◆ 22 AUTOMOTIVE NEWS EUROPE JULY 24, 2006 ◆
AUTOMOTIVE NEWS EUROPE/ TOTAL SHAREHOLDER VALUE INDEX Auto stocks take a hit during second quarter
SYLVIANE DE SAINT-SEINE The big picture Total Shareholder Value Index AUTOMOTIVE NEWS EUROPE Total shareholder return for automotive sectors vs. other The Automotive News Europe/PricewaterhouseCoopers Shareholder Value The value of automaker and supplier stocks slipped in the sec- averages; percentage change per period Index for European automakers, suppliers and retailers reflects investor ond quarter, while retailers did marginally better, according to Q2 One Three returns for publicly traded companies. the latest Automotive News Europe/Pricewaterhouse Coopers 2006 year years The index measures the growth in value of an investment by including Total Shareholder Value Index. capital gains, share buybacks and dividends, and assumes that all cash dis- The index for seven European carmakers was down 9.50 per- European automakers -9.50% 20.21% 51.58% tributions are reinvested. cent in Q2. The worst performing automakers were BMW and European suppliers -8.45 14.16 99.15 The three categories surveyed include vehicle manufacturers headquar- DaimlerChrysler. Both lost because of their dependence on the Retailers 2.76 52.07 205.66 tered in Europe; European suppliers with annual sales of more than US, where rising fuel prices and the weakening dollar have the E100 million, of which more than 50 percent is in the automotive sector; and potential to hurt profits. European car retail companies with sales of more than E 250 million. The The index for 25 European suppliers dipped 8.45 percent. The Dow 0.9% 11.1% 32.7% returns have been adjusted for currency movements. The indices are average return for the eight retailers tracked by ANE and PwC S&P 500 -1.4 8.6 37.6 weighted by market capitalization. Companies with larger capitalization – was up 2.76 percent. the value of a share price multiplied by the number of shares outstanding – UK dealer groups Inchcape, Lookers and Reg Vardy all gave DAX 30 -6.8 20.4 67.2 have a greater impact on the index. investors positive returns in the quarter. CAC 40 -2.5 20.7 75.7 FTSE -1.4 18.0 60.3
Suppliers Hot wheels gives German Car retailers Total shareholder return for automotive suppliers Total shareholder return for European car retailers; vs. other averages; percentage change per period percentage change per period Q2 One Three supplier a Q2 boost Q2 One Three Name 2006 year years Name 2006 year years 1 1 BBS Kraftfahrzeug 10.35% -4.24% 34.60% Total Shareholder Value Index. Inchcape 11.29% 37.77% 215.15% SYLVIANE DE SAINT-SEINE MGI Coutier’s shareholder return 2 Lookers 11.18 147.96 315.36 2 Brembo 3.71 27.80 65.94 3 Stern Groep 4.26 42.09 56.87 3 Leoni 2.60 41.30 134.37 AUTOMOTIVE NEWS EUROPE declined 15.2 percent in the second quarter. One reason for the decrease was that the PwC SVI 2.76 52.07 205.66 4 ElringKlinger 2.25 32.90 194.83 German wheel specialist BBS French engine components maker 4 Reg Vardy 0.92 69.06 135.77 5 First Technology 1.58 37.62 80.24 Kraftfahrzeugtechnik had a 10.4 percent reported that its unaudited net profit fell to 5 European Motor -0.14 68.84 244.45 7 Grammer 0.56 -20.95 28.41 gain in value during the second quarter. E7 million in 2005 from E14.2 million in 2004. 6 Pendragon -7.23 104.79 314.90 8 Plastic Omnium -0.21 65.52 170.66 The company’s new AIT (air inside technol- MGI also was hurt by the nonrecurring 7 HR Owen -15.73 -29.57 -7.94 8 Bilia -26.06 2.69 136.42 9 Sogefi -1.47 28.83 180.20 ogy) alloy wheel has been more successful costs related to the launch of a production 10 Phoenix -3.08 15.33 227.27 than expected. The wheel is lighter than a site in Romania. conventional alloy wheel. Valeo’s shareholders saw the value of 11 Kolbenschmidt Pierburg -3.11 21.70 194.97 The short-term downside of this success their stocks fall 16.3 percent in the second Inchcape makes 12 Beru -3.31 12.55 62.18 is that BBS had to pay staff to work over- quarter. Shares were hit by the downgrade 13 Autoliv -4.83 25.53 100.18 time to keep up with demand. of the company’s debts by Moody’s. The US 14 Montupet -5.77 -16.77 5.90 In April, BBS reported 2005 sales of credit rating agency attributed the down- gains thanks to 15 Wagon -7.01 40.09 114.52 E189.8 million, down slightly from grade to the decline in Valeo’s profitability E 16 Michelin -7.01 -4.24 50.67 190.4 million the year before. The com- in recent years because of increases in raw pany’s management was happy that its materials prices and pressure from 17 Rieter Holdings -7.07 33.49 107.38 sales level was nearly static because it said automakers to cut prices. Moody’s said its Lind acquisition 18 Pininfarina -8.25 7.62 23.20 it faced massive pressure from automakers downgrade would have been more severe if SYLVIANE DE SAINT-SEINE PwC SVI -8.45 14.16 99.15 to reduce prices, particularly for standard it did not foresee a rebound in Valeo’s prof- 19 Faurecia -8.78 -15.22 -9.60 models. BBS’s sales are forecast to increase itability and earnings in around 2007. AUTOMOTIVE NEWS EUROPE 20 Avon Rubber -10.57 -1.54 16.19 by about 5 percent to E200 million in 2006. US investment bank Morgan Stanley said BBS was one of the few suppliers to give Valeo shares in a portfolio ought to be Inchcape, the most international of UK-based 21 Continental -11.19 35.68 355.51 their investors a positive return. ‘underweight’ because of short-term earn- car retailers, posted a 11.3 percent return in 22 Miba -12.00 -8.66 95.43 ings risks from higher raw materials costs shareholder value in the second quarter. 