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Autel Releases 2023 ADAS Calibration Coverage
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By Counterman
Schaeffler earlier this month published its 2023 Sustainability Report, highlighting the progress along its “three ESG dimensions.”
“Sustainability is an integral part of our corporate strategy,” Schaeffler CEO Klaus Rosenfeld said. “Schaeffler has always been known for its innovative strength and technological expertise – building on this, we want to bridge the gap between sustainability and cost efficiency. We have set ourselves ambitious targets. Despite all the progress we have made in recent years, we are aware that we still have a fair way to go.”
The
link hidden, please login to viewincludes the definition of 10 actionable areas for the implementation of Schaeffler’s sustainability strategy, which are assigned to the three areas of environment, social and governance (ESG). “Sustainability & Engagement” is a subprogram of “Roadmap 2025,” Schaeffler’s overarching business strategy. The program was updated in 2023 with its Climate Action Plan, which was devised in 2022 and details specific measures for reducing CO2e emissions.
Schaeffler is currently focusing on seven key ESG goals in the implementation of the sustainability strategy, including climate neutrality, efficient use of resources, environmental protection and occupational health and safety.
For example, Schaeffler said it aims to achieve climate neutrality across production and its supply chain by 2030 and 2040, respectively.
The company said it instituted measures in 2023 that will lead to an annual reduction in freshwater consumption of 150,000 cubic meters.
The Schaeffler Group reduced its freshwater consumption by around 9% in the reporting year, with 27 water-saving measures implemented and verified externally in 2023, according to the company. The measures are expected to account for a minimum annual savings of 265,000 cubic meters from 2024.
Among other highlights, the global nonprofit environmental organization CDP awarded Schaeffler an “A” score in the climate-change category for 2023 by for corporate transparency and performance, and an “A-“ in the water category.
In the EcoVadis sustainability rating, Schaeffler improved its score to achieve a total of 79 out of 100 points, earning itself Platinum status again and a repeat ranking in the top 1% in its peer group in 2023.
Focus on Decarbonization
Decarbonization is a key focus area for Schaeffler. Sustainable supply chains (Scope 3 upstream) and the purchase of low-emission materials and services are a few of the strategies Schaeffler is employing in this area.
“Through close and trusting partnerships with our suppliers, we have already achieved initial successes and set the right course,” said Andreas Schick, chief operating officer at Schaeffler. “Transparency and dialog with our suppliers are now crucial to mastering the challenges ahead of us together and achieving our goal of a climate-neutral supply chain in 2040.”
At Schaeffler, the decarbonization of production (Scope 1 and 2) is largely based on the use of renewable energies, increasing energy efficiency and retrofitting plants to use renewable energies. For this reason, the internal generation of renewable energies is being developed at sites across the Schaeffler Group as an extension to the existing energy-efficiency program.
Since 2023, Schaeffler says 100% of the electricity purchased at almost every plant in Europe, Greater China and the Americas has come from renewable sources, with the plants in the Asia/Pacific region set to follow suit in 2024.
The Schaeffler Group has seen a reduction in production-related greenhouse gases of around 24% compared with the previous year, resulting in a decrease from 493,000 tons CO2e tons 375,000 tons CO2e, according to the company.
“Sustainability and innovative strength are firmly rooted in the Schaeffler Group’s DNA,” said Uwe Wagner, chief technology officer at Schaeffler. “This is the only way for us to overcome the challenges of tomorrow and pave the way to a sustainable and eco-friendly future.”
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By Advance Auto Parts
Advance Auto Parts Reports Fourth Quarter and Full Year 2023 Results
02/28/2024 RALEIGH, N.C.--(BUSINESS WIRE)-- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America, that serves both professional installer and do-it-yourself customers, announced its financial results for the fourth quarter and full year ended December 30, 2023.
“As we closed out 2023, we continued to act with a sense of urgency to stabilize the business and position the company to return to profitable growth,” said Shane O'Kelly, president and chief executive officer. “Our full year results are well below our expectations, and we are focused on instilling greater discipline and accountability both in the fundamental business and in how the organization executes across the board. In addition to the operational improvements we are implementing, we are strengthening internal controls and enhancing the quality of our accounting information to help better inform how we drive the business forward.
“We continue to advance our ongoing operational and strategic review of the business, including the separate sales processes for Worldpac and our Canadian business. We have streamlined and reorganized the company’s leadership structure and have made several important new hires, including the appointments of Ryan Grimsland as Chief Financial Officer and Elizabeth Dreyer as Chief Accounting Officer. Building on the $150 million in annualized SG&A reductions our team executed in the fourth quarter, we recently launched an initiative to eliminate costs related to our indirect spend by an additional $50 million on an annualized basis. We are also moving forward with the consolidation of our supply chain to a single, unified network to create efficiencies and better serve customers. Looking ahead, we are committed to driving enhanced value for shareholders by executing on the fundamentals of our business – focusing on the customer, investing in our frontline and strengthening our competitive position.”
Fourth Quarter and Full Year 2023 Results (1)
Fourth quarter 2023 Net sales totaled $2.5 billion, a 0.4% decrease compared with the prior year. Comparable store sales for the fourth quarter 2023 decreased 1.4%. For full year 2023, Net sales of $11.3 billion increased 1.2% from 2022. Comparable store sales for the full year decreased 0.3%.
The company's Gross profit decreased 11.9% from the fourth quarter of the prior year to $950.8 million or 38.6% of Net sales compared with 43.6% in the prior year quarter. This result reflects both business performance and atypical drivers, primarily attributable to a change in inventory related items and elevated supply chain costs. The company's full year Gross profit was $4.5 billion, or 40.1% of Net sales, representing a 414 basis points decrease from the prior year primarily driven by inventory related items and costs not fully covered by pricing actions.
