MWW Automotive Group Projected To Reduce The Company's Annual Expenses By Approximately $1.2 Million
HOWELL, Mich., March 22 /PRNewswire-FirstCall/ -- MWW Automotive Group (OTC Bulletin Board: MWWC) announced today a series of proactive measures being taken to enhance the Company's position in the challenging operating environment. The cost reduction actions, which are projected to save the Company approximately $1.2 million annually, include structural changes to drastically reduce overhead expenses, the sale of the Group's real estate with options to lease back the property, and the decision to cease operations of its Modelworxx design and assembly facilities in Germany. Implementation of the cost-saving measures will be completed by the end of the second quarter, and are in addition to expense reduction actions the company took in the fourth quarter of 2009.
The Company has recently announced it generated $1,508,276 in revenues for its fiscal first quarter ending December 31, 2009, which is an increase of $112,116 as compared to the same quarter in 2008. The Company also increased its Gross Profit for the fiscal first quarter ending December 31, 2009 by 12.6% versus the same period in 2008.The increase in revenues is due to the progress MWW Automotive Group is making on expanding into new geographical and vertical markets and the signing of new customers. The Company has commenced with new production for automakers such as Hyundai, Nissan, and Ford (NYSE: F).
"These actions are designed to ensure we continue to improve our financial foundation," stated James Davis, CFO of MWW Automotive Group. "We are taking additonal and prudent steps to control expense, secure additional new projects and accelerate our return to profitability."
About MWW Automotive GroupWith its headquarter and design and assembly facilities in Howell, Michigan and Class A painting facilities in Baroda, Michigan (Colortek, Inc.) the MWW Automotive Group delivers its accessory products, design services and Class A painting services directly to select global automobile manufacturers' vehicle processing centers, distribution centers and/or assembly lines in the United States, Canada and Europe. The customers' technical teams install the MWW products in a variety of vehicle types and deliver the accessorized automobiles into the dealer channels in their respective countries. Noted for its adherence to the highest quality requirements, MWW provides substantial added value to the sale of vehicles for leading international automobile manufacturers such as Toyota, Hyundai, Kia Motors, GM and Ford in the US and Europe. For more information please visit www.mwwautomotive.com Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. SOURCE MWW Automotive Group
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