Stellantis Shipments Fall 9% on Lower North American Production
The auto giant, which also houses brands including Chrysler, Fiat and Peugeot, said vehicle shipments in North America fell 20% in the quarter. Around 82,000 fewer cars were shipped than in the same quarter a year earlier on lower production due to the shutdowns as well as the initial ramp up of its updated 2025 Ram heavy duty trucks.
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CNBC
6 minutes ago
- CNBC
General Motors, Hyundai to develop five vehicles amid rising competition
General Motors and Hyundai Motor on Wednesday outlined plans to develop five vehicles as they seek to lower costs amid growing competition from nimble Chinese rivals. Four of the vehicles — a compact SUV/car/ pickup, and a mid-size pickup — are targeted at Central and South American markets and will support both internal combustion and hybrid powertrains. At full production scale, the companies expect to roll out at least 800,000 vehicles annually. The partnership will help GM compete against rising Chinese players in the Latin American market, where the Detroit automaker has had a strong presence for decades. The two global automakers will also co-develop an electric commercial van for the North American market. Reuters in March reported that the two companies were nearing a deal to share two commercial electric vans. Global automakers face stiff competition from Chinese EV makers and a trade war impacting imports of crucial parts, including rare earth materials, which has pushed production costs higher. This is the first major partnership for vehicle development for Hyundai Motor. The deal would give GM access to hybrid technology it lacks, while enabling Hyundai to enter into new segments such as vans in North America and mid-sized pickups, Kim Sung-rae, an analyst at Hanwha Investment & Securities, said. The two companies did not say where the models will be produced. Hyundai, which has a factory in Alabama, said it will expand the production capacity of its new factory in Georgia. The company also has a factory in Brazil. GM's budding partnership with Hyundai follows an unwinding of several projects the Detroit automaker had pursued with Honda over the past decade. Notably, GM and Honda in 2023 scrapped a $5 billion plan to jointly develop affordable electric vehicles. Chinese automakers have released several high-tech, low-cost models, putting pressure on legacy automakers such as GM to slash expenses and streamline manufacturing processes. To compete with these rivals, many automakers have explored partnerships as a way to share development costs, especially for battery-powered models. Cutting costs is even more pressing as tariffs have added billions of dollars in expenses for automakers around the globe. The Hyundai-GM announcement comes after the United States and South Korea last week reached a trade agreement to charge a 15% tariff on imports from South Korea, including autos. This is among several deals between a South Korean company and a U.S. firm announced in recent weeks, following Samsung Electronics' chip deal with Tesla TSLA.O and Apple AAPL.O, and LG Energy Solution's battery deal with Tesla.
Business Wire
4 hours ago
- Business Wire
ParkOhio Announces Second Quarter 2025 Results
CLEVELAND--(BUSINESS WIRE)--Park-Ohio Holdings Corp. (NASDAQ: PKOH) today announced its results for the second quarter of 2025. 'We entered the second half of 2025 with momentum across ParkOhio. We have delivered two straight quarters of margin expansion and earnings growth, even amid modest revenue headwinds—proof that our operational discipline is working. We are also starting to see leading indicators of increased activity and backlog, especially in our engineered products segment. ParkOhio is in the late innings of a portfolio transformation that we plan to exit as a higher quality, more profitable, de-leveraged business. 'The recently announced refinancing of our Senior Notes and our Revolving Credit Facility are critical steps, as these actions provide us with extended maturities and liquidity to execute our long-term goals. 'Again, we believe we are well positioned to capitalize on several trends, including increased domestic investment and onshoring, and remain focused on our objectives of sales growth, higher operating margins, and reduced net debt leverage," said Matthew V. Crawford, Chairman and Chief Executive Officer. SEGMENT PERFORMANCE DEMAND DRIVERS In our Supply Technologies segment, our outsourced supply chain and component distribution platform generated $187 million in sales during the quarter, down 8% YOY caused by demand softness in certain North American industrial markets. Demand in this segment continues to be driven by reshoring trends, steady growth in Europe, and long-standing vendor managed inventory programs embedded with OEM customers. As customers prioritize regional suppliers for cost and reliability, ParkOhio remains well positioned to capture share. Assembly Components, which produces engineered assemblies for