Auto-Parts Makers Rev Profits; Suppliers of Power Trains, Axles, and Piston Rings Predict Improving Gains

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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 rose 20% in April--are forging higher profits for auto-parts suppliers.

Compared to record-low production levels in early 2009, 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 in the first quarter," Mr. Adams said, referring to the gains.

BorgWarner's first-quarter sales were up 57% from a year ago and 7% from the fourth quarter. The company's improved earnings resulted from increased global demand, higher volumes and the ever-present "cost control," Chief Executive Timothy Manganello noted.

BorgWarner is just one of a host of auto suppliers enjoying the profit revival. ArvinMeritor Inc. Tuesday posted a profit of $13 million compared with last year's $49 million loss; sales climbed 25% to $1.21 billion. Federal-Mogul Corp. had income of $15 million after losing $101 million in last year's first quarter; sales jumped 20% to $1.49 billion. Johnson Controls Inc. last week said sales rose 32% and income climbed to $274 million, compared with a $193 million loss a year ago.

ArvinMeritor cited strength in emerging markets and a "slight improvement" in commercial vehicle volume in Europe. But it's seeing general improvement across its markets. "We're beginning to see a good upwards sales trend across all our markets," CEO Charles McClure said Tuesday. "South America's booming, India is back, China's at record levels, North America's steady and Europe is beginning to turn around."

With strong production at car makers in Europe and North America, Johnson Controls CEO Stephen Roell said the company is "convinced that those trends will continue into the second half of the year." BorgWarner's Mr. Manganello is also optimistic, saying the company's improved outlook for 2010 "reflects our view that volumes will continue to recover" this year.

One tangible gauge of increased vigor is capacity utilization. BorgWarner's Mr. Manganello estimated the company's utilization rate at 85% during the quarter, with some product lines "maybe even over 100%." By comparison, in the hard-hit building materials business, wallboard manufacturing capacity was still estimated to be around 50%.

Amid the strong results compared to a year ago, some suppliers are maintaining a somewhat more careful view. Johnson Controls finance chief Bruce McDonald said routine summer shutdowns will lower auto production in the second half of the year. American Axle & Manufacturing Holdings Inc. CFO Michael Simonte said it "is prepared for a gradual economic recovery."

American Axle & Manufacturing Holdings Inc. finance chief Michael Simonte said the company estimates U.S. light vehicle sales this year at 11 million to 11.5 million at a seasonally adjusted annual rate. "While a bit lower than many of your U.S. SAAR estimates," Mr. Simonte told analysts on a conference call Friday, "we are happy to be conservative in our planning." AmericanAxle is "prepared for a gradual economic recovery," he added.

Earnings -- The Upshot: Auto-Parts Makers Rev Profits

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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, 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 in the first quarter," Mr. Adams said, referring to the gains.

BorgWarner's first-quarter sales were up 57% from a year ago and 7% from the fourth quarter. The company's improved earnings resulted from increased global demand, higher volumes and the ever-present "cost control," Chief Executive Timothy Manganello noted.

BorgWarner is just one of a host of auto suppliers enjoying the profit revival. ArvinMeritor Inc. Tuesday posted a profit of $13 million, compared with last year's $49 million loss; sales climbed 25% to $1.21 billion. Federal-Mogul Corp. had net income of $15 million after losing $101 million in last year's first quarter; sales jumped 20% to $1.49 billion. Johnson Controls Inc. last week said sales rose 32% and profit revived to $274 million, compared with a $193 million loss a year ago.

ArvinMeritor cited strength in emerging markets and a "slight improvement" in commercial vehicle volume in Europe. But it's seeing general improvement across its markets. "We're beginning to see a good upwards sales trend across all our markets," CEO Charles McClure said Tuesday. "South America's booming, India is back, China's at record levels, North America's steady and Europe is beginning to turn around."

