MWW Automotive Current Developments and Guidance for 2013 and 2014 Update from the Chairman and CEO
HOWELL, Mich., July 26, 2012 /PRNewswire/ -- MWW Automotive Group (OTCQB: MWWCD), a global design, engineering, and manufacturing firm serving some of the world's leading automotive and industrial manufacturers, today is providing an update of its current developments and guidance for 2013 through 2014.
"During the past sixteen months MWW has been and still is in the middle of its most crucial development stage during its eight-year existence": states Michael Winzkowski, Chairman of MWW Automotive. "Based on several unprecedented events in the global financial and automotive markets and subsequently the nuclear catastrophe in Japan, we experienced a significant decrease in revenues and net income during 2011 and 2012. Especially the events in Japan in early 2011 had a significant negative impact on MWW's business model. Toyota, at the time still providing the majority of our business, decided to relocate most of its accessory production back to Japan over time, resulting in the loss of a major portion of revenues for MWW. Having lost these revenues, we reacted by aggressively revising our business model. We replaced our entire top management team and hired an experienced CEO, Chuck Pinkerton, to implement our restructuring plan, increase revenues and return MWW to profitability."
Chuck Pinkerton states: "Since I took over the position of CEO, our main objective has been to improve the company's management structure, increase production efficiency and capacity and acquire new customers in order to replace lost revenues and distribute risk over a larger number of customers and different industries. Over the last twelve months we have made good progress in securing new customers not only in the automotive but also in the commercial industries.
"While we expected to achieve our set goals faster, commence with production for many of these projects sooner and accordingly improve our financial performance earlier, significant engineering and logistics changes by several of our large customers have significantly delayed the production start of some of our largest new projects. This resulted in disappointing financial performance in our fiscal year 2011 and in the first quarters of 2012. Accordingly, this unfortunately also placed us in a position that we had to secure funding at somewhat unfavorable conditions in order to continue operations and secure new projects. The impact of those financings caused our share value to decrease significantly over the last year.
"To counter this development, we made the drastic decision to restructure our capitalization basis via a reverse stock split, as we announced in our earlier release. We understand the frustration this has caused with our existing shareholder basis. Nevertheless, after careful consideration we decided that this was the right way to turn the company back into a viable investment opportunity for investors in the public market. We have re-established a very experienced and devoted management team, and we believe that the team's efforts, combined with more conservative and timely funding structures, will over time improve share value for all shareholders, assuming timely financing of new projects. To support this, we will make every reasonable effort to limit additional dilution to a minimum, produce a good ROI for every dollar invested and re-earn the trust of our existing shareholder base.
"We are also making the pledge to expand our shareholder communication efforts and keep the public informed about our new projects as good as we are allowed to. The information flow in regards to our customer details is based on certain restrictions and confidentiality agreements that we have entered into. Keeping our large clients happy at this point in time is obviously crucial to the success of MWW. Accordingly, these agreements need to be carefully adhered to, in the interest of our large clients and all shareholders. In addition, our business development team is in negotiations with conservative and credible funding sources that have a more mid and long term interest in the continued performance improvement of our company. This will be part of our upcoming concerted actions with the application of financial resources and the actions of new investor relations firms. This is not a process that will change the face of our company over night and there is still a period of hard readjustments ahead of us. We do believe though that we have the right team in place and good opportunities ahead of us to implement our revised plan. We will keep you informed."
Here is where we stand today:
- We have extended the agreements with our three large Tier-1 strategic alliance partners
- We are currently in production for Ford, Chevrolet, GM, Hyundai, Subaru, Mazda and Toyota
- We have expanded our production facility to two production lines and one dedicated additional production line for oversized components for a total of three production lines
- We have successfully continued our cost-down exercises and have established a workforce that can be dynamically adjusted from one to three shifts as needed
- Production start with GSI International, our first industrial client, is scheduled for the fourth quarter 2012
- We are in final negotiations with two credible IR firms to assist in increasing our market presence
- Projected increasing revenues over the next three years
- 2012 expected to be $880,000
- 2013 expected to be $3.4 Million
- 2014 expected to be $6.1 Million
We will follow up with more detail on our milestone developments, especially the strategic alliance agreements and their impact on our performance, as soon as we have received the approval from these clients. While there is no assurance that our plans can be implemented exactly as projected, our team is committed to meet or exceed these goals. We appreciate your continued support.
Thank you and kind regards
Michael Winzkowski, Chairman of the Board
Chuck Pinkerton, Chief Operating Officer
About MWW Automotive Group (MWW)
MWW's is headquartered in Howell, Michigan, with a "Class A" painting-assembly-logistics facility in Baroda, Michigan for the production of high quality OE automotive and industrial products. The MWW Automotive Group (OTCQB: MWWCD) delivers its in-house designed accessory products and "Class A" painting, assembly and logistics services directly to major global automobile manufacturers' Vehicle Processing Centers (VPC), Tier-1 Partners and/or assembly lines in the United States, Canada and Europe. MWW's industrial products are delivered directly to the manufacturers for installation in their facilities. Noted for its adherence to the highest quality standards and its advanced logistics capabilities, MWW products and services consistently meet and exceed customers' expectations and requirements. MWW provides substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, BMW, Chevrolet, Hyundai, Kia Motors, GM, Ford, ROUSH Performance, Deere and Whirlpool. For more information please visit www.mwwautomotive.com or e-mail firstname.lastname@example.org.
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
SOURCE MWW Automotive Group