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Thai current account returns to surplus in May: central bank
The Thai current account returned to a surplus in May as exports grew strongly while import growth slowed, the central bank said.
Thailand recorded a 631 million dollar surplus in May, compared to 246 million dollars one year ago, the Bank of Thailand said in its monthly report Monday.
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In April Thailand had posted a 1.66 billion dollar deficit in the current account, as imports surged due to high global oil prices and increased buying of gold, which Thais turned to as a safe haven investment.
"Trade surplus at 1.26 billion dollars in May led to the current account surplus in May, with deceleration of imports and acceleration of exports," said a central bank official.
Exports, which account for more than 60 percent of the Thai economy, rose to 15.29 billion dollars in May, up 22.1 percent year on year, due mainly to rising prices in agricultural goods.
Exports of gems and jewelry, computers, automobiles, plastic, iron products as well as petroleum products also grew in May, the bank said.
Imports grew at a slower pace in May, increasing to 14.02 billion dollars, up 15.7 percent year on year.
The decline in imports was due mainly to a drop in crude oil imports along with a slowdown in purchases of machinery, food and non-durable goods, the bank said.
Exports to the United States rose 2.97 percent year-on-year to 1.73 billion dollars, while shipments to Japan grew 19.46 percent to 1.78 billion dollars in May.
EU-bound exports also expanded 10 percent to 2.09 billion dollars, the Bank of Thailand said.
NEW DELHI: Car maker Hyundai Motor India (HMIL) on Tuesday reported a 34 per cent increase in domestic passenger car sales at 21,881 units during June, against 16,335 units in the corresponding month of 2007.
vi mangler maruti, de plejer altid at komme først lige præcis den 1 i hver måned med salgstallene
The company's overall sales (including exports) during June were up 45.3 per cent at 40,182 units, compared to 27,653 units in the same month a year ago, HMIL said in a statement.
Its exports for the month rose to 18,301 units, against 11,318 units during the same month previous year.
HMIL sold 33,859 units of hatchbacks Santro, Getz and i10 6,272 units of Accent and Verna, 47 units of Sonata Embera and 4 units of its SUV Tucson in June.
"At a time when the industry is already under tremendous pressure because of higher interest rates, rise in fuel costs and rising inflation, it is indeed very heartening to see that Hyundai products continue to be an affordable and attractive buy for most car buyers," company's Senior Vice-President (Marketing and Sales) Arvind Saxena said.
The company's 'i10' has done exceedingly well and it has sold over 1,00,000 units in less than six months since its launch, he added.
Indonesia Set to Become Major Rice Exporter Next Year
$all $id $gra $fod $tda
JAKARTA, July 1 Asia Pulse - Indonesia, only a few years ago the world's largest importer of rice, will take a big leap forward planning to export 6 million tons of that commodity in 2009.
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Agriculture Minister Anton Apriyantono said the country is set place itself in the ranks of major rice suppliers in the world.
Anton said to support the ambition, 1.6 million hectares of rice fields will be opened in Merauke, Papua involving a consortium of investors from Saudi Arabia.
The project will cost around US$15 billion, Apriyantono told the newspaper Investor Daily last weekend.
He said he has discussed the plan with a delegation from Saudi chamber of commerce and industry as a follow up of his meeting with the Saudi agriculture minister on the sideline of the food summit in Roma last month.
JAKARTA, July 1 (Reuters) - Indonesia's vehicle sales are estimated to have risen by 35.7 percent last month despite a government decision to raise subsidised fuel prices in May, Toyota Astra Motor said on Tuesday.
Jodjana Jody, head of sales at Toyota Astra Motor, estimated total sales are expected to be around 53,500 in June compared to 39,424 units in the year-ago period and 50,699 units in May.
He told Reuters that market leader Toyota (7203.T: Quote, Profile, Research, Stock Buzz) sold 18,144 units last month, up 36.3 percent from the same month in 2007.
The data is seen by analysts as a gauge of overall activity in Southeast Asia's largest economy.
Toyota Astra Motor, owned by PT Astra International Tbk ASII.JK, the largest automotive distributor in the country, is the distributor of Toyota cars in Indonesia.
Jody said the strong June sales were a strong signal that total vehicle sales for this year could top an industry association forecast of 500,000 units.
"In the first half alone, total sales were already around 290,000 units. The second half is normally stronger than the first half so I am confident that we can top 500,000 units this year," Jody said.
Indonesia's automotive was severely hit the last time the government raised fuel prices in October 2005, but the sector has started recovering from that slowdown.
Sales in the first five months of 2008 rose by nearly 60 percent, helped by lower interest rates and despite the country's consumer confidence being dented by building inflation. Continued...
However, analysts say the central bank's decision last month to hike its benchmark rate by a total of 50 basis points in the past two months, could hurt sales in the future.
They say high inflation from rising food prices and energy costs could also weigh on the automotive industry.
But some analysts and industry experts have said they still expect this year's vehicle sales to top 500,000 units, compared to 434,449 units in 2007, even after the hike in subsidised fuel prices.
Most vehicle purchases in Indonesia are financed by loans, making sales sensitive to interest rates. (Reporting by Harry Suhartono, editing by Sugita Katyal)
produktionen af biler i korea viser, hvor stærk eksporten er til diverse emerging markets også i juni
korea producerer lige så mange biler som tyskland og er dermed nummer 4-5 i verden efter usa, japan og kina, hvor jeg ikkk rigtigt ved om korea er en smule større eller en smule mindre end tyskland, brazilien er godt på vej mod de 3½ mio, så brazilien kommer lige efter sammen med frankrig - europa tilsammen er selvfølgelig størst og lidt større end usa
The combined sales of South Korea's auto makers rose 9.2 percent in June from a year ago, data from the companies showed on Tuesday, helped by growth in exports to Russia and Middle East and sales of minicars at home.
Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz), the country's top auto maker, and four other South Korean carmakers sold 490,342 vehicles in June, compared to 449,043 units a year ago and 485,093 in May.
