The Worst Appears Over For North American Auto Suppliers, But Competition Remains Tough Jun 10

  • ID: 1785927
  • June 2010
  • Region: North America, United States
  • Standard & Poors
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  • Affinia Group Inc.
  • Collins & Aikman Corp.
  • Dayco LLC
  • Federal-Mogul Corp.
  • Johnson Controls Inc.
  • LKQ Corp.
  • MORE

In just one year, the financial performance of the rated North American auto suppliers has improved dramatically. In the first half of 2009, a number of industry participants and analysts expressed concern about the risk of a systemic collapse of the sector. But recently, the sector has returned to profitability and, in most cases, companies have reported positive free operating cash flow and improved liquidity. Revenues, EBITDA, and cash flow of these suppliers dropped sharply during the downturn until hitting what we believe was the bottom of the cycle for them in the first and second quarters of 2009. But debt stayed fairly level through the downturn (aggregate debt reduction since the September 2009 quarter was mostly a function of...

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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

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- Collins & Aikman Corp.
- Cooper Tire & Rubber Co.
- Dana Holding Corp.
- Federal-Mogul Corp.
- The Goodyear Tire & Rubber Co.
- Johnson Controls Inc.
- Exide Technologies
- Lear Corp.
- Harman International Industries Inc.
- Hayes Lemmerz International Inc.
- BorgWarner Inc.
- FleetPride Corp.
- Stoneridge Inc.
- Delphi Automotive LLP
- American Axle & Manufacturing Holdings Inc.
- Tenneco Inc.
- Meritor Inc.
- Shiloh Industries Inc.
- MetoKote Corp.
- TRW Automotive Inc.
- United Components Inc.
- Affinia Group Inc.
- Cooper-Standard Automotive Inc.
- American Tire Distributors Inc.
- Commercial Vehicle Group Inc.
- KAR Auction Services Inc.
- Allison Transmission Inc.
- LKQ Corp.
- Dayco LLC
- HHI Holdings LLC

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown


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