23 GKN -15.00 7.54 41.98 Difficult quarter and concerns that orders from PSA/Peugeot- Investors rewarded Inchcape’s acquisition of 24 MGI Coutier Poullain -15.15 -22.85 149.28 Two French suppliers were at the bottom Citroen, one of Valeo’s largest customers, independent automotive retailer Lind for 25 Valeo -16.28 -22.13 9.33 of the index of 25 suppliers in the Automotive have been pared down as some of its models £108.6 million (E157.7 million). News Europe/Pricewaterhouse Coopers sell below expectations. ANE The Lind purchase is expected to boost Inchcape’s profit starting this year while allow- ing it to expand further in the south of England. A decline in new-car sales at Inchcape’s deal- erships in Hong Kong and Singapore was more Grande Punto powers Fiat financially than offset by strong sales in Australia and a good start to 2006 in Greece and Belgium, the company said. SYLVIANE DE SAINT-SEINE German investment bank Dresdner Kleinwort Renault’s shareholder return declined Automakers Wasserstein upgraded Inchcape’s stock from AUTOMOTIVE NEWS EUROPE 1.7 percent in the second quarter, but the hold to buy at the end of June, saying that out- French carmaker’s negative result is not Total shareholder return for largest European automakers; side Singapore and Hong Kong, Inchcape’s per- Fiat was Europe’s only automaker to give nearly as bad as most of its rivals. percentage change per period formance in key markets continues to improve. Q2 One Three shareholders a positive second-quarter Name 2006 year years The dealer group’s share price also has been return – albeit a small one at just 0.1 percent. Global gains supported by the company’s share buyback Strong first-quarter sales of the new Fiat Renault’s Q2 results were helped by sales 1 Fiat 0.10% 73.21% 76.24% program in June. Share buybacks boost the Grande Punto small-segment car and the of its Logan low-cost family sedan in 2 Renault -1.71 18.31 99.43 value of remaining shares. lower-premium 159 from Fiat subsidiary Alfa Romania, Russia, North Africa and 3 Porsche -3.88 22.86 111.27 Lookers provided a 11.18 percent return in Romeo helped Fiat to achieve a E57 million Colombia, South America. 4 Peugeot -3.90 2.03 26.86 shareholder value during Q2. The UK dealer operating profit during the first three Renault-Samsung, the automaker’s Korean PwC SVI -9.50 20.21 51.58 group successfully repelled a £260 million months of the year. unit, also performed well in the quarter. In takeover bid from rival Pendragon, which 5 Volkswagen -9.73 48.00 61.86 Fiat Auto’s largest gains come from its addition, Renault’s shareholder value was recently acquired Reg Vardy. booming business in Brazil, where it expects boosted after the carmaker settled a dispute 6 BMW -12.80 4.82 22.82 Lookers reaffirmed previous acquisition to make a E230 million profit this year. with the Iranian government over its carmak- 7 DaimlerChrysler -12.80 18.50 43.92 plans and a restructuring of its property assets Fiat CEO Sergio Marchionne predicts that ing joint venture in the country. so that it can return more cash to shareholders by the end of 2007 the company’s net debt The sides agreed that 20 percent of the through dividends. will be less than E2 billion, down from venture’s output will be exported. The part- The BMW group includes the BMW, Mini E2.93 billion at the end of the first quarter. ners plan to produce 250,000 cars annually by and Rolls-Royce brands. Falling profit 2008. Renault also is contemplating a joint BMW rival DaimlerChrysler finished at Bilia did the worst of the eight dealer groups in venture with Russia’s AvtoVAZ, the maker of the bottom of the list of automakers tracked the Automotive News Europe/Pricewaterhouse the Lada cars. by the Automotive News Europe/ Coopers Total Shareholder Value Index. Pricewaterhouse-Coopers Shareholder The Swedish company’s shareholder return Troubled Germans Value Index. D/C’s shareholder value declined 26.06 percent in the quarter. Bilia’s BMW’s shareholders saw declined 16 percent in Q2. first-quarter operating profit fell 69 percent to the value of their investment In May, D/C’s Chrysler group, which 22 million kronor (E2.4 million) compared with decline 12.9 percent in the includes the Chrysler, Jeep and Dodge the same period in 2005. second quarter. One reason brands, reported its worst monthly sales per- Bilia was hit by exceptional costs such as an for the decline is BMW’s formance in nearly three years, with a year- increase in marketing spending. In addition, exposure to the weakening on-year decrease of 15 percent. the company had to fight off allegations of price US dollar. Sales of all its key models decreased, fixing by the Stockholm city court. A weak dollar raises the notably the Dodge Durango and Jeep Grand Bilia and seven other independent Swedish cost of exporting parts and Cherokee SUVs, which slipped more than car retailers were acquitted of the charge on vehicles to the US and lowers 40 percent compared with the year before. June 8, but the Swedish Competition the value of European products The Chrysler group’s specialization in Authority will appeal the decision. On the there when the transactions are pickups and SUVs makes it vulnerable to ris- bright side, Bilia said it would sign an agree- converted back to euros. ing fuel prices. A decrease in SUV and ment with Hyundai to start sales and service The hot-selling Grande Punto helped Fiat to give its Nearly a quarter of the BMW pickup sales hurts D/C’s bottom line because of the Korean brand’s passenger cars and stockholders a positive return in the second quarter. group’s total sales are in the US. the models are particularly profitable. ANE light-duty trucks in Oslo, Norway. ANE ◆ 22 AUTOMOTIVE NEWS EUROPE JULY 24, 2006 ◆
