The investor does not like to own high-risk investments in his portfolio Continue reading...
Yahoo Finance's Rick Newman joins Jen Rogers, Myles Udland, and Akiko Fujita to discuss the state of the auto industry and why auto dealers are optimistic about a recovery.
Hedge funds don't get the respect they used to get. Nowadays investors prefer passive funds over actively managed funds. One thing they don't realize is that 100% of the passive funds didn't see the coronavirus recession coming, but a lot of hedge funds did. Even we published an article near the end of February and […]
Unless specifically described otherwise, margin refers to value-add adjusted EBITDA margin. Over the next month, we will be participating in three virtual conferences, including the KeyBanc Capital Markets Industrials and Basic Materials Virtual Conference, the Wolfe Research [Indecipherable] Summit and the Deutsche Bank Global Auto Industry Conference.
Tenneco (TEN) suspends 2020 guidance as it expects the coronavirus pandemic's impact to strain its operations in the days to come.
Guru releases portfolio for the 1st quarter Continue reading...
Jim Hackett, president and CEO of Ford, advocated for a middle ground on when to reopen the economy, saying that workplace safety must remain a priority, while warning that a closed economy could cause more damage than the virus itself.
Fiat Chrysler Automobiles (FCAU) is in talks with Intesa Sanpaolo (ISNPY) over a 6.3 billion euro ($6.8 billion) loan backed by the Italian government to help the automaker cope with the production disruptions caused by the coronavirus-related stay-at-home orders.Discussions are under way for a 3-year credit facility tailored to finance Fiat Chrysler’s operations in Italy and to provide further support to some of its 10,000 small and medium automotive enterprises in the country.Since the end of April, the automaker is gradually resuming its operations in Italy after the coronavirus pandemic froze demand and meant manufacturers were forced to bring production to a halt.The credit facility will be established for the sole purpose of payments to Italian suppliers, to support their liquidity and, at the same, support the resumption of production and investment at Italian plants.Fiat Chrysler has 55,000 employees at its 16 plants and 26 R&D sites. In addition, over 200,000 jobs at 5,500 highly-specialized Italian suppliers will be dependent on the successful continuity of the company’s operations.The coronavirus pandemic impact has wiped off almost 50% of Fiat Chrysler’s share value so far this year.Overall Wall Street analysts are cautiously optimistic about Fiat Chrysler’s stock. The Moderate Buy consensus consists of 4 Buys, 2 Holds and 1 Sell. The $10.77 average price target indicates shares have potential to soar 38% in the coming 12 months. (See Fiat Chrysler stock analysis on TipRanks).Last week, Fiat Chrysler and PSA Groupe, owner of Peugeot S.A., said in a joint statement that they each decided to scrap their planned ordinary dividend on 2019 results due to the impact of the coronavirus pandemic. The move will save 1.1 billion euro ($1.19 billion).The cash preservation measure comes as the two automakers last year entered into a merger agreement to create the world’s fourth-largest automaker with a combined market value of about $50 billion.Related News: Fiat Chrysler Shares Decline on Dividend Payout Withdrawal Tesla Gets County Nod To Reopen California Auto Plant – Report GM Plans To Reopen Lucrative Mexican Pickup Plant Next Week- Report More recent articles from Smarter Analyst: * Salesforce Earnings Preview: Five-Star Analyst Bullish Into Print * Weight Watchers Fires Thousands Over Zoom * Japan’s Asahi Signs $11 Billion Loan To Buy Anheuser-Busch’s Australia Biz * Facebook Messenger Rolls Out Safety Alerts To Detect Scams, Protect Minors
