During the early 1980s, Japanese factories presided over a technology boom in motocross. The typical two-stroke air-cooled, twin-shock rear suspension machines gave way to machines that were water-cooled and fitted with monoshock rear suspension. By the 1990s, increasingly stringent environmental laws in California forced manufacturers to develop environmentally friendly four-stroke technology.
At the turn of the century, all the major manufacturers have begun competing with four-stroke machines. European firms also experienced a resurgence with Husqvarna, Husaberg and KTM winning world championships with four-stroke machinery.
The sport evolved with sub-disciplines such as stadium events known as supercross and arenacross held in indoor arenas. Freestyle motocross (FMX) events where riders are judged on their jumping and aerial acrobatic skills have gained popularity, as well as supermoto, where motocross machines race on both tarmac and off road. Vintage motocross events have also become popular with riders competing on bikes usually pre-dating the 1975 model year.
china motocross products. Buy china motocross gear from global china motocross gear manufacturers, suppliers, china motocross exporters。
2010年5月6日星期四
2010年5月5日星期三
Magna Seating and Hollingsworth Logistics form JV to supply Volkswagen Chattanooga
AURORA, ON, April 5 /PRNewswire-FirstCall/ - Magna Seating, an operating group of Magna International, and Hollingsworth Logistics, a leading provider of industrial supply chain management, announced they have formed a joint venture to supply Volkswagen Group of America (VWGoA) with complete seat systems for the mid-size sedan to be built at Volkswagen's new Chattanooga, Tennessee, assembly facility.
"This partnership is a great sign of things to come for everyone involved," said Frank Fischer, President and CEO for Volkswagen in Chattanooga. "We are pleased that a minority-owned joint venture will be a part of our supplier team for the all-new mid-size sedan and that the addition of 120 jobs will continue to strengthen the economy here in the Tennessee Valley," Fischer said.
The joint-venture company, Chattanooga Seating Systems (CSS), is 51 percent owned by Hollingsworth Logistics and 49 percent Magna Seating. The JV combines Hollingsworth's expertise in sequencing and delivery of products and Magna Seating's proven expertise in the design, engineering and manufacture of automotive seating systems. CSS will be a minority supplier to Volkswagen by virtue of Hollingsworth's status as a Native American-owned company.
Steven Barr, Owner and CEO of Hollingsworth Logistics Group stated, "We are very proud of our long-standing relationship with Magna and we look forward to adding CSS to our two existing joint-ventures. We have been partners with Magna for the past ten years and look forward to working together to provide Volkswagen with outstanding service and a best-in-class product."
"This joint venture strategically positions both companies for continued growth in North America," said Joe Pittel, President of Magna Seating. "We look forward to working together with Hollingsworth, leveraging each other's strengths and delivering innovative seating solutions to Volkswagen."
As a newly formed company in Tennessee, Chattanooga Seating Systems worked closely with city, county and state government officials to take advantage of business-friendly incentives being offered to many of the suppliers establishing new operations in support of VWGoA's new facility.
"We're pleased to join Volkswagen in welcoming Chattanooga Seating Systems as the second major auto supplier to set up shop in Hamilton County to support the new assembly plant," said Hamilton County Mayor Claude Ramsey.
About Hollingsworth Logistics
Hollingsworth Logistics Group is a certified minority Native American company which has provided logistics support to the automotive industry for over 25 years. Our core strengths include the analysis of material flow; warehousing; assembling and modifying subassembly components; packaging and kitting; sequencing and metered flow facilitation; parts distribution; reverse logistics including core evaluation and disposition, and both inbound and outbound transportation management.
About Magna Seating
Magna Seating is an innovative leader in the development and manufacture of high-quality complete seat solutions and seat mechanisms for the global automotive industry. Our capabilities range from consumer and market research, full concept development, design and engineering, testing and validation to world-class manufacturing of seating components and complete seat assemblies.
About Magna International
Magna International (http://www.magna.com/) is the most diversified global automotive supplier. We design, develop and manufacture technologically advanced automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; hybrid and electric vehicles/systems as well as complete vehicle engineering and assembly.
We have approximately 72,500 employees in 238 manufacturing operations and 79 product development and engineering centers in 25 countries.