AUTOMOTIVE NEWS EUROPE/ TOTAL SHAREHOLDER VALUE INDEX Auto stocks take a hit during second quarter
SYLVIANE DE SAINT-SEINE The big picture Total Shareholder Value Index AUTOMOTIVE NEWS EUROPE Total shareholder return for automotive sectors vs. other The Automotive News Europe/PricewaterhouseCoopers Shareholder Value The value of automaker and supplier stocks slipped in the sec- averages; percentage change per period Index for European automakers, suppliers and retailers reflects investor ond quarter, while retailers did marginally better, according to Q2 One Three returns for publicly traded companies. the latest Automotive News Europe/Pricewaterhouse Coopers 2006 year years The index measures the growth in value of an investment by including Total Shareholder Value Index. capital gains, share buybacks and dividends, and assumes that all cash dis- The index for seven European carmakers was down 9.50 per- European automakers -9.50% 20.21% 51.58% tributions are reinvested. cent in Q2. The worst performing automakers were BMW and European suppliers -8.45 14.16 99.15 The three categories surveyed include vehicle manufacturers headquar- DaimlerChrysler. Both lost because of their dependence on the Retailers 2.76 52.07 205.66 tered in Europe; European suppliers with annual sales of more than US, where rising fuel prices and the weakening dollar have the E100 million, of which more than 50 percent is in the automotive sector; and potential to hurt profits. European car retail companies with sales of more than E 250 million. The The index for 25 European suppliers dipped 8.45 percent. The Dow 0.9% 11.1% 32.7% returns have been adjusted for currency movements. The indices are average return for the eight retailers tracked by ANE and PwC S&P 500 -1.4 8.6 37.6 weighted by market capitalization. Companies with larger capitalization – was up 2.76 percent. the value of a share price multiplied by the number of shares outstanding – UK dealer groups Inchcape, Lookers and Reg Vardy all gave DAX 30 -6.8 20.4 67.2 have a greater impact on the index. investors positive returns in the quarter. CAC 40 -2.5 20.7 75.7 FTSE -1.4 18.0 60.3
Suppliers Hot wheels gives German Car retailers Total shareholder return for automotive suppliers Total shareholder return for European car retailers; vs. other averages; percentage change per period percentage change per period Q2 One Three supplier a Q2 boost Q2 One Three Name 2006 year years Name 2006 year years 1 1 BBS Kraftfahrzeug 10.35% -4.24% 34.60% Total Shareholder Value Index. Inchcape 11.29% 37.77% 215.15% SYLVIANE DE SAINT-SEINE MGI Coutier’s shareholder return 2 Lookers 11.18 147.96 315.36 2 Brembo 3.71 27.80 65.94 3 Stern Groep 4.26 42.09 56.87 3 Leoni 2.60 41.30 134.37 AUTOMOTIVE NEWS EUROPE declined 15.2 percent in the second quarter. One reason for the decrease was that the PwC SVI 2.76 52.07 205.66 4 ElringKlinger 2.25 32.90 194.83 German wheel specialist BBS French engine components maker 4 Reg Vardy 0.92 69.06 135.77 5 First Technology 1.58 37.62 80.24 Kraftfahrzeugtechnik had a 10.4 percent reported that its unaudited net profit fell to 5 European Motor -0.14 68.84 244.45 7 Grammer 0.56 -20.95 28.41 gain in value during the second quarter. E7 million in 2005 from E14.2 million in 2004. 6 Pendragon -7.23 104.79 314.90 8 Plastic Omnium -0.21 65.52 170.66 The company’s new AIT (air inside technol- MGI also was hurt by the nonrecurring 7 HR Owen -15.73 -29.57 -7.94 8 Bilia -26.06 2.69 136.42 9 Sogefi -1.47 28.83 180.20 ogy) alloy wheel has been more successful costs related to the launch of a production 10 Phoenix -3.08 15.33 227.27 than expected. The wheel is lighter than a site in Romania. conventional alloy wheel. Valeo’s shareholders saw the value of 11 Kolbenschmidt Pierburg -3.11 21.70 194.97 The short-term downside of this success their stocks fall 16.3 percent in the second Inchcape makes 12 Beru -3.31 12.55 62.18 is that BBS had to pay staff to work over- quarter. Shares were hit by the downgrade 13 Autoliv -4.83 25.53 100.18 time to keep up with demand. of the company’s debts by Moody’s. The US 14 Montupet -5.77 -16.77 5.90 In April, BBS reported 2005 sales of credit rating agency attributed the down- gains thanks to 15 Wagon -7.01 40.09 114.52 E189.8 million, down slightly from grade to the decline in Valeo’s profitability E 16 Michelin -7.01 -4.24 50.67 190.4 million the year before. The com- in recent years because of increases in raw pany’s management was happy that its materials prices and pressure from 17 Rieter Holdings -7.07 33.49 107.38 sales level was nearly static because it said automakers to cut prices. Moody’s said its Lind acquisition 18 Pininfarina -8.25 7.62 23.20 it faced massive pressure from automakers downgrade would have been more severe if SYLVIANE DE SAINT-SEINE PwC SVI -8.45 14.16 99.15 to reduce prices, particularly for standard it did not foresee a rebound in Valeo’s prof- 19 Faurecia -8.78 -15.22 -9.60 models. BBS’s sales are forecast to increase itability and earnings in around 2007. AUTOMOTIVE NEWS EUROPE 20 Avon Rubber -10.57 -1.54 16.19 by about 5 percent to E200 million in 2006. US investment bank Morgan Stanley said BBS was one of the few suppliers to give Valeo shares in a portfolio ought to be Inchcape, the most international of UK-based 21 Continental -11.19 35.68 355.51 their investors a positive return. ‘underweight’ because of short-term earn- car retailers, posted a 11.3 percent return in 22 Miba -12.00 -8.66 95.43 ings risks from higher raw materials costs shareholder value in the second quarter. 