The Urethane Blog
February 5, 2020
Casper Sleep Slashes IPO Price Range. Skepticism Over Money-Losing Start-Ups Continues.
Casper Sleep, the tech start-up known for selling mattresses on the internet, is lowering its aspirations for its initial public offering.
On Wednesday, the company said in a filing it is reducing the IPO’s per-share price range to $12 to $13 from its original range of $17 to $19. The new range values Casper at around $500 million, less than half its prior private market valuation of $1.1 billion.
The move reflects recent skepticism by public market investors over highly-touted, money-losing start-ups.
The company filed its initial public offering document in January with the Securities and Exchange Commission. Casper plans to list the company’s common stock on the New York Stock Exchange under the ticker “CSPR.” Casper revealed at the time that it has more than 1.4 million customers and sells to consumers in seven countries. It lost $92 million in 2018 and lost $73 million in 2017.
Barron’s has suggested Casper may face difficulties with its IPO because it shares many of the characteristics of the underperforming tech IPOs of 2019, including huge aspirations and large losses, with no profits in sight.
https://www.barrons.com/articles/tech-start-up-casper-sleep-slashes-ipo-price-range-51580917844?mod=bol-social-tw
February 5, 2020
Casper Sleep Slashes IPO Price Range. Skepticism Over Money-Losing Start-Ups Continues.
Casper Sleep, the tech start-up known for selling mattresses on the internet, is lowering its aspirations for its initial public offering.
On Wednesday, the company said in a filing it is reducing the IPO’s per-share price range to $12 to $13 from its original range of $17 to $19. The new range values Casper at around $500 million, less than half its prior private market valuation of $1.1 billion.
The move reflects recent skepticism by public market investors over highly-touted, money-losing start-ups.
The company filed its initial public offering document in January with the Securities and Exchange Commission. Casper plans to list the company’s common stock on the New York Stock Exchange under the ticker “CSPR.” Casper revealed at the time that it has more than 1.4 million customers and sells to consumers in seven countries. It lost $92 million in 2018 and lost $73 million in 2017.
Barron’s has suggested Casper may face difficulties with its IPO because it shares many of the characteristics of the underperforming tech IPOs of 2019, including huge aspirations and large losses, with no profits in sight.
https://www.barrons.com/articles/tech-start-up-casper-sleep-slashes-ipo-price-range-51580917844?mod=bol-social-tw
February 4, 2020
Tosoh Reports Its Consolidated Results for the First Nine Months of Fiscal 2020
Tokyo, Japan—Tosoh Corporation is pleased to announce its cumulative consolidated results for the first three quarters of its 2020 fiscal year, from April 1, 2019, to December 31, 2019.
The company’s consolidated net sales for the nine-month period under review were ¥591.8 billion (US$5.4 billion), down ¥54.0 billion, or 8.4%, from the same period of fiscal 2019. The drop in net sales was attributable to a decrease in sales prices caused by a decline in the price of naphtha and by worsening conditions in product markets overseas. And the decrease happened despite the Engineering Group’s steady progress on large-scale projects in the electronics industry.
Operating income likewise decreased, ¥13.9 billion, or 17.3%, to ¥65.8 billion (US$605.3 million), from the same period one year earlier. This decrease was due to the deteriorating trade conditions and a widening gap in inventory reevaluations caused by the lower sales prices. Ordinary income decreased, ¥13.1 billion, or 15.7%, compared with the same period in fiscal 2019, to ¥70.1 billion (US$644.8 million). Foreign exchange losses caused by the yen’s continued appreciation were among the main factors behind the drop in ordinary income. Profit attributable to owners of the parent company, in turn, fell ¥10.1 billion, or 18.0%, to ¥46.2 billion (US$425.0 million).
During the first nine months of Tosoh’s 2020 fiscal year, Japan’s employment and personal income numbers gradually improved. Ongoing trade friction between the US and China, heightened geopolitical risk in the Middle East, and other issues, however, are raising concern about worldwide economic stagnation, leaving the economic outlook uncertain.