transportation and industrial markets, reported Q2 sales of $95 million, down from $103 million in the prior year. The decline reflects lower volumes in fuel rail and rubber products, delays in new OEM platform launches, and the expiration of favorable pricing on legacy programs. Demand in this segment is closely linked to OEM launch schedules, overall vehicle production, and customer consolidation of the supply base. We continue to win new business across all product lines, with over $50 million of incremental business launching in the second half of 2025 and throughout 2026. Our strong reputation for quality, scale, and continuity continues to make ParkOhio a trusted partner. Engineered Products, our capital equipment and forged components segment serving diversified end markets including infrastructure and defense, delivered $118 million in revenue for the quarter, compared to $127 million a year ago. The 2024 closure of a small manufacturing facility and lower railcar demand impacted forged products, while industrial equipment sales remained steady. Segment demand is being driven by sustained investment in defense, infrastructure, and electrical steel capacity expansion. The quarter's record $85 million in new capital equipment bookings — including a record $47 million induction heating order utilizing our patent pending technology that enables the most uniform heating profile available in today's markets — pushed backlog to $172 million, providing multi-quarter visibility. DEBT REFINANCING COMPLETED On July 31, 2025, Park-Ohio Industries, Inc. ('Industries'), a subsidiary of Park-Ohio Holdings Corp., completed its offering of $350.0 million aggregate principal amount of senior secured notes due 2030 (the "Notes") in a private offering. The Notes were priced at 99.50% of par and bear an interest rate of 8.50% per annum. The Notes are senior obligations of Industries and guaranteed, with certain exceptions, by Industries' existing and future domestic subsidiaries on a senior secured basis. The Company used the net proceeds from the offering of the Notes, along with cash on hand, to redeem all $350.0 million aggregate principal amount of its outstanding 6.625% Senior Notes due 2027 (the "2027 Senior Notes") and pay related fees and expenses. On July 17, 2025, the Company entered into an amendment to its $405.0 million revolving credit facility in order to, among other things, extend the maturity date to the fifth anniversary from the closing date of the amendment. 2025 OUTLOOK The recent refinancing of our 2027 Senior Notes will increase interest expense in the second half of the year and is expected to reduce Adjusted EPS by approximately $0.20 per diluted share. We now expect full-year 2025: Net Sales: $1.620 billion to $1.650 billion Adjusted EPS: $2.90 to $3.20 per diluted share Free Cash Flow: Expected to improve from FY2024 and approximate $20 million to $30 million in FY2025; expect approximately $65 million of free cash flow in the second half of 2025 The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as Adjusted EPS, to the most comparable GAAP financial measures due to the inherent difficulty in forecasting certain items, including non-cash or infrequent charges, which are not available without unreasonable effort. WEBCAST AND CONFERENCE CALL A live webcast and conference call to review ParkOhio's second quarter 2025 financial results will be held on Thursday August 7, 2025, at 10:00 a.m. Eastern Time. To access the webcast, please visit the Investor Relations section of the Company's website at A corresponding investor presentation will also be available on the site prior to the call. ParkOhio is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. Headquartered in Cleveland, Ohio, ParkOhio operates approximately 130 manufacturing sites and supply chain logistics facilities worldwide, through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. This news release contains forward-looking statements, including statements regarding future performance of the Company, that are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: the impact supply chain and logistic issues have on our business, results of operations, financial position and liquidity; our substantial indebtedness; the uncertainty of the global economic environment; general business conditions and competitive factors, including pricing pressures and product innovation; demand for our products and services; the impact of labor disturbances affecting our customers; raw material availability and pricing; fluctuations in energy costs; component part availability and pricing; changes in our relationships with customers and suppliers; the financial condition of our customers, including the impact of any bankruptcies; our ability to successfully integrate recent and future acquisitions into existing operations; the amounts and timing, if any, of purchases of our common stock; changes in general economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions and changing government policies, laws and regulations, including