23 GKN -15.00 7.54 41.98 Difficult quarter and concerns that orders from PSA/Peugeot- Investors rewarded Inchcape’s acquisition of 24 MGI Coutier Poullain -15.15 -22.85 149.28 Two French suppliers were at the bottom Citroen, one of Valeo’s largest customers, independent automotive retailer Lind for 25 Valeo -16.28 -22.13 9.33 of the index of 25 suppliers in the Automotive have been pared down as some of its models £108.6 million (E157.7 million). News Europe/Pricewaterhouse Coopers sell below expectations. ANE The Lind purchase is expected to boost Inchcape’s profit starting this year while allow- ing it to expand further in the south of England. A decline in new-car sales at Inchcape’s deal- erships in Hong Kong and Singapore was more Grande Punto powers Fiat financially than offset by strong sales in Australia and a good start to 2006 in Greece and Belgium, the company said. SYLVIANE DE SAINT-SEINE German investment bank Dresdner Kleinwort Renault’s shareholder return declined Automakers Wasserstein upgraded Inchcape’s stock from AUTOMOTIVE NEWS EUROPE 1.7 percent in the second quarter, but the hold to buy at the end of June, saying that out- French carmaker’s negative result is not Total shareholder return for largest European automakers; side Singapore and Hong Kong, Inchcape’s per- Fiat was Europe’s only automaker to give nearly as bad as most of its rivals. percentage change per period formance in key markets continues to improve. Q2 One Three shareholders a positive second-quarter Name 2006 year years The dealer group’s share price also has been return – albeit a small one at just 0.1 percent. Global gains supported by the company’s share buyback Strong first-quarter sales of the new Fiat Renault’s Q2 results were helped by sales 1 Fiat 0.10% 73.21% 76.24% program in June. Share buybacks boost the Grande Punto small-segment car and the of its Logan low-cost family sedan in 2 Renault -1.71 18.31 99.43 value of remaining shares. lower-premium 159 from Fiat subsidiary Alfa Romania, Russia, North Africa and 3 Porsche -3.88 22.86 111.27 Lookers provided a 11.18 percent return in Romeo helped Fiat to achieve a E57 million Colombia, South America. 4 Peugeot -3.90 2.03 26.86 shareholder value during Q2. The UK dealer operating profit during the first three Renault-Samsung, the automaker’s Korean PwC SVI -9.50 20.21 51.58 group successfully repelled a £260 million months of the year. unit, also performed well in the quarter. In takeover bid from rival Pendragon, which 5 Volkswagen -9.73 48.00 61.86 Fiat Auto’s largest gains come from its addition, Renault’s shareholder value was recently acquired Reg Vardy. booming business in Brazil, where it expects boosted after the carmaker settled a dispute 6 BMW -12.80 4.82 22.82 Lookers reaffirmed previous acquisition to make a E230 million profit this year. with the Iranian government over its carmak- 7 DaimlerChrysler -12.80 18.50 43.92 plans and a restructuring of its property assets Fiat CEO Sergio Marchionne predicts that ing joint venture in the country. so that it can return more cash to shareholders by the end of 2007 the company’s net debt The sides agreed that 20 percent of the through dividends. will be less than E2 billion, down from venture’s output will be exported. The part- The BMW group includes the BMW, Mini E2.93 billion at the end of the first quarter. ners plan to produce 250,000 cars annually by and Rolls-Royce brands. Falling profit 2008. Renault also is contemplating a joint BMW rival DaimlerChrysler finished at Bilia did the worst of the eight dealer groups in venture with Russia’s AvtoVAZ, the maker of the bottom of the list of automakers tracked the Automotive News Europe/Pricewaterhouse the Lada cars. by the Automotive News Europe/ Coopers Total Shareholder Value Index. Pricewaterhouse-Coopers Shareholder The Swedish company’s shareholder return Troubled Germans Value Index. D/C’s shareholder value declined 26.06 percent in the quarter. Bilia’s BMW’s shareholders saw declined 16 percent in Q2. first-quarter operating profit fell 69 percent to the value of their investment In May, D/C’s Chrysler group, which 22 million kronor (E2.4 million) compared with decline 12.9 percent in the includes the Chrysler, Jeep and Dodge the same period in 2005. second quarter. One reason brands, reported its worst monthly sales per- Bilia was hit by exceptional costs such as an for the decline is BMW’s formance in nearly three years, with a year- increase in marketing spending. In addition, exposure to the weakening on-year decrease of 15 percent. the company had to fight off allegations of price US dollar. Sales of all its key models decreased, fixing by the Stockholm city court. A weak dollar raises the notably the Dodge Durango and Jeep Grand Bilia and seven other independent Swedish cost of exporting parts and Cherokee SUVs, which slipped more than car retailers were acquitted of the charge on vehicles to the US and lowers 40 percent compared with the year before. June 8, but the Swedish Competition the value of European products The Chrysler group’s specialization in Authority will appeal the decision. On the there when the transactions are pickups and SUVs makes it vulnerable to ris- bright side, Bilia said it would sign an agree- converted back to euros. ing fuel prices. A decrease in SUV and ment with Hyundai to start sales and service The hot-selling Grande Punto helped Fiat to give its Nearly a quarter of the BMW pickup sales hurts D/C’s bottom line because of the Korean brand’s passenger cars and stockholders a positive return in the second quarter. group’s total sales are in the US. the models are particularly profitable. ANE light-duty trucks in Oslo, Norway. ANE ◆ 22 AUTOMOTIVE NEWS EUROPE JULY 24, 2006 ◆
