AmeriChip International Inc. Prepares for Production 12/15/2005 11:42:19 AM
PLYMOUTH, MI, Dec 15, 2005 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (ACHI) announced that the Company has placed an order for a Mazak 350M machining center in preparation for conducting limited production runs. This equipment will assist the Company in the final verification process of a customer's part and serve as interim manufacturing equipment to handle limited production runs until such time as a full complement of production equipment is on the floor at KSI Machine. Further, by expanding our test facility with the addition of this equipment, we will be able to conduct comparative production studies that will illustrate the value and cost savings of our Laser Assisted Chip Control technology (LACC) to a customer with respect to a specific part.
The Company has completed preparation of its facility to accept orders for production runs in the first quarter of 2006 as a result of successful trials on specified automobile parts. The Company has been informed that substantial orders are in process. During the initial machining process conducted for both OEM's and Tier One suppliers, AmeriChip proved that it successfully and unequivocally machines steel parts using a "dry" process which substantially reduces the cost of machining automobile parts. The Company's patented LACC technology enables automakers and their suppliers to dry machine parts totally eliminating the need for expensive and problematic coolant on specific parts where it is proven that dry machining can be used. The industry refers to this technology as Green Machining as it is both environmentally friendly within and without the workplace.
"Over the past 21/2 years," stated Marc Walther, President, "our Company has strived to achieve recognition of our technology and its acceptance within the automotive industry. We will see revenue generation in the first quarter of 2006 based on the significant progress we have made in the last three months with both OEM's and major Tier One suppliers."
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc. holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
AmeriChip International Inc. Appoints Chief Financial Officer 1/11/2006 7:09:52 AM
PLYMOUTH, MI, Jan 11, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (ACHI) announced that the Company has appointed Thomas P Schwanitz, CPA, to the position of Chief Financial Officer effective immediately. In addition, Mr. Schwanitz will be joining the Board of Advisors. The appointment of Mr. Schwanitz is commensurate with the Company's action plan for the 2006 fiscal year during which the Company will generate revenues and become profitable. This proactive appointment affords Mr. Walther, President and CEO, more time to concentrate on solidifying pending orders and finalizing the acquisition of KSI Machine & Engineering. Mr. Walther stated, "Tom will be an integral part of our developing into a major company that has a technology sought after by a number of different industries. I firmly believe he will be a valuable member of the AmeriChip team and we welcome him."
In addition, the Company is responding to its Tier One and OEM customers that require it to implement both financial and quality control standards in preparation for receiving orders. Mr. Schwanitz will assist Mr. Walther with the transition from a "going concern" to a revenue-producing technology company. Mr. Schwanitz will also be spearheading the implementation of our new Microsoft Great Plains software program which will help ensure that the Company will be in compliance with Sarbanes-Oxley standards for public companies. "Having watched AmeriChip develop from a time when their technology was a proven but unrecognized part of the machining world, to a point in time when AmeriChip has taken an impressive lead in redefining machining as we know it, I am proud and honored to join the Company at this most auspicious time in their growth," stated Thomas Schwanitz.
Mr. Schwanitz is Managing Partner of Schwanitz, Hayden & Associates, P.L.C. of Detroit, Michigan, and has a Bachelor of Science - Accounting from Northern Michigan University. His professional affiliations include member of American Institute of Certified Public Accountants, Michigan Association of Certified Public Accountants, Consultant to the Association of Macomb County Life Underwriters and Financial & Estate Planning Councils of Detroit and Macomb County. Mr. Schwanitz is also a member of the Board of Directors for and is the Treasurer of the Mount Clemens General Hospital and on the Board of Trustees for Baker College, Mount Clemens.
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc. holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost-saving services and products that all cost-conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com, or R. Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
For more information, visit our website at http://www.americhiplacc.com R. Windsor 905-898-2646 e-mail r.windsor@americhiplacc.com
PLYMOUTH, MI, Feb 08, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) provided an update on operations since its fiscal year end of November 30, 2005.
The Company hired a lab application specialist, Joseph Curtis to assist with the increase requests for quotations from Tier One and OEM customers. Mr. Curtis' primary responsibility will be working with the application of the LACC process.
The Company has purchased simulation software that illustrates to customers a virtual reality CADCAM video of their parts being processed. The use of this software augments the implementation process.
At the request of its target customers, the Company has implemented a quality control system aimed to evolve from ISO9002, currently in place at KSI, to TS specifications, which will become the benchmark standard in the machining industry for quality control.
"Based on the number of quotations we have submitted to Tier One and OEM customers, we have over the past six months," stated Marc Walther, President of AmeriChip, "endeavored to ensure that the Company will be in position to respond to orders from our customers and to process them under industry mandated standards."