Forward-Looking Statements
The previous discussion contains statements that constitute "forward-looking statements" within the meaning of applicable securities legislation, including, but not limited to, statements relating to Magna's expected consolidated sales, based on expected light vehicle production in North America and Europe, North American and European average dollar content per vehicle, complete vehicle assembly sales and fixed asset expenditures. The forward-looking information in this Press Release is presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such forward-looking statements are based on information currently available to us, and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation: the potential for a slower than anticipated economic recovery or a deterioration of economic conditions; low production volumes and sales levels; the financial condition and credit worthiness of some of our OEM customers, including the potential that such customers may not make, or may seek to delay or reduce, payments owed to us; the financial condition of some of our suppliers and the risk of their insolvency, bankruptcy or financial restructuring; the highly competitive nature of the automotive parts supply business; our dependence on outsourcing by our customers; the termination or non renewal by our customers of any material contracts; our ability to identify and successfully exploit shifts in technology; restructuring, downsizing and/or other significant non-recurring costs; impairment charges; our ability to successfully grow our sales to nontraditional customers; unfavourable product or customer mix; risks of conducting business in foreign countries, including China, India, Brazil, Russia and other developing markets; our ability to quickly shift our manufacturing footprint to take advantage of lower cost manufacturing opportunities; disruptions in the capital and credit markets; fluctuations in relative currency values; our ability to successfully identify, complete and integrate acquisitions; pricing pressures, including our ability to offset price concessions demanded by our customers; warranty and recall costs; product liability claims in excess of our insurance coverage; changes in our mix of earnings between jurisdictions with lower tax rates and those with higher tax rates, as well as our ability to fully benefit tax losses; other potential tax exposures; legal claims against us; work stoppages and labour relations disputes; changes in laws and governmental regulations; costs associated with compliance with environmental laws and regulations; potential conflicts of interest involving our indirect controlling shareholder, the Stronach Trust; and other factors set out in our Annual Information Form filed with securities commissions in Canada and our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings. In evaluating forward-looking statements, we caution readers not to place undue reliance on any forward-looking statements and readers should specifically China oil pump consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
"This partnership is a great sign of things to come for everyone involved," said Frank Fischer, President and CEO for Volkswagen in Chattanooga. "We are pleased that a minority-owned joint venture will be a part of our supplier team for the all-new mid-size sedan and that the addition of 120 jobs will continue to strengthen the economy here in the Tennessee Valley," Fischer said.
The joint-venture company, Chattanooga Seating Systems (CSS), is 51 percent owned by Hollingsworth Logistics and 49 percent Magna Seating. The JV combines Hollingsworth's expertise in sequencing and delivery of products and Magna Seating's proven expertise in the design, engineering and manufacture of automotive seating systems. CSS will be a minority supplier to Volkswagen by virtue of Hollingsworth's status as a Native American-owned company.
Steven Barr, Owner and CEO of Hollingsworth Logistics Group stated, "We are very proud of our long-standing relationship with Magna and we look forward to adding CSS to our two existing joint-ventures. We have been partners with Magna for the past ten years and look forward to working together to provide Volkswagen with outstanding service and a best-in-class product."
"This joint venture strategically positions both companies for continued growth in North America," said Joe Pittel, President of Magna Seating. "We look forward to working together with Hollingsworth, leveraging each other's strengths and delivering innovative seating solutions to Volkswagen."
As a newly formed company in Tennessee, Chattanooga Seating Systems worked closely with city, county and state government officials to take advantage of business-friendly incentives being offered to many of the suppliers establishing new operations in support of VWGoA's new facility.
"We're pleased to join Volkswagen in welcoming Chattanooga Seating Systems as the second major auto supplier to set up shop in Hamilton County to support the new assembly plant," said Hamilton County Mayor Claude Ramsey.
About Hollingsworth Logistics
Hollingsworth Logistics Group is a certified minority Native American company which has provided logistics support to the automotive industry for over 25 years. Our core strengths include the analysis of material flow; warehousing; assembling and modifying subassembly components; packaging and kitting; sequencing and metered flow facilitation; parts distribution; reverse logistics including core evaluation and disposition, and both inbound and outbound transportation management.
About Magna Seating
Magna Seating is an innovative leader in the development and manufacture of high-quality complete seat solutions and seat mechanisms for the global automotive industry. Our capabilities range from consumer and market research, full concept development, design and engineering, testing and validation to world-class manufacturing of seating components and complete seat assemblies.
About Magna International
Magna International (http://www.magna.com/) is the most diversified global automotive supplier. We design, develop and manufacture technologically advanced automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; body and chassis systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; hybrid and electric vehicles/systems as well as complete vehicle engineering and assembly.
We have approximately 72,500 employees in 238 manufacturing operations and 79 product development and engineering centers in 25 countries.