AUTOMOTIVE NEWS EUROPE/ TOTAL SHAREHOLDER VALUE INDEX Auto stocks take a hit during second quarter
SYLVIANE DE SAINT-SEINE The big picture Total Shareholder Value Index AUTOMOTIVE NEWS EUROPE Total shareholder return for automotive sectors vs. other The Automotive News Europe/PricewaterhouseCoopers Shareholder Value The value of automaker and supplier stocks slipped in the sec- averages; percentage change per period Index for European automakers, suppliers and retailers reflects investor ond quarter, while retailers did marginally better, according to Q2 One Three returns for publicly traded companies. the latest Automotive News Europe/Pricewaterhouse Coopers 2006 year years The index measures the growth in value of an investment by including Total Shareholder Value Index. capital gains, share buybacks and dividends, and assumes that all cash dis- The index for seven European carmakers was down 9.50 per- European automakers -9.50% 20.21% 51.58% tributions are reinvested. cent in Q2. The worst performing automakers were BMW and European suppliers -8.45 14.16 99.15 The three categories surveyed include vehicle manufacturers headquar- DaimlerChrysler. Both lost because of their dependence on the Retailers 2.76 52.07 205.66 tered in Europe; European suppliers with annual sales of more than US, where rising fuel prices and the weakening dollar have the E100 million, of which more than 50 percent is in the automotive sector; and potential to hurt profits. European car retail companies with sales of more than E 250 million. The The index for 25 European suppliers dipped 8.45 percent. The Dow 0.9% 11.1% 32.7% returns have been adjusted for currency movements. The indices are average return for the eight retailers tracked by ANE and PwC S&P 500 -1.4 8.6 37.6 weighted by market capitalization. Companies with larger capitalization – was up 2.76 percent. the value of a share price multiplied by the number of shares outstanding – UK dealer groups Inchcape, Lookers and Reg Vardy all gave DAX 30 -6.8 20.4 67.2 have a greater impact on the index. investors positive returns in the quarter. CAC 40 -2.5 20.7 75.7 FTSE -1.4 18.0 60.3
Suppliers Hot wheels gives German Car retailers Total shareholder return for automotive suppliers Total shareholder return for European car retailers; vs. other averages; percentage change per period percentage change per period Q2 One Three supplier a Q2 boost Q2 One Three Name 2006 year years Name 2006 year years 1 1 BBS Kraftfahrzeug 10.35% -4.24% 34.60% Total Shareholder Value Index. Inchcape 11.29% 37.77% 215.15% SYLVIANE DE SAINT-SEINE MGI Coutier’s shareholder return 2 Lookers 11.18 147.96 315.36 2 Brembo 3.71 27.80 65.94 3 Stern Groep 4.26 42.09 56.87 3 Leoni 2.60 41.30 134.37 AUTOMOTIVE NEWS EUROPE declined 15.2 percent in the second quarter. One reason for the decrease was that the PwC SVI 2.76 52.07 205.66 4 ElringKlinger 2.25 32.90 194.83 German wheel specialist BBS French engine components maker 4 Reg Vardy 0.92 69.06 135.77 5 First Technology 1.58 37.62 80.24 Kraftfahrzeugtechnik had a 10.4 percent reported that its unaudited net profit fell to 5 European Motor -0.14 68.84 244.45 7 Grammer 0.56 -20.95 28.41 gain in value during the second quarter. E7 million in 2005 from E14.2 million in 2004. 6 Pendragon -7.23 104.79 314.90 8 Plastic Omnium -0.21 65.52 170.66 The company’s new AIT (air inside technol- MGI also was hurt by the nonrecurring 7 HR Owen -15.73 -29.57 -7.94 8 Bilia -26.06 2.69 136.42 9 Sogefi -1.47 28.83 180.20 ogy) alloy wheel has been more successful costs related to the launch of a production 10 Phoenix -3.08 15.33 227.27 than expected. The wheel is lighter than a site in Romania. conventional alloy wheel. Valeo’s shareholders saw the value of 11 Kolbenschmidt Pierburg -3.11 21.70 194.97 The short-term downside of this success their stocks fall 16.3 percent in the second Inchcape makes 12 Beru -3.31 12.55 62.18 is that BBS had to pay staff to work over- quarter. Shares were hit by the downgrade 13 Autoliv -4.83 25.53 100.18 time to keep up with demand. of the company’s debts by Moody’s. The US 14 Montupet -5.77 -16.77 5.90 In April, BBS reported 2005 sales of credit rating agency attributed the down- gains thanks to 15 Wagon -7.01 40.09 114.52 E189.8 million, down slightly from grade to the decline in Valeo’s profitability E 16 Michelin -7.01 -4.24 50.67 190.4 million the year before. The com- in recent years because of increases in raw pany’s management was happy that its materials prices and pressure from 17 Rieter Holdings -7.07 33.49 107.38 sales level was nearly static because it said automakers to cut prices. Moody’s said its Lind acquisition 18 Pininfarina -8.25 7.62 23.20 it faced massive pressure from automakers downgrade would have been more severe if SYLVIANE DE SAINT-SEINE PwC SVI -8.45 14.16 99.15 to reduce prices, particularly for standard it did not foresee a rebound in Valeo’s prof- 19 Faurecia -8.78 -15.22 -9.60 models. BBS’s sales are forecast to increase itability and earnings in around 2007. AUTOMOTIVE NEWS EUROPE 20 Avon Rubber -10.57 -1.54 16.19 by about 5 percent to E200 million in 2006. US investment bank Morgan Stanley said BBS was one of the few suppliers to give Valeo shares in a portfolio ought to be Inchcape, the most international of UK-based 21 Continental -11.19 35.68 355.51 their investors a positive return. ‘underweight’ because of short-term earn- car retailers, posted a 11.3 percent return in 22 Miba -12.00 -8.66 95.43 ings risks from higher raw materials costs shareholder value in the second quarter. 