Their overseas sales grew 14.2 percent to 392,751 units in June from a year ago but domestic sales fell 7.2 percent to 97,591 units.
Auto exports, which account for about 10 percent of all South Korean exports, have increased by 4 percent in the first half of 2008 from a year ago, led by robust demand from emerging markets such as Russia and Middle East, the Ministry of Knowledge Economy said on Tuesday.
Hyundai, the world's No. 5 carmaker by sales volume along with its affiliate Kia Motors Corp (000270.KS: Quote, Profile, Research, Stock Buzz), sold 253,846 units, up 11.4 percent compared to a year earlier. But its domestic sales fell 14.6 percent last month to 48,301 vehicles.
Despite the weak consumer sentiment in Korea, Kia saw an encouraging 17 percent rise in domestic sales last month helped by popular minicars models. South Koreans increasingly turn to smaller cars as high oil prices boost fuel costs.
South Korean car makers' sales in June:
Total Change vs Overseas Change vs
sales yr ago sales yr ago Hyundai Motor 253,846 +11.4 205,545 +20.0 Kia Motors 116,387 +3.5 90,633 +0.2 GM Daewoo (GM.N: Quote, Profile, Research, Stock Buzz) 92,013 +8.6 78,380 +7.2 Renault Samsung (RENA.PA: Quote, Profile, Research, Stock Buzz) 20,704 +57.5 12,703 +222.2 Ssangyong Motor 032660.KS 7,392 -32.4 5,490 +8.0 ---------------------------------------------------------------- Total 490,342 +9.2 392,751 +14.2 (Reporting by Park Ju-min; Editing by Louise Heavens)
Poverty-hit Bangladesh forced into huge fuel price hike
Impoverished Bangladesh became the latest victim of surging global crude costs Monday with the government announcing it has been forced to hike state-set fuel prices by between 34 and 66 percent.
Authorities said they had no alternative to the sharp increases because the country could no longer afford to sell petrol, diesel, kerosene and gas at subsidised rates that were set when a barrel of oil cost just 60 dollars.
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On Monday, oil was trading close to 144 dollars a barrel.
"Frankly speaking, we had no choice. It was unavoidable," Bangladesh's deputy energy minister M. Tamin told AFP.
"The oil subsidy still accounts for 40 percent of the government's development budget. Imagine a situation where crude oil goes up to 200 dollars a barrel. All development in Bangladesh will stop," he said.
The price rises represent a major blow for the country, one of the world's poorest, where nearly 40 percent of the 144 million population survive on less than a dollar a day.
The country is already suffering from rising food prices, with the price of rice -- a staple in the South Asian nation -- nearly doubling over the past year.
"It's an international crisis. We think rich countries, oil-producing countries and the United Nations should deal with the issue urgently," Tamin said.
Starting Tuesday, the price of diesel and kerosene is to go up by 37.5 percent to 55 taka (80 US cents) per litre (0.26 gallon), while petrol prices will increase by 34 percent to 87 taka per litre, the ministry said.
The price of furnace oil, used in small factories, has been increased by 50 percent, while a cylinder of gas used for cooking will go up by 66 percent.
"The prices of petroleum products have been increased due to the massive increase in global oil prices. It has been putting huge pressure on the government's budget," energy ministry spokesman Afrazur Rahman explained.
"Even with the hike, the government will have to spend 100 billion taka (1.45 billion dollars) as subsidies on fuel" over the next financial year, he said.
The official added that even with the sharp rises, fuel prices in Bangladesh were among the lowest in the region and that state-owned Bangladesh Petroleum will still be selling fuel at a 40 percent loss.
The government last increased fuel prices in April 2007. World crude oil prices have since more than doubled, costing the impoverished country more than one billion dollars in subsidies in the fiscal year that ends on Monday.
Economist Apiur Rahman, the head of Development Coordination -- a Bangladeshi think-thank -- said the global surge and the resulting domestic hike could be catastrophic for millions in the country.
"It's very bad news for the country's farmers, for rural poor, and even middle income people," he said.
"It will drive millions of people into poverty. Inflation will jump immediately. But the government had no choice, its hands were tied. It had to raise prices."
He called on the government to "increase subsidies in other areas" -- such as for staple foods and healthcare -- to lessen the blow to the poor.
Economic development in Bangladesh has taken several blows over the past 18 months, beginning with political instability and the imposition of a state of emergency in January 2007.
It was then hit by highly destructive floods and a massive cyclone the same year.
Bangladesh is the latest nation in South Asia to be forced to increase state-fixed fuel prices over the past month.
On June 4, India's government boosted fuel prices by around 11 percent to stem huge losses at state-run oil firms, stirring widespread political anger and sparking another jump in inflation to a 13-year high of more than 11 percent.
And on June 9, Nepal raised prices by 25 percent for petrol and diesel and 27 percent for kerosene after the state-owned Nepal Oil Corporation said it had run out of money after recording average monthly losses of 38 million dollars.
der er jo en del semi eq aktier, der leverere eq til sol
så de får nok flere ordrer, når priserne stiger på sol
det er ligesom med præsten og degnen, når det regner på præsten drypper det på degnen
men når solen skinner på præsten så stråler gud
HANOI, July 1 (Reuters) - Vietnam, a major coal supplier to China, estimated on Tuesday that coal exports in January-June fell 14.9 percent from a year earlier to 13.87 million tonnes, but revenues rose 43.3 percent to $728 million thanks to high world coal prices.
The General Statistics Office said coal output in January-June rose 8 percent from a year ago to 22.42 million tonnes.
Vietnam, struggling to meet soaring energy demand at home, plans to slash coal exports this year by more than 32 percent to about 22 million tonnes to save more for new power plants, officials from the Industry and Trade Ministry have said.
Vinacomin, the country's top coal producer, has forecast coal output this year could rise to 43 million tonnes, beating previous industry projections of 40 million tonnes.
Last year, its coal production rose 11.5 percent to 41.2 million tonnes.
