UPDATE: Moody's Lifts Outlook For European Auto-Parts Suppliers
15 Settembre 2010 - 10:55AM
Dow Jones News
Ratings agency Moody's Investors Service Wednesday lifted its
outlook for European auto-parts makers to stable from negative as
the companies successfully streamlined costs to prepare for the
widely expected market slowdown in coming months.
"Moody's believes that measures recently implemented to reduce
costs and adjust operations are far reaching and will more than
offset a likely slowdown in European car production," analyst
Rainer Neidnig said in a statement.
The outlook refers to Moody's expectations for the industry's
fundamental credit conditions over the next 12 to 18 months.
Additionally, Moody's raised its forecast for European car
production. It now expects a low single-digit increase in
production volumes for 2010, driven by a strong first half of the
year. Moody's previously had anticipated that car production
volumes would decline by 3% year-on-year in 2010.
"Moody's still expects the phase out of government-sponsored
scrapping schemes to have a negative impact on car production
volumes in Europe, leading them to decline by approximately 10% in
(the second half of) 2010," Neidnig said. "However, we believe
these incentive-induced market distortions will taper off by the
end of 2010, and that output volumes will largely be flat in 2011,"
he added.
Moody's said it expects the temporary decline in European car
production to be mitigated by a positive mix effect through a
greater share of larger and more profitable cars as well as solid
exports.
Moody's views a significant deterioration in the overall
economic environment as the biggest potential threat to the
industry. "Although concerns about the downside risk have recently
heightened, we believe that such a significant economic
deterioration is still unlikely to occur," Neidnig said.
Auto makers and their suppliers were hard hit by sharply
contracting demand for cars and trucks last year. But sales volumes
recovered faster than expected in recent months, fueled by soaring
demand in China.
-By Christoph Rauwald, Dow Jones Newswires; +49 69 29 725 512;
christoph.rauwald@dowjones.com
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