Arvin Industries CEO V. William Hunt talks to The Wall Street Transcript

14 July 1999

Arvin Industries CEO V. William Hunt talks to The Wall Street Transcript

    NEW YORK--July 14, 1999--The Wall Street Transcript has published an in-depth interview with V. William Hunt of Arvin Industries , in which he talks at length about his company's future.
    He says, "In the mid-1980s, we focused on auto parts as a strategy for the company, both original equipment and replacement products, and proceeded to divest ourselves of our non-automotive businesses and began acquiring automotive businesses in North America, Europe, and in the developing markets."
    He explains, "Our sales in 1998 were right at $2.5 billion, and we expect sales to be in the range of $3.1 billion for year-end 1999, as a result of strong internal growth and several acquisitions."
    He asserts, "In both the original equipment and replacement businesses, being the low-cost competitor is essential to being successful, in the view of the customer as well as in the view of shareholders. The only way to generate superior profits is to be the low-cost competitor. Since 1995, our earnings have grown at a 44%-annual compounded rate and our sales at an 8%-annual compounded growth rate. Our earnings have been outstripping our sales by over five times, and we think the primary, if not exclusive, contributor to this is the cost-reduction machine that we've created."
    Looking forward, he states, "We have set a goal to double our sales of 1998, which were $2.5 billion, to $5 billion by the end of 2002. For the year 2003, we expect our sales level to be in excess of $5 billion and we don't expect any erosion in our financial performance as a result of these acquisitions."
    To read the complete interview, go to http://www.twst.com/ceos.htm. The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations. Read hundreds of free excerpts from our Q&A Interviews of analysts from top brokerage houses, money managers and CEOs at http://www.twst.com.

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