those related to the current global uncertainties and crises, such as tariffs and surcharges; adverse impacts to us, our suppliers and customers from acts of terrorism or hostilities, including the conflicts between Russia and Ukraine and in the Middle East, or political unrest, including the rising tension between China and the United States; public health issues, including the outbreak of infectious diseases and any impact on our facilities and operations and our customers and suppliers; our ability to meet various covenants, including financial covenants, contained in the agreements governing our indebtedness; disruptions, uncertainties or volatility in the credit markets that may limit our access to capital; potential disruption due to a partial or complete reconfiguration of the European Union; increasingly stringent domestic and foreign governmental regulations, including those affecting the environment or import and export controls and other trade barriers; inherent uncertainties involved in assessing our potential liability for environmental remediation-related activities; the outcome of pending and future litigation and other claims and disputes with customers; our dependence on the automotive and heavy-duty truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending; our ability to negotiate contracts with labor unions; our dependence on key management; our dependence on information systems; our ability to continue to pay cash dividends, and the timing and amount of any such dividends; and the other factors we describe under "Item 1A. Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. In light of these and other uncertainties, the inclusion of a forward-looking statement herein should not be regarded as a representation by us that our plans and objectives will be achieved. The Company assumes no obligation to update the information in this release. Park-Ohio Holdings Corp. and Subsidiaries Supplemental Non-GAAP Financial Measures (Unaudited) Adjusted earnings from continuing operations is a non-GAAP financial measure that the Company is providing in this press release. Adjusted earnings from continuing operations is income from continuing operations calculated in accordance with generally accepted accounting principles ("GAAP"), adjusted for special items. The Company presents this non-GAAP financial measure because management uses adjusted earnings from continuing operations to compare its operating performance on a consistent basis over multiple periods because they remove the impact of certain significant noncash credits or charges and certain infrequent items impacting net income. Adjusted earnings is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, income from continuing operations calculated in accordance with GAAP. Adjusted income from continuing operations herein may not be comparable to similarly titled measures of other companies. The following table reconciles income from continuing operations to adjusted earnings from continuing operations: The following table shows the impact of these adjustments on our segment results (continuing operations): Cost of Sales SG&A Total Cost of Sales SG&A Total (In millions) Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 Supply Technologies $ — $ 0.4 $ 0.4 $ — $ 0.2 $ 0.2 Assembly Components — 0.5 0.5 — — — Engineered Products — 0.4 0.4 — 1.0 1.0 Corporate — — — — — — Total continuing operations $ — $ 1.3 $ 1.3 $ — $ 1.2 $ 1.2 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Supply Technologies $ — $ 0.4 $ 0.4 $ — $ 0.2 $ 0.2 Assembly Components — 0.7 0.7 — — — Engineered Products — 1.2 1.2 — 1.3 1.3 Corporate — — — — — — Total continuing operations $ — $ 2.3 $ 2.3 $ — $ 1.5 $ 1.5 Expand Park-Ohio Holdings Corp. and Subsidiaries Supplemental Non-GAAP Financial Measures (Unaudited) EBITDA, as defined is a non-GAAP financial measure that the Company is providing in this press release. EBITDA, as defined reflects net income attributable to Park-Ohio Holdings Corp. common shareholders before interest expense, income taxes, depreciation and amortization, and also excludes certain charges and corporate-level expenses as defined in the Company's current revolving credit facility. The Company presents this non-GAAP financial measure because management uses EBITDA, as defined to assess the Company's performance and to calculate its debt service coverage ratio under its current revolving credit facility. EBITDA, as defined is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, net income or cash flow information calculated in accordance with GAAP. EBITDA, as defined herein may not be comparable to similarly titled measures of other companies. The following table reconciles net income to EBITDA, as defined: Park-Ohio Holdings Corp. