; adjustable,
adaptive or active Active Roll
Standard
Control
• Development contract with a major OEM
• Concept ready: 3Q/2008
66
67. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Balance Exposure to Deep Cycles in OE
Truck Markets
• Aggressively expand in Asia
• Capitalize on strong aftermarket distribution capability and
specialty vehicle opportunities
• Grow LVS globally with selected OEMs
• LVS 2010 backlog of $550 million (26%)
• Additional high-confidence opportunities
67
68. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
$1 Billion Identified Growth Initiatives
• LVS New Products 30%
• Chassis systems: wheels, electronic ride control
• Apertures: joint product development (roofs/doors)
• Asia/Pacific 20%
• Increased China LVS OEM growth
• Global program awards manufactured in Asia
• Specialty and Trailer 20 %
• Strong organic growth
• Aftermarket/Other 30 %
• Global expansion underway
• Strong remanufacturing operations
• 100%
Clear Focus on Higher Margin Products and Growth in Asia
68
69. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Delivering New Products: Independent Axle
Suspension System
• Mine Resistant Ambush Protected
(MRAP) Vehicle
• Accelerated program to add 4,100
(initial contract) armoured 4x4s and
6x6s into theatre
• Opportunity for up to $16 million
incremental sales in 2008 and 2009
• Of the 9 OEMs bidding on the
business, ArvinMeritor is the potential
axle supplier on 4 of the long-term
proposals
69
70. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Commercial Excellence
• Achieve and sustain a
competitive cost and
technology position
• Deliver “gotta have”
products with increased
focus on value add
• Consolidate and leverage
corporate technical
capabilities to increase
speed to market
Engineering
Research and
Development 70
71. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Systems Integration Strategy
• What it is not...
• Full-service supplier initiative
• Outsourcing of engineering by OEMs
• What it is…
• For mature markets:
• High-tech cross-systems capability to develop new product
solutions that customer will value
• Greater controls and electronics capability
• For developing markets:
• Helping local OEMs gain the full cost benefits of modularization
and mechanical integration
71
72. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
What Does Controls and
Electronics Capability Mean?
60% 30% 10%
Effort:
Describe HOW to
UNDERSTAND the Dynamic System
Control the System
(models, requirements)
(algorithms)
Module
w/ Part
Number
72
73. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
One Product Development System
LVS Product CVS Product
Development
• Accelerated development of Development
new technologies Program Management Office
LVS Program CVS Program
• Focus on Electronics/ Management Management
Controls Engineering
Office of Engineering Technology
• Shared governance Exp. Mech. &
Test Labs
Technical
• Global engineering Planning
Anal. Mech. &
expansion CAE
Engineering
Process
• Common product Materials
Engineering
Electronics/
development/technology Controls
Engineering
Engineering
process Services
China
Technical Center
India
Technical Center
Government
Programs 73
74. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Delivering New Products: Common Apertures
Motor
• Program Need: Single apertures
motor in time for ‘09 customer
programs
• Compact design
• Integral electronics for Asian
customers
• ARM One PD approach: Shared test
labs, application groups, advanced
engineering, engineering process
• Consolidation of roof/door
engineering into one Apertures
Engineering activity leveraging the
new ARM One PD System
• Annual savings: $5 million target
74
75. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Delivering New Products: Wal-Mart Hybrid
Development
• ArvinMeritor Provides • Wal-Mart Provides
• Systems Integration • Overall Sponsorship
• Engineering, Design, and • Funding for Prototype
Installation Components
• Specification & Sourcing of • Selection of Additional
Alternative Power System & Partners
Suppliers • Engine
• Vehicle Retrofit (6x4 Base) • Vehicle Manufacturer
Pilot Vehicle Available January 2009
75
76. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Global Engineering – Maximizing Synergies &
Development Effectiveness
• Growth in Asia will be supported with comprehensive
engineering and test capabilities
• By 2012 over 50% of Engineering to be located in Asia –
a 150% increase
• China to be focused on Chassis/Apertures; India to be
more Axle/Brake focused and to include electronic
controls development
• LVS/CVS Product Development VP’s leading Global
Engineering integration process
76
77. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
China Engineering Center
• Site of Regional Headquarters,
Engineering and Testing Center
• Shanghai Xinzhuang Industry
Park (SHXIP)
• 5.9 acres approximately 10
miles from downtown
• Capacity is up to 150 engineers
and 200 business personnel
• 178,000 square feet including
testing facilities and equipment
• Will support all ARM businesses
maximizing synergies
77
78. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Product Development – Moving Forward
• “One ArvinMeritor” Product Development system focused on
Global synergies
• Electronic Motors/Electronic Control systems common focus
• Technical Acquisitions aimed at accelerating
controls/software development under study
• Global capability being expanded real time to support new
product introductions and growth initiatives
• Underlying competencies in engineering delivery being
strengthened to support cost reduction efforts.
• Focus on quality paramount in all technical areas.
78
79. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Jay Craig
Controller
• Aftermarket
79
80. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Commercial Excellence
• ArvinMeritor has strong
position in North America
commercial vehicle
aftermarket and
remanufacturing segment
• High margin products that
we can expand rapidly
• Rest of world promises
significant growth
opportunities
Aftermarket
80
81. FY 2007 Second Quarter Earnings and Performance Plus Update
May 1, 2007
Global Aftermarket Growth Strategy
Europe Asia
North America
• Market size: $3.4 billion • Market size: $3.3 billion • Market size: $2.8 billion
• Growth strategy: Sustain rapid growth • Growth strategy: Accelerate growth • Growth strategy:
by intensifying sales and marketing by gaining share and addressing • Build foundation for growth in
efforts in product segments that are new markets, enabled by both 3-5 years through both organic
organic and inorganic investments
• Financially attractive: Profitable and inorganic investments
and large headroom for growth • Example initiatives • Expand sourcing presence in
• Fit with ARM’s “right to play”: • Products: Expand all-makes and Asia to supply cost-competitive
Strong reputation and product remanufacturing programs to products to N. America and
expertise, large installed base increase product coverage Europe
• Key segments for growth include: • Geography: Increase presence
in Eastern Europe
• Customers: Target new
Remanufacturing customer segments beyond
traditional truck/trailer fleets (e.g.,
Gearing
bus/coach, etc.)
Driveline
Shocks
Hydraulic Brake
l
ARM sales
81
Remaining market