As part of the move to save coal, the government in April launched a crackdown on coal smuggling to China, which was estimated to be as high as 10 million tonnes last year, with police intercepting more than a hundred ships carrying illegal coal cargoes near the Chinese sea border.
Vinacomin said it had stop the cross-border sales of coal via Van Gia port in the northern province of Quang Ninh from June 1 and only allowes its subsidiary Coalimex-TKV to export coal to China.
Power demand in Vietnam is expected to grow between 18 percent and 20 percent annually, prompting the government to seek ways to diversify energy sources including coal, water, natural gas, wind power and nuclear.
Vietnam is forecast to start importing coal from 2012 with the purchases rising to 34 million tonnes in 2015 and 114 million tonnes by 2020, the Industry and Trade Ministry said in a report to the government in March.
Vietnam has raised export tariffs on minerals, including crude oil and coal, to 20 percent from June 16 in a bid to limit coal exports. Crude oil sales were subject to a previous 8 percent duty while that on coal had been 15 percent. (Reporting by Nguyen Nhat Lam; editing by Neil Fullick) BusinessRelated information follows Ads by Google
Bottomless: Home Prices to Fall Another 10-15 Percent, Says Schwab's Sonders
Posted Jun 30, 2008 03:53pm EDT by Aaron Task in Investing, Recession
Related: LEN, KBH, XHB, SCHW
Last week brought more grim news on the housing front, from the widening loss at KB Homes to the cautious comments from Lennar CEO Stuart Miller.
Yet the optimists continue to grope for signs of a bottom, with many focusing on the S&P Case/Shiller Index, which fell less than expected and showed 8 of 20 regions flat or higher vs. a year ago.
But "until we start to see some of the supply come down it's hard to come up with a scenario that provides any kind of traction for prices," says Liz Ann Sonders, chief investment strategist at Charles Schwab.
Because inventories remain so high -- 10.9 months of supply for new homes -- Sonders still believes home prices are likely to fall another 10% to 15% before any talk of a "bottom" can be taken seriously. "Not many metrics we use to judge the health of housing are moving in the right direction," she says.
Those metrics include mortgage rates, which are higher today than when the Fed started easing in August. "I don't know that the Fed raising rates would cause major dislocations in the housing market," says Sonders.
That said, she does see a silver lining in the housing market's bust; namely, speculators have gotten a comeuppance and we've learned that "universal homeownership" is not necessarily a universal good.
South Korean Builders Log Record Overseas Orders
SEOUL, June 30 Asia Pulse - South Korean construction companies are enjoying a boom in overseas orders this year on the back of the growing Asian market and increased Middle Eastern demand stemming from skyrocketing oil prices, industry sources say.
The builders have received orders worth a combined US$25.9 billion from 67 countries in the January-June period, up 61 per cent from a year earlier and a record half-year amount, according to data released by the International Contractors Association of Korea (ICAK).
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More than half the orders came from Middle Eastern countries, with 33 per cent received from Vietnam and other Asian countries, the data show.
"Soaring oil prices led to a flush of orders for industrial plants from Middle Eastern countries. Local builders also got lots of orders from Asian countries, helped by growing construction markets" said Kim Tae-yup, an official at the ICAK.
According to the data, big construction companies such as Daewoo Engineering & Construction Co. (KSE:047040), the largest local builder by sales, have mainly won orders for industrial plants in the first half, while small and mid-sized builders have tapped into housing markets.
"The sagging local housing market prompted small and mid-sized construction companies to look overseas," said Choi Sang-keon, an official at the Construction Association of Korea (CAK).
A slump in the domestic housing market was caused by poor consumer sentiment which has lasted since the first quarter of 2007, Kim said, adding that weak consumer sentiment is attributable to policies of the Roh Moo-hyun administration to curb soaring housing prices.
According to the CAK's data, the number of the small and mid-sized builders that went bust in the first quarter of the year came to 26, up 36.8 per cent from 19 a year ago.
As of June 30, the number of local construction companies that work abroad was up 46 per cent to 195, compared with 134 a year earlier.
Hyundai Engineering & Construction Co. (KSE:000720) received overseas orders worth US$4.7 billion in the January-June period, followed by POSCO Engineering & Construction Co. with $2.54 billion and GS Engineering & Construction Co. (KSE:006360) with US$2.5 billion. Daewoo Engineering & Construction took the No. 4 spot with US$1.98 billion.
Qatar was the biggest market for South Korean builders during the same period, awarding US$4.3 billion worth of orders. Saudi Arabia ranked second with US$2.4 billion, trailed by the United Arab Emirates with US$2.2 billion and Kazakhstan with US$1.8 billion.
In 2007, South Korea's overseas construction orders hit a record high of US$39.8 billion, propped up by strong demand for industrial plants in the Middle East, which stemmed from soaring oil prices.
Early this year, the Ministry of Land, Transport and Maritime Affairs set a goal of US$45 billion for overseas construction orders this year.
The ICAK predicts that the government may achieve its goal with ease this year as conditions such as oil prices and a boom in Asian construction markets will not change significantly in the second half, Kim added
JAKARTA, June 24 (Reuters) - Indonesia will alter the base year for its consumer price index starting with the June data, to reflect changes in buying patterns, and will reduce the weighting of food in the index, the statistics bureau said on Tuesday.
Lowering the weighting of food would reduce the impact from rising food prices in Southeast Asia's biggest economy.
As in other low income countries, food accounts for a large proportion of consumer spending and therefore carries a large weighting in the index.
Deputy head of the statistics bureau Ali Rosidi told Reuters that the rebasing, which is conducted every five years, to use 2007 as the base year, would reduce the weighting of food in the calculation of the index to about 37.5 percent from 43 percent currently.
Rosidi said the fall in the weighting of food in the consumer price index was "quite significant."
"This is to better reflect spending patterns. Annual per capita income was only around $850 in 2002. Given the income amount, food accounted for a large share of spending. But now the income has doubled to around $1,600," Rosidi said by telephone.