AmeriChip has implemented presentation software enabling the Company to make presentations via the internet to its potential customers globally.
AmeriChip is working with the Michigan Economic Development Group that is assisting the Company in finding and training employees and as well as locating manufacturing facilities available for lease that are strategically located to its potential customers existing operations.
AmeriChip Tool and Abrasives, a wholly owned subsidiary of the Company has hired Kevin Ziolkowski, a cutting tool engineer with a view to increasing sales and market penetration. Mr. Ziolkowski brings to the Company over 20 years of experience in the cutting tool industry. Sales volume year to date has increased by 30%.
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a patented technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
ACHI -- AmeriChip Analyst Research Report Includes Video and WorldTalkRadio CEO Interview
LOS ANGELES, Feb 24, 2006 (PRIMEZONE via COMTEX) -- AmeriChip (OTCBB: ACHI) research report with video and WorldTalkRadio CEO interview is available from IPOdesktop.com and WorldTalkRadio, the Internet's leading talk station.
Interview guest: Marc Walther CEO HIGHLIGHTS -- A break-through patented technology known as Laser Assisted Chip Control (LACC) -- Targets the robotic machining and manufacturing process, worldwide REPORT LINKS IPOdesktop research report with video and WorldTalkRadio interview http://www.gaskinsco.com/linkto-achi.shtml (click) CEO interview at WorldTalkRadio with IPOdesktop research report http://www.worldtalkradio.com/archive.asp?aid=6237 (click)
IPOdesktop.com, the leading provider of independent IPO research for professional money managers and individual investors, also produces the IPO Hardball radio program.
In the 'Analysts Corner' at IPOdesktop.com, research reports are available for both recent IPOs and emerging companies.
IPOdesktop editors are quoted by The Wall Street Journal, Dow Jones Newswires, MarketWatch, Reuters, USATODAY, and others. IPOdesktop editors also co-host financial programs at World Talk Radio, the largest Internet's Talk station.
AmeriChip International Inc. Secures License for Patented Metal Polishing Technology
PLYMOUTH, MI, Feb 27, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) announced that it has entered into a licensing agreement with its President and Chief Executive Officer, Marc Walther for the use of his patented metal polishing technology. The Company believes that this patent will significantly increase the sales potential of the Company by expanding its product line and revenue producing ability.
The license agreement allows for the Company (www.americhiplacc.com) to have exclusive use of the patented technology except for prior arrangements by Mr. Walther with both Ford, Visteon, and Ford Global Technologies. Ford will continue to maintain its irrevocable license for the technology for use by Ford http://www.ford.com, Visteon http://www.visteon.com, and Ford Global Technologies This process augments the existing Laser Assisted Chip Control technology platform from which the Company currently operates offering a broader scope of products to its customers thereby increasing its revenue potential.
This patent is a "process" patent that uses a combination of high speed machining and abrasive nylon brushes that reduce labor and capital required to manufacture dies and molds. This process patent allows for a method to automatically finish free-form contoured metal or hard die surfaces. As a result, the cost to machine and polish a mold or die can be reduced by 50%. To learn more about this process please visit: http://www.worldtalkradio.com/archive.asp?aid=6254
Mr. Walther will receive a royalty on any revenues generated by the Company and its subsidiaries through licensing opportunities and implementation of the process inter-company.
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a patented technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
AmeriChip International Inc. Clarifies Metal Polishing Patent
PLYMOUTH, MI, Feb 28, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) has been asked by its shareholders to clarify the release of February 27, 2006 concerning its new patented metal polishing technology.
Mr. Marc Walther, President and Chief Executive Officer, purchased 100% of the patents rights from The Ford Motor Company in February 2006. This technology was developed by Mr. Walther in concert with The Ford Motor Company in 2001. Mr. Walther agreed to assign this patent to The Ford Motor Company at that time. The requisite papers have been filed with the US Patent office to reflect that The Ford Motor Company is now a licensee and that Mr. Walther is the patent owner with AmeriChip now being the only, sole and exclusive licensor.
Mr. Walther has assigned 100% of the rights to the Company in return for a 10% royalty on all revenues generated by the Company and its subsidiaries through the implementation of this technology. Mr. Walther will not receive any stock for this transaction.
AmeriChip International (www.americhiplacc.com) will be investing time and money with its supplier alliances to enhance the existing patent and to implement the technology to generate revenues for the Company. As part of the purchase agreement with The Ford Motor Company, Ford required that it maintain an irrevocable license agreement for the technology for itself, Visteon and Ford Global Technologies. AmeriChip will permit Ford (www.ford.com) and its affiliates to use the enhanced technology.