Forward-Looking Statements
The previous discussion contains statements that constitute "forward-looking statements" within the meaning of applicable securities legislation, including, but not limited to, statements relating to Magna's expected consolidated sales, based on expected light vehicle production in North America and Europe, North American and European average dollar content per vehicle, complete vehicle assembly sales and fixed asset expenditures. The forward-looking information in this Press Release is presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such forward-looking statements are based on information currently available to us, and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation: the potential for a slower than anticipated economic recovery or a deterioration of economic conditions; low production volumes and sales levels; the financial condition and credit worthiness of some of our OEM customers, including the potential that such customers may not make, or may seek to delay or reduce, payments owed to us; the financial condition of some of our suppliers and the risk of their insolvency, bankruptcy or financial restructuring; the highly competitive nature of the automotive parts supply business; our dependence on outsourcing by our customers; the termination or non renewal by our customers of any material contracts; our ability to identify and successfully exploit shifts in technology; restructuring, downsizing and/or other significant non-recurring costs; impairment charges; our ability to successfully grow our sales to nontraditional customers; unfavourable product or customer mix; risks of conducting business in foreign countries, including China, India, Brazil, Russia and other developing markets; our ability to quickly shift our manufacturing footprint to take advantage of lower cost manufacturing opportunities; disruptions in the capital and credit markets; fluctuations in relative currency values; our ability to successfully identify, complete and integrate acquisitions; pricing pressures, including our ability to offset price concessions demanded by our customers; warranty and recall costs; product liability claims in excess of our insurance coverage; changes in our mix of earnings between jurisdictions with lower tax rates and those with higher tax rates, as well as our ability to fully benefit tax losses; other potential tax exposures; legal claims against us; work stoppages and labour relations disputes; changes in laws and governmental regulations; costs associated with compliance with environmental laws and regulations; potential conflicts of interest involving our indirect controlling shareholder, the Stronach Trust; and other factors set out in our Annual Information Form filed with securities commissions in Canada and our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings. In evaluating forward-looking statements, we caution readers not to place undue reliance on any forward-looking statements and readers should specifically China oil pump consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
China Automotive Systems, Inc. (CAAS): Zacks Rank Buy
China Automotive Systems, Inc. (NasdaqCM: CAAS) has been charging higher for the last six weeks, recently moving within striking distance of the 52-week high at $27.17 on much better than expeced Q4 results from late March that included 119% sales growth.
Company Description
China Automotive Systems, Inc., through its interest in Sino-foreign joint ventures, engages in the manufacture and sale of automotive systems and components for the auto industry in China. The company was founded in 2003 and has a market cap of $593 million.
Fourth-Quarter Results
Revenue for the period was up 119% from last year to $84 million. Earnings also came in strong at 21 cents, 11% ahead of the Zacks Consensus Estimate. The company has surprised in each of the last four quarters by an average of 64%.
China Automotive gained in a couple of key categories, with gross margin up 100 basis points from last year to 29%. Cash flow from operations was $35 million, with free cash flow coming in at $17.5 million. The company also has a solid cash position of $43.5 million.
Estimates
Estimates have been a bit mixed lately, with the current year holding steady at 91 cents, and the next year up 13 cents to $1.08, a bullish 19% growth projection.
Valuation Metrics
In light of recent gains, shares of CAAS do look a bit pricey, China outdoor equipment trading with a forward P/E multiple of 24X, a premium to the overall market and the industry average. China Automotive's P/B of 4.8X is also above the industry average but below the S&P of 4.9X. The company's ROE of 23% crushes the industry average of 2% but trails behind the S&P by 100 basis points.
The Chart
Shares of CAAS dipped lower early in the year but have been trending higher since bottoming out in early February just above $14. Since then, shares of CAAS have rallied back to the $22 mark along a nice trend line, only $5 away from the 52-week high at $27.17. Take a look below.
Company Description
China Automotive Systems, Inc., through its interest in Sino-foreign joint ventures, engages in the manufacture and sale of automotive systems and components for the auto industry in China. The company was founded in 2003 and has a market cap of $593 million.
Fourth-Quarter Results
Revenue for the period was up 119% from last year to $84 million. Earnings also came in strong at 21 cents, 11% ahead of the Zacks Consensus Estimate. The company has surprised in each of the last four quarters by an average of 64%.
China Automotive gained in a couple of key categories, with gross margin up 100 basis points from last year to 29%. Cash flow from operations was $35 million, with free cash flow coming in at $17.5 million. The company also has a solid cash position of $43.5 million.
Estimates
Estimates have been a bit mixed lately, with the current year holding steady at 91 cents, and the next year up 13 cents to $1.08, a bullish 19% growth projection.
Valuation Metrics
In light of recent gains, shares of CAAS do look a bit pricey, China outdoor equipment trading with a forward P/E multiple of 24X, a premium to the overall market and the industry average. China Automotive's P/B of 4.8X is also above the industry average but below the S&P of 4.9X. The company's ROE of 23% crushes the industry average of 2% but trails behind the S&P by 100 basis points.
The Chart
Shares of CAAS dipped lower early in the year but have been trending higher since bottoming out in early February just above $14. Since then, shares of CAAS have rallied back to the $22 mark along a nice trend line, only $5 away from the 52-week high at $27.17. Take a look below.
Three China Mid-Caps in Top Gear
As part of our series based on the China growth story, we present three U.S.-listed Chinese auto component players, which we believe will benefit from soaring domestic vehicle sales and the country's growing share in global auto component exports.
DOWNLast week we focused on three opportunities for investors looking to gain from China gear.
Production of both passenger and commercial cars in China hit record highs during March of 1.73 million units, an increase of 44% from February. During the first quarter this year, total production was 4.55 million units, up 77% from a year earlier.
Auto exports have been on the rise, reflecting a surge in demand not only in China but in other geographies as well. Chinese auto manufacturers exported 39,500 cars, 49% higher than the previous month and 78% higher year on year, said Zhu Yiping, assistant secretary-general of the China Association of Automobile Manufacturers earlier this month.
