Ever-expanding inventory massive US auto stocks weighed on stock prices Published: 2004-3-5 8:09:52 Source: People's Daily - International Finance News Author: Wang Yi Ni compile February 23, Detroit's two biggest carmaker General , Ford and parts manufacturing companies Delphi, Visteen Group's stock price plummeted, due to veteran automotive analysts said "there are too many pickups and SUVs are still in the hands of dealers," thereby reducing its profit for the second quarter expected. "Although there are growth factors, because the sales volume is far lower than the planned amount, the amount of inventory has continued to expand." Analyst Gary Lapidus said in his report on Monday. As a result, he lowered his profit forecast for the second quarter, involving General Motors, Ford, Delphi and the Visteen Group. He also lowered the full-year profit assessment of the aforementioned companies (except GM). Investors seem to react quickly to this, immediately throwing out a large number of these four major manufacturers and parts manufacturing companies involved in the Detroit manufacturer's stock. Earlier this year, Detroit automakers, including the Chrysler Group, are expected to sell more than 17 million cars and light trucks in 2004 based on the economic growth of about 4%. “But in January, dealers expect to have 16.1 million sales this year, and there will not be any improvement in February – 16.2 million,†said Lapidus. "Part of the reason is that this year's economy is overly optimistic," said Moritz, a former chief economic analyst at the American International Trade Association. "This year's economic increase is estimated to be 3.6%." The US economic growth last year benefited from President Bush. The tax was reduced, but it did not exert its inertial effect, because most Americans buy goods from abroad, and these imported products are extremely cheap, such as produced in China, Japan and so on. "The relevant monetary policies of these countries are undoubtedly a major blow to President Bush's taxation policy," Moritz said. "The economic performance in the coming year should be even." Such a huge amount of light truck stocks is indeed a warning, plus Japan’s newly provided Nissan Titan, such as that made in Mississippi, is even worse, Moritz said. He expects 100,000 light Titans to cut Ford’s nearly $1 billion in profits each year. If we consider the impact of competition again, this is comparable to what Leptis expects - Ford's sales of 900,000 F-series pickups will be equivalent to a loss of 900 million U.S. dollars a year. The same thing will happen to GM, Chrysler or even Toyota (which sold 101,000 Tundras last year). Affected by the stock prices of the US auto giants on February 23, the entire stock market performed flat. February 23 was the hardest day for local auto makers: General Motors fell by $1 per share, a decrease of 2.06% to close at $47.51; Ford's share price fell by $0.19 per share, a decrease of 1.34% to close at $13.98; Delphi Group, this General Motors' original parts supplier also fell 0.12 US dollars, a decrease of 1.15%, closing at 0.27 US dollars; Visteen, Ford's parts supplier, fell 0.44 US dollars per share, a decrease of 3.95%, closing at 10.7 US dollars. Japanese and German car manufacturers benefited from it. Honda Group led the way in the US stock market, rising by 0.24 US dollars per share, up 1.11%, to close at 21.84 US dollars; Toyota Group also performed well in the US stock market, rising 0.36 US dollars per share, up 0.52%, closing at 69.42 The US dollar; Dyke shares rose 3.29 US dollars, up 0.64%, to close at 45.56 US dollars. Investors have always paid close attention to the company's future profits. Lapadis's expectation of profit—a key factor affecting the manufacturer’s revenues—is bound to influence investor behavior. "Although they can reduce planned production in the first quarter, it seems unlikely, because the three major car giants are extremely cautious about this. It is very likely that the second quarter will be adjusted appropriately." Murray Nickname.
Inventories continue to inflate huge inventory to suppress U.S. car stock prices
Ever-expanding inventory massive US auto stocks weighed on stock prices Published: 2004-3-5 8:09:52 Source: People's Daily - International Finance News Author: Wang Yi Ni compile February 23, Detroit's two biggest carmaker General , Ford and parts manufacturing companies Delphi, Visteen Group's stock price plummeted, due to veteran automotive analysts said "there are too many pickups and SUVs are still in the hands of dealers," thereby reducing its profit for the second quarter expected. "Although there are growth factors, because the sales volume is far lower than the planned amount, the amount of inventory has continued to expand." Analyst Gary Lapidus said in his report on Monday. As a result, he lowered his profit forecast for the second quarter, involving General Motors, Ford, Delphi and the Visteen Group. He also lowered the full-year profit assessment of the aforementioned companies (except GM). Investors seem to react quickly to this, immediately throwing out a large number of these four major manufacturers and parts manufacturing companies involved in the Detroit manufacturer's stock. Earlier this year, Detroit automakers, including the Chrysler Group, are expected to sell more than 17 million cars and light trucks in 2004 based on the economic growth of about 4%. “But in January, dealers expect to have 16.1 million sales this year, and there will not be any improvement in February – 16.2 million,†said Lapidus. "Part of the reason is that this year's economy is overly optimistic," said Moritz, a former chief economic analyst at the American International Trade Association. "This year's economic increase is estimated to be 3.6%." The US economic growth last year benefited from President Bush. The tax was reduced, but it did not exert its inertial effect, because most Americans buy goods from abroad, and these imported products are extremely cheap, such as produced in China, Japan and so on. "The relevant monetary policies of these countries are undoubtedly a major blow to President Bush's taxation policy," Moritz said. "The economic performance in the coming year should be even." Such a huge amount of light truck stocks is indeed a warning, plus Japan’s newly provided Nissan Titan, such as that made in Mississippi, is even worse, Moritz said. He expects 100,000 light Titans to cut Ford’s nearly $1 billion in profits each year. If we consider the impact of competition again, this is comparable to what Leptis expects - Ford's sales of 900,000 F-series pickups will be equivalent to a loss of 900 million U.S. dollars a year. The same thing will happen to GM, Chrysler or even Toyota (which sold 101,000 Tundras last year). Affected by the stock prices of the US auto giants on February 23, the entire stock market performed flat. February 23 was the hardest day for local auto makers: General Motors fell by $1 per share, a decrease of 2.06% to close at $47.51; Ford's share price fell by $0.19 per share, a decrease of 1.34% to close at $13.98; Delphi Group, this General Motors' original parts supplier also fell 0.12 US dollars, a decrease of 1.15%, closing at 0.27 US dollars; Visteen, Ford's parts supplier, fell 0.44 US dollars per share, a decrease of 3.95%, closing at 10.7 US dollars. Japanese and German car manufacturers benefited from it. Honda Group led the way in the US stock market, rising by 0.24 US dollars per share, up 1.11%, to close at 21.84 US dollars; Toyota Group also performed well in the US stock market, rising 0.36 US dollars per share, up 0.52%, closing at 69.42 The US dollar; Dyke shares rose 3.29 US dollars, up 0.64%, to close at 45.56 US dollars. Investors have always paid close attention to the company's future profits. Lapadis's expectation of profit—a key factor affecting the manufacturer’s revenues—is bound to influence investor behavior. "Although they can reduce planned production in the first quarter, it seems unlikely, because the three major car giants are extremely cautious about this. It is very likely that the second quarter will be adjusted appropriately." Murray Nickname.