Clark Dumps Its Last Albatross
BUSINESS 101, CHAPTER ONE: Dump losers, keep winners. On Mar. 6, Clark Equipment capped one of the biggest restructurings in America's heartland, selling its 50% stake in VME Group, a construction equipment maker, to partner Volvo for $573 million. With the deal, Clark abandoned the cyclical, low-margin industries that once held its income statement captive. It sold its forklift business to Terex in 1992 and unloaded its Brazilian auto transmission operations last year. What's left? The rich Bobcat mini-excavator business and Clark's double-digit margin axle and transmission unit--plus a newly acquired road paver outfit and, soon, golf cart maker Club Car.