He also said the number of items used in calculating the consumer price index would be increased to around 830 from around 740 to better reflect changing patterns in consumer spending. Continued...
SINGAPORE (Reuters) - Japanese-Swedish handset maker Sony Ericsson (6758.T: Quote, Profile, Research, Stock Buzz)(ERICb.ST: Quote, Profile, Research, Stock Buzz) said on Tuesday it projected strong demand for the global handset industry in the second quarter and the second half of this year.
"We had a slightly slower start to the year due to some economic downturn in Western Europe and due to overstocking in channels in Q4, which meant inventories were higher going into 2008. That was a short-term issue," Sony Ericsson's head of global marketing James Marshall told Reuters in an interview.
He said the firm was keeping its 10 percent growth forecast for the global handset market this year.
"Projections for this quarter and the second-half of 2008 looks strong -- that's why we can keep the 10 percent growth projections," he said.
In April, Sony Ericsson posted a 47 percent dive in first-quarter profits, slipping to fifth place in global market share as demand slowed for its more expensive camera and music handsets.
The results were broadly in line with the company's forecast when it warned on profits last month, spelling an end to a long string of bumper quarterly results and market share gains.
Coupled with component shortages, first-quarter pretax profit fell to 193 million euros ($306 million) from 362 million euros a year ago.
JAKARTA, June 27 (Reuters) - Indonesian cement maker PT Semen Gresik Tbk SMGR.JK said on Friday it sees net profit up by 40 percent in the first half of 2008 from the year-ago period amid strong demand from property and infrastructure projects.
Cement demand has been growing in Southeast Asia's top economy helped by a growing residential property market and the construction of infrastructure projects.
"Net profit for the first semester will roughly be up around 40 percent compared to the same period last year," Dwi Soetjipto, the firm's president director, told a news conference.
Its net profit rose to 700 billion rupiah ($56.03 million) in the first half of last year.
Soetjipto also sees domestic cement sales volume rising 9 percent in 2008, higher than last year's growth of 6.6 percent.
To meet growing demand, Gresik said it plans to construct new factories and its own power plants in an effort to boost its annual capacity by 5 million tonnes, with a total investment of $1.5 billion.
The company, 51 percent owned by the Indonesian government, had said it aims to boost its capacity by 40 percent to 22.9 million tonnes by 2013.
On Friday, Gresik's shares were unchanged at 4,000 rupiah, while the overall index was down 1.11 percent .JKSE. ($1 = 9,190 rupiah) (Reporting by Tyagita Silka and Muhamad Al Azhari, editing by Sugita
Indonesian Heavy Equipment Market Surges 65%
IN FIRST 5 MONTHS
JAKARTA, June 26 Asia Pulse - Sales of heavy equipment in Indonesia surged 65 per cent to 4,399 units in the first five months of this year on strong demand from the mining and plantation sectors.
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Rapid expansion of plantations and brisker mining explorations pushed up demand for heavy equipment, said Sara K Loebis, corporate secretary of PT United Tractors (JSX:UNTR), one of the country's largest heavy equipment producers.
In May alone sales of heavy equipment rose 73 per cent to 990 units from 571 units in the same months last year, Sara said.
United Tractor, which is the sales agent for Komatsu products of heavy equipment reported sales at 1,987 units in the five months period up 42 per cent from the same period last year, but its market share fell to 45 per cent from 50 per cent
CNPC says to up Q3 crude runs,imports after fuel hike
BEIJING, June 30 (Reuters) - Top Chinese oil firm CNPC said it would increase crude processing, halt refined oil products exports and increase imports in the third quarter to boost supply to the domestic market.
The recent fuel price hike helped ease domestic shortages to some extent, "but the outlook for fuel supply is not optimistic given that international oil prices, far above domestic ones, still have room for further rises", it said late Friday on its Web site (news.cnpc.comc.cn).
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China lifted fuel prices by nearly 20 percent on June 20, the first increase in eight months and the largest-ever hike. However, refiners are still bearing losses and some industry officials estimate their deficits remain above 1,500 yuan ($218.6) for each tonne of oil products produced.
CNPC, parent of PetroChina , said its crude processing in the third quarter would increase 880,000 tonnes, or 70,600 barrels per day (bpd), from a year earlier and oil products output would rise 580,000 tonnes, without providing the previous year's levels.
Most of CNPC's refining businesses are operated by PetroChina, which processed 2.23 million bpd in the third quarter of 2007, 7.8 percent more than the same period in 2006.
CNPC said that imports of refined oil products are expected to reach a record high this year. It did not elaborate on volumes or varieties, but PetroChina said earlier this month it has planned a record 2.4 million tonnes of diesel imports this year.
CNPC said it also aimed to provide 1.25 million tonnes of crude oil in the third quarter to independent refiners and buy back 500,000 tonnes of oil products to boost market supply.
Independent refiners, which account for around 15 percent of China's total processing capacity, have no direct access to the crude oil market, which is controlled by state-owned oil majors.
pippen er lige kommet hjem
hun synes det var et kedeligt bullmarked
Sales of new vehicles in the ''Nagoya of Siam'' expanded to 271,367 units in the first five months of 2008, as the industry geared up for the launch of the eco-car programme that almost lost its bearings after the emergence of E85 as the cure-all solution to the energy crisis.
In the end, it was the European marques that ended up feeling the effect of the new E85 excise tariffs instead of their Japanese and Indian eco-car counterparts.
A record first quarter of 160,785 vehicles set the tone for the domestic market, marking 16.3% growth year-on-year, before cooling down to 14.5% and 13.4% in April and May respectively. Intense one-ton pickup truck rivalry between the Toyota and Isuzu powerhouses fuelled growth in this segment to the tune of 146,510 units from January to May.
Although global trends and high oil prices have caused a paradigm shift to more fuel-efficient vehicles, analysts believe vehicle ownership will continue to increase from the current ratio of about 125 vehicles per 1,000.
