Tuesday, 28 July 2015

Earnings catch up #2- UPS, Ford, Cummins

After a European tone to #1 (link here) here are some US reporters today (Tuesday) that caught my attention.

First UPS the global logistical company which once again bounced off the c. US$95 level.  The last time I properly wrote the stock up (link here) I concluded that 'Global logistics stocks move around on hopes and fears for the global economy but there are some strong themes here.  In short, any material plunge below US$100 is an opportunity.  Worth keeping an eye on'. Following a higher range of the guidance range set of numbers this still feels correct.

As for Ford for me all eyes were on the incentive levels as this was one factor I had taken a cautious reading on from the GM numbers last week (link here).  Incentives did not look quite as prevalent as with GM but I was not very excited by the numbers...

...especially as (and as with GM) North America was c. 100% of total profits:

An interesting aspect to me however was the mild revision up of the 'Europe 20' industry volume...and the mild revision down of the 'China' sales numbers.

The above actually proved to be quite modest compared to Cummins the truck engine and related company who are predicting for FY15e some pretty impressive falls in Chinese/Brazilian demand.  
Even though both companies are near their 52 week lows I am not rushing (same with GM).  

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