23 GKN -15.00 7.54 41.98 Difficult quarter and concerns that orders from PSA/Peugeot- Investors rewarded Inchcape’s acquisition of 24 MGI Coutier Poullain -15.15 -22.85 149.28 Two French suppliers were at the bottom Citroen, one of Valeo’s largest customers, independent automotive retailer Lind for 25 Valeo -16.28 -22.13 9.33 of the index of 25 suppliers in the Automotive have been pared down as some of its models £108.6 million (E157.7 million). News Europe/Pricewaterhouse Coopers sell below expectations. ANE The Lind purchase is expected to boost Inchcape’s profit starting this year while allow- ing it to expand further in the south of England. A decline in new-car sales at Inchcape’s deal- erships in Hong Kong and Singapore was more Grande Punto powers Fiat financially than offset by strong sales in Australia and a good start to 2006 in Greece and Belgium, the company said. SYLVIANE DE SAINT-SEINE German investment bank Dresdner Kleinwort Renault’s shareholder return declined Automakers Wasserstein upgraded Inchcape’s stock from AUTOMOTIVE NEWS EUROPE 1.7 percent in the second quarter, but the hold to buy at the end of June, saying that out- French carmaker’s negative result is not Total shareholder return for largest European automakers; side Singapore and Hong Kong, Inchcape’s per- Fiat was Europe’s only automaker to give nearly as bad as most of its rivals. percentage change per period formance in key markets continues to improve. Q2 One Three shareholders a positive second-quarter Name 2006 year years The dealer group’s share price also has been return – albeit a small one at just 0.1 percent. Global gains supported by the company’s share buyback Strong first-quarter sales of the new Fiat Renault’s Q2 results were helped by sales 1 Fiat 0.10% 73.21% 76.24% program in June. Share buybacks boost the Grande Punto small-segment car and the of its Logan low-cost family sedan in 2 Renault -1.71 18.31 99.43 value of remaining shares. lower-premium 159 from Fiat subsidiary Alfa Romania, Russia, North Africa and 3 Porsche -3.88 22.86 111.27 Lookers provided a 11.18 percent return in Romeo helped Fiat to achieve a E57 million Colombia, South America. 4 Peugeot -3.90 2.03 26.86 shareholder value during Q2. The UK dealer operating profit during the first three Renault-Samsung, the automaker’s Korean PwC SVI -9.50 20.21 51.58 group successfully repelled a £260 million months of the year. unit, also performed well in the quarter. In takeover bid from rival Pendragon, which 5 Volkswagen -9.73 48.00 61.86 Fiat Auto’s largest gains come from its addition, Renault’s shareholder value was recently acquired Reg Vardy. booming business in Brazil, where it expects boosted after the carmaker settled a dispute 6 BMW -12.80 4.82 22.82 Lookers reaffirmed previous acquisition to make a E230 million profit this year. with the Iranian government over its carmak- 7 DaimlerChrysler -12.80 18.50 43.92 plans and a restructuring of its property assets Fiat CEO Sergio Marchionne predicts that ing joint venture in the country. so that it can return more cash to shareholders by the end of 2007 the company’s net debt The sides agreed that 20 percent of the through dividends. will be less than E2 billion, down from venture’s output will be exported. The part- The BMW group includes the BMW, Mini E2.93 billion at the end of the first quarter. ners plan to produce 250,000 cars annually by and Rolls-Royce brands. Falling profit 2008. Renault also is contemplating a joint BMW rival DaimlerChrysler finished at Bilia did the worst of the eight dealer groups in venture with Russia’s AvtoVAZ, the maker of the bottom of the list of automakers tracked the Automotive News Europe/Pricewaterhouse the Lada cars. by the Automotive News Europe/ Coopers Total Shareholder Value Index. Pricewaterhouse-Coopers Shareholder The Swedish company’s shareholder return Troubled Germans Value Index. D/C’s shareholder value declined 26.06 percent in the quarter. Bilia’s BMW’s shareholders saw declined 16 percent in Q2. first-quarter operating profit fell 69 percent to the value of their investment In May, D/C’s Chrysler group, which 22 million kronor (E2.4 million) compared with decline 12.9 percent in the includes the Chrysler, Jeep and Dodge the same period in 2005. second quarter. One reason brands, reported its worst monthly sales per- Bilia was hit by exceptional costs such as an for the decline is BMW’s formance in nearly three years, with a year- increase in marketing spending. In addition, exposure to the weakening on-year decrease of 15 percent. the company had to fight off allegations of price US dollar. Sales of all its key models decreased, fixing by the Stockholm city court. A weak dollar raises the notably the Dodge Durango and Jeep Grand Bilia and seven other independent Swedish cost of exporting parts and Cherokee SUVs, which slipped more than car retailers were acquitted of the charge on vehicles to the US and lowers 40 percent compared with the year before. June 8, but the Swedish Competition the value of European products The Chrysler group’s specialization in Authority will appeal the decision. On the there when the transactions are pickups and SUVs makes it vulnerable to ris- bright side, Bilia said it would sign an agree- converted back to euros. ing fuel prices. A decrease in SUV and ment with Hyundai to start sales and service The hot-selling Grande Punto helped Fiat to give its Nearly a quarter of the BMW pickup sales hurts D/C’s bottom line because of the Korean brand’s passenger cars and stockholders a positive return in the second quarter. group’s total sales are in the US. the models are particularly profitable. ANE light-duty trucks in Oslo, Norway. ANE ◆ 22 AUTOMOTIVE NEWS EUROPE JULY 24, 2006 ◆
