|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 14A
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Filed by the registrant X
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement
| [ ] |
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
[ ] Definitive proxy statement
[ ] Definitive additional materials
X Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
Payment of filing fee (Check the appropriate box):
X No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.
(1) Amount previously paid:
(2) Form, schedule or registration statement no.:
(3) Filing party:
(4) Date filed:
[SIMPSON INDUSTRIES, INC. LOGO]
Any forward-looking statements made in this presentation represents management’s best judgement as to what may occur in the future. However, the company’s actual results for the current and future fiscal periods and the corporate developments will depend on a number of economic, competitive and other factors including some of which will be outside the control of the company. Such factors could cause the company’s actual results for future periods to differ materially from those expressed in any forward-looking statements made in this presentation.
To be a leading global designer and high quality/low-cost supplier of selected vehicle subsystems and components worldwide in our three core markets.
| • | Engine NVH Components/ Modules |
• Wheel-end/ Transmission Components/ Modules
• Engine Components/ Modules
[Line Graph]
| 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | |||||||||||||||||||||||||
| Sales | 39.7 | 50 | 59 | 61.6 | 68.7 | 90.9 | 104.6 | 124 | ||||||||||||||||||||||||
| Net Earnings | 2 | 1.7 | 2.7 | 3 | 4.3 | 4.6 | 5.8 | 6.3 | ||||||||||||||||||||||||
| 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | ||||||||||||||||||||||||||||
| Sales | 101.5 | 121.2 | 127.1 | 92.3 | 130.5 | 138.8 | 171.3 | 146.8 | 177.8 | |||||||||||||||||||||||||||
| Net Earnings | 2.9 | 5.9 | 5.6 | 0.3 | 5.6 | 7.4 | 9.2 | 5.3 | 10.5 | |||||||||||||||||||||||||||
| 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999F | ||||||||||||||||||||||||||||||||||
| Sales | 197.3 | 193.1 | 191.9 | 222.8 | 262.5 | 356.6 | 395.1 | 408 | 451.5 | 496.4 | 530.0 | |||||||||||||||||||||||||||||||||
| Net Earnings | 10.7 | 6.1 | 4.5 | 8 | 6.4 | 14.4 | 15.3 | 16.5 | 15.6 | 16.7 | 20.3 | |||||||||||||||||||||||||||||||||
[WORLD MAP]
* Plymouth (Headquarters),
* Bluffton & Fremont, Indiana
* Edon & Troy, Ohio
* Iztapalapa (Mexico City), Mexico
* Thamesville, Ontario
* Memphis, Tennessee
* Greenville, North Carolina
* Sao Paulo, Brazil
* Halifax, Huddersfield England
* Wiesbaden, Germany
* Lyon, France
* Barcelona, Spain
* Pune, India
* Seoul, S. Korea
* Osaka, Japan
Simpson Currently Employs over 2,500 People Located in 14 Facilities,
| 1995 | 395 | |||
| 1996 | 408 | |||
| 1997 | 452 | |||
| 1998 | 496 | |||
| 1999F | 530 |
| [PHOTO] | [PHOTO] | [PHOTO] | ||
|
Noise, Vibration & Harshness Business (NVH) |
Transmission & Chassis Business (T&C) |
Engine Modules/HD Business (Engine) |
[PIE CHART]
| GM/ Opel | 28% | |||
| Ford | 18% | |||
| DaimlerChrysler | 13% | |||
| Cummins/ CDC | 11% | |||
| Other | 11% | |||
| Caterpillar | 7% | |||
| Japan | 6% | |||
| Peugeot | 4% | |||
| RVI/ Renault | 2% |
[PIE CHART]
| U.S. | 78% | |||
| U.K. | 6% | |||
| France | 5% | |||
| Mexico | 5% | |||
| Canada | 4% | |||
| Korea | 1% | |||
| Spain | 1% |
[LINE GRAPH]
| 1997 | 1999 | |||||||
| Integrators/ Consolidators Sales | 16% | 20% | ||||||
| OEM Sales | 84% | 80% | ||||||
| Operating Margin | 6.8% | 7.3% | ||||||
[PIE CHART]
| Actual | Target | |||||||