U.S. manufacturers too are looking to cash in on this lucrative opportunity. General Motors expects to boost its annual sales in China to more than 3 million vehicles by 2015, GM China Group President Kevin Wale told the Wall Street Journal.
This opens up a tremendous opportunity for auto component manufacturers who are collectively benefiting from positive macro developments in the Chinese auto sector. Sorl Auto Parts(SORL), Wonder Auto Technology(WATG) and China Automotive Systems(CAAS) are three stocks that we believe are poised to ride this growth. These stocks are currently trading at forward price-to-earnings ratios of 12.85, 12.96, and 23.15%, respectively.
These stocks are trading at much lower valuations when compared with global peers like Dana Holding(DAN), Stoneridge(SRI), and ArvinMeritor(ARM), which are trading at 97.54, 30.42, and 43.98, respectively.
Sorl Auto Parts
SORL Auto Parts is a leading air brake valve manufacturing company based in China. The company conducts business through Rui'An Auto Parts, its Sino-foreign joint venture with Ruili Group, with the former holding 90% ownership. The company manufactures 40 different types of brake valves for more than 1,000 different specifications that are primarily sold to commercial vehicle manufacturers.
For the quarter ended December 2009, the company reported net sales of $41 million, a 63.3% increase over the same quarter of 2008. Net income grew by as much as 184.1% to $5 million, or 28 cents a share.
DOWNLast week we focused on three opportunities for investors looking to gain from China gear.
Production of both passenger and commercial cars in China hit record highs during March of 1.73 million units, an increase of 44% from February. During the first quarter this year, total production was 4.55 million units, up 77% from a year earlier.
Auto exports have been on the rise, reflecting a surge in demand not only in China but in other geographies as well. Chinese auto manufacturers exported 39,500 cars, 49% higher than the previous month and 78% higher year on year, said Zhu Yiping, assistant secretary-general of the China Association of Automobile Manufacturers earlier this month.
U.S. manufacturers too are looking to cash in on this lucrative opportunity. General Motors expects to boost its annual sales in China to more than 3 million vehicles by 2015, GM China Group President Kevin Wale told the Wall Street Journal.
This opens up a tremendous opportunity for auto component manufacturers who are collectively benefiting from positive macro developments in the Chinese auto sector. Sorl Auto Parts(SORL), Wonder Auto Technology(WATG) and China Automotive Systems(CAAS) are three stocks that we believe are poised to ride this growth. These stocks are currently trading at forward price-to-earnings ratios of 12.85, 12.96, and 23.15%, respectively.
These stocks are trading at much lower valuations when compared with global peers like Dana Holding(DAN), Stoneridge(SRI), and ArvinMeritor(ARM), which are trading at 97.54, 30.42, and 43.98, respectively.
Sorl Auto Parts
SORL Auto Parts is a leading air brake valve manufacturing company based in China. The company conducts business through Rui'An Auto Parts, its Sino-foreign joint venture with Ruili Group, with the former holding 90% ownership. The company manufactures 40 different types of brake valves for more than 1,000 different specifications that are primarily sold to commercial vehicle manufacturers.
For the quarter ended December 2009, the company reported net sales of $41 million, a 63.3% increase over the same quarter of 2008. Net income grew by as much as 184.1% to $5 million, or 28 cents a share.
Titan Expands Goodyear Farm Tire OPTITRAC line
QUINCY, Ill.--(BUSINESS WIRE)--Goodyear Farm Tires made by Titan Tire Corporation has expanded its OPTITRAC™ line of radial agricultural farm tires. The OPTITRAC design features a self-cleaning tread action and an improved mold shape that helps create a smoother ride.
“We designed the OPTITRAC with a 25 percent deeper lug compared to conventional R-1 tires,” said Jeff Vasichek, vice president of sales and marketing. “This design provides for more aggressive traction in heavy-tillage applications. The new design also offers longer tread wear while the reinforced bead area helps the tractor withstand the forces of higher-torque applications and allows for increased loading.”
A 45-degree tread lug angle promotes more open space on the lugs for better cleaning and improved traction — especially on soft, moist soil. The lug configuration and mold shape was modified, helping to enhance handling and performance in the field and on the road. These design features also result in a smoother ride, thereby reducing operator fatigue.
“The OPTITRAC tire line was developed in concert with our original equipment manufacturers,” said Vasichek. “Tractors are becoming more high tech, and the OPTITRAC design meets the performance needs of modern tractors.”
OPTITRAC is ideal for heavy, wet soil conditions and is available in extra-wide flotation sizes for superior traction. Sizes include a DT800 for narrow row crops, DT806 with a standard 85 aspect ratio, DT812 with a 70 aspect ratio, DT818 with 65 aspect ratio, China Water Pump DT824 in larger volume 540 to 800mm widths, and a DT830 super large volume in 900mm and up widths.
The OPTITRAC line of tires also feature the modern global design desired by farmers today using state-of-the-art technology and thorough testing for durability and quality. Additional sizes will be introduced in the coming months.