AUTOMOTIVE NEWS EUROPE/ TOTAL SHAREHOLDER VALUE INDEX Auto stocks take a hit during second quarter
SYLVIANE DE SAINT-SEINE The big picture Total Shareholder Value Index AUTOMOTIVE NEWS EUROPE Total shareholder return for automotive sectors vs. other The Automotive News Europe/PricewaterhouseCoopers Shareholder Value The value of automaker and supplier stocks slipped in the sec- averages; percentage change per period Index for European automakers, suppliers and retailers reflects investor ond quarter, while retailers did marginally better, according to Q2 One Three returns for publicly traded companies. the latest Automotive News Europe/Pricewaterhouse Coopers 2006 year years The index measures the growth in value of an investment by including Total Shareholder Value Index. capital gains, share buybacks and dividends, and assumes that all cash dis- The index for seven European carmakers was down 9.50 per- European automakers -9.50% 20.21% 51.58% tributions are reinvested. cent in Q2. The worst performing automakers were BMW and European suppliers -8.45 14.16 99.15 The three categories surveyed include vehicle manufacturers headquar- DaimlerChrysler. Both lost because of their dependence on the Retailers 2.76 52.07 205.66 tered in Europe; European suppliers with annual sales of more than US, where rising fuel prices and the weakening dollar have the E100 million, of which more than 50 percent is in the automotive sector; and potential to hurt profits. European car retail companies with sales of more than E 250 million. The The index for 25 European suppliers dipped 8.45 percent. The Dow 0.9% 11.1% 32.7% returns have been adjusted for currency movements. The indices are average return for the eight retailers tracked by ANE and PwC S&P 500 -1.4 8.6 37.6 weighted by market capitalization. Companies with larger capitalization – was up 2.76 percent. the value of a share price multiplied by the number of shares outstanding – UK dealer groups Inchcape, Lookers and Reg Vardy all gave DAX 30 -6.8 20.4 67.2 have a greater impact on the index. investors positive returns in the quarter. CAC 40 -2.5 20.7 75.7 FTSE -1.4 18.0 60.3
Suppliers Hot wheels gives German Car retailers Total shareholder return for automotive suppliers Total shareholder return for European car retailers; vs. other averages; percentage change per period percentage change per period Q2 One Three supplier a Q2 boost Q2 One Three Name 2006 year years Name 2006 year years 1 1 BBS Kraftfahrzeug 10.35% -4.24% 34.60% Total Shareholder Value Index. Inchcape 11.29% 37.77% 215.15% SYLVIANE DE SAINT-SEINE MGI Coutier’s shareholder return 2 Lookers 11.18 147.96 315.36 2 Brembo 3.71 27.80 65.94 3 Stern Groep 4.26 42.09 56.87 3 Leoni 2.60 41.30 134.37 AUTOMOTIVE NEWS EUROPE declined 15.2 percent in the second quarter. One reason for the decrease was that the PwC SVI 2.76 52.07 205.66 4 ElringKlinger 2.25 32.90 194.83 German wheel specialist BBS French engine components maker 4 Reg Vardy 0.92 69.06 135.77 5 First Technology 1.58 37.62 80.24 Kraftfahrzeugtechnik had a 10.4 percent reported that its unaudited net profit fell to 5 European Motor -0.14 68.84 244.45 7 Grammer 0.56 -20.95 28.41 gain in value during the second quarter. E7 million in 2005 from E14.2 million in 2004. 6 Pendragon -7.23 104.79 314.90 8 Plastic Omnium -0.21 65.52 170.66 The company’s new AIT (air inside technol- MGI also was hurt by the nonrecurring 7 HR Owen -15.73 -29.57 -7.94 8 Bilia -26.06 2.69 136.42 9 Sogefi -1.47 28.83 180.20 ogy) alloy wheel has been more successful costs related to the launch of a production 10 Phoenix -3.08 15.33 227.27 than expected. The wheel is lighter than a site in Romania. conventional alloy wheel. Valeo’s shareholders saw the value of 11 Kolbenschmidt Pierburg -3.11 21.70 194.97 The short-term downside of this success their stocks fall 16.3 percent in the second Inchcape makes 12 Beru -3.31 12.55 62.18 is that BBS had to pay staff to work over- quarter. Shares were hit by the downgrade 13 Autoliv -4.83 25.53 100.18 time to keep up with demand. of the company’s debts by Moody’s. The US 14 Montupet -5.77 -16.77 5.90 In April, BBS reported 2005 sales of credit rating agency attributed the down- gains thanks to 15 Wagon -7.01 40.09 114.52 E189.8 million, down slightly from grade to the decline in Valeo’s profitability E 16 Michelin -7.01 -4.24 50.67 190.4 million the year before. The com- in recent years because of increases in raw pany’s management was happy that its materials prices and pressure from 17 Rieter Holdings -7.07 33.49 107.38 sales level was nearly static because it said automakers to cut prices. Moody’s said its Lind acquisition 18 Pininfarina -8.25 7.62 23.20 it faced massive pressure from automakers downgrade would have been more severe if SYLVIANE DE SAINT-SEINE PwC SVI -8.45 14.16 99.15 to reduce prices, particularly for standard it did not foresee a rebound in Valeo’s prof- 19 Faurecia -8.78 -15.22 -9.60 models. BBS’s sales are forecast to increase itability and earnings in around 2007. AUTOMOTIVE NEWS EUROPE 20 Avon Rubber -10.57 -1.54 16.19 by about 5 percent to E200 million in 2006. US investment bank Morgan Stanley said BBS was one of the few suppliers to give Valeo shares in a portfolio ought to be Inchcape, the most international of UK-based 21 Continental -11.19 35.68 355.51 their investors a positive return. ‘underweight’ because of short-term earn- car retailers, posted a 11.3 percent return in 22 Miba -12.00 -8.66 95.43 ings risks from higher raw materials costs shareholder value in the second quarter. 