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, 2025 December 31, 2024 (In millions) ASSETS Current assets: Cash and cash equivalents $ 45.6 $ 53.1 Accounts receivable, net 282.5 249.5 Inventories, net 425.9 422.9 Other current assets 119.8 110.5 Total current assets 873.8 836.0 Property, plant and equipment, net 190.3 182.9 Operating lease right-of-use assets 43.7 40.3 Goodwill 116.0 111.7 Intangible assets, net 72.6 71.9 Other long-term assets 125.3 122.3 Total assets $ 1,421.7 $ 1,365.1 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 196.8 $ 194.8 Current portion of long-term debt and short-term debt 8.7 8.4 Current portion of operating lease liabilities 11.1 10.7 Accrued expenses and other 119.6 147.2 Total current liabilities 336.2 361.1 Long-term liabilities, less current portion: Long-term debt 656.7 618.3 Long-term operating lease liabilities 32.8 29.8 Other long-term liabilities 19.7 18.8 Total long-term liabilities 709.2 666.9 Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity 371.1 330.8 Noncontrolling interests 5.2 6.3 Total equity 376.3 337.1 Total liabilities and shareholders' equity $ 1,421.7 $ 1,365.1 Expand Park-Ohio Holdings Corp. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2025 2024 (In millions) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS Income from continuing operations $ 16.7 $ 21.5 Adjustments to reconcile income from continuing operations to net cash used in operating activities from continuing operations: Depreciation and amortization 16.5 16.7 Stock-based compensation expense 2.8 2.7 Changes in operating assets and liabilities: Accounts receivable (23.5 ) (10.1 ) Inventories 3.2 (11.3 ) Prepaid and other current assets (6.6 ) (1.4 ) Accounts payable and accrued expenses (34.0 ) (13.4 ) Other 1.2 (5.1 ) Net cash used in operating activities from continuing operations (23.7 ) (0.4 ) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS Purchases of property, plant and equipment (16.9 ) (13.2 ) Business acquisitions, net of cash acquired — (11.0 ) Net cash used in investing activities from continuing operations (16.9 ) (24.2 ) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS Proceeds from revolving credit facility, net 38.9 38.2 (Payments on) proceeds from other debt, net (0.3 ) 5.4 Payments on finance lease facilities, net (1.9 ) (1.8 ) Payments related to prior acquisitions — (0.8 ) Dividends (3.6 ) (3.3 ) Payments of withholding taxes on share awards (1.6 ) (2.4 ) Net cash provided by financing activities from continuing operations 31.5 35.3 DISCONTINUED OPERATIONS: Total used by operating activities (0.3 ) (4.1 ) Decrease in cash and cash equivalents from discontinued operations (0.3 ) (4.1 ) Effect of exchange rate changes on cash 1.9 (1.5 ) (Decrease) increase in cash and cash equivalents (7.5 ) 5.1 Cash and cash equivalents at beginning of period 53.1 54.8 Cash and cash equivalents at end of period $ 45.6 $ 59.9 Interest paid $ 22.3 $ 23.3 Income taxes paid $ 13.3 $ 5.7 Expand Park-Ohio Holdings Corp. and Subsidiaries Business Segment Information (Unaudited) Supply Technologies Assembly Components Engineered Products Corporate Total (In millions) Three Months Ended June 30, 2025 Net sales $ 187.1 $ 95.1 $ 117.9 $ — $ 400.1 Cost of sales 154.3 84.2 93.4 — 331.9 Gross profit 32.8 10.9 24.5 — 68.2 Selling, general and administrative expenses 16.1 4.8 18.1 7.8 46.8 Restructuring and other special charges 0.4 0.5 0.4 — 1.3 Operating income (loss) 16.3 5.6 6.0 (7.8 ) 20.1 Other components of pension and other postretirement benefits income, net 1.8 Interest expense, net (11.2 ) Income from continuing operations before income taxes $ 10.7 Three Months Ended June 30, 2024 Net sales $ 202.6 $ 103.1 $ 126.9 $ — $ 432.6 Cost of sales 165.3 92.4 101.7 — 359.4 Gross profit 37.3 10.7 25.2 — 73.2 Selling, general and administrative expenses 18.1 3.8 17.9 7.6 47.4 Restructuring and other special charges 0.2 — 1.0 — 1.2 Operating income (loss) 19.0 6.9 6.3 (7.6 ) 24.6 Other components of pension and other postretirement benefits income, net 1.4 Interest expense, net (12.0 ) Income from continuing operations before income taxes $ 14.0 Six Months Ended June 30, 2025 Net sales $ 374.9 $ 192.0 $ 238.6 $ — $ 805.5 Cost of sales 307.5 169.9 191.8 — 669.2 Gross profit 67.4 22.1 46.8 — 136.3 Selling, general and administrative expenses 32.9 10.5 35.8 15.8 95.0 Restructuring and other special charges 0.4 0.7 1.2 — 2.3 Operating income (loss) 34.1 10.9 9.8 (15.8 ) 39.0 Other components of pension and other postretirement benefits income, net 3.6 Interest expense, net (22.2 ) Income from continuing operations before income taxes $ 20.4 Six Months Ended June 30, 2024 Net sales $ 399.5 $ 210.3 $ 240.4 $ — $ 850.2 Cost of sales 326.4 185.9 193.3 — 705.6 Gross profit 73.1 24.4 47.1 — 144.6 Selling, general and administrative expenses 34.4 8.9 36.0 15.2 94.5 Restructuring and other special charges 0.2 — 1.3 — 1.5 Operating income (loss) 38.5 15.5 9.8 (15.2 ) 48.6 Other components of pension and other postretirement benefits income, net 2.7 Interest expense, net (23.9 ) Income from continuing operations before income taxes $ 27.4 Expand Park-Ohio Holdings Corp. and Subsidiaries Supplemental Non-GAAP Financial Measures (Unaudited) Adjusted segment operating income (loss) is a non-GAAP financial measure that the Company is providing