“We designed the OPTITRAC with a 25 percent deeper lug compared to conventional R-1 tires,” said Jeff Vasichek, vice president of sales and marketing. “This design provides for more aggressive traction in heavy-tillage applications. The new design also offers longer tread wear while the reinforced bead area helps the tractor withstand the forces of higher-torque applications and allows for increased loading.”
A 45-degree tread lug angle promotes more open space on the lugs for better cleaning and improved traction — especially on soft, moist soil. The lug configuration and mold shape was modified, helping to enhance handling and performance in the field and on the road. These design features also result in a smoother ride, thereby reducing operator fatigue.
“The OPTITRAC tire line was developed in concert with our original equipment manufacturers,” said Vasichek. “Tractors are becoming more high tech, and the OPTITRAC design meets the performance needs of modern tractors.”
OPTITRAC is ideal for heavy, wet soil conditions and is available in extra-wide flotation sizes for superior traction. Sizes include a DT800 for narrow row crops, DT806 with a standard 85 aspect ratio, DT812 with a 70 aspect ratio, DT818 with 65 aspect ratio, China Water Pump DT824 in larger volume 540 to 800mm widths, and a DT830 super large volume in 900mm and up widths.
The OPTITRAC line of tires also feature the modern global design desired by farmers today using state-of-the-art technology and thorough testing for durability and quality. Additional sizes will be introduced in the coming months.
On the Auto Industry's 'Recovery'
Total Vehicle Sales coming in at over 11MM for April marks the 7th straight month above the 10MM mark, the second with an 11 handle and a marked improvement over the 9MM of April a year ago. Add to this the seasonally adjusted sales rate for 1Q10 of 11MM vehicles and you have what Jesse Toprak, an analyst for TrueCar Inc., calls “a full-blown recovery in the automotive industry.”
What has been good for the car makers has also been good for the auto-parts makers with American Axle (AXL) recently reporting a profit of $0.22 per share compared with a loss of $0.59 a share a year ago. AXL’s CFO, Michael Simonte attributed cuts made during the crisis for the swing to profitability saying:
We are seeing the results we expected after cutting our fixed costs by 50% over the past two years. We are optimistic about the improving economy, but we know it is fragile.
AXL sells 75% of what it makes to General Motors Co. which currently trades under the symbol MTLQQ.PK and is actually called Motors Liquidation Co. Most of us here in the States have seen MTLQQ’s CEO, Edward E. Whitacre, on TV talking about the firm’s resurgence. One of those ads has Ed boasting about the repayment of the TARP money to the government “five-years ahead of schedule”, and even our Treasury Secretary, Timothy Geithner, was recently heard saying
This continued progress is a positive sign for our auto industry – not only more funds recovered for the taxpayer, but also countless jobs saved and the successful stabilization of a vital industry for our country.
A closer look at the $4.7BN payment, however, reveals what Sen. Charles Grassley of Iowa called “nothing more than an elaborate TARP money shuffle”, with the funds coming not from MTLQQ’s earnings, but a Treasury escrow account. Senator Grassley believes the hoopla being made over the repayment is actually an attempt to divert attention away from another issue, that while MTLQQ will generate some of the biggest losses of any company that received TARP funds it won’t be required to pay what is being called the TARP tax. This tax is designed to help Uncle Sam recoup funds lost under the TARP plan, but in letting General Motors off the hook, the tax seems primarily focused at those other TARP recipients, the “Fat Cat Bankers” so rued by the populist media.
If General Motors is getting off easy due to “TARP shuffle” uncovered by Senator Grassley, then two questions come to mind. Doesn’t this make Geithner’s claim of “more funds recovered for the taxpayer” extremely misleading and since the UAW are now part owners of the rescued auto makers, doesn’t the loan “repayment” become, in effect, a tax-payer funded cash payment to one of the administration’s largest voting blocks? I’m not saying I know the anwer; I’m just asking the question.
Far away from the smoke and mirrors of D.C., the folks of Flora, Illinois, all 4,772 of them, are very happy to see the china clutch revival of the U.S. auto industry regardless of its source. Five-hundred-fifty of Flora’s family members were laid off when General Motors and Chrysler filed for bankruptcy last year. But, as the fortunes of those two companies reversed, so have the employment statistics in Flora, with 400 of those same folks being recently rehired.
In order for AXL’s Simonte to continue to be “optimistic about the improving economy”, it will take many more Flora’s to flourish again. Hopefully, as that happens, Mr. Toprak’s “full-blown recovery” will extend beyond the automotive industry.
What has been good for the car makers has also been good for the auto-parts makers with American Axle (AXL) recently reporting a profit of $0.22 per share compared with a loss of $0.59 a share a year ago. AXL’s CFO, Michael Simonte attributed cuts made during the crisis for the swing to profitability saying:
We are seeing the results we expected after cutting our fixed costs by 50% over the past two years. We are optimistic about the improving economy, but we know it is fragile.