(Bloomberg Opinion) -- John Elkann, scion of the billionaire Agnelli clan, isn’t having an easy Covid-19 crisis. His $9 billion sale of the PartnerRE reinsurance business collapsed last week after the family’s holding company, Exor NV, refused to lower its asking price price. Then Fiat Chrysler Automobiles NV said it would scrap a proposed dividend for 2019, denying Exor another 315 million euros ($341 million) in change.And things could get worse. The terms of Fiat’s proposed merger with France’s Peugeot SA, negotiated before the coronavirus pandemic, require the Italian carmaker to pay its shareholders — the largest of whom are the Agnellis — a 5.5 billion-euro special dividend before the deal closes.The size of that payment always looked questionable, given that Fiat’s balance sheet is inferior to Peugeot’s. The Covid-19 outbreak makes it unconscionable. Having halted production, both companies are burning through cash and Fiat has had to ask Italy to guarantee a 6.3 billion-euro three-year loan to support its domestic suppliers. Surely the first priority here should be making sure the new company has strong enough finances as the economy starts to reopen.The politics of Fiat asking for help from Rome is especially awkward after the carmaker moved its tax residency to the U.K. in 2014, and its legal headquarters to the Netherlands. Last year, Italy’s competition watchdog said that the country’s tax revenues had suffered significantly as a result.Paying a fat dividend to the Agnellis and other shareholders after leaning on taxpayers probably wouldn’t go down very well with the public — as Germany’s BMW AG and other recent dividend payers have discovered. If Elkann still wants his sweetener, the two parties will need to find a way that doesn’t bleed the new merged entity of cash.Right now, money is flowing rapidly out of both companies. For the most part that’s because suppliers still need paying, even though the companies aren’t selling many cars. I’ve written before about companies suffering from these so-called negative working-capital problems.Fiat ate through 5 billion euros of cash in the first three months of 2020 and it could consume twice that in the second quarter, according to Jefferies analyst Philippe Houchois. He expects Peugeot to burn through about 8 billion euros of cash in the first half of the year.Neither company is in danger of running out of money, and those working capital-related outflows should reverse once the carmakers start producing and selling cars again. Even so, one lesson of Covid-19 is that companies need larger cash cushions. Until there’s a vaccine, there’s a risk that a second virus wave would trigger yet more industrial disruption.There’s no great urgency for Fiat and Peugeot to alter the terms of their union as the deal isn’t expected to close until early next year. The rationale for joining forces remains intact; the cost savings from working together look even more important now. But they should be thinking of ways to make the future company resilient.Structured as a 50-50 merger, Peugeot ended up paying a premium for boardroom control, as well as for the Italian company’s lucrative U.S. truck business — even though Peugeot shares had been valued more highly by the market. Some of the arguments for paying Fiat a sweetener remain valid: Peugeot’s reliance on the struggling European car market isn’t looking too attractive right now. But there are other ways to compensate Fiat shareholders. For example, Peugeot is due to spin off its 46% stake in parts supplier Faurecia SE to its shareholders as part of the original merger terms. This could be retained instead by the combined business.Without their Fiat dividends, the Agnellis will have less money to reinvest in new ventures. Right now, though, the car industry’s need is greater.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Q1 2020 Tenneco Inc Earnings Call
In this episode of Influencers, Ford CEO Jim Hackett joins Andy Serwer to analyze the health of the U.S. auto industry and discuss the impact of COVID-19 on the American workforce.
These auto stocks are in high gear Friday after giving investors a glimmer of hope during the first quarter.
Shares of Goodyear Tire & Rubber (NASDAQ: GT), American Axle & Manufacturing (NYSE: AXL), and Tenneco (NYSE: TEN), all automotive parts suppliers and manufacturers, each jumped over 14% at one point Tuesday, following positive economic data that's renewing optimism for a reopening economy. The idea of states reopening more of their economies is a huge positive for the broader automotive industry. There were more positive data points: New home sales unexpectedly increased in April, and consumer confidence moved higher after two months of sharp declines -- all great news for the broader automotive industry, which has been hit hard by COVID-19.