Worsening trade conditions abroad similarly led to a decrease in the export prices of methylene diphenyl diisocyanate (MDI).
https://www.tosoh.com/news-press/news-releases/2020/tosoh-reports-its-consolidated-results-for-the-first-nine-months-of-fiscal-2020
February 4, 2020
Tosoh Reports Its Consolidated Results for the First Nine Months of Fiscal 2020
Tokyo, Japan—Tosoh Corporation is pleased to announce its cumulative consolidated results for the first three quarters of its 2020 fiscal year, from April 1, 2019, to December 31, 2019.
The company’s consolidated net sales for the nine-month period under review were ¥591.8 billion (US$5.4 billion), down ¥54.0 billion, or 8.4%, from the same period of fiscal 2019. The drop in net sales was attributable to a decrease in sales prices caused by a decline in the price of naphtha and by worsening conditions in product markets overseas. And the decrease happened despite the Engineering Group’s steady progress on large-scale projects in the electronics industry.
Operating income likewise decreased, ¥13.9 billion, or 17.3%, to ¥65.8 billion (US$605.3 million), from the same period one year earlier. This decrease was due to the deteriorating trade conditions and a widening gap in inventory reevaluations caused by the lower sales prices. Ordinary income decreased, ¥13.1 billion, or 15.7%, compared with the same period in fiscal 2019, to ¥70.1 billion (US$644.8 million). Foreign exchange losses caused by the yen’s continued appreciation were among the main factors behind the drop in ordinary income. Profit attributable to owners of the parent company, in turn, fell ¥10.1 billion, or 18.0%, to ¥46.2 billion (US$425.0 million).
During the first nine months of Tosoh’s 2020 fiscal year, Japan’s employment and personal income numbers gradually improved. Ongoing trade friction between the US and China, heightened geopolitical risk in the Middle East, and other issues, however, are raising concern about worldwide economic stagnation, leaving the economic outlook uncertain.
Worsening trade conditions abroad similarly led to a decrease in the export prices of methylene diphenyl diisocyanate (MDI).
https://www.tosoh.com/news-press/news-releases/2020/tosoh-reports-its-consolidated-results-for-the-first-nine-months-of-fiscal-2020
February 4, 2020
- Plymouth-based seating supplier sells its premium brand
- Recaro now owned by Raven Acquisition, a Detroit-based investment corporation
- Adient has struggled financially since it was spun off from Johnson Controls in 2016
Plymouth-based Adient sold its Recaro unit.
Recaro is now owned by Raven Acquisition LLC, a privately owned, Detroit-based investment corporation, Recaro said in a statement. Raven is led by a former Recaro executive and TCE Enterprises, a family investment firm with experience in the auto industry, the release said.
The transaction was effective Jan. 1. Terms were not disclosed in the press release issued by Recaro.
Shortly after the spinoff, Adient acquired Recaro, which produces premium and specialty vehicle seats for automakers and the aftermarket.
For its 2019 fiscal year, Adient reported a net loss of $491 million compared with a loss of $1.7 billion in 2018. Adient CEO Doug DelGrosso has been working to get the company on track and focus on its core business since taking the helm in October 2018, with the goal of bringing the supplier to breakeven this year.
In its quarterly earnings presentation on Friday, Adient confirmed it divested Recaro.
Adient said on Friday that its adjusted earnings before interest, taxes, depreciation and amortization for the quarter ending Dec. 31 improved to $297 million from $176 million in the year-ago period. Revenue was down 5 percent to $3.9 billion. Its net loss widened to $167 million from $17 million, impacted by one-time, noncash charges.
Recaro said the new corporate structure will help it concentrate on its main business of “performance seats, ergonomic seats, and special applications – with shorter and faster decision-making processes allowing greater flexibility to better meet the requirements of the market.”
Working capital and long-term financing are being provided to Recaro by Arctaris, a Boston-based investment firm, the release said.
Adient did not immediately respond to a request for comment.
https://www.crainsdetroit.com/automotive/adient-sells-premium-seating-unit-recaro
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