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North American Auto Suppliers Have Steered Profitability Above Pre-Recession Levels, But Can They Stay On Track? Jun 11
Standard & Poors, June 2011
Abstract
Fewer than two years after the end of the deep recession, which caused a collapse of automotive sales, revenues and earnings of North American original equipment auto suppliers have rebounded. Many rated suppliers are more profitable than before the downturn thanks to rising automotive production volumes and the significant cost cuts they implemented during the recession. However, global automotive demand remains mixed, in our opinion, and the economic outlook is far from robust. Still, we assume that the rest of 2011 and early 2012 will be generally favorable for the rated U.S. auto suppliers. In our view, suppliers' ability to manage commodity price fluctuations over the short term and to control potential cost increases as production volumes rise will be...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
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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