MWW CEO Provides 2012 Outlook Projects Strong Increase in Revenue and Bottom Line for 2012
HOWELL, Mich., Oct. 27, 2011 /PRNewswire/ -- MWW Automotive Group (OTCQB: MWWC), a global design, engineering, and manufacturing firm, serving the world's leading automotive and industrial markets, today is providing an insight into new developments and projected revenue growth for the Company.
After having successfully worked through the most turbulent time in the Company's history during the last 16 months, the Company's management and consulting teams, led by its new CEO, Charles Pinkerton have made substantial progress on the path of recovery and expect to return to substantial revenue growth and profitability during 2012.
Exceptional problems in the automotive industry during that period were compounded by problems in the financial industries, causing a rapid decrease in sales of automobiles and automotive accessory components. This was followed by several crucial recall issues for Toyota, at that time the Company's largest customer, and finally climaxed by the catastrophe in Japan, resulting in a shortage of inventory by all Japanese automotive manufacturers and many US manufacturers.
Instead of taking a "wait and see" position we have reacted proactively and quickly adjusted to the changing market conditions. As a reaction to this new and challenging environment, our team has implemented aggressive cost-down-exercises and significantly streamlined and improved every aspect of MWW during the last year, with a direct focus on our "Class A" Certified Painting and Fulfillment Facility in Baroda Michigan. Forty (40) years of experience in the automotive and Industrial industries in combination with the excellent track record of MWW and a truly dedicated management and consulting team, has allowed me as the CEO to introduce the new and improved MWW to many new automotive and non automotive clients. In addition, and in order to reduce MWW's potential vulnerability based on customer and/or industry concentration, we have aggressively pursued new marketplaces, such as the industrial machinery industry. Combining these operational efforts with the efforts of MWW's long time consultant Rainer Poertner to secure additional funding and increase the market awareness for our stock, has allowed us to finance our continuing operations and expedite our new development and expansion projects, despite the past difficult times in the industry in general.
Expanded Customer Base
Based on these concerted actions we have been able to significantly expand our customer base and secured many new automotive projects for General Motors, Chevrolet, Ford, Nissan, and Toyota to name a few. As a long time supplier of exterior automotive components for Toyota, one of the most important developments in our company's history is our recent move into the automotive interior supply chain. Accordingly, we have recently been awarded interior programs for both the Chevrolet Sonic and the Ford 150 Truck Line. These are two of the very crucial developments in the MWW diversification effort, implemented to secure continuing operations and increasing revenues.
Fueling the confidence in our ongoing growth and success to a large degree, are our newly established Strategic Alliance Supplier Relationships with both Automotive and Non Automotive companies such as Polytec Foha, GSI International, Roush Automotive, A&K Finishing and American Autocoat to name a few. These types of relationships will provide MWW with new business opportunities and projects lasting well into the next two to five years. As we have consistently stated over the past two years, the reduction of production volume and the move to smaller but more frequent production runs by the large manufacturers, falls squarely into MWW's core competency. MWW' has focused on these opportunities, expanded and maximized our production process and capacity, while continuing to provide a high quality added value product and logistics service for our client base. The consolidation in the industry is beginning to establish MWW center court within this trend.
New Opportunities in the Industrial Markets
The Company has begun to expand its client and product roster, in order to further diversify our customer base and enter into new market segments. We now have a widely diversified mixture of global and domestic clients in the automotive and for the first time also in the industrial market segment, providing greater downside protection against challenges with specific manufacturers, market segments, or geographic sectors within the global automotive industry.
The most significant improvement in our business model has been the successful move into the industrial markets in addition to our new automotive markets. This allows us to present a strong outlook for our financial performance in 2012 and the years to follow. Over the last 16 months these concentrated efforts have generated 126 new proposals with an enormous revenue potential over the next 5 years.
While for confidentiality and competitive reasons we often times cannot provide precise operational and financial detail of our ongoing and upcoming operations and productions, we will begin a semiannual or quarterly conference call, providing a review of the past six months or quarter and a general outlook for the coming six months. The first of such calls will be launched in the second week of January.
In the meanwhile this letter serves to provide you with an update of our current productions and a general overview over the next twelve months. The quoting process with all products mentioned below has been concluded and we have reasonably reliable expectations about the feasibility of being awarded these projects and accordingly the start date of new production. Accordingly, we already have and will continue to expand our production capacity by adding new production lines and equipment and hiring additional personnel.
Current Client Component Mix in Production
Below you will find a listing of the projects that are currently in production at our facility in Baroda, Michigan.
Chevrolet Motors, Interior / Exterior
Ford Motor Company, Interior / Exterior
GSI International, Agricultural / Industrial
Toyota Camry Rear Deck spoiler
Toyota Corolla Rear Deck Spoiler
Toyota Corolla Body side Moldings
Toyota Venza Body side Moldings
New Program Launch Dates
These are the projects that are about to begin within the next few weeks. Several additional projects will begin production before the end of the calendar year or in the first calendar quarter of 2012.
The MWW interior package produced for the Ford F-150 includes several dashboard components, which will all be finished and delivered from the MWW Class-A painting facility in Baroda, Michigan.
