2005 Global Automotive Shareholder Value Award Winners
Not exactly vehicle awards but certainly falls within the automotive industry; winners are annouced this week at the 30th Automotive News World Congress, held in Dearborn, Michigan, USA, and as follows:<p><TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD><i>Quote »</i></TD></TR><TR><TD CLASS="quote"><B>2005 Global Automotive Shareholder Value Award Winners</B><p>Winners of the PricewaterhouseCoopers Global Automotive Shareholder Value Awards will be honoured on Wednesday January 18 2006, at the 30th Automotive News World Congress Gala Dinner in Dearborn, Michigan, USA.<p>The winners were determined by their total shareholder return performance relative to the PricewaterhouseCoopers Global Automotive Shareholder Value Index in each of three categories: global vehicle manufacturers, global parts suppliers and US retailers over one and three year periods. Developed specifically for the automotive sector, the indices provide precise information on relative returns. <p>This year's winners are:<p><B>Global Vehicle Manufacturers</B>:<br>One Year: Hyundai Motor Company <br>Three Year: Hyundai Motor Company <p><B>Global Suppliers</B>:<br>One Year: Akebono Brake Industry Co., Ltd. <br>Three Year: Continental AG <p><B>US Retail Distributors</B><br>One Year: United Auto Group, Inc. <br>Three Year: United Auto Group, Inc. <p>The PricewaterhouseCoopers Shareholder Value Indices capture the essence of a company's performance by taking into account both rises and falls in a company's share price, dividends, share buy-backs and new share issues, and provide an objective and reliable measure of shareholder value for stock market listed companies.<p>Of the overall automotive shareholder performance, Michael Burwell, Automotive Transaction Services Leader, PricewaterhouseCoopers, said:<p>"Improving shareholder value has become an increasingly important objective in the automotive industry which makes the indices and these awards even more relevant. Auto production and demand remained relatively flat during the year but as the winners demonstrate, effective and connected strategy means it is still possible to maintain positive shareholder return." <p><B><U>Hyundai Motor Company</U></B><p>Hyundai Motor Company is the winner of both the one and three year vehicle manufacturer awards. Over the past year, Hyundai has posted an 80% increase in total shareholder value, compared to a sector increase of 9%. Over the past three years, Hyundai has posted a 329% increase in total shareholder value, compared to a sector increase of 69%. Out of all global vehicle manufacturers, Hyundai has posted the highest quarterly, one-year, and three-year returns for two consecutive quarters, demonstrating consistent positive results. <p>Despite the relatively low cost of their automobiles, Hyundai now tops reports for quality and reliability, which has greatly assisted efforts to increase sales. Hyundai's ability to penetrate foreign markets through imports has been aided by its ability to manufacture in low cost countries. Hyundai is committed to establishing a greater presence in the markets to which they sell as they invest the necessary capital to increase production capacity.<p><B><U>Akebono Brake Industry Co., Ltd.</U></B><p>On the parts supplier front, Akebono Brake Industry Co., Ltd. is the winner of the one year parts supplier awards, boasting a one year increase in shareholder value of 57%, versus a sector average of 13%. Akebono recently purchased shares of a brake parts joint venture with Delphi, making the venture a wholly owned Akebono subsidiary. Profits from North American operations were down due to production cuts by domestic OEMs, but this has been offset by way of cost reductions and sales increases elsewhere. Operations continue to maintain pace as the company continues to diversify its customer base. <p><B><U>Continental AG</U></B><p>For the three-year parts supplier award, Continental AG posted a 509% increase in total shareholder value, compared to a sector increase of 113%. Over the last few years, Continental has transformed itself from a supplier of tires and rubber products to a systems and modules supplier. This was achieved through the company's acquisition of ITT's brake and chassis division and organic growth of the company in general. With EBITDA margins in excess of 17%, Continental has stated that it may make further acquisitions partially financed through cash flow from operations. The company's low debt relative to competitors and high cash flow from operations could aid to facilitate such acquisitions.<p><B><U>United Auto Group</U></B><p>In the retail sector, United Auto Group's performance merits both the one year and three year awards. United Auto Group has achieved an increase in total shareholder return of 31% over the last year, compared to a sector average of 7%. For the three-year period, United Auto Group returned a 216% increase, versus 76% for the sector average. <p>United Auto Group's growth can be partially attributed to acquisitions of more foreign-make dealerships in an attempt to diversify from traditional domestic nameplates. This strategy has increased used car sales revenue as import cars tend to have higher resale values versus their North American counterparts. As both the import and luxury markets continue to grow, the company has been able to leverage this market growth to provide higher shareholder returns than its peers. United Auto Group has also focused on the higher margin parts and service market which has aided the company's profitability. <p><br>Shareholder Value Indices have been reported in Automotive News on a quarterly basis since January 2000.<p><br><B>ENDS</B><p><B>Notes to Editor</B>:<p>1. Complete year-end results and Automotive Shareholder Award winners are announced in the January 16 2006 issue of Automotive News and can also be found at <A HREF="http://www.pwcglobal.com/auto" TARGET="_blank">http://www.pwcglobal.com/auto</A> from that date. <br>2. For additional information on the winning companies, visit their web sites at: <br>Hyundai <A HREF="http://www.hyundai-motor.com" TARGET="_blank">http://www.hyundai-motor.com</A><br>Akebono <A HREF="http://www.akebono-brake.co.jp" TARGET="_blank">http://www.akebono-brake.co.jp</A> <br>Continental <A HREF="http://www.conti-online.com" TARGET="_blank">http://www.conti-online.com</A><br>United Auto Group <A HREF="http://www.unitedauto.com" TARGET="_blank">http://www.unitedauto.com</A> <br>3. Automotive News:<br>To view the world's largest network of full-time automotive reporters covering corporate strategy, manufacturing, product development, marketing and e-business, visit <A HREF="http://www.autonews.com" TARGET="_blank">http://www.autonews.com</A>. <br>4. For more information on PricewaterhouseCoopers Automotive practice, please visit <A HREF="http://www.pwc.com/auto" TARGET="_blank">http://www.pwc.com/auto</A>.<br>5. PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively using Connected Thinking to develop fresh perspectives and practical advice.<p>PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.</TD></TR></TABLE>
YES, I drive a Yugo!!!