However, the total cost of ownership (TCO) is one aspect that will feature more prominently on consumers' priority lists, leading to a possible decline in sales of gas-guzzlers such as sport-utility and passenger pickup vehicles, according to a highly placed source at the Office of Industrial Economics at the Industry Ministry.
Even used cars will experience some decline in terms of value, as more and more undergo modifications to run on LPG or CNG retrofit systems.
Yet according to data compiled by Toyota, Japanese makes continue to dominate the market with a 92.2% market share.
The first-tier brands or local Big Three _ Toyota, with a market share of 41.8%, Isuzu (22.5%) and Honda (12.9%) _ controlled more than three-quarters, or 77.1%, of the total vehicle market.
But Toyota Motor Thailand president Mitsuhiro Sonoda cautioned in the first quarter that his 11% growth forecast over last year's volume of 631,250 units, depended largely on external factors in the first half.
Fuel prices have since spiked to more than 42 baht per litre from about 34 baht and could derail the industry's second attempt at 700,000-unit sales mark. The first was achieved in 2005 on record sales of 703,432 units.
Second-tier brands in the overall market were led by Nissan, on sales of 16,184 units, representing a 5.9% share; while analysts believe that a stronger passenger product variety and pickup dealership support will be key ingredients that could catapult the brand into the first tier.
The first-quarter figures are a big improvement from the end of 2007, when all but two of the top-10 brands that included powerhouses Toyota and Honda were in the red, with negative growth rates year-on-year. The only exceptions were Mercedes-Benz, which boasted a growth rate of 14.4%, and Volvo with a 8% increase.
To date, Ford is the lone brand with a 62.8% drop in passenger-car sales over the same period last year.
Chevrolet Sales Thailand president Steve Carlisle's call for a new roadmap on alternative fuels was answered when the cabinet approved a proposal in June to make E85 available in the market, with the Energy Ministry and other key ministries overseeing production and distribution.
Chevrolet is one of the three players, besides Ford and Volvo, which are eager to jump into the E85 market and increase its market presence that stands at 4.0% on sales of 10,899 units at present.
After Mercedes-Benz pioneered the CNG market with the 200 NGT model in the premium segment, Chevrolet followed suit with its CNG-powered Optra sedan, of which sales surged 123% year-on-year; and the introduction of the Chevrolet Colorado CNG dual-fuel pickup, a first for the segment.
The Samak government has not strayed from the automotive blueprint laid out by Kosit Panpiemras, the deputy PM and industry minister in the interim government led by Gen Surayud Chulanont.
In short, the eco-car programme is still going on as planned, with Honda, Toyota, Suzuki, Mitsubishi, Nissan and Tata as the Board of Investment-approved forerunners for the budget car project and Volkswagen lagging a few steps behind.
The eco-car policy carried out by the Industry Ministry was conceived based on the following assumptions: economic growth rate will outstrip the expansion of mass transport, resulting in rising demand for automobiles; traffic jams, air pollution will continue to worsen while raw materials will be harder to find; free trade pacts will cause an influx of imports, hurting Thailand's supporting industries; and lastly the one-ton pickup market is about to peak.
So far the programme is still going forward with the conditions stipulated earlier _ fuel consumption at five litres per 100km, the Euro-4 emission standard, 120 grammes per kilometre in CO2 emissions and UNECE safety standards.
It's clear that Thailand's auto industry is betting its future on the eco-car programme, which is why the Board of Investment will have to be generous with investment benefits in order to help the manufacturers lower their costs and expand their export operations.
Shifting gears back to the market, the four-month figures point out to Toyota as the champion in total vehicle sales, one-ton pickup truck, passenger-car and sport-utility vehicle segments.
However, Isuzu will contest in the pickup segment based on its 37.9% market share against Toyota's 38.5%.
The premium passenger car segment is all Mercedes-Benz with a 1.8% share and sixth position overall. Yet a further analysis of the two-million-baht-plus segment has the three-star marque in a similar trend as last year, where it rolled over the competition with a 55.9% market share of the premium segment on sales of 4,024 units.
Passenger-car sales in the first five months ballooned 33.1% to 89,837 vehicles, thanks in part to the E20 excise tax-rate incentive from 25-50%, covering a range of engine displacements from less than 2,000cc and 220hp right up to more than 3,000cc and more than 220hp.
Price discounts of 50,000 to 300,000 baht were realised from the E20 excise tax break despite E20 supply failing to keep pace with demand in the first half.
The opposing political views at Ratchadamnoen Avenue, the possibility of crude reaching US$150 per barrel and high inflation might derail the 11% growth needed to push the domestic vehicle market past 700,000 units. A more realistic target would therefore be 7-8% growth on sales of 680,000 units.
pippen bryder sig ikke om den slags synspunkter, de er alt for dumme siger hun, vi skal bare tage dem med på diskotek og så gå hjem i seng bagefter, så bliver de meget mere optimistiske
men det er selvfølgelig rigtigt at priserne, inflationen og renten stiger i masser af lande
så det kan da godt gå galt
men foreløbigt har de da sat renten nd i usa og en række andre lande og europa har jo kun truet med det
men det er jo nok fordi kvaliteten af kinesiske huse er for dårlig, at det hele vælter
men det står kun i andedam tidende
BIS: Global economy could face deeper downturn
Monday June 30, 7:35 am ET
By George Frey, AP Business Writer
Central banks' banker says world economy could see deeper, longer downturn than most expect
BASEL, Switzerland (AP) -- The global economy could face a deeper downturn than many currently expect amid rising inflation and the turmoil on financial markets, the Bank for International Settlements said at its annual meeting Monday.
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"In the aftermath of a long credit-driven boom, it would not be surprising to see turmoil in financial markets, slowing real growth and temporarily rising inflation," the BIS said in its annual report.
"While difficult to predict, their interaction does appear to point to a deeper and more protracted global downturn than the consensus view seems to expect."
The Basel-based bank added that the current "consensus view is still that the global economy will slow only modestly further in 2008" and that growth continued to be strong in the euro zone, Japan, and major emerging market economies.
