Detroit, 18 JAN 2007 -- Winners of the PricewaterhouseCoopers Global Automotive Shareholder Value Awards were honoured on Wednesday 17 January 2007 at the 31st Automotive News World Congress Gala Dinner in Dearborn, Michigan, USA.
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.
This year's winners are represented in the following table, along with the corresponding indices:
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.
Commenting on overall automotive shareholder performance, Jeffrey Zaleski, Automotive Transaction Services Leader, PricewaterhouseCoopers, said:
“Even with record numbers of reorganizations and bankruptcies in 2006, one and three year shareholder value indices indicate investors still see a strong global industry and continued opportunities for consolidation. This year's winning companies exemplify the industry's ability to reorganize and realign their strategies for success.”
Fiat S.p.A.
Fiat is the winner of both the one and three year vehicle manufacturer awards. Over the past year, Fiat has posted a 120% increase in total shareholder value, compared to a sector increase of 35%. Over the past three years, Fiat has posted a 150% increase in total shareholder value, compared to a sector increase of 63%.
Fiat’s exceptional shareholder return appears to be driven by the success of its ongoing recovery efforts. In addition to popular retail acceptance of its new passenger cars, Fiat has succeeded in the commercial vehicle space. The company has also moved quickly to reduce net industrial debt and sell off equity stakes in other companies not directly related to core operating areas, such as Italenergia and Mediobanca. Fiat has also moved to solidify holdings in Ferrari. Highlights of Fiat’s turnaround include a sharp reversal in their European market share in 2006. This was largely attributed to a surge in sales of the redesigned Punto, a proven winner in the marketplace. Fiat is looking to replicate the success of the Punto in 2006 with a radically-styled new Bravo in 2007.
Rieter Holding Ltd.
On the parts supplier front, Rieter Holding Ltd. is the winner of the one year parts supplier awards, with a one year increase in shareholder value of 80%, versus a sector average of 19%. Rieter benefits from a diverse customer base, serving automakers around the world. In 2006, Rieter expanded organically and through acquisitions in Asia and Eastern Europe, as those markets continue to grow. These expansions in emerging markets were matched by a strengthening of position in more mature markets, where Rieter effectively adjusted production capacity to the new competitive situation.
Tenneco Inc.
For the three-year parts supplier award, Tenneco posted a 270% increase in total shareholder value, compared to a sector increase of 59%. Tenneco has achieved success through diversification and clear strategic focus. The company has focused on investing in growing markets, keeping the cost structure variable, sourcing its materials from low-cost countries and shrinking its asset base. Tenneco’s recent success was contributed to by the company’s ability to cut costs, improve manufacturing efficiency and flex operations as conditions dictate.
CarMax, Inc.
In the retail sector, CarMax, Inc.'s performance earns both the one year and three year awards. CarMax has achieved an increase in total shareholder return of 94% over the last year, compared to a sector average of 34%. For the three-year period, CarMax returned a 73% increase, versus 43% for the sector average.
CarMax, the largest specialty used-car retailer in the US, buys, reconditions and sells cars and light trucks through outlets primarily in the Southeast and Midwest. CarMax boasts continued sales increases, which have been driven by a combination of strong store and Internet traffic. A rebound in sales of SUVs and trucks has favourably impacted the business as has growth in the financing arm. CarMax share prices rose sharply following 2006 third quarter results which exceeded Wall Street’s expectations. During Q3, same-store sales improved 12% while stabilising gas and interest rate costs, along with the general strength of the economy, contributed as key reasons for a 24% increase in sales.
Shareholder Value Indices have been reported in Automotive News on a quarterly basis since January 2000.
Notes to Editor:
1. Complete year-end results and Automotive Shareholder Award winners are announced in the January 22 2007 issue of Automotive News and can also be found at www.pwc.com/auto from that date.
2. For additional information on the winning companies, visit their web sites at: www.fiat.com
www.rieter.com
www.tenneco.com
www.carmax.com
2. Automotive News: To view the news of the world’s largest network of full-time reporters covering the entire automotive spectrum including automakers, suppliers, franchised dealers and others allied with the industry, visit
www.autonews.com.
3. For more information on PricewaterhouseCoopers Automotive practice, please visit
www.pwc.com/auto.
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www.pwc.com) provide industry-focused assurance, tax and advisory services to build public trust and enhance value for clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
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