Crane???

[David Lee]

February 24, 2009

Crane Cams shuts down, workers laid off

By JIM WITTERS
Senior Business Writer

DAYTONA BEACH — Crane Cams, a 56-year-old auto parts manufacturer, closed its doors this week and laid off its employees, a worker said today.

The news took Volusia County’s top economic development officer by surprise. City, county and state officials were working with Crane Cams and officials from its New Jersey parent, Mikronite Technologies, to keep the company open and in the community.

“We were trying to help them through this transition,” said Rick Michael, Volusia County economic development director. “They were considering a transfer of ownership. We were not expecting any closure.”

An automated voice mail system at Crane’s plant on Fentress Boulevard announced at midday today the company was closed and suggested calling back during business hours, 8 a.m. to 5 p.m. A call to Mikronite’s New Jersey offices produced similar results. Six cars sat in the parking lot early this afternoon at the local plant, which employed 220 just three years ago.

Inside the lobby, a reception desk sat empty. A call from the lobby phone got an answer from Dennis Burgess, who declined to comment and said no one at the plant could provide information.

In the parking lot, 14-year employee Ronald Dorn was leaving the plant for what he believed was the last time

He said workers were told during the past week that layoffs were likely, but he didn’t expect the plant to close.

Mikronite received approval in 2006 to receive tax rebates from the state and the county amid discussion about moving its New Jersey operations here. But the company ended its contract with the state in 2008 due to nonperformance, Michael said.

“Crane has gone through a series of small layoffs recently,” he said.

Crane Cams and Crane Technologies Group were founded by Harvey J. Crane Jr. in 1953 as Crane Engineering Inc. in Hallandale. The company is well known in high-performance and racing circles for its line of camshafts and engine valve train components.

In 1979, Crane Cams became an employee-owned company. Some operations moved to Daytona Beach in 1981, with the remainder of the operation and employees relocating here in 1985.

Mikronite, an industrial technology firm, bought Crane in 2006.

In March 2007, Mikronite sold its property on Fentress to STAG Capital Partners of Boston, then signed a 10-year lease.

[Adger Smith]

I was told that there are some well know companies interested in Crane. One of my buddies at Comp said they had people there, but there were also Camels in the parking lot. What would a picture of Scooter on a camel be worth? :~) Wonder where Crane's bail out money is? I'm wondering how many times we are going to see this taking place in the near future?

[Michael Beard]

I've read that they were one of only two companies provided cores to the industry. With that and everything else they do, what exactly made the company unprofitable?

[tim worner]

I see NHRA has erased Crane from their contingency lists.

[Lynn A McCarty]

Originally Posted by Michael Beard

I've read that they were one of only two companies provided cores to the industry. With that and everything else they do, what exactly made the company unprofitable?

I have no idea of Crane's situation, however many times it goes like this. Way more companies go out of business because of cash flow, than profitability. With the current tightening of credit, banks are not allowing companies to "pass" on extra days of payment. In fact, they are asking many companies to improve the number of days out the invoices are. At the same time sales go slow so you have less money to work with. The bank calls up and says no more! So last years 40 days is asked to be 30 days, with less sales and maybe even less profitability.

My suppliers are giving me less days to pay invoices than they did last year, and they are blaming the banks. I had to make up the difference out of my pocket, actually out of Annette's spending money.

[Wade_Owens]

Guys, this is no where near the end. Mopar Perf is for sale (maybe bought by now) and Vic Edelbrock has to come up with 55 million to buy his own company back or it goes on the market. I'll never understand how a family owned company becomes an animal that eats its owner alive......Sad times......

Wade O

[BlueOval Ralph]

Edelbrock's deal is he took his company Public some years ago then bought it back. Does the banks want thier $$$ now???

Originally Posted by Wade_Owens

Guys, this is no where near the end. Mopar Perf is for sale (maybe bought by now) and Vic Edelbrock has to come up with 55 million to buy his own company back or it goes on the market. I'll never understand how a family owned company becomes an animal that eats its owner alive......Sad times......

Wade O

[Rick Carlson]

I believe Mikronite purchased Crane for the purpose of using the "Crane Cams" name to make their (Mikronite) entry into the performance market. Their plan obviously didn't work for anyone. With my "night" job of answering tech calls for a performance warehouse group, I have had the opportunity to speak to many Crane product users who are scrambling to find any Crane parts still left on warehouse shelves. There are a lot of quality specialty parts that only Crane manufactured....ie roller lifters for AMC products, roller lifters for TAD/TAFC Hemi's, various valve spring combos, and their old electronic ignition boxes...that now are not available. A few corporate entities are looking at purchasing the remains of the company and their products. Hopefully it will happen.

[Michael Beard]

Originally Posted by Lynn A McCarty

With the current tightening of credit, banks are not allowing companies to "pass" on extra days of payment. In fact, they are asking many companies to improve the number of days out the invoices are.

Brilliant. Now the bank won't get anything more out of Crane. If they don't lend, how do they make money?

The vast majority of my customers pay me either same day or within a matter of days, and I pay my suppliers either the same day or in a matter of days.

[Tim Kish]

Originally Posted by Michael Beard

Brilliant. Now the bank won't get anything more out of Crane. If they don't lend, how do they make money?

The vast majority of my customers pay me either same day or within a matter of days, and I pay my suppliers either the same day or in a matter of days.

Working at a Tier 1 automotive supplier I know that many of our customers go to great lengths to pay at the last possible day of their terms because the accounts have figured out how much money can be made each day they hold onto their money (assuming they even have it).