Often called the central bank of central banks, the BIS said during its last fiscal year central banks worldwide reacted to the financial and monetary policy situation differently, and that given their countries' different economic situations, a "one size fits all" monetary policy can't necessarily be predicted or suggested.
The bank said that with inflation rising, a global bias toward higher interest rates was probably appropriate. Higher interest rates can cool inflation, but run the risk of lower growth.
The bank warned against a cookie-cutter approach to interest rates from country to country, and warned than an excessive tightening exacerbated by the credit contraction caused by the crisis over mortgage-backed securities in the United States could worsen any downturn.
"Unfolding developments at the core of the global financial system have, however also created great uncertainty about the future economic prospects," the bank said. "Banks in several advanced industrial economies have been tightening lending standards, and thus a generalized squeeze in the availability of credit remains a distinct possibility."
The European Central Bank has indicated it could raise its key interest rate from the current 4 percent "by a small amount" as soon as this week, in an effort to combat rising inflation in the 15-nation euro zone, which is well above its preferred level of at or near 2 percent.
The BIS said it would have been best to avoid the large buildup of loose credit in the first place and urged new regulatory frameworks to prevent a recurrence.
The BIS is a center for economic and monetary research, and coordinates regulations in the fields of financial services to promote international financial stability. All of BIS' capital is held by central banks BIS' customers include international central banks, as well as international organizations..
The BIS board of directors has 20 members and is currently chaired by Jean-Pierre Roth of the Swiss National Bank. Six non official directors are the central bank governors of Belgium, France, Germany, Italy and the United Kingdom as well as the chairman of the Board of Governors of the U.S. Federal Reserve System.
http://www.bis.org
pippen synes bull markedet fortsætter
BAGHDAD (Reuters) - Iraq on Monday opened its giant oilfields to foreign firms, clearing the way for major investment by multinationals ushered out nearly 40 years ago under nationalization.
The move is a breakthrough for the return of the oil majors, whose cash and technical knowhow Iraq needs to restore its antiquated oil infrastructure that has been hard hit by years of sanctions and war.
The fields are Rumaila, Kirkuk, Zubair, West Qurna Phase 1, Bai Hassan and the Maysan fields. Maysan comprises three fields, Bazargan, Abu Gharab and Fakka, and the Oil Ministry said they are open to foreign firms for long-term development contracts.
It said last week it hopes to sign six short-term oil service contracts during the next month.
Taken together, the short-term and long-term contracts will open the door to major international involvement in the OPEC member's oil sector for the first time in nearly four decades.
The majors have been positioning for years in the hope of eventually gaining access to Iraq's proven reserves, which at 115 billion barrels are the world's largest after Saudi Arabia and Iran.
Deputy Prime Minister Barham Salih said in April that reserves could be as much as 350 billion barrels.
Oil Minister Hussain al-Shahristani announced the list at a news conference in Baghdad. The government has already pre-qualified 41 foreign firms to bid for the contracts. Continued...
Two gas fields, Akkas and Mansuriyah, were also opened.
The Oil Ministry said last week it had finished negotiations with oil majors on six separate short-term oil service contracts and hoped to sign those deals during the next month.
The short-term deals, each worth about $500 million, are aimed at quickly lifting output at Iraq's largest producing fields by a combined 500,000 barrels a day. Iraq's current oil production is around 2.5 million bpd.
Five of the short-term deals that have been under discussion are with Royal Dutch Shell, Shell in partnership with BHP Billiton, BP, Exxon Mobil and Chevron in partnership with Total.
Iraq has also been in talks with a consortium of Anadarko, Vitol and Dome for a sixth short-term contract.
Those talks on the short-term deals have given the majors a head start in efforts to bid for future oil contracts.
Indeed, in terms of the short-terms contracts, Shell negotiated for the northern Kirkuk oilfield and was also in talks on the Maysan fields, Iraqi officials have said. BP has its eyes on the southern Rumaila field, while Exxon wants the contract for the Zubair oilfield in southern Basra province.
And Chevron and Total were looking to work together to develop West Qurna, also in Basra.
But many Iraqis still bear a grudge after British, American and French oil companies controlled their oil industry for half a century through the Iraq Petroleum Co (IPC).
It was an era when Western majors working in the Middle East used oil output and prices as an economic and political tool, analysts said.
From the time it struck oil at the huge Kirkuk field in 1927 until nationalism forced it out in 1972, IPC -- made up of BP, Exxon, Mobil, Shell, CFP (Total) and Partex - ruled the roost.
That did not sit well with Baghdad, which resented IPC's control over its revenues.
After bids are submitted for the long-term contracts, negotiations may take months. At the end of 2008 or in early 2009, the oil ministry has said it would announce the winners.
Oil is Iraq's main source of income, and boosting output is key to earning the cash the country needs for reconstruction.
Iraq's cabinet agreed a draft oil law in February last year, but it has failed to get through parliament partly because of rows between the Kurdistan Regional Government (KRG) and Baghdad over who will control oil reserves and contracts.
In the absence of the law, Baghdad has moved ahead with the short and long-term contracts, saying this is in line with an old oil law in existence before the U.S.-led invasion in 2003 that toppled Saddam Hussein.
(Writing by Dean Yates and Tim Cocks; Editing by James Jukwey)
jeg synes at terex TEX bliver mere og mere interessant, det boomer i deres salg
men fordi oshkosh kom med en negativ udmelding så har det ramt de fleste af de heavy equipment aktier i usa
men oshkosh er 70% i usa og laver mest lifts, der bruges i byggeri incl. multi family famliy housing
medens terex sælger 70% uden for usa
og primært mining machinery og cranes mm, hvor det boomer exceptionelt
så den skal man nok snart samle op i
Australia's Newcastle Coal Price Rises to Record $172.10 a Ton
By Leony Aurora
June 28 (Bloomberg) -- Power-station coal prices at Australia's Newcastle port, a benchmark for Asia, jumped to a record for a fifth week as demand for the fuel surged in countries including India and China.
