Good news for the automotive sector,and great news for CMO, with Ford Ranger sales still high,and Mazda performing well..
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Interestingly Ford's share price on the U.S. market has been lackluster to say the very least for years. I think they are well and truly behind the 8 ball regarding development of electric cars.
On the other hand some of Mazda's new engines look like interesting developments to wring the last bit of life out of the ICE engine over the next 15-20 years.
I think the Chairman was right to opine regarding caution with regard to electric vehicles, they're coming at pace over the next 5 years or so but I don't see any reason why they wouldn't be sold through normal dealership channels, (they still need scanning and diagnostics as well as brakes/ tyres WOF e.t.c. and people will have trade-in's to sell as part of the process) so I'm not so sure why the concern they wouldn't be sold through dealerships ?
Long term the lower service costs of electric vehicle will have some impact on dealerships, I'm pretty sure of that.
Yep, Ford dropped the ball on electric and are in catch up mode - https://www.theverge.com/2018/1/15/16892386/ford-electric-car-11-billion-2022-detroit-auto-show-2018
They do seem to have negated the impact of the significantly cheaper LDV, Ssang Yong etc in light commercials. All down to reputation, eh.
Ticking along nicely....
The Directors are pleased to announce the unaudited results for the six
months to 31 December 2017. The trading profit after tax of $11.903m is up
15.9% on last year's record profit for the same period.
The record result for the Company was driven by heavy trucks, with both sales
volume and trading profit growing in the six month period. Kenworth and DAF
had strong sales growth with a full calendar year total of 482 heavy vehicles
registered.
The total new light vehicle industry for the second half of the last calendar
year was up 3.9% on the same period a year before, a materially lower rate of
growth than the 13.5% growth of a year earlier. This slowing rate of growth
impacted on the profitability of our car dealerships. The car dealerships
trading profit was lower than the record result a year earlier but above that
achieved in both 2015 and 2014. Segment shifts within the market continue
with the established pattern away from sedans and hatches into SUVs and light
commercials. This trend affects Ford and Mazda differently. Mazda is strong
in the important SUV segment, while Ford is successful in the light
commercial sector.
Developments
South Auckland Motors' new facility at Takanini (leased) successfully opened
on time in December.
Late in 2017, Southern Autos-Manukau was appointed the Suzuki car franchisee
to replace Moyes in Panmure, and on 3 January 2018 began selling Suzuki
vehicles from its site at Manukau in addition to Isuzu utes, Peugeot and
Citroen.
Work has commenced on a CMC-owned workshop facility in Wellington City for
Capital City Motors.
Outlook
The total new vehicle market continues to grow and there are strong forward
orders for heavy trucks. However the pace of growth has slowed from a year
ago and business confidence is more cautious.
Dividend
The directors also declared an interim dividend of fifteen (15.0) cents per
share totalling $4.904m up 2.0 cents from the same period last year.
The dividend will carry full imputation credits based on the corporate tax
rate of 28% and a supplementary dividend will be paid to eligible
shareholders.
The dividend will be paid on Monday, 16 April 2018 to shareholders on the
register at close of business on Friday, 6 April 2018.
End CA:00314457 For:CMO Type:INTERIM Time:2018-02-20 16:04:38
Can't argue with that result. Very impressive considering the election result and lower business confidence.
Lots of EPS growth unlike a certain other company in this field.
Actually Turners doing quite well now too. Latest stat's out for new vehicle s for May show we're back on t rack after a softer April. This vehicle sector offers real value from a PE and dividend yield perspective with growth in EPS effectively for free !
http://www.scoop.co.nz/stories/BU180...ay+6+June+2018
You must be chomping at the bit there Beagle...
http://nzx-prod-s7fsd7f98s.s3-websit...681/285136.pdf
Well done holders.
A great result from "the family" business.
:t_up:
Nothing else that needs saying ... except for the cautionary outlook (which seems pretty much normal for this company).
Yeah happy (very) holder here too. Bought in around the $4 mark a while back. Such a boring company but that is the way I like them. Just increasing EPS and increasing DPS. What more would you want. Agree with you on the cautionary outlook being the norm. The AGM's are a funny affair, its like a family reunion and has a weird feel too it. But the lunch is normally pretty good.