SACRAMENTO, Calif. (Jan. 31)—GenCorp Inc.'s automotive components unit GDX Automotive posted operating profits of $38 million for 2002, compared with an operating loss of $4 million the previous year. Sales of $806 million essentially were unchanged from 2001, the company reported. The turnaround at GDX Automotive reflected lower labor and manufacturing costs under a restructuring program initiated in 2001. The unit also benefited from the full-year consolidation of Draftex and better asset management, GenCorp said. The positive factors offset a pricing concession of $21 million to GDX Automotive's major customers and a $6 million dip in income from employee retirement benefit plans, the company added. GDX's fourth-quarter sales grew 3.3 percent to $217 million, with operating profits of $13 million vs. a loss of $3 million a year earlier. GDX Automotive said it expects operating profit margins of between 5.5 and 7 percent in 2003—up form 4.7 percent in 2002—on the back of production efficiencies from further consolidation and integration moves.
GDX Automotive posts $38 million operating profit
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