Latest news with #makers'
Reuters
27-03-2025
- Automotive
- Reuters
Morning Bid: Das auto caught in the tariff crosshairs
A look at the day ahead in European and global markets from Ankur Banerjee Investors will be fixated on European auto stocks on Thursday after Trump's announcement of duties on imported cars and light trucks, which hit Asian car makers' shares and drew a strong rebuke from the auto industry. Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here. German automakers Mercedes Benz, BMW ( opens new tab and Porsche (P911_p.DE), opens new tab are all likely to come under heavy pressure. The European automobiles and parts index (.SXAP), opens new tab hit a seven-week low on Wednesday and is poised to fall further. The region's top carmaker, Volkswagen , is particularly exposed, with 43% of its U.S. sales sourced from Mexico, according S&P Global Mobility. Europe's carmakers exported around 800,000 vehicles to the United States last year, according to official U.S. trade data, about four times the number of cars exported by the U.S. to Europe. Chrysler parent Stellantis ( opens new tab and Volvo Cars ( opens new tab will also be in focus. Automakers aside, market moves during Asian hours were muted as investors take a wait-and-see approach, although futures point to a lower open in Europe. The euro hit a three-week low in early Asian hours but has since inched back up. The Canadian dollar was steady and the Mexican peso was 0.5% weaker. The yen was a tad stronger. Still, the spectre of a wide-ranging trade war looms large, leaving investors skittish and risk-averse. The European Commission said it would assess Trump's tariffs and continue to seek negotiated solutions, while safeguarding its economic interests. The auto tariffs, if left in place for an extended period, could add thousands of dollars to the cost of an average U.S. vehicle purchase. Nearly half of all cars sold in the U.S. last year were imported, according to research firm GlobalData. Investor attention will also focus on reciprocal tariffs due to be announced next week. Trump indicated the measures may not be the like-for-like levies he has been saying he would impose. Key developments that could influence markets on Thursday: Possible responses to Trump's auto tariffs By Ankur Banerjee; Editing by Edmund Klamann
Yahoo
06-02-2025
- Business
- Yahoo
Bombardier beats profit estimates, puts off 2025 forecast on US tariff uncertainty
By Allison Lampert and Aatreyee Dasgupta MONTREAL (Reuters) -Canadian planemaker Bombardier on Thursday beat quarterly profit estimates on aftermarket business strength, and delayed its 2025 forecast, citing uncertainty related to U.S. President Donald Trump's tariffs. Resilient demand for private flying has boosted jet makers' order books and their aftermarket businesses, despite a slower-than-expected recovery in the aerospace supply chain. But Trump's 25% tariff on Canadian and Mexican imports is creating uncertainty for planemakers, even though the duties have been delayed by 30 days. Bombardier sells most of its Canadian-assembled jets to U.S. customers, while aerospace major RTX's Pratt & Whitney Canada unit produces jet engines for U.S.-based Textron and General Dynamics' Gulfstream. Planemakers including Bombardier have been wrestling with supply-chain snags that have weighed on production. Supply-chain giant Honeywell, which provides engines to Bombardier, on Thursday announced a deal to split into three independently listed companies. For the fourth quarter, Montreal-based Bombardier posted a 1.5% rise in revenue to $3.11 billion, compared with analysts' estimate of $3.18 billion, according to data compiled by LSEG. On an adjusted basis, it earned $3.01 per share in the fourth quarter, compared with analysts' estimate of $2.04. Its full-year revenue rose 8% to $8.67 billion. The company's services business generated $2.04 billion in annual revenue, hitting a company target a year earlier than expected. In 2024, Bombardier delivered 146 aircraft, up from 138 in 2023, but below its November forecast of 150-155 jets. The company reported $232 million in full-year free cash flow, a metric closely watched by investors, in-line with its targets. The planemaker's backlog rose 1% from $14.2 billion to $14.4 billion in 2024.
