Fourth Monthly Decline in U.S. Auto Sales; Bankrate in $1.2 B Deal

Mukesh Buch
03 Jul, 2017
New York City

AK Steel agreed to buy rival Precision Partners. Bankrate agreed to go private for $1.2 billion. Fiat Chrysler U.S. sales in June fell 7%. Ford sales in June slid 5%. GM U.S. sales in June dropped 5%. Intl Speedway net plunged 40%.

[R]10:25 AM New York – AK Steel agreed to buy rival Precision Partners. Bankrate agreed to go private for $1.2 billion. Fiat Chrysler U.S. sales in June fell 7%. Ford sales in June slid 5%. GM U.S. sales in June dropped 5%. Intl Speedway net plunged 40%.[/R]

Tollbooth Index decreased 19.52 or 0.2% to 11,977.34.

Earnings Review

AK Steel Holding Corp ((AKS)) dropped 1.2% or 8 cents to $6.49 after the flat-rolled carbon, stainless and electrical steels producer today agreed to acquire rival Precision Partners Holding Co. for $360 million in cash.

The transaction is expected to close in the third-quarter of this year.

Bankrate Inc ((RATE)) surged 8.4% or $1.07 to $13.93 after the personal finance website operator agreed to be acquired by marketing group Red Ventures LLC for about $1.24 billion in cash.

EQT Corporation ((EQT)) jumped 3.3% or $1.90 to $60.49 after the activist investor Jana Partners acquired 5.8% stake or 10,117,000 share in the natural gas producer for about $496.1 million.

Fiat Chrysler Automobiles NV ((FCAU)) jumped 4.4% or 47 cents to $11.10 after the vehicle maker said U.S. auto sales in June declined 7% to 187,348 vehicles compared to 202,421 vehicles in a year ago month and retail sales dropped 5% to 139,947 vehicles.

Jeep brand sales in the month plunged 11% to 73,153 vehicles and Chrysler brand sales declined 15% to 19,741 vehicles. Dodge brand sales plummeted 14% to 42,550 vehicles. Wrangler slumped 6% to 18,839 vehicles.

Fiat brand sales fell 4% to 2,242 vehicles while RAM pickup vehicles sales jumped 5% to 43,073 vehicles. FCA''s average transaction price in the month jumped 5.6% to $36,971 from a year ago month.

Ford Motor Company ((F)) advanced 3.7% or 41 cents to $11.60 after the automaker reported total U.S. sales in March slumped 5.1% to 227,979 units and retail sales were flat at 152,396 units.

Passenger car sales in the month tumbled 23% to 52,731 units while fleet sales plunged 13.9% to 75,583 units while trucks sales soared 9.8% to 77,895 units while Lincoln brand unit sales jumped 5.3% to 9,275 units.

Ford Escape sales in the month dropped 6.4% to 27,151 units but F-Series truck retail sales soared 9.8% to 77,895 units from a year ago month. Sales in Ford SUVs rose 2.9% to 71,666 units.

Fusion sales plummeted 31.6% to 18,139 units and Focus sales tumbled 20.1% to 15,575 units. Mustang sales dropped 36.7% to 6,186 vehicles. Ford Explorer sales surged 22.7% to 21,304.

Ford’s average transaction prices increased $1,800 from a year ago and on strong demand for high-series trucks and Raptor lifted F-Series transaction price by $3,100 for the month, more than twice the segment average.

General Motors Company ((GM)) advanced 2.4% or 82 cents to $35.75 after the automaker reported total sales in June dropped 4.7% to 243,155 vehicles and retail sales in the month fell 3.4% to 202,908 units.

GM said June sales in Chevrolet segment slumped 6.4% to 169,842 units while sales in Cadillac unit plunged 11.8% to 12,580 units while sales in Buick segment soared 16.4% to 19,299 units from a year ago month.

The automaker said average transaction prices after sales incentives were $35,657, an increase of nearly $400 per vehicle.

GM’s deliveries to rental car companies may decline for the third year in a row and inventory in the second-quarter is estimated to be lower than in the first-quarter.

International Speedway Corp ((ISCA)) declined 4.9% or $1.85 to $35.70 after the motorsports event’s organizer said total revenues in the second-quarter ending in May fell 1.3% from a year ago to $165.3 million.

Net income in the quarter plunged 39.7% to $13.2 million or 29 cents per diluted share from $21.9 million or 47 cents in the same quarter last year.

International Speedway reaffirmed full-year revenue forecast between $660 million and $670 million and diluted earnings per share in the range of $1.50 to $1.65.