Hi Jaime,
I would respectfully disagree with your assessment that 16G was the "cake" and ITS was the "icing." In my mind, the 16G operations will prove to be a steady, profitable business, as soon as the plants are consolidated at the end of the first quarter. It is plain "meat and potatoes."
On the other hand, ITS is champagne and caviar, and don't you forget it. Assuming a 6% - 7% market share in 2001, ITS revenues would exceed $ 250 Million. With profit margins between 25% and 30%, pretax earnings could approach $60 - $75 million from that one product line.
As for your note regarding the auto companies and their "greed," I agree with you. However, you should bear in mind that a good litigant would have a field day with a corporation that had excellent safety technology available at the same price as poor technology, with the latter choice resulting in an unnecessary injury or death.
I surely wouldn't want to defend that case.
Have a good evening. |
