INTRODUCTION
FEDERAL-MOGUL GOETZE LIMITED was originally founded on November 26, 1954, under the, 1931, Indian Companies Act. Federal-Mogul Holdings manufactures the vehicle products, including chassis, brake fiction and wipers. Goetze and Goetze Brico give leading–edge advancements and aggressive answers for unique gear producers and the car reseller 's exchange. This company is a supplier of supplier of quality products, to makers of light commercial, automotive, off-highway vehicles, heavy-duty, as well as in generation of power, marine, aerospace, industrial and rail.
Operations
Company’s Net income in the year ended December 31, 2013 was 241.5 million dollars as compared to 250 million dollars in the year ending with December 31,
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As far as requirements of funds are concerned for the operations of the company, no dividend is advised for the year ending with December 31, 2013. Following are the operations of the company.
FORGED PISTON
MACHINE SHOP
MACHINING
TURNING
BORING
DRILLING
CIRCLIP GROOVING
INSPECTION
PACKAGING
Revenues and Expenses
The revenue of the company in the year ending with December 31, 2012 was 2,554.73 dollars. However, in the year ending with December 31, 2013, the revenue was dipped to 2,467.10 with a total difference of 87.62 dollars. The expenses incurred in the year ended 31st December 2012 was 2,570.86 dollars. In the year ending with December 31, 2013, the total expenses were 2,402.51 dollars.
MANAGEMENT ANALYSIS:
(1) Industry developments and structures
The makers of auto component are facing the problem of slowdown. Due to the less growth in passenger car segments and commercial vehicle, the supplies of the makers of the components fell as well. The fall is a combination of low local demand and the declining exports. Operational excellence, management of risk and planning of scenario are assured to become the key range for success. The components of auto industry, world-wide has faced economic restructuring. The deceleration of sales in many markets in the industry of auto component s was not a long-term challenge, but a considerable market share loss in increasing competition in the local
$59k, compared to a budget of $83k. YTD non-operating revenue was $693k compared to a budget of $751k.
during year 12 and year 13. However, in year 13 and year 14 total current assets fell
In the financial year that ended June 2013, the total revenue was lower than that of 2014. The breakdown of
The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. All of the ACF’s production was sold to the Big-Three domestic automobile manufactures. Its main competitors were local suppliers and other Bridgeton plants. This company did very well but recently it became less effective when foreign competition and scarce, expensive gasoline caused domestic loss of market share. For boost its selling, it made four criteria, quality, customer service, technical capability, and competitive cost position to evaluate three classifications of products.
In 2007 the company was generating cash from everyday operations but the statement of cash flows shows that the company has had a negative profit from 2006 to 2007, but this is because More Vino has expenses that are higher than their sales
Some of the significant changes I found on the income sheet were revenue which decreased by 8 million dollars in 2015 compared to 2014. SG&A expenses increased by .9% for the year. How-ever gross profit decreased by .3% in 2015. Also net income for the year decreased by -2.5% per-cent.
The cash flow situation started falling from the end of year 12. The company should have known from this.
This recession hits home with the automobile industry. During this current recession GM is facing the possibility of bankruptcy, but is hoping to be helped out by the government. History
2. Was cash flow from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures.
The Net Profit Margin in 2012 was 10.5% while in 2013 it was 66.6%. This increase in the Net Profit Margin can be attributed to the increase in net profits after taxes despite the fact that there was a slight decrease in revenues.
Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.
From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In
The increasing numbers of sub-model cars can also affect the brand quality through increasing any risk issues once launched to the public. Furthermore, according to (Stephen, 2004) Mercedes customers have high expectations about the high quality promised by the company. In 2003, the company disappointed many customers when they sold over 2000 vehicles with an extra option for a navigation system, which were not ready to be delivered at the right time, also accompanied by other mechanical issues. On the other hand, the company made an announcement about its new high quality hydraulic breaking system, which increased its competitiveness in terms of safety and quality against other competitors in the industry.
This work is done to study the improvement of the quality in automobile industry. This chapter consists three sections named as “Problem definition”, “Objectives” and “Methodology of the study” respectively. The section 3.1 named as “Problem definition” describes the challenge or difficulty that is to be solved. The solution may be achieved after fulfilling the objective by using some sub-objectives that are described in section 3.2 named as “Objectives”. The methodology described in section 3.3 in details. This methodology has been devised keeping in mind the view of “Problem definition” and the “Objectives” that are suggested for the fulfilment of the solution for the problem.
The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.