Third-quarter sales at US group Donnelly Corporation were US$ 193 million, 6 per cent higher than for the year-earlier period after adjustments.
Net income for the quarter amounted to US$ 0.6 million…
Third-quarter sales at US group Donnelly Corporation were US$ 193 million, 6 per cent higher than for the year-earlier period after adjustments. Net income for the quarter amounted to US$ 0.6 million, compared to net operating earnings of US$ 2.6 million in the year earlier period. The third quarter was negatively influenced by customer production schedules and increased expenses related to high-tech product launches in Europe and North America. A slower than planned customer launch for a major new program and shutdowns at Ford Explorer, Ranger and Expedition plants reduced third quarter shipments of both mirrors and windows. Donnelly is investing heavily in electronics for automotive mirrors, including telematics. The company is currently developing 25 variations of prismatic and auto-dimming interior mirrors featuring the telecommunications link to the General Motors OnStar system. Shipments of OnStar mirrors began in the third quarter. Similar programs are being developed with several major OEMs. “We are ramping up quickly to support mirror programs loaded with electronic features that make driving safer and more convenient, and link the driver to communications systems,” said Dwane Baumgardner, chairman and CEO. Donnelly“s North American sales of automotive products during the third quarter were 7 per cent higher than the same period in 1999. Sales in Europe during the third quarter were up 2 per cent at constant foreign exchange rates when compared to the same period in 1999. However, when adjusted for a 15 percent negative impact due to foreign currency fluctuations, net dollar sales for Europe were down by 13 percent.