The highly reputed United States based vehicle parts dealer, Delphi Auto recently declared that it is planning to spend nearly $100-million in the Chinese market, which is clearly the biggest capital that the firm has invested in the nation during its nearly 2-decades of business operations.
Delphi Working on Their Maiden Diesel Engine
Work on the company’s very 1st diesel engine production facility in the country most recently began in the seaside city of Yantai located in Shandong Province, and as per the recent reports that new production unit is expected to be functional by the fall of coming financial year. The new production plant is more likely to develop high exactitude fuel injection diesel system constituents for heavy, light, and medium-duty common rail structures, finally making them for vehicles, sports utility vehicles (SUVs), light commercial cars, buses, trucks, and construction and agricultural equipment.
The present operation of Delphiin Suzhou of Jiangsu province is expected to provide power-train control modules. The General Manager of the Diesel Systems that comes under the firm’s Engine Systems Subdivision, John Fuerst, recently said that the company’s diesel system trading in the nation at present represents nearly five-percent of overall revenue of the firm’s international diesel business. He added that the organization expects that the new operation will enhance its Chinamarketplace’s contribution to 1-3rd by the fall of this decade.
Company Bets Big on Chinese Markets
The President of the Subdivision, Steven Kiefer told that even though the growth rates of the nation’s auto industry have decelerated slightly, Chinese automotive market was, and will remain to be one of the strongest marketplaces. Steven added that the company is having huge confidence in the Chinese market, which is extremely important for long-term success of the organization.
The year-on-year earnings of Delphi inChinaincreased from nearly twenty-one percent, which is clearly far greater than theChinaauto industry’s average growth of nearly 2.45-percent, lowest growth rate in almost thirteen years. Steven Kiefer also mentioned that the Chinese market has a great potential for growth when it comes to diesel powered vehicles, and the American company hopes to acquire twenty-percent of the total market share in this particular division in the coming days.
Top officials fromDelphiinformed that the first phase of the new manufacturing base will provide 2 vital Chinese consumers including the Shandong Huayuan Laidong Engine Corp Limited, Great Wall Motors Corporation Limited, and the well-known Yuchai Group. In the coming 3 to 5 years’ time, with the increasing consumer base, the company looks to almost double the capacity of the new production site.
Eanings Review: Rambus Inc. (NASDAQ:RMBS), Revlon Inc (NYSE:REV)
Revlon Inc(NYSE:REV) +2.5% after-hours after announcing that President and CEO Fabian Garcia is stepping down “to pursue other opportunities,” and Executive Vice Chair Paul Meister will oversee operations on an interim basis.
REV also says it expects Q4 revenues of $785M, below $801M from the year-earlier quarter but ahead of analyst consensus estimate of $743M, and a $60M-$80M net loss for the quarter due to a charge related to the recent tax law changes.
REV expects Q4 adjusted EBITDA of $110M-$115M vs. $115M analyst consensus.
CFO Chris Peterson also denies rumors that the company is considering a material asset transfer that would shield assets from lenders.
Rambus Inc.(NASDAQ:RMBS) shares are down 5.5% aftermarket following Q4 results that beat revenue estimates and met on EPS. In-line Q1 guidance (under ASC 605 accounting change) has revenue from $94M to $100M (consensus: $100.38M) and EPS from $0.17 to $0.23 (consensus: $0.18).
Revenue breakdown: Royalties, $77.9M (+10% Y/Y); Product, $8.5M (-27%); Contract and other revenue, $15.5M (+2%); Licensing billings, $76.6M (+18%).Key metrics: Non-GAAP operating margin, 31%; total operating expenses, $67.5M; cash and equivalents, $172.2M; cash flow from operations, $33.3M.
ADTRAN, Inc. (NASDAQ:ADTN) Hits New Lows After Issuing disappointing Earnings Forecast
ADTRAN, Inc.(NASDAQ:ADTN) slumped to a 52-week low after forecasting below consensus guidance for Q4, revising its revenue estimate downward to $125M from $155M-$165M earlier and seeing EPS of ~$0.01; analysts had expected EPS of ~$0.14 and revenue of $161.2M.
ADTN also projects Q1 to come in at roughly the same as Q4, misses analyst consensus of $167.5M.
CEO Tom Stanton says Q4 results have been hurt by a merger-related review, which ADTN expects to be completed in 60-90 days, and slowdown in the spending at a domestic Tier 1 customer.
MKM Partners analyst Michael Genovese believes the customer is CenturyLink (CTL -2%), which accounted for 24% of ADTN’s total sales in 2016.
The analyst thinks the weakness should prove temporary, adding that ADTN’s performance likely will accelerate into 2019 as the company stands to benefit from 5G spending; MKM trims its ADTN target price to $25 from $27 but keeps its Buy rating.
Big IPO Coming: Celator Pharmaceuticals Inc(NASDAQ:CPXX), Moleculin Biotech’s (MBRX)
Today at 10am Eastern, Moleculin Biotech ticker symbol MBRX will debut on the Nasdaq stock exchange and is being considered as one of the most highly anticipated IPO’s of 2016 by the street. The excitement and anticipation is arising from many experts saying that Moleculin Biotech’s (MBRX) drug annamycin is far superior to Celator Pharmaceuticals Inc(NASDAQ:CPXX) drug daunorubicin.
CPXX which has been bought out by Jazz Pharmaceuticals plc – Ordinary Shares(NASDAQ:JAZZ) for $1.5 Billion Dollars last week, share price ran from $1.6 to $31 in 2 months. Moleculin Biotech’s share structure is a 1.5m public float Priced at $6.