Nylex may have to offer steak knives The woes of the automotive...

Nylex may have to offer steak knives

The woes of the automotive sector, evidenced by General Motors' decision to cut 25,000 jobs in the US this week, continue to reverberate for stocks with any exposure to it.

Another illustration this week was former BTR unit Nylex, which said its expectations for the sale price of its automotive products business had again fallen.

Nylex provided $40 million for write-downs in its auto business in February, and in March said it would be sold for $50 million. By April 20, the projected proceeds had fallen to $40 million and the highly geared company raised $45 million of equity to keep its bankers happy.

At Wednesday's annual meeting, chief executive Glenn Casey said the sale would be worth $22 million, which means Nylex won't be paying down debt as quickly as it might have liked. Still, Nylex expects to earn $17 million to $19 million this year thanks to the performance of its other businesses.