GenCorp
Encyclopedia
GenCorp is an American
technology
-based manufacturer based in Rancho Cordova, California
. Established in 1915, GenCorp was formerly the General Tire and Rubber Company.
The name change was implemented in 1984 when GenCorp was formed as a parent holding company for General Tire's various businesses. Its main subsidiaries were General Tire; broadcaster RKO General; Diversitech General, a manufacturer of tennis balls and polymer products including automotive soundproofing and home wallpapers; and defense contractor Aerojet
. Through its RKO General subsidiary, the company also held a stake in Frontier Airlines; RKO bottlers, which operated Pepsi-Cola distributorships; and several resorts and hotels, including the Westward Look resort in Tucson, AZ.
Faced with a hostile takeover attempt, GenCorp shed some of its long-held units in the late 1980s. The company sold RKO General's broadcast properties beginning in 1987, after protracted license renewal proceedings that stemmed from widespread lying to advertisers and regulators. GenCorp also sold its former flagship, General Tire, to German
tire maker Continental AG
in order to concentrate on Aerojet. In 1999, GenCorp spun off its Decorative & Building Products and Performance Chemicals businesses into a separate, publicly-traded company called OMNOVA Solutions
, Inc.
GenCorp's two remaining businesses, as of 2008, are Aerojet
and Real Estate.
Located 15 miles (24.1 km) northeast of Sacramento along Highway 50, a key growth corridor in the region, approximately 6000 acres (24.3 km²) of the Aerojet lands are now being planned as a community called Easton. Easton Development Company LLC was formed to assist in the process.
The under funded pension gave the company a negative net worth of -6.88 per share as of 30 November 2009.
GenCorp also is holding $142.80 million in 4% bonds due in 2010 and $147.70 million in bonds due in 2011 that the company expects to have to repurchase, as of the 2008 Annual Report.
"In December 2009, the Company issued $200.0 million in aggregate principal amount of 4.0625% convertible subordinated debentures ("4 1/16% Debentures") in a private placement to qualified institutional buyers under the Securities Act of 1933. Issuance of the 4 1/16% Debentures generated net proceeds of approximately $195.0 million, a portion of which were used to repurchase $124.7 million of the 4% Notes in January 2010. The remaining proceeds will be used to redeem a portion of the 9½% senior subordinatednotes ("9½% Notes"); pay accrued interest on the 4% Notes and 9½% Notes; and pay other debt issuance costs. "
In March 2010 Gencorp amended a $280 million revolving line of credit
GenCorp's former CEO J. Scott Neish resigned on Jan. 6 2010. He had been interim CEO from March 2008 (Terry J Hall resigned) head of the Aerojet division since November 2005. The new CEO was placed in as permanent and J. Scott Neish elected to resign from Aerojet. Scott Seymour had been the head of Northrop Grumman Integrated Systems from 2002–2008.
GenCorp since 2008 has had significant changes in its Board of Directors and Corporate Officers, per the 2008 Annual Report:
"On March 5, 2008, Terry L. Hall resigned as a Director and as our Chief Executive Officer and President and
our Board appointed three new Directors. The Board appointed J. Scott Neish, our Vice President and President of
Aerojet, to serve as our interim Chief Executive Officer and President, pending the results of a search to identify
qualified candidates to fill this position on a permanent basis. On May 15, 2008, Timothy A.Wicks, Chairman of the
Board, Todd R. Snyder and Sheila E. Widnall resigned as Directors of the Company. Our Board of Directors
appointed James H. Perry and Thomas A. Corcoran as new Directors on May 16, 2008 and September 25, 2008,
respectively. On September 29, 2008, Yasmin R. Seyal, our former Senior Vice President and Chief Financial
Officer, and R. Leon Blackburn, our former Vice President, Controller left the Company and our Board appointed
Kathleen E. Redd, Vice President, Finance of Aerojet, to serve as our Vice President, Chief Financial Officer and
Secretary."
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
technology
Technology
Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...
-based manufacturer based in Rancho Cordova, California
Rancho Cordova, California
Rancho Cordova is a city in Sacramento County, California, USA, that incorporated in 2003. It is part of the Sacramento Metropolitan Area. The population was 64,776 at the 2010 census. Rancho Cordova is the Sacramento area's largest employment sub-center, with a daily influx of over 45,000...
. Established in 1915, GenCorp was formerly the General Tire and Rubber Company.
The name change was implemented in 1984 when GenCorp was formed as a parent holding company for General Tire's various businesses. Its main subsidiaries were General Tire; broadcaster RKO General; Diversitech General, a manufacturer of tennis balls and polymer products including automotive soundproofing and home wallpapers; and defense contractor Aerojet
Aerojet
Aerojet is an American rocket and missile propulsion manufacturer based primarily in Rancho Cordova, California with divisions in Redmond, Washington, Orange, Gainesville and Camden, Arkansas. Aerojet is owned by GenCorp. They are the only US propulsion company that provides both solid rocket...
