MOBIS was the winner of the Global Automotive Suppliers prize at the 2009 Global Automotive Shareholder Value Award in Detroit.
This award is presented by Automotive News and Price Waterhouse Coopers (PWC) at the beginning of every year, using such data on stock price fluctuations, dividends, buy-backs and new share issues for all the vehicle manufacturers, parts manufacturers and U.S. car retailers whose shares are traded around the world.
The award categories for a 1-year and 3-year performance period are each presented separately. MOBIS is the only company that recorded an amazing 63.5% cumulative return over a three-year period for its shares, while the average for global parts suppliers have stayed at a low figure of -17.4%.
In other words, if a person had bought $100 worth of MOBIS shares on the opening day of the stock market in 2007 and then sold those same shares on the last day of 2009, the effects of stock fluctuations, dividends, buy-backs and new share issues will leave the investor with $163.50 in total.
MOBIS explained that this is all thanks to the company’s shareholder-first management policies and continuous business rationalization. As part of its shareholder-first management scheme, dividends of over 20% relative to face value have been paid out since 2004, when the module production and servicing parts had become more stable. The company also has streamlined logistics and strong core parts manufacturing systems, rendering to a stable corporate structure. Its jump into the high-tech automotive business with parts for hybrid cars and electrical components has also been reflected in the positive value of shares.
“This is the first time a Korean parts company won the Global Automotive Shareholder Value Award”, said Director of MOBIS Finance Department Kim Hyun-soo, “reaching 63.5% in returns while global parts suppliers have negative values for that figure for the most part is very notable.”