Mar. 10, 2008 – Finance Digest
March 10, 2008
Filed under Features
Kawasaki reports increased worldwide sales
Kawasaki Heavy Industries’ consumer products and machinery division, which includes powersports vehicles, is reporting increased sales through its fiscal year’s first nine months.
Kawasaki Heavy Industries reported a 7 percent increase in net sales to $2.6 billion through its first nine months, which ended Dec. 31. Kawasaki Heavy Industries’ financial report that is made public does not break out North American data.
Overall, the company is reporting a 5 percent increase in sales to $9.2 billion compared to the year-ago period. Net income has risen 26 percent to $253 million.
GE Money names new president, CEO
William “Bill” Cary has been named president and CEO of GE Money, a credit services provider for dealers and consumers, GE said in a statement Feb. 7.
Cary, 48, succeeds David Nissen, who is retiring. Cary has served as president and CEO of GE Money Europe, Middle East and Africa, the largest group within GE Money, since February 2006. He is a senior vice president of GE.
Cary is a 21-year GE veteran and has run several GE financial businesses, including GE Capital Vendor Financial Services. Cary also has served in two senior corporate financial positions for GE: vice president for financial planning and analysis and vice president of investor relations. He is a graduate of GE’s Financial Management Program.
Cary will report directly to Jeffrey Immelt, GE chairman and CEO. Cary will be located in London, where GE Money will be headquartered.
Nissen has been with GE for 27 years and led GE’s consumer finance business since 1993. In 1993, the business essentially had one product in one country and about $40 million in net income. Today, it is in more than 50 markets, and its net income has grown to more than $4 billion, three quarters of which is from outside the United States.
UTI revenue rises slightly for first quarter
Universal Technical Institute increased revenue for its fiscal first quarter, which ended Dec. 31, 2007, the company reported in a Feb. 6 press release. However, the company’s net income fell for the period compared to the 2007 first quarter.
Net revenue for the first quarter of fiscal 2008 was $90 million, a 0.6 percent increase from the same period in the previous year. Net income was $6.5 million, compared with $6.9 million for the first quarter a year ago.
The net revenue increase primarily relates to higher tuition rates and an additional earning day during the quarter that was partially offset by lower average undergraduate student enrollment combined with an increase in need-based tuition scholarships, higher military and veteran discounts as well as other reductions to income.
Operating income in the first quarter of fiscal 2008 was $9.3 million compared with $10.5 million for the same period in the previous year. The overall decrease in operating income reflects higher occupancy costs, professional and contract services costs and was partially offset by lower advertising costs during the first quarter. Advertising costs were lower during the first quarter because of a planned decrease in spending related to less audience focus during the holiday and political advertising season.
V-SEPT and RpmOne announce strategic alliance
V-SEPT, a developer of sales lead tracking, customer follow-up and marketing software for the powersports industry, and RpmOne, a provider of F&I products and services, announced a strategic relationship to provide dealerships with a comprehensive sales and closing tool to maximize profitability.
“Our goal at V-SEPT is to provide our dealerships with the best, most innovative tools and technology to make dealerships more successful,” said James Vaughn, president and CEO of V-SEPT.
Barry Miller, president of RpmOne, said, “The integration of our products will enhance our IQ System for dealers, which provides eRating, eContracting, eRemitting and sales tools, including the integrated eMenu.”
Brembo reports positive Q4 and yearly results
Italian manufactureer Brembo reported revenue and profit increases for both its 2007 fourth quarter and fiscal year, according to a Feb. 14 press release.
Brembo posted a 13.1 percent revenue increase for fiscal 2007 compared to the previous year, bringing in euro 912 million ($1.4 billion). Net profit for the year, ended Dec. 31, 2007, was euro 62.4 million ($92.5 million), a 22.1 percent increase over 2006.
A highly profitable fourth quarter capped off the year for the company. Revenues were up 15.5 percent to euro 239.1 million ($354.3 million) for the quarter ended Dec. 31, 2007. The company’s fourth quarter net profit was up 75.5 percent to euro 23 million ($34.1 million).
For the fourth quarter, Brembo’s motorcycle segment (up 47.3 percent) was one of the main drivers behind its growth, primarily thanks to a new Harley-Davidson touring platform.
The segment gave a boost to the company’s overall North American sales, which were up 53.5 percent.