| 1998 | 2005 | |||||||
| $496 Million | $1 Billion | |||||||
| Noise, Vibration & Harshness | 36% | 30% | ||||||
| Transmission & Chassis | 30% | 33% | ||||||
| Engine | 34% | 22% | ||||||
| Modules | 15% | |||||||
1999 A Record Year
| • | Global Infrastructure (1997) |
| • | Plant Closing & Restructuring (1998) |
| • | Product Strategy/Re-Positioning (1999-2001) |
| • | Breakthrough in Modular Segment (1999-2000) |
| • | Asian Joint Venture Activity (1999-2000) |
| • | Organizational Re-Alignment & Management Changes (1999) |
| • | Manufacturing Cost Structure Initiatives (2000-2001) |
| • | Actively Pursuing Synergistic Acquisitions (1999-2000) |
| • | Record 1999 Results and New Business Awards |
| • | Better Than Peer Group Performance |
| 1998 | 1999 | % | ||||||||||
| Actual | Estimates | Change | ||||||||||
| Net Sales | 496.4 | 530.0 | +7% | |||||||||
| Operating Earnings* | 34.1 | 38.5 | +13% | |||||||||
| EBITDA* | 60.3 | 67.0 | +13% | |||||||||
| Net Earnings* | 16.7 | 20.2 | +21% | |||||||||
|
Earnings Per Share* > w/o one-time charge |
0.90 | 1.11 | +23% | |||||||||
| * | 1998 excludes pre-tax charge of $2.5 million for restructuring ($.10 per share) |
[LINE GRAPHS]
| Operating Earnings | Net Earnings | |||||||||||
| 98 | 99F | 98 | 99F | |||||||||
| 6.9% | 7.3% | 3.4% | 3.8% | |||||||||
[LINE GRAPHS]
NET SALES |
OPERATING EXPENSES(*) | |||||||||||||||
| ($ in millions) | ($ in millions) | |||||||||||||||
| 95 | $ | 395 | 28.8 | |||||||||||||
| 96 | +3% | 408 | 0% | 28.5 | ||||||||||||
| 97 | +11% | 452 | +8% | 30.9 | ||||||||||||
| 98 | +10% | 496 | +10% | 34.1 | ||||||||||||
| 99F | +7% | 530 | +13% | 38.5 | ||||||||||||
| (*) | 1996 excludes $1.1m for federal tax credit |
[LINE GRAPHS]
| EBITDA | ||||||||||||||||
| DILUTED EPS(*) | ($ in millions) | |||||||||||||||
| 95 | $ | 0.85 | $ | 47.70 | ||||||||||||
| 96 | +6% | $ | 0.90 | +5% | $ | 50.10 | ||||||||||
| 97 | -4% | $ | 0.86 | +8% | $ | 54.30 | ||||||||||
| 98 | +6% | $ | 0.90 | +11% | $ | 60.30 | ||||||||||
| 99F | +23% | $ | 1.11 | +11% | $ | 67.00 | ||||||||||
| * 1996 excludes $1.1m for federal tax credit |
INDEX (1994=100)
| Dec 94 | Dec 95 | Dec 96 | Dec 97 | Dec 98 | Dec 99 | |||||||||||||||||||
| SIMPSON INDUSTRIES | 100 | 101.34 | 127.68 | 142.88 | 121.95 | 147.02 | ||||||||||||||||||
| RUSSELL 2000 INDEX | 100 | 126.21 | 144.84 | 174.56 | 168.54 | 201.61 | ||||||||||||||||||
| PEER GROUP | 100 | 112.62 | 136.92 | 152.52 | 150.48 | 113.43 | ||||||||||||||||||
[LINE GRAPH]
| FMO | -66 | |||
| OEA | -59 | |||
| UFMG | -43 | |||
| ARV | -32 | |||
| MGA | -32 | |||
| MODI | -31 | |||
| BWA | -27 | |||
| WCSTF | -27 | |||
| DCN | -27 | |||
| MSX | -26 | |||
| EDEL | -25 | |||
| ALV | -21 | |||
| DPH | -15 | |||
| AIZ | -14 | |||
| DECAF | -14 | |||
| DES | -13 | |||
| TEN | -12 | |||
| CLC | -10 | |||
| MRA | -8 | |||
| TRW | -7 | |||
| SUP | -4 | |||
| ACAM | +9 | |||
| SMPS (Simpson) | +16 | |||
| Russell 2000 | +19 | |||
| TSMA | +24 | |||
| TPR | +32 | |||
| IV | +36 |
| SMPS (Simpson) | +16.12% | |||
| JCI | -3.60% | |||
| TRW | -7.36% | |||
| LEA | -16.88% | |||
| DCN | -26.76% | |||
| BWA | -27.44% | |||
| MGA | -31.65% | |||
| TWR | -38.10% | |||
| HAZ | -42.24% | |||
| DRRA | -48.90% | |||
| TEN | -53.33% | |||
| FMO | -66.18% |
| 12-Months | ||||
| Equity Analysts | Rating | Price Target | ||
| Baird, Robert | Market Outperform (LT) | $14 | ||
| Morgan Stanley DW | Outperform | $16 | ||
| Raymond James | Accumulate (2) | $15 | ||
| Salomon Smith Barney | Neutral | $10 |
[LINE GRAPH]
| 99 Goal | 75 | |||
| 99 Actual | 107 | |||
| SOP 99 | 1 | |||
| SOP 00 | 12 | |||