AXL sells 75% of what it makes to General Motors Co. which currently trades under the symbol MTLQQ.PK and is actually called Motors Liquidation Co. Most of us here in the States have seen MTLQQ’s CEO, Edward E. Whitacre, on TV talking about the firm’s resurgence. One of those ads has Ed boasting about the repayment of the TARP money to the government “five-years ahead of schedule”, and even our Treasury Secretary, Timothy Geithner, was recently heard saying
This continued progress is a positive sign for our auto industry – not only more funds recovered for the taxpayer, but also countless jobs saved and the successful stabilization of a vital industry for our country.
A closer look at the $4.7BN payment, however, reveals what Sen. Charles Grassley of Iowa called “nothing more than an elaborate TARP money shuffle”, with the funds coming not from MTLQQ’s earnings, but a Treasury escrow account. Senator Grassley believes the hoopla being made over the repayment is actually an attempt to divert attention away from another issue, that while MTLQQ will generate some of the biggest losses of any company that received TARP funds it won’t be required to pay what is being called the TARP tax. This tax is designed to help Uncle Sam recoup funds lost under the TARP plan, but in letting General Motors off the hook, the tax seems primarily focused at those other TARP recipients, the “Fat Cat Bankers” so rued by the populist media.
If General Motors is getting off easy due to “TARP shuffle” uncovered by Senator Grassley, then two questions come to mind. Doesn’t this make Geithner’s claim of “more funds recovered for the taxpayer” extremely misleading and since the UAW are now part owners of the rescued auto makers, doesn’t the loan “repayment” become, in effect, a tax-payer funded cash payment to one of the administration’s largest voting blocks? I’m not saying I know the anwer; I’m just asking the question.
Far away from the smoke and mirrors of D.C., the folks of Flora, Illinois, all 4,772 of them, are very happy to see the china clutch revival of the U.S. auto industry regardless of its source. Five-hundred-fifty of Flora’s family members were laid off when General Motors and Chrysler filed for bankruptcy last year. But, as the fortunes of those two companies reversed, so have the employment statistics in Flora, with 400 of those same folks being recently rehired.
In order for AXL’s Simonte to continue to be “optimistic about the improving economy”, it will take many more Flora’s to flourish again. Hopefully, as that happens, Mr. Toprak’s “full-blown recovery” will extend beyond the automotive industry.
Auto supplier ArvinMeritor reports a 2Q profit
TROY, Mich. (AP) -- Auto supplier ArvinMeritor Inc. said Tuesday it made $13 million in the first three months of this year thanks to strong sales in emerging markets and increased commercial sales in North America and Europe.
The profit of 16 cents per share was the latest good news for suppliers, who were rattled by bankruptcies and the downturn in auto sales during the recession.
In the same quarter a year earlier, ArvinMeritor -- which is based in Troy, Mich., and makes axles, brakes, trailer systems and other parts -- lost $49 million, or 67 cents per share.
The company's revenue for its fiscal second quarter, which ended March 31, rose 25 percent to $1.2 billion.
Analysts surveyed by Thomson Reuters were expecting it to report earning 2 cents per share on revenue of $1.09 billion.
The company expects its third-quarter revenue to be flat,China shock absorber compared with a year earlier, and its profit income to drop slightly.
"We anticipate markets in Europe, South America and Asia Pacific to continue to strengthen, while the North American market may soften in the short term as a result of the emissions changeover and a lower demand for military products," President and CEO Chip McClure said in a statement.
ArvinMeritor said its commercial truck-related sales rose 31 percent to $458 million, but its trailer sales fell as the result of decreased business from military customers.
ArvinMeritor shares rose 10 cents to $15.93 in morning trading.
The profit of 16 cents per share was the latest good news for suppliers, who were rattled by bankruptcies and the downturn in auto sales during the recession.
In the same quarter a year earlier, ArvinMeritor -- which is based in Troy, Mich., and makes axles, brakes, trailer systems and other parts -- lost $49 million, or 67 cents per share.
The company's revenue for its fiscal second quarter, which ended March 31, rose 25 percent to $1.2 billion.
Analysts surveyed by Thomson Reuters were expecting it to report earning 2 cents per share on revenue of $1.09 billion.
The company expects its third-quarter revenue to be flat,China shock absorber compared with a year earlier, and its profit income to drop slightly.
"We anticipate markets in Europe, South America and Asia Pacific to continue to strengthen, while the North American market may soften in the short term as a result of the emissions changeover and a lower demand for military products," President and CEO Chip McClure said in a statement.
ArvinMeritor said its commercial truck-related sales rose 31 percent to $458 million, but its trailer sales fell as the result of decreased business from military customers.
ArvinMeritor shares rose 10 cents to $15.93 in morning trading.
2010年5月4日星期二
Bears Prey On Chinese Auto Parts Sector
Volatile sectors took it on the chin on Tuesday as Greek debt woes dragged equity benchmarks lower by more than -2%, and Chinese auto parts stocks were among laggards. As noted by Investors Business Daily, the segment hung in there yesterday despite news of another reserve requirement hike by the People's Bank of China, which is set to take effect next week. Today, however, shares are off sharply as traders seek safety in the dollar.
As a whole, the Chinese Auto Parts Stocks Index is off by -6% today. It remains 3.2% ahead of the S&P 500 over the past month.