For more information please visit http://www.worldtalkradio.com/archive.asp?aid=6254 Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a patented technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
Contact R. Windsor 905-898-2646 e-mail to r.windsor@americhiplacc.com SOURCE: AmeriChip International Inc. CONTACT: mailto:r.windsor@americhiplacc.com
Richard H. Rossmann Appointed President of AmeriChip Automotive Inc.
PLYMOUTH, MI -- (MARKET WIRE) -- 04/18/06 -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) is pleased to announce that Richard H. Rossmann has accepted a position on its Board of Directors effective immediately and has been appointed President and CEO of AmeriChip Automotive Inc. ("AAI"), a wholly owned subsidiary of AmeriChip International Inc. (www.americhiplacc.com ).
Mr. Rossmann has also assumed the responsibility of Executive Director of Manufacturing of AmeriChip International Inc. Mr. Rossmann's main focus will be new business development and manufacturing implementation using his extensive contacts throughout the automotive industry, worldwide.
Mr. Rossmann was part of the executive team that rebuilt Chrysler's ailing manufacturing structure in the early 1980s. In the 1990s, Richard Rossmann was hand picked by Richard E. Dauch, Co-Founder, Chairman and Chief Executive Officer of American Axle & Manufacturing to lead the manufacturing revitalization as Vice President of Manufacturing for the multi-billion dollar former General Motors driveline division.
Mr. Rossmann attended Penn State's MBA School of International Business. Mr. Rossmann has spent over 30 years designing and building world-class manufacturing operations in six countries on four continents for such companies as Chrysler and American Axle. For the last decade, Mr. Rossmann has owned Symtec, Inc., a manufacturing systems technology company providing consulting expertise for major manufacturing, acquisition and joint venture projects for Fortune 100 companies.
Mr. Rossmann currently is an owner/operator of precision machining manufacturing companies in Michigan and Indiana.
Mr. Rossmann, on accepting the position, stated: "My belief is that AmeriChip's LACC technology will revolutionize the machining of automotive parts and has the real potential to revitalize the industry. I am proud to be a part of this effort."
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a patented technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R. Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
For more information: http://www.americhiplacc.com or contact: R. Windsor 905-898-2646 r.windsor@americhiplacc.com.
AmeriChip International Inc. Establishes Quality Control System
PLYMOUTH, MI, Apr 20, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) announced it has established an ISO9001:2000/TS16949 Quality Control System, as mandated by the industry for demonstrating a process that operates with controls and procedures commensurate with Quality and repeatability in manufacturing.
The implementation of this system affords the Company (www.americhiplacc.com) an opportunity to introduce its patented processes, to all metal finishing industries in the United States and worldwide with customer confidence that AmeriChip International Inc. operates and adheres to Quality from top management to the shop floor.
The Company has developed and is introducing its Quality Systems Management Program (QSMP), including a Quality Manual with accompanying procedures into its current business programs and will utilize this documentation on upcoming programs as they are acquired. Final certification, will be provided by a registrar following industry standard certification processes.
The Company has set the last quarter of 2006 to be certified to the ISO9001:2000/TS16949 Quality Standard. During this certification process, the Company will operate within its established business model, running trials, small production runs and full volume production.
"This Quality System requires AmeriChip to analyze procedures, failure modes and perform corrective action audits on a regular basis. It makes us a stronger, more competitive company and allows us to secure business with many customers requiring this Quality System," said Richard Rossmann, President of AmeriChip Automotive Inc.
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a patented technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
AmeriChip International Inc. Receives Official Supplier Status With General Motors Global Purchasing
PLYMOUTH, MI, Apr 25, 2006 (MARKET WIRE via COMTEX) -- Mr. Richard Rossmann, President of AmeriChip Automotive Inc., a wholly owned subsidiary of AmeriChip International Inc. (OTC BB: ACHI), is pleased to announce that AmeriChip has received supplier status with General Motors Global Purchasing.
As an official supplier to GM, the Company profile has been entered into the GM Global Purchasing system that clears the way for formal contracts and proposals. The Company is now in a position to develop long term supply contracts and production strategies as a Tier One supplier for outsourced products on a global basis.
Mr. Rossmann stated, "The assignment of this vendor number indicates that GM recognizes AmeriChip as a qualified supplier providing major cost reductions in the machining of automotive parts. By providing these cost reductions, I believe that we will play a major role in bringing production back to America that has been finding its way to offshore suppliers."
