JAPANESE AUTOPARTS MAKERS CUT FY08 OUTLOOKS ON WEAK DEMAND

Thu. November 06, 2008; Posted: 10:33 PM

TOKYO, Nov 07, 2008 (AsiaPulse via COMTEX) -- HMC | Quote | Chart | News | PowerRating -- Keihin Corp. (TSE:7251) and Yorozu Corp. (TSE:7294) are among the ranks of autoparts manufacturers to have lowered their estimates for fiscal 2008 in the wake of slumped sales at carmakers.

Keihin, which sells the bulk of its fuel injectors to Honda Motor Co. (TSE:7267), said Thursday that it expects group net profit to plunge 51 per cent on the year to 5.5 billion yen (US$56.21 million). With Honda's passenger car sales falling on slumping demand in North America, Keihin has downgraded its forecast by 4.5 billion yen. It will also book an extraordinary loss of some 5.9 billion yen due to a domestic recall of faulty fuel pumps.

The manufacturer sees sales slipping 3 per cent to 329.1 billion yen. On top of stiff competition in the U.S. and Europe, demand is also falling in emerging markets, such as India and China. In Indonesia and elsewhere, motorcycle parts sales are rising, but operating profit is expected to sink 21 per cent to 18.9 billion yen because of the strong yen.

Lopping 500 million yen off a forecast made October 1, Yorozu predicts that net profit will tank 58 per cent to 2.28 billion yen. In the wake of sharply declining North American sales at Nissan Motor Co. (TSE:7201), Yorozu has been hurt by faltering demand for suspension parts. It will also book a valuation loss on its shareholdings in the October-March period.

Sales are seen creeping up 1 per cent to 120.1 billion yen. Blaming poor sales at Nissan and General Motors Corp., Yorozu will suspend operations at a U.S. plant next month.

Ten or so autoparts makers have recently revised down their full-year outlooks, including oil seal producer NOK Corp. (TSE:7240), auto lighting maker Koito Mfg. Co. (TSE:7276), Akebono Brake Industry Co. (TSE:7238) and shock absorber manufacturer Showa Corp. (TSE:7274).

(Nikkei)

For full details on Honda Motor Co. Ltd. ADS (HMC) click here. Honda Motor Co. Ltd. ADS (HMC) has Short Term PowerRatings of 7. Details on Honda Motor Co. Ltd. ADS (HMC) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.