Dura sees sharp growth in Asia

By David Bailey

DETROIT (Reuters) - Dura Automotive Systems Inc, which emerged from bankruptcy earlier in 2008, expects to increase their sales in Asia to about 30 percent of all revenue in five to seven years, its chief executive said on Wednesday.

Dura, a Rochester Hills, Michigan-based parts maker, is inclined to list its shares outside the United States, possibly in Singapore, CEO Tim Leuliette said at Reuters Autos Summit in Detroit. Asia now contributes 5 percent of Dura's revenues.

Leuliette said an Asian listing would reflect the company's focus on that growth market and possibly allow to command a higher valuation because such a listing would break investors' associating the company with the troubled North American auto industry.

"We are less dependent on the United States than Honda (7267.T: Quote, Profile, Research, Stock Buzz) or Sony (6758.T: Quote, Profile, Research, Stock Buzz), so is BorgWarner (BWA.N: Quote, Profile, Research, Stock Buzz), but BorgWarner, because they are a U.S. listed security on the New York Stock Exchange, carries a U.S. auto industry discount," he said.

"Those shareholders at BorgWarner are probably taking a billion-dollar haircut because they are a New York-listed security," Leuliette said.

BorgWarner, a diversified supplier both by customer and region, produces turbochargers and other components that improve power and performance. A representative could not be reached immediately for comment.

Dura also plans to reduce its overall percentage exposure to the United States market, gradually moving to about 20 percent to 25 percent of total sales to match the U.S. share of the global market, he said.

It currently generates about 30 percent of its sales in the United States. Europe is its largest region, at about 60 percent of sales, and it derives 5 percent of sales in Brazil.

Leuliette also said top-level auto parts suppliers were able to pass on higher commodity costs because their other costs are in-line or better than competitors.

The ability to pass through costs is critical, he said.

"This town is littered with the corpses of companies who couldn't do it," he said.

(Editing by Leslie Gevirtz)