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost saving services and products that all cost conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
For more information, visit: http://www.americhiplacc.com or contact: R. Windsor 905-898-2646 r.windsor@americhiplacc.com SOURCE: AmeriChip International Inc. CONTACT: http://www.americhiplacc.com mailto:r.windsor@americhiplacc.com
AmeriChip International Inc. Takes Delivery of Turning Center
PLYMOUTH, MI, Apr 27, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) announced that the Company has authorized delivery of a Doosan 670LM turning center at the KSI location in Clinton Township, MI. The turning center will enable the Company to significantly reduce the time required for the trial to purchase order process and will allow for the onsite demonstration of superior production capabilities.
"Prior to the delivery of the turning center, the Company would apply the LACC process at our AmeriChip laser facility and return the parts to be run on customers' machines when time was made available to them," said Ed Rutkowski, of AmeriChip International. We are now in a position to control and reduce our time lines on trials as well as having the capability to do limited production runs. Time has already been allocated on the turning center for limited production runs commencing in May 2006 which will result in long-term production runs for our existing pilot programs. This center is the first of several which are being ordered to facilitate future requirements to expedite production runs.
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost-saving services and products that all cost-conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com.
AmeriChip International Inc. Releases Its New Laser Head for Delivery
PLYMOUTH, MI, May 02, 2006 (MARKET WIRE via COMTEX) -- The Board of Directors of AmeriChip International Inc. (OTC BB: ACHI) announced that the Company has released for delivery one of three custom laser heads which have been built to the Company's specifications for continuous improvement and development of its applications.
"Specifically, the new laser heads allow for a broader scope of applications, providing the Company with the means to advance our Research and Development of the LACC systems for future applications. The new laser heads enable our R & D Department to accelerate the advanced development and testing of laser cutting heads which will be used to benchmark breakthrough technology in the laser head cutting industry, worldwide. I am proud to have been instrumental in this advancement on behalf of AmeriChip," said Ed Rutkowski, the inventor of the LACC (Laser Assisted Chip Control) process.
Over the past three years, Mr. Rutkowski has developed the criteria creating these new laser heads which will be used in a variety of ways on working models to support new product development. With the addition of the new laser head to its lab, the Company has significantly enhanced its ability to provide guaranteed repeatability on production runs, further augmenting its existing quality control systems.
Headquartered in Plymouth, MI, U.S.A., AmeriChip International Inc., a technology company, holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts, providing much more competitive pricing and more aggressive sales approaches within the industry.
The innovative AmeriChip business model, enhanced by its AmeriChip Tool and Abrasives subsidiary, is designed to establish an extensive resource for cost-saving services and products that all cost-conscious industrial steel and aluminum machining companies require. AmeriChip is committed to keeping jobs in America for Americans.
For more information, visit our website at http://www.americhiplacc.com or, contact R Windsor at 905-898-2646 or, send an e-mail to r.windsor@americhiplacc.com. R. Windsor 905-898-2646 r.windsor@americhiplacc.com http://www.americhiplacc.com SOURCE: AmeriChip International Inc. CONTACT: mailto:r.windsor@americhiplacc.com http://www.americhiplacc.com
MarkelFarkel, Thanks for all the great postings, but I did send you an PM already a few times about the way you post, and I think you never read it, lol
In the future , would you please post the Headline and then the LINK to the Article only ??
It would safe lots of Space , and says the same thing .
Example:
AmeriChip International Inc. Releases Its New Laser Head for Delivery Tuesday May 2, 8:15 am ET
OMAHA, May 5 -- Rather than wait for Saturday's annual meeting, Warren E. Buffett's Berkshire Hathaway Inc. announced a multibillion-dollar acquisition Friday.
Berkshire said it will pay $5 billion for an 80 percent stake in privately held Iscar Metalworking Cos., which makes metal-cutting tools. The company's current owners, the Wertheimer family, will retain 20 percent ownership.
The deal appears to be the third largest in Berkshire's history, behind the $5.1 billion acquisition of utility PacifiCorp announced last year and the $16 billion stock purchase of reinsurance giant General Re in 1998.
Investors had been speculating that Buffett might announce an acquisition at Saturday's meeting because Berkshire has been flush with more than $40 billion in cash, and Buffett has said he was looking for the right opportunity.
Iscar's management team will remain in place, as is customary when Berkshire buys companies. Iscar has facilities worldwide, with the largest in Tefen, Israel.
"As a truly international business, IMC is a top performer in its industry," Buffett said in a statement. Buffett, chairman of Berkshire Hathaway, is a major investor in The Washington Post Co. and sits on its board of directors.
