Dec. 5, 2005 – Finance Digest

UTI enrollment up 17.7%
Officials at Universal Technical Institute, Inc. (NYSE: UTI) say the school’s average undergraduate enrollment for the 12 months ended September 30, 2005 was 15,390 students, an increase of 17.7% from 13,076 students for the same period a year ago. The company is targeting average undergraduate enrollment growth of 14.0% to 15.0% for Fiscal 2006.
UTI is a provider of technical education training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. The company offers undergraduate degree, diploma and certificate programs at ten campuses across the United States, and manufacturer-sponsored advanced programs at 22 dedicated training centers.
“In 2006, we have a number of program expansions planned as well as some exciting new developments with our industry partners,” said Kimberly McWaters, UTI President and Chief Executive Officer.
An expanded automotive training center at UTI’s Sacramento facility — planned to be complete during the third quarter of fiscal 2006 — is scheduled to hold approximately 1,100 students.
The company also intends to expand its Arizona motorcycle student capacity by approximately 700 students, and its Orlando motorcycle student capacity by 500 students. The Arizona campus will have a total capacity of approximately 2,800 students at maturity. Total capacity at the Florida campus for all programs is planned to be approximately 3,400 at maturity. Expansion at both campuses is planned for the fourth quarter of fiscal 2006.
“Also, we recently signed an agreement with BMW to offer a new twelve week motorcycle elective at our MMI Phoenix campus,” said McWaters.
UTI is targeting capital expenditures in 2006 to range from $73.0 million to $75.0 million. The planned capital expenditures include approximately $55.0 to $57.0 million of expansion related costs — $36 million of which is dedicated to the Sacramento facility.

BMW Motorrad earnings up
Worldwide sales of BMW motorcycles during the first nine months of 2005 were up 12% compared to the same period in 2004, the German manufacturer reports.
BMW Motorrad, a unit of Munich-based BMW AG, posted revenue of approximately $1.19 billion for the first nine months of the year, up 21% from revenues during the same period of the previous year, and said earnings were $102.8 million for the period, up 49.2%
BMW AG’s group revenues for the first nine months of the year were nearly $40 billion, up 2.7% from revenues during the same period in 2004. Pre-tax earnings were approximately $2.80 billion, down 12.5%.
In other BMW news, BMW Financial Services has been named one of the best places to work in central Ohio, according to a ranking compiled by Columbus Business First, a newspaper serving the state’s capitol city.
BMW FS, Dublin, Ohio, was one of 10 medium-sized companies receiving the award. A total of 30 companies in three categories — small, medium and large companies — were recognized this year. The honor was based on the results of a workplace satisfaction survey completed by employees and administered by Quantum Market Research. BMW FS employs approximately 700 people.
Earlier this year, BMW Financial Services was named one of the “Best Companies to Work for in America” by the Society for Human Resource Management for the second consecutive year.

Brembo Sales up 6.1%
Brembo, the Italian producer of brake components, says it had net profit of $34.9 million for the nine months ended September 30, 2005, up 6.2% from a net profit of $32.8 million for the same nine months in 2004. The company reported sales of $631.7 million during the nine-month period in 2005, up 6.1% from sales of $595.6 million posted in 2004.
Brembo officials say the commercial vehicle segment showed the most growth, with sales increasing 13.6%; the Racing segment achieved 6.4% sales growth; and sales of applications for passenger cars increased 5.6%.
The start-up of a new foundry in Poland next year coupled with other production initiatives should continue to contribute to a progressive improvement in sales and profits, officials said.
In other Brembo news, Brembo International S.A., 100% controlled by Brembo S.p.A., issued $58.6 million guaranteed floating notes on October 26. The notes, guaranteed by Brembo S.p.A. and set to expire in 2010, were privately sold to institutional investors.
Company officials say the transaction aims at differentiating the sources of financing and lengthening the company’s average debt life, replacing some existing short-term debts. No covenants are foreseen.
Finally, Brembo’s Board of Directors instated Giovanni Cavallini to replace outgoing Director Alberto Tazartes, who leaves for personal engagements. Cavallini is President of Interpump Group.
While Brembo’s business in Brazil during the first nine months of the year has gone up 55% compared to the same period in 2004, company officials say the firm’s German customer base has become its main target for export, overtaking the Italian customer base.

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