January 27, 2012

MEMA Industry News 012712

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MEMA to Congress: Make Transportation Reauthorization a Top Priority

On Jan. 25, MEMA joined more than 1,000 other businesses and associations in a message urging Congress to move quickly on transportation reauthorization. Current highway funding levels expire on Saturday, March 31.

The letter called for “federal highway, transit and safety legislation that, at a minimum, maintains investment levels before the current law expires.” It went on to state, “maintaining -- and ideally increasing -- federal funding for road, bridge, public transportation and safety investments can sustain and create jobs and economic activity in the short-term, and improve America’s export and travel infrastructure, offer new economic growth opportunities, and make the nation more competitive over the long-term.”

BB&T Raises O’Reilly Estimates, Says 2012 ‘Off to a Solid Start’

BB&T Capital Markets has raised its fourth-quarter 2011 estimates on O’Reilly Automotive (Springfield, Mo.) from 3.9 percent same-store sales growth to 5.2 percent same-store sales growth based on the belief that quarterly trends were solid.

BB&T also has raised its earnings-per-share estimate from $0.83 to $0.87, which is above management’s $0.80 to $0.84 range and above analysts’ consensus of $0.85.

Detroit Feels the Love at Washington Auto Show

WASHINGTON -- The Washington Auto Show in recent years has featured politicians riding to Detroit's rescue or debates over fuel economy standards.

In contrast, the Jan. 26 press preview day was mostly a love fest, with administration and congressional officials lavishing praise on Detroit's automakers.

Delphi's 4th-Quarter Profit Surges to $290M

DETROIT -- Delphi Automotive PLC reported a nearly four-fold increase in fourth-quarter earnings on stronger sales of vehicle electronics and engine systems in its first results since returning as a public company.

The results exceeded the high end of analyst expectations and were the first for the restructured auto supplier since it sold shares in an initial public offering in November.

Timken Posts Record 2011 Sales and Earnings; Projects Strong Outlook for 2012

CANTON, Ohio -- The Timken Co. reported record sales of $5.2 billion for 2011, up 28 percent from the prior year on strong demand from diverse industrial markets. The increase primarily reflects growth from the energy, heavy truck, mining, rail and industrial distribution sectors, as well as favorable pricing, material surcharges and acquisitions.

In 2011, the company generated $454.3 million in income from continuing operations, net of non-controlling interest, or $4.59 per diluted share, up 65 percent from $274.8 million, or $2.73 per diluted share, a year ago. Higher volume, favorable mix, surcharges and pricing drove the improvement, more than offsetting increased raw material and administrative costs.

California Weighs Major Change to Zero-Emission Mandate by 2025

LOS ANGELES -- California will require 15.4 percent of new vehicles sold in the state to be electric, fuel-cell or plug-in hybrid vehicles by 2025 if environmental regulators adopt a new set of rules aimed at improving air quality.

The proposed mandate is part of a broader package of regulations called the Advanced Clean Car program that includes measures to cut vehicle greenhouse gas and smog-forming emissions.

December Used Truck Volumes Better than November, But Lag Year-over-Year

Reported volumes of used Classes 3-8 truck sales improved in December. Volumes were consistent among channels on a sequential basis.

All three segments, auction, retail and wholesale, saw increases compared to November's activity. However, all three segments continued to lag on a year-over-year basis, according to State of the Industry: U.S. Classes 3-8 Used Trucks, published by ACT Research.

Ford Posts Third-Straight Annual Profit

DEARBORN, Mich. -- The Ford Motor Co. reported its third-consecutive full-year profit on Friday and the largest in 13 years, as strong sales in North America overshadowed higher commodity costs and losses in other parts of the world.

Ford made an accounting adjustment in the fourth quarter worth $12.4 billion that increased its 2011 earnings to $20.2 billion, the second-highest total ever for the carmaker.

STRATTEC SECURITY Reports Fiscal 2012 Second Quarter Results

MILWAUKEE -- STRATTEC SECURITY CORP. reported operating results for the fiscal second quarter ended Jan. 1, 2012.

Net sales for the company's second quarter ended January 1, 2012 were $65.9 million, compared to net sales of $61.2 million for the second quarter ended December 26, 2010. Net income for the period was $1.5 million, compared to net income of $1.2 million in the prior year quarter. Diluted earnings per share for the period were $.47 compared to diluted earnings per share of $.37 during the prior year quarter.

Share of U.S. Buyers Shying Away from Imports Rises, J.D. Power Says

DETROIT -- The share of new-vehicle buyers steering clear of imports because of their origin has risen to a historic high, according to J.D. Power and Associates.

Conversely, the percentage of new-vehicle buyers avoiding domestic vehicles because of their origin fell to a historic low, according to the market research firm's 2012 Avoider Study.

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