Ford, GM Set to Kick Off Tough U.S. Automaker Earnings Season
This article is for subscribers only.
The U.S. auto industry’s first-quarter earnings report season is setting up to be a drab show. Sales weakened in two of the first three months of 2019 on a year-over-year basis, while production also decelerated globally amid a slowdown in China.
“Similar to what we’ve seen over the past several quarters, the set up for first quarter appears to be challenging for autos,” UBS analyst Colin Langan wrote in a note to clients. While he lowered his earnings estimates for the group by 7 percent on average, the analyst predicted “small beats” for both Ford Motor Co. and General Motors Co. Automakers and suppliers with low exposure to China and Europe and have high exposure to North American heavy trucks are in the best position, he said.