With strong production at car makers in Europe and North America, Johnson Controls CEO Stephen Roell said the company is "convinced that those trends will continue into the second half of the year." BorgWarner's Mr. Manganello is also optimistic, saying the company's improved outlook for 2010 "reflects our view that volumes will continue to recover" this year.

One tangible gauge of increased vigor is capacity utilization. Mr. Manganello estimated BorgWarner's utilization rate at 85% during the quarter, with some product lines "maybe even over 100%." By comparison, in the hard-hit building-materials business, wallboard manufacturing capacity was still estimated to be around 50%.

Amid the strong results compared with a year ago, some suppliers are maintaining a more careful view. Johnson Controls finance chief Bruce McDonald said routine summer shutdowns will lower auto production in the second half of the year. American Axle & Manufacturing Holdings Inc.'s chief financial officer, Michael Simonte, said it "is prepared for a gradual economic recovery."

Auto-Parts Makers Rev Profits; Suppliers of Power Trains, Axles and Piston Rings Predict Improving Gains

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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, 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 in the first quarter," Mr. Adams said, referring to the gains.

BorgWarner's first-quarter sales were up 57% from a year ago and 7% from the fourth quarter. The company's improved earnings resulted from increased global demand, higher volumes and the ever-present "cost control," Chief Executive Timothy Manganello noted.

BorgWarner is just one of a host of auto suppliers enjoying the profit revival. ArvinMeritor Inc. Tuesday posted a profit of $13 million, compared with last year's $49 million loss; sales climbed 25% to $1.21 billion. Federal-Mogul Corp. had net income of $15 million after losing $101 million in last year's first quarter; sales jumped 20% to $1.49 billion. Johnson Controls Inc. last week said sales rose 32% and profit revived to $274 million, compared with a $193 million loss a year ago.

ArvinMeritor cited strength in emerging markets and a "slight improvement" in commercial vehicle volume in Europe. But it's seeing general improvement across its markets. "We're beginning to see a good upwards sales trend across all our markets," CEO Charles McClure said Tuesday. "South America's booming, India is back, China's at record levels, North America's steady and Europe is beginning to turn around."

With strong production at car makers in Europe and North America, Johnson Controls CEO Stephen Roell said the company is "convinced that those trends will continue into the second half of the year." BorgWarner's Mr. Manganello is also optimistic, saying the company's improved outlook for 2010 "reflects our view that volumes will continue to recover" this year.

One tangible gauge of increased vigor is capacity utilization. Mr. Manganello estimated BorgWarner's utilization rate at 85% during the quarter, with some product lines "maybe even over 100%." By comparison, in the hard-hit building-materials business, wallboard manufacturing capacity was still estimated to be around 50%.

Amid the strong results compared with a year ago, some suppliers are maintaining a somewhatmore careful view. Johnson Controls finance chief Bruce McDonald said routine summer shutdowns will lower auto production in the second half of the year. American Axle & Manufacturing Holdings Inc.'s chief financial officer, Michael Simonte, said it "is prepared for a gradual economic recovery."

American Axle & Manufacturing Holdings Inc. finance chief Michael Simonte said the company estimates U.S. light vehicle sales this year at 11 million to 11.5 million at a seasonally adjusted annual rate. "While a bit lower than many of your U.S. SAAR estimates," Mr. Simonte told analysts on a conference call Friday, "we are happy to be conservative in our planning." AmericanAxle is "prepared for a gradual economic recovery," he added.

SORL Auto Parts Schedules Fiscal Year 2010 First Quarter Earnings Release and Conference Call

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ZHEJIANG, China, May 5 /PRNewswire-Asia-FirstCall/ -- SORL Auto Parts, Inc. (Nasdaq: SORL; "SORL" or "The Company"), a leading manufacturer and distributor of commercial vehicle air brake systems as well as related auto parts in China, today announced that it plans to release its financial results for the fiscal year 2010 first quarter on Friday, May 14, 2010, before the market opens.