Berkshire spokeswoman Debbie Bosanek said no one was available to discuss the acquisition because the company is preparing for the annual meeting, expected to draw a record 23,000 people.
The company reported a 70 percent jump in first-quarter earnings on strong performance from its investments and insurance businesses. Profit was $2.31 billion, compared with $1.36 billion in the comparable period last year, according to Berkshire's filing with the Securities and Exchange Commission, released late Friday afternoon.
Berkshire owns a diverse mix of companies including furniture, insurance, jewelry and candy companies, restaurants, natural gas and corporate jet firms, and has major investments in such companies as Coca-Cola Co., Anheuser-Busch Cos. and Wells Fargo & Co.
Shares of Berkshire stock gained $710, or about 1 percent, Friday to close at $88,710 on the New York Stock Exchange. The company announced its latest acquisition after the market closed.
Great news for the world of industrial machining...!!! .. With potential good fallout for ACHI.
Berkshire investors excited by overseas push By Alistair Barr, MarketWatch - Last Update: 2:45 PM ET May 7, 2006
OMAHA, Neb. (MarketWatch) -- After Berkshire Hathaway Inc.'s annual meeting three years ago, the company had a special gathering for the first time for international shareholders who got to chat briefly with Chairman Warren Buffett and take a quick photo. Roughly 100 people attended.
At Saturday's meeting Buffett made a point of announcing that about 550 overseas investors requested tickets this year, up from 380 in 2005.
"This year it was absolutely enormous," Peter Webb, a U.K.-based Berkshire shareholder who's attended all three international meetings, said. "Waiting in line, everyone was talking about their own country and at least three people said they planned to ask Mr. Buffett if they could write to him about acquisition opportunities."
Investors were asked to enter a meeting room in small groups to meet not only Buffett and his partner Charlie Munger, but also director Bill Gates, the founder of Microsoft Corporation, Webb said. "Suddenly, people were in front of the two richest men in the world," Webb said. "It was a bit overwhelming for some."
While overwhelming, the growing importance of the international shareholder meeting illustrates Buffett's increasing focus on investment opportunities outside the U.S., Webb and other investors said on Sunday.
On Friday, Berkshire announced the acquisition of an 80% stake in Israeli metal cutting tool manufacturer Iscar Metalworking Cos. for $4 billion.
The following day during the main annual meeting, Buffett noted that Iscar was the first ever company that Berkshire bought that was based outside the U.S. and hinted that he would be making more acquisitions abroad. See full story. "Buffet and Munger are expanding their hunting ground from the U.S. to the entire world," said Whitney Tilson, head of money management firm Tilson Capital Partners and a Berkshire shareholder. "They've taken a big step in that direction with the Iscar acquisition."
Part of this strategy is tied to Buffett's increasing concern about the U.S.'s growing trade imbalances and their potential to weaken the U.S. dollar. In 2002, he increased Berkshire's bets against the dollar and more recently he's invested more money in overseas assets to hedge against a decline in the greenback.
But more international acquisitions could also help Berkshire find better places to invest its cash pile of roughly $40 billion. The company has been under increasing pressure to put the money to work or use it to buy back shares or even pay a dividend -- things that Buffett has almost always shunned. The international shareholder gathering at Berkshire's annual meeting is a great way for Buffett to showcase the company abroad as a benevolent acquirer, Tilson said. "These shareholders are potential ambassadors who may go back to their countries and start singing the praises of Berkshire to people like the owners of Iscar," Tilson added. International expansion may also help Buffett track down more family-owned businesses.
When buying family-run businesses like Iscar, Berkshire has an advantage over private-equity funds because it has a reputation for not meddling much with the firms it controls. While strong capital markets in the U.S. mean there are fewer private, family-owned businesses available. But in other, less developed countries, there are many companies that have grown large without accessing public markets, Thomas Russo, a partner at Lancaster, Penn.-based investment firm Gardner Russo & Gardner, said.
"In the acquisition world, Warren has long cultivated his presence among family business owners who at some point may wish to transfer their corporate assets to a trustworthy home and receive money for that," Russo, a Berkshire investor since the mid-1980s, said. "Berkshire has clearly put itself forward as the best acquirer for families who care about what happens to their businesses after selling."
While Berkshire has gotten this message out well for years in the U.S., Russo said Buffett has begun using the international shareholder gatherings to spread the word abroad. "The message goes home with these investors that Berkshire is a special kind of place," Russo added. "Buffett's broadening awareness among foreign, family-owned companies that Berkshire is the kind of respectful place that they'll want to transfer their business to." End of Story
Alistair Barr is a reporter for MarketWatch in San Francisco.
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