| SOP 01 | 63 | |||
| SOP 02 | 12 | |||
| SOP 03 | 19 |
We have sufficient capacity to fund synergistic/strategic acquisitions
• ACCRETIVE
• EXPAND DEPTH OF CORE MARKETS
• EXPAND GEOGRAPHICAL REACH
• ACTIVELY REVIEW STRATEGIC COMBINATIONS
[LINE GRAPH]
| Meritor | 9.1 | |||
| Simpson | 7 | |||
| Arvin Ind. | 6.7 | |||
| Dana | 6.3 | |||
| Fed. Mog. | 3.9 | |||
| Dura | 3.9 | |||
| Am Ax. | 3.6 | |||
| Lear | 3.3 | |||
| Delco | 2.8 | |||
| Hayes Lem. | 2.7 | |||
| Key Plas. | 2.5 | |||
| Tenneco | 2.5 | |||
| Oxford Auto. | 2.3 | |||
| MSX | 2.2 | |||
| Exide | 2.2 | |||
| JLF | 1.7 | |||
| Cambridge | 1.5 | |||
| Talon | 1.4 |
[LINE GRAPH]
| DEBT | ||||
| to | ||||
| EBITDA | ||||
| Meritor | 0.8 | |||
| Arvin | 1.7 | |||
| Dana | 1.7 | |||
| Simpson | 1.7 | |||
| Dura | 3.1 | |||
| Am Ax. | 3.3 | |||
| Fed. Mog | 3.3 | |||
| Lear | 3.5 | |||
| Hayes Lem. | 3.8 | |||
| Delco | 3.9 | |||
| Tenneco | 4.3 | |||
| MSX | 4.8 | |||
| Oxford Auto. | 4.9 | |||
| Key Plas. | 5.3 | |||
| Exide | 5.3 | |||
| JLF | 5.7 | |||
| Cambridge | 7.1 | |||
| Talon | 7.8 | |||
[LINE GRAPHS]
| 1998 ACTUAL | 1999 FORECAST | 2000 FORECAST | TARGET 2002 | |||||||||||||
| Operating Margin | 6.9% | 7.3% | 8.4% | 9.0% | ||||||||||||
| Fixed Cost | 18.6% | 18.4% | 18.6% | 18.5% | ||||||||||||
| Variable Cost | 74.5% | 74.3% | 73.0% | 72.5% | ||||||||||||
Variable Cost Structure Provides Business Cycle Protection
[LINE GRAPH] Cost of Capital: 9.5%
| 1998 | 1999 | |||||||||||
| Actual | Forecast | Target | ||||||||||
| Return on Invested Capital | 9.5% | 10.6% | 12% | |||||||||
| • | Simpson Took Major Initiatives in 1997-98 to Enhance Shareholder Value |
| • | Implemented Global Infrastructure | |
| • | Rationalized Plant Capacity; and | |
| • | Restructured Business, etc. |
| • | 1999 was the first year to reap the benefits with record sales and profits |
| • | Our stock performance (up approximately 16% in 1999) was one of the best among our peer group |
| • | Customer vote of confidence — record new business awards received |
| • | We are actively pursuing acquisition targets and have adequate funding capacity |
| • | Our vision is to be a $1 billion sales company by 2005 with higher profit margins |
| • | Active corporate governance . . . initiatives taken . . . process is ongoing . . . independent board |
ADDITIONAL INFORMATION
Simpson Industries, Inc. (the “Company”) advises you to read the proxy statement for the Company’s 2000 Annual Meeting when it becomes available because it will contain important information. The Securities and Exchange Commission maintains a site on the World Wide Web at http://www.sec.gov. You can get the proxy statement, and any other relevant documents, for free at the SEC’s web site. You can also get the proxy statement, and any other relevant documents, for free from the Company by requesting them in writing from: Vinod M. Khilnani, Chief Financial Officer at Simpson Industries, Inc., 47603 Halyard Drive, Plymouth, Michigan 48170-2429; or by phone at (734) 207-6200.
The Company and the persons named below may be deemed to be participants in a solicitation of proxies in connection with the 2000 Annual Meeting of Shareholders. Such participants may include the directors of the Company (Michael E. Batten, Susan F. Haka, George R. Kempton, Walter J. Kirchberger, Robert W. Navarre, Roy E. Parrott, Ronald L. Roudebush, George A. Thomas, F. Lee Weaver, and Frank K. Zinn) and Vinod M. Khilnani (Vice President and Chief Financial Officer). The persons referenced above beneficially own in the aggregate approximately three percent of the Company’s common stock.
|
|