Coal prices at the New South Wales port, the world's biggest export harbor for the fuel, rose $9.44, or 5.8 percent, to $172.10 a metric ton in the week ended June 27, according to the globalCOAL NEWC Index.
The price of coal more than doubled in a year as Australian ports become congested and China, the world's biggest producer and consumer of the fuel, cut exports to meet soaring domestic demand. Xstrata, the world's largest exporter of power-station coal, BHP Billiton Ltd. and Rio Tinto Group are among mining companies that ship coal through Newcastle.
Mittal plans to acquire coal mines in Australia and Russia
London (PTI): After his successful acquisitions of steel mills and emerging as the CEO of ArcelorMittal, world's largest steel producer, Indian-born steel tycoon Lakshmi Mittal is mulling to secure deposits of coal and iron ore to meet the company's demand.
Mittal is in talks to acquire coal mines in Australia and Russia, while expansion elsewhere means that ArcelorMittal now meets 45 per cent of its iron ore requirements from its own supplies, The Obsever reported on Sunday. 58-year-old Mittal, with an estimated fortune of USD 30 billion, has also invested in shipping and rail to cut transport costs.
"The only part of the supply chain that remains outside his control is oil and gas, an area, perhaps, that could attract his attention before too long," the report said.
The report said the creation of ArcelorMittal, the biggest steel company in world and now worth over 100 billion pounds, could not have come at a better time: the new group launched into a worldwide commodities boom that has seen steel prices rocket from USD 240 a tonne in 2002 to USD 1,000 today.
The company was the first to produce more than 100 million tonnes of steel a year; that could double in a few years as Mittal goes on another buying spree, extending his empire to Africa, Australia and China.
Today, ArcelorMittal employs 300,000 people in 60 countries, but accounts for only 10 per cent of global output, so it could grow much bigger before attracting the attention of the anti-trust authorities. "Certainly, there is the opportunity to grow," Mittal said recently. "To what size? You could go up to 150 to 200 million tonnes a year."
Coal prices hit record $210, S.African $5 up
Fri 27 Jun 2008, 14:04 GMT
[-] Text [+] LONDON (Reuters) - Physical coal prices continued their run up on Friday, having risen by over $10.00 this week for DES ARA coal and over $5.00 for South African FOB coal.
DES ARA prices have set new records several times this week, sometimes a few times during the course of a day.
Supply has been tight for months and is becoming increasingly tight. Buyers have emerged looking for prompt and forward tonnes and finding it is a seller's market.
DES ARA prices for August cargoes rose from $200.00 at the start of the week to $210.00 a tonne on Friday. They were $183.50 only two weeks ago. Traders and utilities say $220.00 is the next target likely to be achieved within days.
On electronic trading platform globalCOAL, an August DES ARA parcel traded at $210.00 on Friday and was later offered up to $215.00. An October delivery cape cargo was bid at $209.00 and offered at $218.00.
At the time of the $210.00 August trade, API2 Q4 swaps had rocketed up to $214.00 a tonne. Calendar 2009 swaps reached a record $209.00 a tonne on Friday in extremely active trading.
Swaps had lagged physical prices by at least a few dollars a tonne for the past few months.
South African prices rose by $5.00 from the start of the week from $155.00 a tonne FOB Richards Bay bid for August/September cargoes to bids of $160.00 on Friday.
Q3 cargoes were offered at $182.00 a tonne on Friday on globalCOAL.
den er vidst også snart faldet for meget - der er mange spændende aktier i usa, der er blevet billige og den her er jo ikke risikabel og handles på under pe 8 og ikke specielt cyklisk
NEW YORK, June 25 (Reuters) - American Greetings Corp (AM.N: Quote, Profile, Research, Stock Buzz) posted sharply lower quarterly earnings on Wednesday, hurt by higher costs as it introduced a new card line in Canada, and its shares fell 17 percent.
The greeting card company, which holds licenses for Care Bears, Strawberry Shortcake and Holly Hobby, said net earnings were $13.3 million, or 27 cents a share, in the fiscal first quarter ended May 30, down nearly 56 percent from $30.1 million, or 54 cents a share, a year earlier.
Two analysts, on average, had expected it to earn 61 cents a share, according to Reuters Estimates.
Revenue rose to $428.3 million from $420 million.
American Greetings, the second-largest U.S. greeting card company behind Hallmark Cards Inc, stood by its forecast for fiscal 2009 earnings of $1.60 to $1.85 a share from continuing operations. Analysts' average forecast is $1.65 a share excluding one-time items.
The company said the costs tied to the new Canadian card line were not permanent and it would focus on revamping its supply chain to become more efficient.
American Greetings shares were down $3.12 to $15.18 in morning trading on the New York Stock Exchange. The shares have traded as high as $29.10 and as low as $16.95 in the past year. (Reporting by Aarthi Sivaraman; Editing by Derek Caney and John Wallace)
NEW YORK, June 25 (Reuters) - The price of steel-making raw materials such as iron ore, coal and scrap metal will continue to rise for several years, keeping pressure on manufacturers and consumers, the head of U.S. steelmaker Nucor Corp (NUE.N: Quote, Profile, Research, Stock Buzz) said on Wednesday.
"The bull market for commodities will last for decades to come, and our customers need to get used to it," Dan DiMicco, the company's chairman, president and chief executive, told a steel conference.
"Iron ore is up several hundred percent, scrap prices are $600 to 700 per ton, pig iron is $900 per ton, and coal is rising several hundred percent even as we speak," DiMicco said.
"I believe raw materials, including scrap, will continue to see escalation in prices," he said.
His comments, at the American Metal Market's Steel Success Strategies conference, echoed those of U.S. Steel Corp's (X.N: Quote, Profile, Research, Stock Buzz) Chief Executive Officer John Surma on Tuesday.
Surma told Reuters that spiraling iron ore costs were pushing steel prices even higher and he warned that growing demand is straining miners' capacity to supply raw materials.