Fiat Chrysler Automobiles (FCAU) and PSA Groupe, owner of Peugeot S.A., said in a joint statement that they each decided to scrap their planned ordinary dividend on 2019 results due to the impact of the coronavirus pandemic. Shares in Fiat Chrysler dropped 3.7% to $7.60 in U.S. trading.At the end of last year, Fiat Chrysler Automobiles and PSA had announced a 1.1 billion euro ($1.19 billion) ordinary dividend for both.The cash preservation measure comes as the two automakers at the end of last year entered into a proposed merger agreement to create the world’s fourth-largest automaker with a combined market value of about $50 billion.Large corporates from General Motors (GM) to Royal Dutch Shell have in recent weeks cut dividend payout plans to shareholders to preserve their cash coffers as they grapple with the financial fallout caused by the lockdown orders implemented by governments around the world to contain the fast spread of the coronavirus pandemic. Car makers have posted large losses as the stay-at-home orders have forced a shutdown of their showrooms and led to production disruptions.The two automakers updated investors that “preparations for the 50/50 merger of their businesses are advancing well, including with respect to antitrust and other regulatory filings.”In addition, the two companies said they were on track to complete the proposed merger before the end of the first quarter of 2021, subject to customary closing conditions.EU antitrust regulators said this week that a decision about the merger will be announced by June 17.The coronavirus pandemic has wiped off almost 50% of Fiat Chrysler’s share value so far this year.Overall Wall Street analysts are cautiously optimistic about Fiat Chrysler’s stock. The Moderate Buy consensus consists of 4 Buys, 2 Holds and 1 Sell. The $10.80 average price target indicates shares have room to soar 39% in the coming 12 months. (See Fiat Chrysler stock analysis on TipRanks).Related News: Tesla’s California Auto Plant Gets Go-Ahead to Reopen Next Week GM Plans To Reopen Lucrative Mexican Pickup Plant Next Week- Report Boeing Gets No Orders in April, Customers Cancel 737 MAX Jets More recent articles from Smarter Analyst: * AngloGold Halts Production At World’s Deepest Gold Mine, Due To Covid-19 Outbreak * IBM Is Said To Make Far-Reaching Job Cuts Across The U.S. * Twilio To Power New York’s COVID-19 Contact Tracing Initiative; Shares Jump 7.5% * NBA In Talks With Disney To Reopen Season At Disney World In July
In this episode of Influencers, Ford CEO Jim Hackett joins Andy Serwer to analyze the health of the U.S. auto industry and discuss the prospects of a swift recovery for the American workforce.
Tenneco Inc. (NYSE: TEN) today announced that its Board of Directors has appointed Dennis J. Letham, formerly Lead Independent Director, as its new Chairman. Letham succeeds Gregg M. Sherrill, who served as non-executive Chairman of the Board since 2018, and as Chairman for over 10 years after joining Tenneco in January of 2007 as the Company's Chief Executive Officer. The appointment is effective immediately. Sherrill will remain a member of the Board and announced that he intends to retire prior to next year's annual meeting of stockholders.
Fiat Chrysler has been sued in a class-action lawsuit accusing it of knowingly selling defective vehicles, according to Hagens Berman.
In this episode of Influencers, Ford CEO Jim Hackett joins Andy Serwer to analyze the health of the U.S. auto industry and discuss the prospects of a swift recovery for the American workforce.
Tenneco Inc. (NYSE: TEN) will participate in the Deutsche Bank 2020 Global Auto Industry Conference to be held virtually on Thursday, June 11, 2020. The webcasted presentation is scheduled to begin at 1:45 p.m. Eastern. Brian Kesseler, chief executive officer, and Ken Trammell, interim chief financial officer, will give a strategic overview and provide information regarding matters impacting Tenneco's outlook.
Tenneco Inc.´s (NYSE:TEN) Powertrain business group is launching a range of new GOETZE® branded industrial spark plugs, designed for industrial gas engines. With proven durability for these applications, GOETZE plugs are designed and manufactured for robust, reliable service.