Frank,
This might help your friend understand why price action has been poor lately. Yogi...
Ventra Group Inc VTA
Shares issued 40,003,875
1999-07-26 close $4.2
Monday Jul 26 1999
Mr. Ken Nichols reports Ventra Group expects earnings for the third quarter of fiscal 1999, will not be in line with analyst expectations. The company will release its financial results on Aug. 12, 1999. Earnings for the quarter were affected by unexpected costs associated with a new contract awarded to Ventra in the fall of last year. This contract required shortened delivery schedules to meet the needs of the customer. Production start up was further delayed by the late arrival of new equipment required to fulfill the contract and problems encountered during the start up of the new equipment. As a result, the company was forced to incur overtime, increase its use of purchased components and incur premium freight charges to ensure timely delivery of the product to the customer. The company anticipates that these non-recurring costs will be eliminated by the end of the fourth quarter. "This is a unique situation for Ventra, but we are taking the steps necessary to ensure the high standard of customer service that has made Ventra a supplier of choice in the auto parts industry," said Ken Nichols, chairman and chief executive officer. The company also has won more than $480-million of new business since the beginning of fiscal 1999. Recent new business includes:
- A box top moulding contract for a pickup truck worth $14-million
annually beginning in 2001;
- A hinge contract worth $17-million annually beginning in 2002;
- A parking brake contract worth $5-million annually beginning in 2002;
- A door handle contract worth $8-million annually beginning in 2003;
and
- Four separate pedal assembly contracts worth $5-million annually
beginning in 2003.
"The significant new business awarded to Ventra this year is evidence of progress toward our goal of becoming the number one supplier in each of our core products," added Mr. Nichols. "The addition of our new engineering centres in Canada, the United States and Germany will further enhance our ability to win new business by allowing Ventra to participate earlier in the design process." |
