LOCAL BUSINESS
Drilling in Ashtabula
A Texas-based energy company has received the first Utica shale permit for Ohio’s Ashtabula County.
Beusa Energy LLC got a permit from the Ohio Department of Natural Resources to drill in Wayne Township. Drilling is underway south of Ashtabula in Trumbull County.
That permit is among 18 new permits approved by Ohio. Eight new permits are in Carroll County, one is in Columbiana County, one is in Guernsey County, four are in Harrison County, two are in Jefferson County and one is in Trumbull County.
As of June 8, Ohio has 711 active Utica shale permits, of which 355 wells have been drilled.
A total of 102 wells are in production. A total of 29 rigs are working in Ohio, the state reports.
Myers sets joint venture
Akron-based Myers Industry subsidiary Myers Tire Supply International Inc. is in a new joint-venture to sell to the growing Indian automotive aftermarket.
Myers Tire Supply is teaming with India-based TVS Automobile Solutions Ltd. in a new company called Myers Tyre Supply India Limited Inc. The company will distribute tools, supplies, and equipment. Financial terms were not disclosed.
Myers has a long-term relationship with TVS, said John Orr, president and chief executive officer of Myers Industries.
“Our small investment in this joint venture aligns with the geographic expansion strategy for our Distribution Segment,” Orr said. “The global presence of Myers Tire Supply ... complements TVS’ strength in equipment sales to automobile dealers in India.”
Myers Tire Supply International, Inc., is a global distributor of tools, equipment and supplies to tire, wheel and undercar service professionals.
TVS Automobile Solutions Ltd. (TASL), a subsidiary of TV Sundram Iyengar & Sons Ltd., has been in the automotive business for more than 100 years.
ECONOMY
CEOs show optimism
Chief executive officers in the U.S. project a pickup in sales and hiring in the next six months as the economy improves, a survey showed. The Business Roundtable’s economic outlook index rose to a one-year high of 84.3 in the second quarter from 81 in the previous three months, the Washington-based trade group reported. Readings greater than 50 are consistent with economic expansion. The newest measure is above the long-term average of 79.3.
Target hikes dividend
Target Corp. is increasing its quarterly dividend by 19.4 percent. The Minneapolis-based retailer with Northeast Ohio operations declared a quarterly dividend of 43 cents per share, up from 36 cents. The dividend is payable Sept. 10 to shareholders of record as of Aug. 21.
AUTO INDUSTRY
Prius sales on target
Toyota said it will meet the sales goal for its Prius model in the U.S. after saying in April that the world’s biggest carmaker may adjust the target as declining gas prices sap demand.
“We’re on target for sales of 250,000 units of the Prius family,” said Jim Lentz, Toyota’s North American chief executive officer.
Toyota’s U.S. deliveries have missed analyst estimates for four straight months and its sales gain in the five months ended May trailed behind industrywide growth amid demand for pickup trucks.
GM details cost cuts
General Motors’ product development chief says the company is making progress on cutting costs to improve profit margins. Senior Vice President Mary Barra told a group of financial analysts that GM is saving money by using the same parts on many vehicles. It also has moved parts suppliers closer to factories to cut shipping costs, and it’s building more models on the same underpinnings.
GM’s pretax profit margin in North America— the amount of each dollar in revenue it actually keeps — was 6.2 percent in the first quarter. But crosstown rival Ford’s margin was 11 percent for the same period.
GM used to have 11 different air bag systems to protect drivers’ knees. But it’s moving to a single design that should cut costs 21 percent by 2017, Barra said.
As an example of manufacturing cost cuts, Barra said GM parts suppliers had been shipping Chevrolet Malibu interior trim pieces more than 700 miles to GM’s main assembly plant for the car in Kansas City, Kansas. For the new generation Malibu, which came out last year, the company worked with three suppliers to move their operations close to the plant. As a result, Barra says GM will save $31 per car, or $66 million over the life of the new Malibu.
Compiled from staff and wire reports