Japanese Car Output Grows Overseas

Elena
31 Jul, 2006
New York City

The Japan Automobile Manufacturers Association said that for the first time the Japanese automakers produced more vehicles overseas than they did at home. Japanese automakers have been boosting market share in the U.S. and other key global regions as soaring oil prices make their fuel-efficient models more attractive to consumers.

[R]8:00AM Japanese automakers produced more vehicles abroad than in Japan.[/R]
The Japan Automobile Manufacturers Association said that for the first time the Japanese automakers produced more vehicles overseas than they did at home during a fiscal year. Japanese automakers produced 10.93 million vehicles abroad in fiscal year 2005, while they made 10.89 million vehicles in Japan. The overseas production data by Japanese automakers, including Toyota Motor Corp., Nissan Motor Co., Honda Motor Co. and other manufacturers, was up 10.6% from 9.88 million vehicles in fiscal 2004.

For June, the production of cars, trucks and buses in Japan climbed 7.2%, compared to last-year same period, marking the eighth straight month of rises, the association reported. Vehicle output increased to 1.02 million vehicles in June from 951,206 vehicles a year earlier, it said. Domestic vehicle demand in June totaled 509,924, down 1.5% from a year earlier. Japan''s exports of cars, trucks and buses rose 14.6% in June, rising for the 11th straight month.

Japanese automakers have been boosting market share in the U.S. and other key global regions as surging oil prices make their fuel-efficient models more attractive to consumers. Profit at Honda Motor Co. for the second quarter soared 30% as its global vehicle sales jumped 6.7%. Nissan Motor Co. reported a 4.2% rise in quarterly profit but acknowledged it was selling fewer vehicles around the world because of a dearth of new models.


[R]7:30AM Asian stocks finish higher on a positive earnings results note.[/R]
Asian markets ended higher on Monday. The Nikkei 225 Average closed up 0.74% to 15,456.81, the Japanese benchmark''s third straight gain. The Japanese government announced Monday morning that June industrial production gained a stronger-than-expected 1.9% on month. On the corporate front, Toshiba was up 1.64%. It was to announce earnings Monday after markets close. NEC advanced 2.9%.

Toyota Motor advanced 1.16%. The car maker reports earnings on Friday. Last week, Honda Motor reported a record profit for the April-June quarter. Hitachi was up as much as 1.24%. The company was due to announce earnings today.

Hong Kong stocks also advanced, boosted by U.S. markets and as easing interest-rate fears prompted buying. The benchmark Hang Seng Index added 0.1% to close at 16,971.34, stretching the index''s winning streak to six. South Korea''s Kospi index advanced 0.96% to a two-month high. Australia''s S&P/ASX 200 gained 1.11%. Samsung Electronics, the largest exporter in Korea, gained 2.17%.


[R]6:30AM Europe falls slightly on mixed earnings results.[/R]
European markets fell slightly by mid morning. London’s FTSE 100 slipped 0.3% to 5,958.9, while Frankfurt’s Xetra Dax shed 0.2% to 5,694.92 and in Paris, the CAC 40 fell 0.2% to 5,020.58. On the corporate front, Dutch banking group ABN Amro Holdings dropped 2.8% after saying that provisions for bad loans soared to 430 million euros in the second-quarter, from 62 million euros a year ago, largely due to rising provisions for consumer loans. Profit climbed 23.2% to 1.22 billion euros ($1.55 billion).

U.K. media and publishing group Pearson advanced 1.9% after its adjusted operating profit gained 57% to 73 million pounds, helped by its Penguin book publishing arm and the FT Group. Spanish infrastructure firm Ferrovial, haiving recently won a bid battle to buy British airports operator BAA, announced Monday that it advanced 2.1% after reporting first-half net profit rise of 19.8% to 237.4 million euros ($302.8 million).

Dutch delivery services group TNT gained 3.4% after raising its margin guidance for 2006 and saying it expects to sign an agreement to sell its Logistics division before the end of the third quarter.

Oil prices gained 10 cents in electronic trading to $73.34 a barrel as unrest continued over the weekend in the Middle East. Gold gained London where the precious metal for immediate delivery advanced $2.13, or 0.3%, to $636.88 an ounce.

The euro was flat against the dollar Monday, holding gains it made at the end of last week after data showed a sharp slowdown in U.S. economic growth. The European currency bought $1.2753 in early European trading, unchanged from its level in New York late Friday. The British pound edged down to $1.8629 from $1.8634. The dollar dipped against the Japanese currency, falling to 114.34 yen from 114.70 yen.