We are not that surprised that the company guided down for the first quarter given their previously announced weak production schedules. However, we are surprised by the magnitude of the first-quarter and 2005 revision, which suggests the further risk to production schedules in future periods.
More Quotes from Himanshu Patel:
Although such a move has been rumored for some time, the speed of Danas demise will further dampen sentiment toward the auto industry.Himanshu Patel
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.
Himanshu Patel
The company's specificity on 2006 cost targets ... is likely to reassure the market, and heightens our belief that the company will see a meaningful earnings rebound in 2006.
Himanshu Patel
We think GM will see it as more of an opportunity than a risk to assist in a Delphi bailout, as it will likely be able to extract sizable UAW health care concessions in return,
Himanshu Patel
We continue to believe TRW should benefit from growth in safety content per vehicle, its diverse content profile, and aggressive cost management.
Himanshu Patel
The long-term outlook, particularly given end-market strength in the controls business, remains robust.
Himanshu Patel
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