The bonds of German auto supplier Schefenacker International have surged after the company took steps to reduce operating expenses. Its 9 1/2% '14 notes climbed to 90 from a low of 70 three weeks ago. A trader said the company's bonds had been beaten down by generally poor conditions in the auto supply sector. He said management at the company has been pro-active in reducing unprofitable businesses, helping to boost the trading levels of the bonds.
Schefenacker is a global maker and supplier of rear vision systems, rear and interior lighting and automotive sounds systems to automotive original equipment manufacturers (OEMs). It had a E17.1 million net loss in the third quarter of 2005, compared to a E14.3 million net loss in the same period of 2004. For the first nine months of 2005, it had a E36.8 million net loss, compared to a net loss of E46.4 million for the same period in 2004. Reiner Beutel, Schefenacker cfo, was not available for comment.