North Plympton Sample Clauses

North Plympton. North Plympton Statement of Financial Performance 2002 2003 2004 YTD 30 Nov 04 $m $m $m $m Sales Revenue 80.1 85.4 98.5 35.7 ACIS Revenue 4.3 4.0 4.0 4.9 EBITDA 3.3 (7.1) (3.2) (5.2) EBIT (0.2) (10.4) (7.5) (7.6) Capital Expenditure 5.1 6.0 3.9 1.1 Since the North Plympton facilities were acquired by ION Limited, the operations have had one major customer for each main business line - Harley-Davidson (Wheels) and Holden (Castings). The Wheels division’s sales increased strongly from 2002 to 2003 reflecting continued growth in demand from Harley-Davidson. However, wheels sales revenue remained flat in 2004 due to a change in supply chain arrangements. The Castings division’s sales have fluctuated over the three years. This has primarily been driven by varying demand from Holden’s offshore affiliate. North Plympton’s results have been inflated by the inclusion of ACIS revenue largely attributable to the Xxxxxxxxx operations. The historical losses incurred by North Plympton were primarily caused by poor production efficiency and costing, inadequate management and unprofitable contracts. Further comments regarding the operations of North Plympton can be found at section 6.3.4. ION NZ ION NZ YTD 30 Statement of Financial Performance 2002 NZ$m 2003 NZ$m 2004 NZ$m Nov 04 NZ$m Sales Revenue 109.4 149.5 117.4 53.0 EBITDA 20.2 27.7 19.9 6.9 EBIT 16.2 22.9 14.0 4.8 Capital Expenditure 9.6 10.5 6.0 3.5 ION NZ was acquired from Ford in August 2001 and has performed well since the acquisition. The YTD performance of ION NZ to November 2004 was adversely impacted by reduced volumes and the impact of equipment reliability on maintenance costs and overtime. Further comments regarding ION NZ can be found at section 7.

North Plympton. ION Administration Group’s operations at North Plympton have demanded a high degree of attention from the Administrators and have continued to operate without disruption. There are significant issues associated with North Plympton, with the Administrators’ efforts in improving these operations focussed on: ▪ improved production efficiency (where Xxxxxx Xxxxxxxx’x expertise has been most helpful); ▪ better procurement; and ▪ more effective production and labour scheduling. North Plympton has historically incurred substantial losses. On a full year basis, these losses are in the vicinity of $20 million per annum after removing the effect of ACIS revenue. The Administrators have adopted the following approach to the restructure of North Plympton’s operations: ▪ selling prices have been increased for all customers placing North Plympton on a cash neutral footing during the administrations, and allowing time for the Administrators to review operations and implement profit improvement initiatives without diminishing creditor value. These price increases have been accepted by customers for the time being but are not sustainable; ▪ on-site management has been restructured (which has been well received by customers, employees and unions); ▪ an intensive programme is in progress to review and improve operational performance. In this regard the Administrators have had valuable assistance from the following sources: - major local and global customers who have provided their manufacturing process expertise; and - employees and their unions who have demonstrated their ability and willingness to achieve change. Progress in improving production efficiency and achieving cost reductions is accelerating pursuant to a profit improvement programme. A specialist adviser, Xxxxxx Xxxxxxxxxx, is assisting management and the Administrators to identify and implement improvements. There is considerable potential for ongoing performance gains, which will emerge over the months ahead. In March 2005 there were a number of developments with regard to environmental issues at North Plympton. Litigation continues in relation to appropriate noise and odour emission levels. Local residents have been active in raising these concerns for the last 1 to 2 years. A new environmental licence could be obtained immediately were the Administrators to agree to plant modifications. The cost of remediation would be substantial and would render the plant economically unviable. The Administrators are consi...