Sorl Auto Parts (NASDAQ: SORL - News) and Wonder Auto Technology (NASDAQ: WATG - News) are leading the slide, falling -7%. Meanwhile, China Automotive Systems (NASDAQ: CAAS - News) has now fallen into negative territory over the past month.
China Yuchai International (NYSE: CYD - News) is the Index's only component to remain positive over the past five sessions, and Tongxin International (NASDAQ: TXIC - News) is the sector's laggard for the period, slipping by -9.5%.
As of this writing, the China instrument Stocks Index is one of two tickerspy Chinese sub-sector Indexes to remain positive over the past month. It will be interesting to see if bulls start to buy on the dip, or if a more substantial pullback is in store.
As a whole, the Chinese Auto Parts Stocks Index is off by -6% today. It remains 3.2% ahead of the S&P 500 over the past month.
Sorl Auto Parts (NASDAQ: SORL - News) and Wonder Auto Technology (NASDAQ: WATG - News) are leading the slide, falling -7%. Meanwhile, China Automotive Systems (NASDAQ: CAAS - News) has now fallen into negative territory over the past month.
China Yuchai International (NYSE: CYD - News) is the Index's only component to remain positive over the past five sessions, and Tongxin International (NASDAQ: TXIC - News) is the sector's laggard for the period, slipping by -9.5%.
As of this writing, the China instrument Stocks Index is one of two tickerspy Chinese sub-sector Indexes to remain positive over the past month. It will be interesting to see if bulls start to buy on the dip, or if a more substantial pullback is in store.
Good Quarter for ArvinMeritor
earned $15 million or 18 cents per share (before special items) during the second quarter of its fiscal year 2010, ended March 31, 2010. This was in stark contrast to a loss of $11 million or 15 cents per share (before special items) in the same quarter of last year. The result significantly outpaced the Zacks Consensus Estimate for a profit of 2 cents per share.
Sales in quarter improved 25% to $1.2 billion. EBITDA (adjusted) doubled to $64 million from the same period last year. The higher sales and earnings were attributed to the company's strong performance in emerging markets and enhanced commercial vehicle volumes in North America and Europe.
Segment Results
Sales in the Commercial Truck segment rose 31% to $458 million. EBITDA increased $43 million to $15 million due to higher sales. Sales in the Industrial segment inched up 9% to $248 million. EBITDA declined $17 million to $27 million as volumes of certain military programs declined.
Sales in the Aftermarket and Trailer segment slipped 5% to $238 million. EBITDA dipped $19 million to $17 million due to lower volumes of certain military programs.
Sales in the Light Vehicle Systems (LVS) segment, which will be divested by the end of 2010, shot higher by 51% to $339 million. EBITDA increased $25 million to $8 million due to higher sales and positive impact from cost-cutting measures.
Financial Position
ArvinMeritor had cash and cash equivalents of $274 million as of March 31, 2010. Long-term debt amounted to $1.03 billion as of that date. The company had a shareholder deficit of $877 million as of the same period.
In the first half of fiscal year 2010, ArvinMeritor's operating cash flow improved to $100 million, compared to an outflow of $402 million, primarily due to power equipment higher income. Capital expenditures reduced to $42 million from $72 million in the year-ago period.
Sales in quarter improved 25% to $1.2 billion. EBITDA (adjusted) doubled to $64 million from the same period last year. The higher sales and earnings were attributed to the company's strong performance in emerging markets and enhanced commercial vehicle volumes in North America and Europe.
Segment Results
Sales in the Commercial Truck segment rose 31% to $458 million. EBITDA increased $43 million to $15 million due to higher sales. Sales in the Industrial segment inched up 9% to $248 million. EBITDA declined $17 million to $27 million as volumes of certain military programs declined.
Sales in the Aftermarket and Trailer segment slipped 5% to $238 million. EBITDA dipped $19 million to $17 million due to lower volumes of certain military programs.
Sales in the Light Vehicle Systems (LVS) segment, which will be divested by the end of 2010, shot higher by 51% to $339 million. EBITDA increased $25 million to $8 million due to higher sales and positive impact from cost-cutting measures.
Financial Position
ArvinMeritor had cash and cash equivalents of $274 million as of March 31, 2010. Long-term debt amounted to $1.03 billion as of that date. The company had a shareholder deficit of $877 million as of the same period.
In the first half of fiscal year 2010, ArvinMeritor's operating cash flow improved to $100 million, compared to an outflow of $402 million, primarily due to power equipment higher income. Capital expenditures reduced to $42 million from $72 million in the year-ago period.
Shanghai, Hong Kong Put In Small Declines
Don't be lulled by the modest dips Tuesday in the Shanghai and Hong Kong stock indexes. Those markets haven't yet had the chance to react to the dreadful sell-offs suffered in Europe and North America bourses.
The Shanghai composite fell 1.2%, and Hong Kong's Hang Seng dipped just 0.2%. A survey from HSBC Holdings showed that China's factory activity grew in April, but at a slower pace than that seen in March.
HSBC's results differ from those seen in a government survey, which focuses more on bigger companies.
