Fiat Chrysler
Company to Build
Distribution Center
Fiat Chrysler Automobiles NV is investing $12.2 million to build
a new distribution center in Virginia amid growing demand for parts
used by its dealerships to both repair and customize its
vehicles.
The 400,000-square-foot Mopar distribution center, located in
Winchester, will employ about 70 people and ship more than 9.2
million parts and other items annually. This will be the 22nd
center Fiat Chrysler has in operation in North America.
It will primarily supply more than 200 dealers in the
mid-Atlantic region after it opens sometime in the fourth
quarter.
Mopar is the hidden gem of the Fiat Chrysler operation.
Currently, the unit distributes more than 500,000 different parts
and accessories to more than 150 markets around the world. That
number is only expected to continue to grow since the auto maker
typically introduces dozens of customization parts with every new
vehicle it launches.
Those parts range from a $350 Jeep-branded full vehicle cover
and a $225 front grille for the Dodge Charger to a $155 bicycle
carrier for the Pacifica minivan and a $347 bed liner for the Ram
pickup truck. The unit also supplies wallets, golf shirts and key
cases. Fiat Chrysler executives have said that almost every Jeep
and pickup truck it sells in the U.S. is customized in some way by
customers.
Customization has grown across the industry as low leasing rates
have given customers the ability to not only purchase bigger cars
but also buy a few extras they may have skipped in the past.
Auto makers and retailers have also become more savvy by
offering higher quality parts and graphics packages to entice
shoppers to buy.
A Fiat Chrysler spokesman declined to provide financial details
since the auto maker doesn't separately report the unit's
revenues.
--Jeff Bennett
Sovran
REIT to Acquire
Self-Storage Firm
Self-storage real-estate investment trust Sovran Self Storage
Inc. on Thursday said it agreed to acquire privately owned
self-storage operator LifeStorage LP for about $1.3 billion in cash
and began a public offering of six million shares in part to fund
the deal.
Sovran, whose facilities operate under the name "Uncle Bob's
Self Storage," said Roseville, Calif.-based LifeStorage is the
sixth-largest private self storage facility operator in the U.S.,
with 92 self storage properties in nine states.
In the deal, which is expected to close in the third quarter,
Sovran will take 84 LifeStorage stores with a purchase contract for
three additional certificates-of-occupancy deals for late 2016 and
early 2017.
Sovran Chief Executive David Rogers said the acquisition will
"enhance and complement our physical footprint and digital
presence."
The deal adds to Buffalo, N.Y.-based Sovran's existing markets,
including Chicago, Austin, Dallas, Orlando and Los Angeles, while
also expanding its presence to new markets in Northern California
and Las Vegas.
As part of the public offering, Sovran granted underwriters a
30-day option to purchase up to 900,000 additional shares.
In January Sovran said it had agreed to buy 30 storage
facilities for $398 million and unveiled a plan to sell 2.3 million
in shares to fund deals. Those acquisitions gave the company its
foothold in the Los Angeles metro area.
Sovran shares, inactive premarket, have added 4.5% over the past
three months to $111.35.
--Anne Steele
BP
Unit Sells Stake
In Castrol India
Oil giant BP PLC said Thursday its subsidiary Castrol Ltd. has
sold an 11.5% stake in Castrol India Ltd. to domestic and
international investors for an undisclosed sum.
Following the sale, Castrol will own 59.5% of Castrol India, BP
said, adding that it plans to continue as a majority shareholder of
the company.
Castrol India delivered a post-tax profit of around $95 million
in 2015, 30% up on the previous year. For the first quarter of 2016
post-tax profit was $26.5 million.
--Ian Walker
Zhejiang Expressway
Revenue, Asset Gain
Boost Net Profit
Zhejiang Expressway Co. said Wednesday its first-quarter net
profit rose 4.7% from a year earlier, thanks to higher revenue and
an increase in the fair value gains of its financial assets.
The Hong Kong-listed infrastructure company said its net profit
for the three months ended March 31 rose to 661.8 million yuan
(US$101.2 million) from 631.9 million yuan a year earlier, while
its revenue rose to 2.69 billion yuan from 2.59 billion yuan a year
earlier.
--Chester Yung
James Hardie
Buyback Planned
After Profit Falls
Dublin-based building products manufacturer James Hardie plans
to buy back US$100 million of its own shares and expects the U.S.
housing market to grow at a moderate pace this year after reporting
a 16% profit fall Thursday.
Net profit for the year through March fell to US$244.4 million
from US$291.3 million a year earlier as higher interest and tax
expenses weighed on the bottom line.
Sales edged up by 4% to US$1.73 billion as volumes increased in
North America and Europe.
James Hardie, which is one of the biggest makers of home siding
in the U.S. and generates most of its profits there, said it
expects to see moderate growth in the U.S. housing market in fiscal
2017.
--Rebecca Thurlow
(END) Dow Jones Newswires
May 19, 2016 13:26 ET (17:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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