Auto Parts Firm Magna Predicts ’06 Sales Up to $23.3 Billion, Below Consensus
Auto parts giant Magna International Inc. is forecasting 2006 sales revenue of between $22 billion and $23.3 billion (USD), at the low end of analysts’ predictions. The Aurora, Ontario-based company said Thursday its forecast is based on light-vehicle production of about 15.8 million units in North America and 15.8 million in Europe.
J.D. Power Report: Sales of Hybrid-Electric Vehicles Expected to Grow 268 Percent by 2012
U.S. hybrid-electric vehicle sales volumes are anticipated to grow by 268 percent between 2005 and 2012, according to the most report from J.D. Power and Associates. According to J.D. Power’s Automotive Forecasting Services Hybrid-Electric Vehicle Outlook, hybrid vehicle sales are expected to grow from approximately 212,000 vehicles in 2005 to 780,000 by 2012.
Survey Finds Pessimism Among Auto Industry Executives
Automotive executives think their companies will make even less money in the next five years as competitive pressures intensify worldwide, and they predict more consolidation and bankruptcies in the industry, according to the seventh annual Auto Executive Survey by KPMG LLC, to be released to the public today. “Expectations for future profits are clearly falling almost everywhere in the car business,” a report summarizing the survey findings says.
Advance Auto Parts Receives Credit Upgrade from Moody’s
Advance Auto Parts this week received a credit upgrade from Moody’s Investor Services. Moody’s has assigned Advance a Ba1 credit rating, while maintaining its positive outlook.
Cummins Reports Most Profitable Quarter Ever
Cummins Inc. recently saw its most profitable quarter ever, reporting third quarter net income of $145 million, or $2.90 per diluted share, on sales of $2.47 billion. Sales were strong across the entire business and the company said its gross margins rose to its highest levels in more than eight years.
American Axle & Manufacturing Reports Third Quarter 2005 Financial Results
American Axle & Manufacturing Holdings, Inc. (AAM) this week reported sales and earnings for the third quarter of 2005. Third quarter earnings were $19.3 million or 38 cents per share. This compares to earnings of $36.4 million or 68 cents per share in the third quarter of 2004. AAM’s earnings in the third quarter of 2005 reflect the impact of a retroactive metal market cost recovery agreement under which AAM was reimbursed for costs incurred in the first half of 2005. This retroactive benefit was partly offset by costs related to other provisions of the metal market recovery agreement and other retroactive purchased material cost adjustments we incurred in the quarter. The net favorable impact of these agreements was $6.2 million in the quarter or 8 cents per share.
Midas Reports Third Quarter Results
Midas has reported net income of $1.5 million — or 9 cents per diluted share — for the third quarter ending Oct. 1, after special items related to the company’s exit from exhaust manufacturing and distribution.
GPC Reports Third Quarter Earnings
Genuine Parts Co. reported record sales and earnings for the third quarter and nine months ending Sept. 30. Tom Gallagher, chairman, president and CEO, announced that sales totaling $2.6 billion were up 9 percent compared to the third quarter of 2004.
Johnson Controls and Saft to Form Joint Venture for Hybrid Vehicle Batteries
Johnson Controls and Saft have signed a memorandum of understanding to form a joint venture for advanced technology batteries to accelerate their participation in the hybrid vehicle market.
Research Firm Releases China’s Automotive Market Guide 2005
Researching firm Research and Markets has announced the addition of China’s Auto Market Guide 2005 – Complete Guide to China’s Automotive Industry to its offerings. China’s Auto Market Guide provides a comprehensive picture of the Chinese automotive industry focusing on passenger cars and “pure” Chinese automakers having individual brands.