View Enlarged ImageAlso, after staying shut Monday for a holiday, Shanghai on Tuesday got its first chance to react to the central bank's hike of the bank reserve requirement.
The action, announced Sunday and slated to take effect May 10, is Beijing's effort to rein in the hot loans that are fueling a real-estate asset bubble. It forces banks to set aside a larger portion of deposits as cash, leaving less for lending.
Tighter credit, even from an absurdly free-and-easy posture, can send stocks reeling.
China's stocks, another market that Beijing doesn't want to see become a bubble, got hit with news Monday that Australia's government will move ahead on its plans for a 40% supertax on miners.
Shanghai, Hong Kong Tractor partsand the rest of the Asia-Pacific region now must brace for the storm that will hit their markets Wednesday.
This column has been scrutinizing China's auto industry, and the auto parts makers that are thriving in the world's biggest and fastest-growing vehicle market.
Fawne Jiang, a China auto analyst with investment bank Brean Murray, Carret & Co. is bullish on the sector and names three stocks on the top of her list. They are:
China Automotive Systems (CAAS), a maker of power-steering systems and other components. It's a member of the IBD 100.
SORL Auto Parts (SORL), a maker of air-brake valves, mostly for trucks and buses.
Wonder Auto Technology (WATG), a maker of alternators, starters and other electrical components.
None of these three could escape Tuesday's carnage. China Auto and Wonder fell 7% and 6% respectively, while Sorl dropped 9%.
Wonder Auto, writes Jiang in an April 8 research note, has "been able to defend and increase its market share through its strong execution." Look for Wonder to expand through acquisitions, Jiang says.
Wonder's sales accelerated the past four quarters, from 15% to 28% to 35% to 50% to 83%. Earnings rose 67% in Q4, after two straight flat readings.
But Wonder is a low-priced small-cap stock without the sort of sponsorship you want to see.
The Shanghai composite fell 1.2%, and Hong Kong's Hang Seng dipped just 0.2%. A survey from HSBC Holdings showed that China's factory activity grew in April, but at a slower pace than that seen in March.
HSBC's results differ from those seen in a government survey, which focuses more on bigger companies.
View Enlarged ImageAlso, after staying shut Monday for a holiday, Shanghai on Tuesday got its first chance to react to the central bank's hike of the bank reserve requirement.
The action, announced Sunday and slated to take effect May 10, is Beijing's effort to rein in the hot loans that are fueling a real-estate asset bubble. It forces banks to set aside a larger portion of deposits as cash, leaving less for lending.
Tighter credit, even from an absurdly free-and-easy posture, can send stocks reeling.
China's stocks, another market that Beijing doesn't want to see become a bubble, got hit with news Monday that Australia's government will move ahead on its plans for a 40% supertax on miners.
Shanghai, Hong Kong Tractor partsand the rest of the Asia-Pacific region now must brace for the storm that will hit their markets Wednesday.
This column has been scrutinizing China's auto industry, and the auto parts makers that are thriving in the world's biggest and fastest-growing vehicle market.
Fawne Jiang, a China auto analyst with investment bank Brean Murray, Carret & Co. is bullish on the sector and names three stocks on the top of her list. They are:
China Automotive Systems (CAAS), a maker of power-steering systems and other components. It's a member of the IBD 100.
SORL Auto Parts (SORL), a maker of air-brake valves, mostly for trucks and buses.
Wonder Auto Technology (WATG), a maker of alternators, starters and other electrical components.
None of these three could escape Tuesday's carnage. China Auto and Wonder fell 7% and 6% respectively, while Sorl dropped 9%.
Wonder Auto, writes Jiang in an April 8 research note, has "been able to defend and increase its market share through its strong execution." Look for Wonder to expand through acquisitions, Jiang says.
Wonder's sales accelerated the past four quarters, from 15% to 28% to 35% to 50% to 83%. Earnings rose 67% in Q4, after two straight flat readings.
But Wonder is a low-priced small-cap stock without the sort of sponsorship you want to see.
Auto-Parts Makers Rev Profits
There's a lot of confidence, and in some cases even a little swagger, coming from U.S. suppliers to global auto makers these days.
After two very lean years that saw sales plunge and bankruptcies sweep the industry, rejuvenated sales and production rates—U.S. auto sales were up 20% in April—are forging higher profits for auto-parts suppliers.
Compared to record-low production levels in early 2009, China motocross this year's first quarter was "a blowout," BorgWarner Inc. finance chief Robin Adams crowed last week. "You know, if there was a slaughter rule in the auto industry for year-over-year production performance, it would have been invoked ...
After two very lean years that saw sales plunge and bankruptcies sweep the industry, rejuvenated sales and production rates—U.S. auto sales were up 20% in April—are forging higher profits for auto-parts suppliers.
Compared to record-low production levels in early 2009, China motocross this year's first quarter was "a blowout," BorgWarner Inc. finance chief Robin Adams crowed last week. "You know, if there was a slaughter rule in the auto industry for year-over-year production performance, it would have been invoked ...
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