The company's SG&A was $999.4 million in the fourth quarter, or 40.6% of Net sales compared with 38.8% for the prior year quarter. This was primarily driven by a year over year increase in occupancy costs and store labor. The company's full year SG&A was $4.4 billion, or 39.1% of Net sales compared with 38.2% in the prior year.
The company's fourth quarter Operating loss was $48.6 million, or (2.0)% of Net sales compared with the fourth quarter of the prior year Operating income of $119.3 million or 4.8% of Net sales. The company's full year Operating income was $114.4 million, or 1.0% of Net sales, compared with $670.3 million, or 6.0% of Net sales, in the prior year.
The company's effective tax rate in the fourth quarter of 2023 was 42.3%. The company's Diluted loss per share was $0.59 compared with Diluted earnings per share of $1.39 in the fourth quarter of the prior year. The company's effective tax rate for full year 2023 was 6.6%. The company's 2023 Diluted earnings per share was $0.50 compared with $7.65 in the prior year.
Net cash provided by operating activities was $0.3 billion for the full year 2023 versus $0.7 billion for the prior year. The decrease was primarily driven by lower Net income and working capital. Free cash flow for the full year 2023 was $43.7 million, compared with $312.5 million for the prior year.
During management’s review, the company identified issues with certain previously reported financials. All comparisons are based on the corrected historical results as depicted in the financial tables herein, which include the correction of non-material errors in previously reported results.
The company filed a Form 12b-25 with the Securities and Exchange Commission and disclosed that it expects to file its Form 10-K prior to the expiration of the extension period.
(1) All comparisons are based on the same time period in the prior year. Comparable store sales include locations open for 13 complete accounting periods and excludes sales to independently owned Carquest locations.
Capital Allocation
On February 13, 2024, the company declared a regular cash dividend of $0.25 per share to be paid on April 26, 2024 to all common stockholders of record as of April 12, 2024.
Subsequent Events
On February 26, 2024, the company entered into an amendment to its revolving credit facility to enable certain addbacks to financial covenants for specific write-downs of inventory and vendor receivables. As of December 30, 2023, considering the amendment, the company was in compliance with the credit facility’s financial covenants.
Full Year 2024 Guidance (1)
"In 2024, we are refining our operational improvement plans and building on the decisive actions we have taken to turn around the company’s performance. We are committed to improving overall productivity and taking a disciplined approach to reducing expenses, which will support our focus on investing in our team members. Our 2024 full year guidance is reflective of the steps we must take to reset the business and solidify our foundation for the long term," said Ryan Grimsland, executive vice president and chief financial officer.
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By Counterman
Genuine Parts Co. (GPC) reported full-year 2023 sales of $23.1 billion, a 4.5% year-over-year increase.
Net income was $1.3 billion, or $9.33 per diluted share, an increase of 12.3%.
Full-year net sales in the Automotive Parts Group, which includes NAPA Auto Parts, were $14.25 billion, up from $13.67 billion in 2022.
Fourth-quarter automotive sales were up nearly 1% to $3.5 billion.
While GPC’s international automotive businesses posted positive sales growth in local currency, the U.S. automotive segment saw a dip in sales, GPC President and COO Will Stengel noted during the company’s Feb. 15 conference call.
“In North America, while results fell short of our expectations, we remain focused on our strategic initiatives and continue to make solid progress,” GPC Chairman and CEO Paul Donahue said during the call. “We’ve undertaken a comprehensive review of the NAPA business to identify key issues, and we have taken action to improve the performance at NAPA. We are confident we are focused on the right initiatives to positively impact our performance in the quarters ahead.”
Coinciding with the release of its full-year and fourth-quarter 2023 financial results, GPC said the company is launching a global restructuring “to better align the company’s assets and further improve the efficiency of the business.”
The restructuring includes a voluntary retirement offer in the United States, along with “a rationalization and optimization of certain distribution centers, stores and other facilities,” according to the company.
Through the restructuring, GPC said it expects to realize approximately $20 million to $40 million of savings in 2024, and approximately $45 million to $90 million on an annualized basis. The company also expects to incur costs of approximately $100 million to $200 million related to the restructuring efforts in 2024 and will report the restructuring costs as a non-recurring expense.
“The primary objective of the global program is to continue to simplify and streamline our operations consistent with our overall business strategy,” Stengel explained during the conference call. “When we simplify, we increase the speed of local service, deliver operational productivity, improve the efficiency of our teams and reduce our overall cost to serve.”
Stengel noted that the restructuring initiative “is a similar playbook to our previous GPC program implemented in fall 2019 that delivered positive results.”
“Aspects of the restructuring are already in flight, and some will take place in the months ahead,” Stengel added.
Focus on NAPA
Stengel talked at length about efforts to revitalize GPC’s NAPA Auto Parts business.
GPC has identified three areas of improvement for NAPA: improving fill rates in key product categories, “operational rigor in our stores” and capitalizing on commercial growth opportunities, Stengel explained.
Adjustments to “certain key suppliers to improve fill rates” boosted fourth-quarter “category trends,” Stengel said, adding that “we’re encouraged by the positive momentum.”
“Second, our in-store service levels measured by on-time delivery to customers have significantly improved as a result of increased focused on last-mile operating disciplines,” Stengel said.
Stengel noted that efforts to improve commercial sales growth are “ongoing.” GPC recently appointed Tom Skov to the newly created role of executive vice president, sales & store operations, North America.
“He’s an automotive-parts expert and has a deep understanding of our customers field sales and store operations,” Stengel asserted. “We’re excited for the strong leadership Tom will bring to our sales and store operations field teams.”
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