Himanshu Patel
Himanshu Patel
beyond company cost details extent favorable goals guidance limited material offered performance plant savings specific structural timing
Beyond guidance for favorable structural cost performance in 2006, and details on material cost savings goals, no specific guidance on the extent or cadence of structural cost savings was given. In addition, the company offered only limited details on the timing of plant actions.
admittedly ahead given performance potential recent reluctant weak
While fundamentals are admittedly weak, given the stock's weak recent performance, we are reluctant to get incrementally bearish, particularly ahead of a potential restructuring announcement.
aggressive continue cycle due favour ford gm product
That said, we continue to favour GM over Ford due to the former's more favourable 2006 product cycle and its more aggressive restructuring approach.
aggressive continue cycle due favor favorable ford gm product
That said, we continue to favor GM over Ford due to the former's more favorable 2006 product cycle and its more aggressive restructuring approach.
expect ford gm notable pickup segment share
We expect GM to take notable share from Ford in the full-size pickup segment in 2006 and, particularly, in 2007.
billion cash corporate largely light robust sale
We see a $US2 billion cash injection as meaningful, even in light of GM's robust corporate liquidity. This sale was largely unanticipated by the market.
billion cash corporate largely light robust sale
We see a $2 billion cash injection as meaningful, even in light of GM's robust corporate liquidity. This sale was largely unanticipated by the market.
european high markets material prices pricing provide raw remains tire truck weak
While tire pricing remains strong, high raw material prices and potentially weak high-margin markets (North American and European replacement truck tire markets) could provide offsets.
assuming cent estimate hit lost note overtime plants production running variable via
Assuming $8,000 variable contribution margin/unit, we estimate this translates into an earnings-per-share hit of 1 cent for every day of lost production. However, we also note that much of this lost production could be made up via overtime production once the plants are up and running again.
avoiding further interest labor likely points resolution sale sticking
One of the likely sticking points in the pending sale of GMAC may well be resolution on Delphi, further emphasizing GM's interest in avoiding a labor dispute.
agree bargaining difficult
It should not be difficult to agree on the bargaining points.
although becoming ford north pace production upbeat worry
Although we are becoming more upbeat on the pace of restructuring, we worry about Ford North American production outlook, particularly in 2007.
although believe demise further move sentiment speed toward
Although such a move has been rumored for some time, we believe the speed of Dana's demise will nonetheless further dampen sentiment toward the sector.
although auto demise further move sentiment speed toward
Although such a move has been rumored for some time, the speed of Dana?s demise will further dampen sentiment toward the auto industry.