LONDON, January 18, 2013 /PRNewswire/ --
For companies in
the auto parts industry the recent economic rebound has been a
boon. As consumer confidence starts to recover and people begin to
loosen their purse, StockCall has initiated technical coverage on
Dana Holding Corporation (NYSE: DAN) and American Axle &
Manufacturing Holdings Inc. (NYSE:AXL). These free reports can be
accessed upon registration to
http://www.stockcall.com/register
Americans have been putting off buying new cars during recession
lows. However, this trend looks to be gradually changing as U.S.
households are now estimated to be at their financially strongest
in a decade as unemployment has lowered and housing values have
risen. Furthermore, the average age of cars on the road has risen
to a record 11 years, and it seems pent-up demand drove up annual
car sales by 10 percent in 2012 and some estimate that 2013 will
see sales of over $15 million.
Moving forward, automakers are reportedly planning a slew of new
or redesigned models for 2013 as they look to take advantage of the
positive momentum. Some estimate that as many as 61 new choices are
slated to hit showrooms this year, around 50 percent more than last
year. While the climbing demand and rising production plans are
positives, some fear that it could challenge auto parts suppliers,
like Dana Holding, which were forced
to cut back drastically during the recession. Many suppliers could
be guarded or reluctant to boost their manufacturing or engineering
capacity. Dana has recently anticipated that 2012 sales could be at
the low end of its projections mainly impacted by feeble commercial
vehicle parts demand. The company which had seen its third quarter,
2012 earnings drop drastically on soft commercial sales, now
estimates its 2013 results would most probably not meet market
expectations. For 2013, auto part maker Dana is expecting full year
adjusted earnings of $1.88 to
$1.95 per share on revenue of about $7.1 billion. Our report on Dana Holding can be downloaded at
http://www.StockCall.com/DAN011813.pdf
Many auto parts companies are preparing to release their
quarterly results in February and it will be interesting to see how
they have fared. American Axle & Manufacturing Holdings Inc.
[Free Technical Report on AXL](1) announced that it will
be releasing its earnings on February 8,
2013 pre-market. The maker of axles and crankshafts saw its
most recent quarterly sales surge by 8.5% but posted losses on the
back of restructuring and debt refinancing costs and elevated costs
from releases of new products. Whilst American Axle relies heavily
on auto maker giant General motors, sales on its other segments
non-dependent on GM were up 14% in its last reported quarter. The
company anticipates its full year sales in 2012 to be around
$2.9 billion, representing a near
13.5% rise as compared to the full year 2011. For 2013, the company
projects full year sales to be around $3.2
billion basing its sales estimate on the anticipated launch
schedule of programs in AAM's new and incremental business backlog
and the assumption that the U.S. Seasonally Adjusted Annual Rate of
sales ("SAAR") will increase from approximately 14.5 million
vehicle units in 2012 to approximately 15.0 million vehicle units
in 2013.
Although the U.S. has been putting forth booming figures,
commercial vehicles have not been showing the same growth and
Europe remains a drag.
Footer:
- American Axle & Manufacturing Holdings Inc. Technical
Analysis [
http://www.StockCall.com/AmericanAxle&ManufacturingHoldingsInc011813.pdf
]
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