in this press release. Adjusted segment operating income (loss) is calculated as segment operating income (loss) plus adjustments for restructuring and other special charges. The Company presents this non-GAAP financial measure because the business segments have incurred significant restructuring and related expenses during the year-to-date periods. Adjusted segment operating income (loss) is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, earnings in accordance with GAAP. Adjusted segment operating income (loss) herein may not be comparable to similarly titled measures of other companies. The following table reconciles adjusted segment operating income (loss) to segment operating income (loss): Three Months Ended March 31, 2025 (In millions) As reported Adjustments As adjusted Supply Technologies $ 17.8 $ — $ 17.8 Assembly Components 5.3 0.2 5.5 Engineered Products 3.8 0.8 4.6 Corporate (8.0 ) — (8.0 ) Operating income - continuing operations $ 18.9 $ 1.0 $ 19.9 Three Months Ended June 30, 2025 2024 (In millions) As reported Adjustments As adjusted As reported Adjustments As adjusted Supply Technologies $ 16.3 $ 0.4 $ 16.7 $ 19.0 $ 0.2 $ 19.2 Assembly Components 5.6 0.5 6.1 6.9 — 6.9 Engineered Products 6.0 0.4 6.4 6.3 1.0 7.3 Corporate (7.8 ) — (7.8 ) (7.6 ) — (7.6 ) Operating income - continuing operations $ 20.1 $ 1.3 $ 21.4 $ 24.6 $ 1.2 $ 25.8 Six Months Ended June 30, 2025 2024 (In millions) As reported Adjustments As adjusted As reported Adjustments As adjusted Supply Technologies $ 34.1 $ 0.4 $ 34.5 $ 38.5 $ 0.2 $ 38.7 Assembly Components 10.9 0.7 11.6 15.5 — 15.5 Engineered Products 9.8 1.2 11.0 9.8 1.3 11.1 Corporate (15.8 ) — (15.8 ) (15.2 ) — (15.2 ) Operating income - continuing operations $ 39.0 $ 2.3 $ 41.3 $ 48.6 $ 1.5 $ 50.1 Note: Amounts above include non-controlling interest impact. Expand Free cash flow is a non-GAAP financial measure that the Company is providing in this press release. The Company presents free cash flow, which it defines as net cash used in operating activities minus purchases of property, plant and equipment, because management uses free cash flow to measure its performance. Free cash flow is not a measure of performance under GAAP and should not be considered in isolation from, or as a substitute for, amounts calculated in accordance with GAAP. Free cash flow herein may not be comparable to similarly titled measures of other companies. The following tables reconcile net cash used in operating activities to free cash flow:
Miami Herald
5 hours ago
- Miami Herald
Claire's files second bankruptcy petition in 7 years
Aug. 6 (UPI) -- Officials for retailer Claire's filed for bankruptcy protection on Wednesday as its operating costs rise while demand for its goods declines among its youthful customers. A combination of tariffs on the mostly Chinese-produced goods sold by Claire's and inflation has cooled demand among its mostly youthful customers, according to NPR. So has its distribution system of brick-and-mortar storefronts inside malls at a time when its traditionally youthful shoppers prefer buying goods online. Illinois-based Claire's has a $500 million loan due for payment next year, but its declining revenues and profits endanger its stores in the United States and Canada. "Increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail, in combination with our current debt obligations and macroeconomic factors, necessitate this course of action for Claire's and its stakeholders," Claire's Chief Executive Officer Chris Cramer said in a prepared statement. Claire's counterpart in Canada likely will file for bankruptcy protection there, but the retailer's North American stores will remain open. "We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives," Cramer said. Claire's filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for Delaware. The retailer is noted for its low-cost fashion accessories, jewelry and piercing services. In 2018, the company filed for bankruptcy protection. Elliott Management Corp. and Monarch Alternative Capital now control Claire's, which wiped out $1.9 billion in debt and kept its retail outlets open after securing a $575 million loan, according to CNBC. The retailer cited between $1 billion and $10 billion in assets and liabilities alike in Wednesday's bankruptcy filing. Tariffs on Chinese-made goods could affect Claire's supply chain, and increased competition from ear-piercing service providers is affecting Claire's business among its younger customers. "Competition has ... become sharper and more intense over recent years," GlobalData managing director Neil Saunders recently said. "Retailers like Lovisa [are] offering younger shoppers a more sophisticated assortment at value prices," Saunders said. "This is more attuned to what younger consumers want and has left Claire's looking somewhat out of step with modern demand," he added. Amazon and other online retailers also are negatively affecting Claire's business model, according to Saunders. Copyright 2025 UPI News Corporation. All Rights Reserved.