Management will host a conference call at 8:00 am EDT, on Friday, May 14, 2010 to discuss its first quarter financial results. Listeners may access the call by dialing # 1-877-407-0778 or # 1-201-689-8565 for overseas callers. A live webcast of the conference call will also be available at www.sorl.cn .

A reply of the call will be available shortly following the conclusion of the earnings call until May 21, 2010. Listeners may access the replay by dialing # 1-877-660-6853 or # 1-201-612-7415 for overseas callers; account: 286; conference ID: 350399.

SORL Auto Parts, Inc.

As China's leading manufacturer and distributor of automotive air brake systems and other related auto parts. SORL Auto Parts, Inc. ranked No. 1 for market share in the segment for commercial vehicles, such as trucks and buses. The Company distributes products both within China and internationally under the SORL trademark. SORL is listed among the top 100 auto component suppliers in China, with a product range that includes 40 categories with over 1000 specifications in air brake system, air controlling system and others. The Company has four authorized international sales centers in Australia, UAE, India, and the United States. SORL is working to establish a broader global sales network. For more information, please visit www.sorl.cn .

Connecticut Post, Bridgeport, MariAn Gail Brown column: Swept up in the bombing probe through no fault of their own

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May 5--The foreboding "BEWARE OF DOG" sign on the screen door outside Peggy Colas' house in Bridgeport has no effect on the media hounds that show up. They arrive one after the other and knock on the door. Nobody answers. So, the journalists do the next best thing: They leave their business cards and notes, asking her to call them.

Fat chance Colas will. All she did was unload a used, slightly rusted 1993 Nissan Pathfinder on a willing buyer -- Faisal Shahzad, a financial analyst -- who paid $1,300 in cash. How was she to know that someone would park the car in Times Square with a time bomb inside? And, that the meek and otherwise unremarkable Shahzad would be accused of carrying out the failed car-bomb attack?

"Hello...Who is this?" Colas whispers into her cell phone. Perhaps, she's barricaded in her house. "How did you get this number?" she demands. Colas doesn't say she won't talk to the reporter on the other line. She just disconnects the line, leaving the caller wondering if Colas has crossed into some cellular dead zone.

When the same thing happens two more times, however, the answer is clear. She doesn't want to say anything beyond what she's already told federal investigators, that she posted a for-sale notice on the Internet and Shahzad came, test drove and bought the SUV. Period. End of story.

In the first 48 hours since the SUV was abandoned in one of New York City's most popular tourist meccas, scores of ordinary folks like Colas, a 19-year-old college student from Bridgeport; Wayne LeBlanc, the owner of Kramer's Used Auto Parts in Stratford; and Tom Manis, owner of Thomas Anthony Auto Sales in Bridgeport, have found themselves pulled into a terror investigation and thrust into the media spotlight through no wrong-

doing of their own.

Each of them cooperated with law enforcement. But none of them were prepared for the media feeding frenzy that always follows a high-profile case. They are not enjoying their proverbial 15 minutes of fame. Over time, celebrities build up a tolerance to this attention. Not so with your ordinary Joes minding their own business.

"I've spent all of the past couple of days fielding calls from friends and the media, explaining that these plates that were on that SUV were stolen from a pickup truck and that Kramer's has no culpability whatsoever," says Norman LeBlanc, whose son, Wayne, owns Kramer's.

"There are people out there who will think the business is connected to a terrorism group. This is extremely embarrassing. We were never suspects," LeBlanc says. "We have nothing to do with what's happened. We're just victims like anybody else."

At Thomas Anthony Auto Sales, Tom Manis found it impossible to get any work accomplished the day after he showed the FBI his sales records on the Nissan Pathfinder connected to the thwarted Times Square car bomb attempt. When reporters and camera crews descended hours later, he says, he understood why they came to him for answers.

"The police and other officials weren't telling them anything," Manis says. "Once, they found out I had some information, they wanted to hear it. Some of them couldn't wrap their brains around the idea that an SUV we sold years ago could be resold. So, I had to draw flow charts with lines all around."

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