The MWW interior component package produced for the Chevrolet Sonic includes Door Trim, Window Console Covers, Trim Bars and Door Pulls, all finished and delivered from MWW's Colortek Class-A painting facility in Baroda, Michigan.
The Company currently has executed more Requests for Quotes (RFQs) than at any other time in the history of the company. We currently have quoted 139 mid-size to large projects, some short term projects, others having a potential product life span of 2-5 years.
Number of Quotes Issued
Quote size by Market
57% Automotive Exterior
While in the past MWW has focused on mainly automotive products, during the last 12 months we have taken advantage of our longstanding relationships in many different industries. We have applied our experience in high quality OE paint manufacturing, assembly and advanced logistics capabilities to enter into the fast growing industrial machinery sector.
In addition to our ongoing ISO manufacturing certifications, we have successfully concluded the even more intense and very specific manufacturing verification process of such companies as GSI, Ford, Chevrolet, Roush, Hyundai and Mazda and have already begun production for several of these manufacturers, or will commence with production towards the end of this or the beginning of next year. Based on our recent entry into the industrial machinery sector, we now expect to generate 35% and 7% revenue from the industrial, respectively automotive interior market segment, compared with 100% automotive exterior production during the last fiscal year.
- The automotive market has hit "Bottom" six (6) months ago and a clear upward trend has emerged. Automotive Industry expected market to grow by 15% to 11.8 million units in 2012 according to SM and J.D. Powers.
- Unit sales are expected to grow to 13 million units in 2012 and 16.2 million units by 2013.
- Leading automotive companies' stocks have already generated favorable returns for early investors.
- A universal change to production of smaller cars and lower volume "Special Vehicle Production Runs" that cannot be produced economically anymore by the large, highly automated and high-cost Tier1s, is MWW's Core Competency.
- Market consolidation has eliminated competition, created a large number of new opportunities for the MWW Automotive Group.
- MWW has improved its management structure with an experienced, hands-on CEO, seasoned CFO (CPA) and new General Manager for its paint facility.
- MWW's major customers are leading, global manufacturers, such as GSI, Toyota, Ford, GM, Chevrolet, Hyundai, and Nissan.
- Newly awarded programs by Ford, Toyota, Nissan, Chevrolet are expected to significantly increase revenue and operating margins during FY 2012.
- MWW is commencing with its first large industrial project in December 2011.
- Currently received more than $125 Mill in "Requests for Quotes" (RFQs) for future projects, more than at any other time in the Company's history.
- MWW has improved scales of economy and achieved significant cost reduction through consolidation and resource sharing between the different departments and strategic partners, while at the same time increasing production capacity.
- MWW's RFQs are not only for its world class painting and coating services, but also for full scale fulfillment and inventory management program services utilizing the Company's 45,000 square foot painting and assembly facility in Baroda, MI. First industrial production for oversized components to begin in December 2011.
Share Value and Volume
MWW has demonstrated a significant increase in the trading volume for its shares during the last six (6) months, with an average volume of 1.2 million shares per day during the last thee (3) months and maximum volume of 7.9 million shares per day.
While the stock is still trading at low evaluations, many experts agree that the stock is truly undervalued. Management agrees with this perception and while the company is not encouraging short term spikes in its stock, it has been preparing campaigns to introduce the stock to a wider market. These campaigns will commence with the release of this CEO letter and will continue indefinitely with varying support from outside IR firms.
In the meanwhile the company has established very open communication channels and will always continue to improve communication with its shareholders. Please do not hesitate to contact Rainer Poertner at firstname.lastname@example.org with any questions you may have. We will always do our best to provide answers to the best of our abilities and within SEC guide lines.
Within the next months we will provide the market with guidance in regards to projected revenue and profit developments for 2012 through 2013.
About MWW Automotive Group
MWW Automotive Group is headquartered in Howell, Michigan, with a leading technology "Class A" painting/assembly facility in Baroda, Michigan (Colortek), for the production and assembly of OE quality automotive, industrial and consumer products. MWW delivers its in-house designed accessory products and Class A painting and assembly services directly to major global automobile manufacturers'' Vehicle Processing Centers (VPCs) and Tier-1 Strategic Alliance Partners in the United States and Canada. MWW products are installed in a variety of vehicle types by the VPCs or Tier-1s and then distributed into the dealer networks in North America. MWW's industrial and consumer products are delivered directly to the manufacturers for assembly in their facilities and distribution to their customers. Noted for its adherence to the highest quality requirements and its advanced logistics capabilities, MWW products consistently meet and exceed customers' expectations and requirements. MWW provides substantial added value to the sale of vehicles, industrial and consumer products for leading international automobile and industrial manufacturers such as Toyota, Nissan, Chevrolet, BMW, Hyundai, Kia Motors, GM, and Ford. For more information please e-mail email@example.com, or visit www.mwwautomotive.com.
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."
Rainer Poertner, Business Development
310-306-1266 Office Los Angeles
517-540-0045 x 43 Office Detroit
SOURCE MWW Automotive Group