Louis Chenevert: Making UTC Greater than the Sum of its Parts

In 2012 when United Technologies Corporation (UTC) acquired Goodrich the casual observer might not have appreciated the strategy that was being employed by CEO Louis Chenevert. It was part of a much broader plan which adds up to a win for UTC shareholders. To understand why Mr. Chenevert, whose background is in production management, would want to acquire a company like Goodrich, you would need to understand a little bit about both businesses. UTC is a conglomerate which makes most of its money from sales to either aviation customers or builders. In the case of the former, we are talking about aircraft manufacturers. When a customer like Boeing approaches UTC for engines often, UTC could bundle the sale with other avionics. Thus a company like Goodrich, which in addition to selling tires has an avionics division, makes a good fit with UTC.

During Mr. Chenevert’s tenure as CEO of UTC, 2006 to 2014, there were many such acquisitions made by UTC. The synergistic aspects of all of them made the company stronger. By themselves, they were less valuable than the value they represented under the big United Technologies umbrella. Being a master of achieving the desired result, Louis Chenevert has endeavored to create a conglomerate like no other. Mr. Chenevert transformed the company into a mosaic of efficiency where each division feeds business and stimulates sales to its sister divisions as a matter of convenience to their customers. Think of it as one-stop shopping.

The design of his business plan was brilliantly simple. Only an executive who had spent the first twenty years of his career solving production line dilemmas might have come up with such an approach. Louis Chenevert spent two decades in production management first at General Motors and then in UTC’s Pratt & Whitney division. The net result of the synergies he put in place at UTC caused the value of UTC shares to vault from around $55 to $115 during his time as CEO.

Nowadays Louis Chenevert is semi-retired, spending much of his time designing and building yachts or out to sea. He also serves as an advisor to Goldman Sachs on issues regarding aviation and industrial production.

Penn West Becomes Obsidian Energy

The Canadian oil royalty trust, Penn West, has undergone some changes, and it has turned out to be more than a simple name change. Obsidian has restructured into a regular corporation, and has made other notable changes. These changes were voted upon and passed at a recent shareholder meeting.

 

Based in Calgary, Alberta, Canada, Obsidian Energy recently changed its name, as it was at once time known as Penn West Energy Trust. Undergoing some changes, the company is looking forward to a great year in 2017. Although it is called a medium-size energy producing oil and gas company, it is one of the 60 largest companies on the Toronto Stock Exchange. Shares of OBE are traded on the New York Stock Exchange as well.

 

Although the company experienced operational and financial difficulties when the price of oil fell in 2014, its financial future and operations appear secure on today’s markets.

 

After having converted from a Canadian Royalty Trust to a standard corporate structure in 2011, the company pays its dividends on a monthly basis, which is a rarity for companies listed on the New York Stock Exchange.

 

In their recent annual meeting, shareholders approved the name change, and all other changes listed on the agenda. Since October, David French has taken over as CEO for the company. He had asked the stock holders for the name change, since, as he said, “The company no longer resembles the old Penn West”. See This Page for additional information

 

In 2013, the company reduced its debt by selling assets, reducing that debt from $3 billion down to $384 million.

 

Obsidian Energy appears to be a smaller company than the previous Penn West. Their production will be down to about 28,000 barrels of oil per day, compared to the previous 135,000 that was produced in 2013.

 

In a streamlining process, the company reduced its employees by about one thousand employees.

See: https://www.bloomberg.com/quote/OBE:CN

Obsidian Energy, Brand New Name

Obsidian Energy Ltd. Is an average sized Canadian oil and conventional natural gas manufacturing company located in Calgary, Alberta? They experienced financial and operational adversity when prices of crude oil immensely went down in 2014. Consequently, the company goes through a compelling restructuring with the bulk of the resources bargained over the next two years to lessen the debt and the company’s arrears.

 

 

In July, by the year if 2014 Penn West freshly delegated Financial Officer Dyck, David had detected and disclosed irregularities in the company’s bookkeeping system that misclassified approximately and roughly 300 million dollars in cost and damages. Penn West Petroleum alert the U.S. and Canadian directors regarding with the inconsistency and flaws and broaden their inspection and analysis to reassess and re-examine conclusions way back in 2007. The accusations bound, and tied auditing irregularities comprise those in Canada and a class force impeachment in the United States. At the end of July 2014, independent accountant and auditors revealed and confirmed that 70 million dollars’ worth of expenses that is rechanneled as the capital disbursement on stuff like property and equity, equipment and plant in financial 2013.

 

 

The auditors disclosed that hundreds of millions of dollars in costs had been inadequately and improperly classified, urging it to summarize and recap financial reports for the year of 2012, 2013 and the first part of the year 2014. Get Additional Information Here.