23 GKN -15.00 7.54 41.98 Difficult quarter and concerns that orders from PSA/Peugeot- Investors rewarded Inchcape’s acquisition of 24 MGI Coutier Poullain -15.15 -22.85 149.28 Two French suppliers were at the bottom Citroen, one of Valeo’s largest customers, independent automotive retailer Lind for 25 Valeo -16.28 -22.13 9.33 of the index of 25 suppliers in the Automotive have been pared down as some of its models £108.6 million (E157.7 million). News Europe/Pricewaterhouse Coopers sell below expectations. ANE The Lind purchase is expected to boost Inchcape’s profit starting this year while allow- ing it to expand further in the south of England. A decline in new-car sales at Inchcape’s deal- erships in Hong Kong and Singapore was more Grande Punto powers Fiat financially than offset by strong sales in Australia and a good start to 2006 in Greece and Belgium, the company said. SYLVIANE DE SAINT-SEINE German investment bank Dresdner Kleinwort Renault’s shareholder return declined Automakers Wasserstein upgraded Inchcape’s stock from AUTOMOTIVE NEWS EUROPE 1.7 percent in the second quarter, but the hold to buy at the end of June, saying that out- French carmaker’s negative result is not Total shareholder return for largest European automakers; side Singapore and Hong Kong, Inchcape’s per- Fiat was Europe’s only automaker to give nearly as bad as most of its rivals. percentage change per period formance in key markets continues to improve. Q2 One Three shareholders a positive second-quarter Name 2006 year years The dealer group’s share price also has been return – albeit a small one at just 0.1 percent. Global gains supported by the company’s share buyback Strong first-quarter sales of the new Fiat Renault’s Q2 results were helped by sales 1 Fiat 0.10% 73.21% 76.24% program in June. Share buybacks boost the Grande Punto small-segment car and the of its Logan low-cost family sedan in 2 Renault -1.71 18.31 99.43 value of remaining shares. lower-premium 159 from Fiat subsidiary Alfa Romania, Russia, North Africa and 3 Porsche -3.88 22.86 111.27 Lookers provided a 11.18 percent return in Romeo helped Fiat to achieve a E57 million Colombia, South America. 4 Peugeot -3.90 2.03 26.86 shareholder value during Q2. The UK dealer operating profit during the first three Renault-Samsung, the automaker’s Korean PwC SVI -9.50 20.21 51.58 group successfully repelled a £260 million months of the year. unit, also performed well in the quarter. In takeover bid from rival Pendragon, which 5 Volkswagen -9.73 48.00 61.86 Fiat Auto’s largest gains come from its addition, Renault’s shareholder value was recently acquired Reg Vardy. booming business in Brazil, where it expects boosted after the carmaker settled a dispute 6 BMW -12.80 4.82 22.82 Lookers reaffirmed previous acquisition to make a E230 million profit this year. with the Iranian government over its carmak- 7 DaimlerChrysler -12.80 18.50 43.92 plans and a restructuring of its property assets Fiat CEO Sergio Marchionne predicts that ing joint venture in the country. so that it can return more cash to shareholders by the end of 2007 the company’s net debt The sides agreed that 20 percent of the through dividends. will be less than E2 billion, down from venture’s output will be exported. The part- The BMW group includes the BMW, Mini E2.93 billion at the end of the first quarter. ners plan to produce 250,000 cars annually by and Rolls-Royce brands. Falling profit 2008. Renault also is contemplating a joint BMW rival DaimlerChrysler finished at Bilia did the worst of the eight dealer groups in venture with Russia’s AvtoVAZ, the maker of the bottom of the list of automakers tracked the Automotive News Europe/Pricewaterhouse the Lada cars. by the Automotive News Europe/ Coopers Total Shareholder Value Index. Pricewaterhouse-Coopers Shareholder The Swedish company’s shareholder return Troubled Germans Value Index. D/C’s shareholder value declined 26.06 percent in the quarter. Bilia’s BMW’s shareholders saw declined 16 percent in Q2. first-quarter operating profit fell 69 percent to the value of their investment In May, D/C’s Chrysler group, which 22 million kronor (E2.4 million) compared with decline 12.9 percent in the includes the Chrysler, Jeep and Dodge the same period in 2005. second quarter. One reason brands, reported its worst monthly sales per- Bilia was hit by exceptional costs such as an for the decline is BMW’s formance in nearly three years, with a year- increase in marketing spending. In addition, exposure to the weakening on-year decrease of 15 percent. the company had to fight off allegations of price US dollar. Sales of all its key models decreased, fixing by the Stockholm city court. A weak dollar raises the notably the Dodge Durango and Jeep Grand Bilia and seven other independent Swedish cost of exporting parts and Cherokee SUVs, which slipped more than car retailers were acquitted of the charge on vehicles to the US and lowers 40 percent compared with the year before. June 8, but the Swedish Competition the value of European products The Chrysler group’s specialization in Authority will appeal the decision. On the there when the transactions are pickups and SUVs makes it vulnerable to ris- bright side, Bilia said it would sign an agree- converted back to euros. ing fuel prices. A decrease in SUV and ment with Hyundai to start sales and service The hot-selling Grande Punto helped Fiat to give its Nearly a quarter of the BMW pickup sales hurts D/C’s bottom line because of the Korean brand’s passenger cars and stockholders a positive return in the second quarter. group’s total sales are in the US. the models are particularly profitable. ANE light-duty trucks in Oslo, Norway. ANE