| Shipping Shows Economic Recovery Disappearing into the Sunset Michael Panzner submits: Given how big a role the transportation industry plays in the global economy, many marketwatchers have been keying in on indicators that gauge activity in the sector to try and get a handle on which way the economic winds are blowing. Among the most widely watched measures is the Baltic Dry Index, a daily barometer published by The Baltic Exchange that tracks shipping rates on a number of key international dry bulk routes.Complete Story » seekingalpha.com |
Daimler: Coming to America Marc Chandler submits:We have noted that the combination of the chronically weak dollar, strong productivity gains and the threat of protectionism will likely encourage foreign companies to boost their productive capacity in the United States. A couple of Japanese auto producers have already made recent moves in this direction. On Wednesday, Germany's Daimler (DAI) said it will shift some of the production of its best-selling Mercedes-Benz Class C model to its US facility.Daimler officials were quoted on the news wires indicating that the shift was part of a larger effort to bring production closer to its main sales regions and reduce exposure to the variability of currencies. According to reports, Daimler estimates that producing its car in the US saves about 2000 euros per car.In respect to its German work force, Daimler argues that because producing closer to its customers will save the company money in terms of costs and exchange rate management, it will help protect employment in Germany too, though of course German labor unions see it differently.Mercedes-Benz has one plant in the US in Alabama that opened in 1997 and produced 152.5k cars last year. The company sold about 251k vehicles in the US last year, about a 1/5 of its total global sales. By the time the shift is complete, it will hire about 4,000 US workers, up from 2,800 now.Separately, it touches on another theme we have discussed before: the real competitive pressure Detroit feels is not coming from Tokyo and Seoul as much as Alabama, Tennessee and California.It also illustrates another point about the behavior of multinational companies and foreign direct investment flows: cheap labor may not be the key attactor. Most of the US foreign direct investment, for example, is located in other high wage economies. The size of the local/regional market seems to be an important determinant as well.Disclosure: No positionsComplete Story » seekingalpha.com |
YRC Worldwide Inc. Q4 2009 Earnings Call Transcript YRC Worldwide Inc. (YRCW)Q4 2009 Earnings Call TranscriptFebruary 5, 2009 9:30 am ETComplete Story » seekingalpha.com |
Transocean Is Oversold Saj Karsan submits:Value investors often look for opportunities where temporary circumstances have caused the market to unjustifiably depress prices. One such value-minded investor, Frank Voisin, may have uncovered such an opportunity. The following is a guest post where Frank makes his case for Transocean Ltd, a company whose stock has been punished as the massive oil leak on the Gulf of Mexico continues. Transocean Ltd (RIG) is an international provider of offshore contract drilling services for oil and gas. Transocean is the largest such operator, with 138 mobile offshore drilling units, including 44 high-specification floaters which command the highest day-rates for use in the deepest, harshest drilling environments, 26 mid-water, 65 jack-ups, and 3 others.Complete Story » seekingalpha.com |
Harley-Davidson Comes Roaring Back Zacks.com submits: Harley-Davidson, Inc. (HOG) showed more than fourfold increase in profits to $139.3 million or 59 cents per share in the second quarter of the year from $33.4 million or 14 cents per share. With this, the motorcycle maker also outperformed the Zacks Consensus Estimate of 42 cents per share during the quarter. Revenues from Motorcycles and Related Products were flat at $1.14 billion in the quarter.Harley’s profit was attributable to its aggressive restructuring actions, incorporated in its go-forward business strategy. The actions included the new labor agreements at its facilities as well as discontinuation of its Buell product line and the divestment of its MV Agusta unit in order to focus solely on the Harley-Davidson brand.Complete Story » seekingalpha.com |