Ford's Turkish Partner Invests $3.4Bn - Analyst Blog
December 30 2011 - 12:00PM
Zacks
Koc Holding AS, the joint venture partner of Ford Motor
Co. (F) in Kocaeli, Turkey, announced that it will invest
6.5 billion liras ($3.4 billion) in 2012.
The investment will be focused both on Ford’s joint venture,
Otomotiv Sanayi AS (Ford Otosan), and Tupras Turkiye Petrol
Rafinerileri AS, the country’s sole crude oil supply and refining
company.
Ford Otosan started production in 1965, with each company
holding a 41% share in the venture. It operates four facilities in
Turkey, two in Kocaeli, one in Eskisehir and one in Istanbul.
The joint venture has a share of about 15% in the domestic
market. Its share in the passenger car market is roughly 10%, while
the share is nearly 20% in the light commercial vehicle
segment.
A few months back, Ford Otosan revised its sales forecast upward
to 351,000 units from 345,000 units for 2011. The forecasted sales
reflect a 16% increase from the sales in 2010.
The guidance included domestic sales of 135,000 units, up from
the previous forecast of 131,000 units and 126,000 units in 2010,
and exports of 216,000 units, up from the prior guidance of 214,000
units and 177,000 units in 2010.
Ford Otosan plans to produce 292,000 units in 2011, up 21% from
242,000 units in 2010. The joint venture will invest $300 million
this year compared with $56 million a year ago.
Turkey is one of the most important markets for the automobile
in Europe. It occupies the sixth position in the continent in terms
of automobile production. The country’s light vehicles market
expects to grow 11% to 882,000 units this year from 792,000 in
2010.
As a result, it attracted the attention of many global
automakers, including Toyota Motor Corp. (TM),
Honda Motor Co. (HMC), Opel, Hyundai,
Mercedes-Benz and MAN AG. The companies mostly produce vans, buses
and trucks in the country.
Ford, a Zacks #3 Rank (Hold) stock, posted a 3.5% drop in
profits to $1.85 billion in the third quarter of the year from
$1.91 billion in the same quarter of prior year. However, on per
share basis, earnings were 46 cents versus 48 cents a year ago,
beating the Zacks Consensus Estimate of 44 cents. The decline in
profits was attributable to a drop in commodity prices and
anticipated reductions in Financial Services results.
Total revenues in the quarter went up $4.1 billion or 14.1% to
$33.1 billion. This compared with the Zacks Consensus Estimate of
$29.8 billion.
FORD MOTOR CO (F): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Toyota Motor (NYSE:TM)
Historical Stock Chart
From Sep 2024 to Oct 2024
Toyota Motor (NYSE:TM)
Historical Stock Chart
From Oct 2023 to Oct 2024