NEW YORK, N.Y. — Companies that make vehicle continue to report solid quarterly profit gains despite the dismal stock market activity of late.
On July 18, suppliers Johnson Controls Inc., ArvinMeritor Inc., Tower Automotive Inc., Genuine Parts Co. and Cooper Tire and Rubber Co. reported higher profits that all met or beat analysts’ targets.
Automakers built seven per cent more cars and trucks in the latest quarter than a year ago, sharply exceeding earlier industry projections for the period.
Many suppliers say the continued brisk pace of vehicle production was driving their growth. U.S. auto industry sales had rebounded in June after a surprisingly sharp drop in May that had rattled investors in auto-related stocks.
DaimlerChrysler AG also raised its 2002 profit outlook after posting sharply higher than expected second-quarter results that were fueled by a recovery at its revamped U.S. unit Chrysler. Its adjusted operating profit of 1.9 billion euros easily topped the average forecast of 1.3 billion euros from 18 analysts in a Reuters poll and was more than double its profit in the same period a year ago.
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