 

 

On June 26, 2017, Obsidian is happy and satisfied that the investors or bondholders approved the change name. The CEO, French Dave, reveals that the firm designates the name Obsidian because it is typically acquiring volcanic looking glass that can be a grind and honed. Shareholders chose and voted 92 percent in backing up of the resolution of changing the name.

 

 

They are pleased to identify the final step with the transformation changing the name to Obsidian Energy. As they embark the brand-new stage, they will monitor the company with ethics and foundation. Obsidian Energy is well grounded in right resources and assets.

 

 

Additional to the name change, investors and shareholders legalized and approved all resolutions bounded in the 2017 Annual and Special Meeting on April 30, 2017. Currently, the company was at the apex of its success and was even among the sixty most prominent firms in the Toronto Stock Exchange and was also a Canadian Royalty Trust (CANROY).

A Look At How Gregory Aziz Transformed The National Steel Car

Railroad is an important means of transport globally. It is used to transport both people and freight over long and short distances at a fraction of the money that would be used to make such trip over land using a public means of transport. Gregory James Aziz’s company, the National Steel Car, focuses on enhancing the success of railroad freight industry through the provision of engineering services and manufacturing of high quality railroad freight cars. After Greg assumed ownership of the revered National Steel Car, the company has become a leader in the competitive industry in North America.

 

Born on April 30, 1949, James Aziz grew to become one of the most recognized business leaders in Canada. The young Aziz pursed his earlier studies in a local school in London, Ontario before joining Ridley College where he graduated with a degree in business. Determined to sharpen his business skills, Greg Aziz enrolled in the world-renowned University of Western Ontario where he majored in Economics. Read More On This Page.

 

When he turned 22, the young graduate decided to take over his family’s wholesale food business known as Affiliated Foods. For 16 years, Greg Aziz focused on enhancing the business, thus helping it to grow and become a leading importer of fresh foods from South America, Central America and Europe. Under his visionary leadership, the company expanded its distribution chain from Eastern Canada to the entire United States.

 

With Affiliated Foods destined for even greater success, Gregory J Aziz decided to look for new investment opportunities. He spent most of the 80s in New York working on investment banking opportunities. However, in 1994 he decided to shift his focus when he came across an offer to buy the National Steel Car from its then owner,  Dofasco. The shrewd entrepreneur was convinced that he had what it takes to transform the ailing company to a successful corporation and a leader in the railroad freight car manufacturing industry.

 

Greg James Aziz bought the firm and embarked on improving it. Greg’s approach to strengthen the company’s engineering and team-building capabilities involved injecting more capital into the business and recruiting experienced workers. These efforts transformed the company in five years. The company was now making 12,000 cars a year, up from only 3,500 cars. Its workforce had also grown from 600 to nearly 3,000 employees. The executive leader is still not satisfied; he continues to put more efforts in augmenting the quality of the company’s products and operations. Notably, National Steel Car is the only company in the industry to be certified ISO 9001:2008.

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Gregory Aziz, the Backbone of National Steel Car

Gregory James Aziz is a multi-talented man, calling him a jack of all trades would be an understatement. He is the current chairman, president, and CEO of the National Steel Car. Gregory J Aziz was born on April 30, 1949, in London, at a town called Ontario.

 

Greg went to Ridley College, and then later joined Western Ontario University where he undertook his Majors in Economics. After his majors in the year 1971 Greg Aziz joined his family wholesale food business which would later become the world’s largest fish importer. He would go on to join the banking world in New York in the 1980s to 1190s which would equip him with the skills to organize and buy the National steel cars in 1994.

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Greg Aziz’s main aim while purchasing the steel companies was to transform into a leading railroad company in North America solely. With commitment and investment, the company gradually increased its manufacturing capability from 3500-12,000 cars in the year 1999 and as a result employment increased.

 

 

Due to the company’s outstanding performance, the National Steel Car Company is one of the leading companies, and it’s the only railroad freight cars in North America. National Steel Car benefit the Hamilton community through several charities. Both Greg Aziz and his wife Irene are philanthropists they generously give to the society and various charities especially Royal agriculture winter fair.

 

Greg James Aziz undeniable creativity in the field of engineering and manufacturing has enabled the steel company to be voted and awarded as the most leading railroad cars in North America for 18years. Aziz has worked in the business for more than 23 years. His mission is to provide quality cars in his current market.

 

 

Many organizations benefit from the National Steel Car these include companies like the Salvation Army, the United Way and Hamilton Opera to mention but a few. The company is also known for hosting Christmas party each year for the current and former employees. These local food drives are recognized to benefit the community’s local food banks.

 

 

The businessman is recognized as one of the leading businessmen in Ontario. The community appreciates him for the immense contribution he has played in the community. These include his vision and administration expertise, his outstanding relationship with both his staff and the community at large. Go Here To Learn More.

 

 

His commitment is in serving his community and the staff in his company through charities and providing formal employment.

 

See Also: https://www.bloomberg.com/research/stocks/private/person.asp?personId=39124620&privcapId=35787198