. Through its RKO General subsidiary, the company also held a stake in Frontier Airlines; RKO bottlers, which operated Pepsi-Cola distributorships; and several resorts and hotels, including the Westward Look resort in Tucson, AZ.
Faced with a hostile takeover attempt, GenCorp shed some of its long-held units in the late 1980s. The company sold RKO General's broadcast properties beginning in 1987, after protracted license renewal proceedings that stemmed from widespread lying to advertisers and regulators. GenCorp also sold its former flagship, General Tire, to German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
tire maker Continental AG
Continental AG
Continental AG, internally often called Conti for short, is a worldwide leading German manufacturer of tires, brake systems, vehicle stability control systems, engine injection systems, tachographs and other parts for the automotive and transport industries. The company is based in Hanover, Germany...
in order to concentrate on Aerojet. In 1999, GenCorp spun off its Decorative & Building Products and Performance Chemicals businesses into a separate, publicly-traded company called OMNOVA Solutions
OMNOVA Solutions
OMNOVA Solutions Inc. was founded in 1999 when GenCorp spun off its Decorative & Building Products and Performance Chemicals businesses into a separate, publicly-traded company...
, Inc.
GenCorp's two remaining businesses, as of 2008, are Aerojet
Aerojet
Aerojet is an American rocket and missile propulsion manufacturer based primarily in Rancho Cordova, California with divisions in Redmond, Washington, Orange, Gainesville and Camden, Arkansas. Aerojet is owned by GenCorp. They are the only US propulsion company that provides both solid rocket...
and Real Estate.
Real Estate
In the mid 1900’s, Aerojet-General Corporation acquired approximately 12600 acres (51 km²) of land in Eastern Sacramento County. Aerojet converted these former gold fields into one of the premier rocket manufacturing and testing facilities in the free world. However, most of this land was used to provide safe buffer zones for Aerojet's testing and manufacturing operations.Located 15 miles (24.1 km) northeast of Sacramento along Highway 50, a key growth corridor in the region, approximately 6000 acres (24.3 km²) of the Aerojet lands are now being planned as a community called Easton. Easton Development Company LLC was formed to assist in the process.
Pension And Bond Problems
GenCorp withdrew its over-funded pension during the real estate boom years of 2006 and 2007. The real estate bust caused a underfunding of the pension plan of over $300 million dollars. This caused a freeze of its pension plan on Feb. 1 2009 and an end to 401k match on Jan 15 2009. The move was expected to save the company 29 million a year.The under funded pension gave the company a negative net worth of -6.88 per share as of 30 November 2009.
GenCorp also is holding $142.80 million in 4% bonds due in 2010 and $147.70 million in bonds due in 2011 that the company expects to have to repurchase, as of the 2008 Annual Report.
"In December 2009, the Company issued $200.0 million in aggregate principal amount of 4.0625% convertible subordinated debentures ("4 1/16% Debentures") in a private placement to qualified institutional buyers under the Securities Act of 1933. Issuance of the 4 1/16% Debentures generated net proceeds of approximately $195.0 million, a portion of which were used to repurchase $124.7 million of the 4% Notes in January 2010. The remaining proceeds will be used to redeem a portion of the 9½% senior subordinatednotes ("9½% Notes"); pay accrued interest on the 4% Notes and 9½% Notes; and pay other debt issuance costs. "
In March 2010 Gencorp amended a $280 million revolving line of credit
GenCorp's former CEO J. Scott Neish resigned on Jan. 6 2010. He had been interim CEO from March 2008 (Terry J Hall resigned) head of the Aerojet division since November 2005. The new CEO was placed in as permanent and J. Scott Neish elected to resign from Aerojet. Scott Seymour had been the head of Northrop Grumman Integrated Systems from 2002–2008.
GenCorp since 2008 has had significant changes in its Board of Directors and Corporate Officers, per the 2008 Annual Report:
"On March 5, 2008, Terry L. Hall resigned as a Director and as our Chief Executive Officer and President and
our Board appointed three new Directors. The Board appointed J. Scott Neish, our Vice President and President of
Aerojet, to serve as our interim Chief Executive Officer and President, pending the results of a search to identify
qualified candidates to fill this position on a permanent basis. On May 15, 2008, Timothy A.Wicks, Chairman of the
Board, Todd R. Snyder and Sheila E. Widnall resigned as Directors of the Company. Our Board of Directors
appointed James H. Perry and Thomas A. Corcoran as new Directors on May 16, 2008 and September 25, 2008,
respectively. On September 29, 2008, Yasmin R. Seyal, our former Senior Vice President and Chief Financial
Officer, and R. Leon Blackburn, our former Vice President, Controller left the Company and our Board appointed
Kathleen E. Redd, Vice President, Finance of Aerojet, to serve as our Vice President, Chief Financial Officer and
Secretary."