On Monday, China's Baosteel (600019.SS: Quote, Profile, Research, Stock Buzz) agreed to a 96.5 percent price hike for iron ore from Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) (RIO.AX: Quote, Profile, Research, Stock Buzz), and last month Brazilian ore producers won 65 percent price increases. Iron ore is a key ingredient in steel-making. Continued...
An 18.1 percent uptick in statewide sales of existing homes last month helped drop a key measure of unsold inventory, the California Association of Realtors said.
But the numbers reflected the high volume of distressed properties for sale statewide, also shown by California's median price for an existing single-family home taking a record 35.3 percent nosedive in May.
CAR's unsold inventory index for existing single-family detached homes fell to 8.4 months in May from 10.7 months for the same period a year ago, according to its report. The index reflects the number of months needed to deplete the supply of homes on the market at the current sales rate.
Closed escrow sales of existing single-family detached homes in California totaled 423,700 in May at a seasonally adjusted annualized rate, up 18.1 percent compared to the revised 358,640 sales recorded in May 2007, according to information from more than 90 local Realtor associations statewide. The 423,700 figure represents what the total number of homes sold during 2008 would be if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
Although the annualized sales figure rose above 400,000 for the first time since early 2007, it was largely due to the high volume of distressed homes for sale statewide, CAR President William Brown said.
"Sales also rose above their year-ago levels for the second month in a row after 30 consecutive months of year-to-year decreases," Brown said. "The lower prices associated with distressed sales along with favorable interest rates both contributed to higher sales levels."
The median price of an existing, single-family detached home in California during May was $384,840, a 35.3 percent decrease from the revised $594,530 median for May 2007, C.A.R. reported. The May 2008 median price fell 4.7 percent compared with April's $403,870 median price.
The year-to-year percentage decline in median price was a record, reflecting large numbers of short sales and foreclosures in the market, said Leslie Appleton-Young, CAR vice president and chief economist.
"With the statewide median in the $585,000 to $595,000 range through August of last year, we expect the market to continue to experience large year-to-year adjustments through the summer, even if the median price holds steady over the next few months," she said.
In the Bay Area, sales of existing single-family detached homes rose 19.5 percent in May compared with April, but were down 8.6 percent year to year, CAR reported. Exact regional sales figures are not provided and the percentages are based on data that is not seasonally adjusted.
The Bay Area median sales price for May was $686,810, down 0.7 percent from April and 19.5 percent from May 2007, according to the report.
SHAH ALAM, June 26 (Bernama) -- The sales of cars are yet to be affected by the recent sharp increase in fuel prices, although there has been an increase in interest for smaller cars, said Euromobil Sdn Bhd chairman Datuk Syed Hisham Syed Wazir.
He also said the higher fuel prices will not affect high-end car market.
"This is the segment that we believe will not be too much of a concern. In any case, this particular model like Audi 1.8T is a fuel efficient car," he told reporters after the launch of the all-new Audi A4 1.8T, at the Audi Centre in Glenmarie Thursday.
Syed Hisham also expected current sentiment will be back to normal in the next few months.
"This is the situation that is already in the market. It is a matter of time that people will accept the reality of high fuel prices," he said.
Meanwhile, Edaran Tan Chong Motor Sdn Bhd, the distributor of Nissan cars in Malaysia, is confident of selling 350 units monthly of its newly launched all new Nissan Sylphy.
Executive director Datuk Dr Ang Bon Beng said the company is bullish based on the bookings of 1,000 units received as of todate.
"During the oil price hike, people look for smaller cc cars, but there are also those who go for bigger cc because the market consist of low, medium and upper segments," he told reporters after the launch of its car by Transport Minister Datuk Ong Tee Keat.
The Nissan Sylphy is a luxury medium sized executive 2.0 liter sedan that comes with an all-alluminium MR20DE engine, continuously variable transmission and Eco-friendly 16 km per litre fuel consumption.
Ang said Edaran Tan Chong plans to produce up to 500 units monthly of the new Nissan Sylphy, adding about 800 units are expected to be delivered next month.
According to Ang, Edaran Tan Chong is confident of boosting its market share in the 2.0 litre segment to 20 percent by next month from 1.6 percent currently, driven by the Nissan Slyphy.
It is understood, under Edaran Tan Chong's 2.0 liter segment, Cefiro 2.0 liter was recording sales of 25 units monthly.
Nissan Slyphy is available in six colours and its on-the-road price is between RM112,800 and RM116,800.
Similar optimistic views on car sales was shared by the UMW group.
"We are very confident. Ever since the fuel price increase, we can see a lot of traffic in showrooms, for both Toyota and Perodua. We were worried also earlier, but looks like the enquiries on lower cc cars is much more now," said UMW Holdings Bhd group managing director/chief executive officer, Datuk Abdul Halim Harun.
There is no sign of reducing orders for vehicles, he said, on the group's auto units at a press conference after UMW Holdings' annual general meeting today.
Abdul Halim said the group is expecting better sales this year as Toyota and Perodua registered a double-digit growth in terms of units sold as at May.
He also said that attention for lower cc cars will "definitely" be there.
Abdul Halim said the group was planning to launch several new car models. He, however declined to reveal how many new models will be launched.
du er jo et godt eksempel på hvor lavt debatniveauet er på de danske aktie debat sider
så, er det da godt at de eneste kloge og venlige mennesker har fundet sammen her
Singapore - Record petrol prices have hit budget car sales the hardest, with monthly pump prices beginning to match loan instalment payments for some models, published trade figures said Friday. Sharp drops in sales of 50 per cent or more hit Chevrolet, Hyundai, Kia and Ford, The Straits Times said. Chinese brands are also reeling.
Models priced below 60,000 Singapore dollars (44,776 US dollars) were the worst hit.
"Budget cars are bought by budget buyers," Paul Ng, general manager of Vertex Automobile, was quoted as saying. Vertex distributes China's Chery. "With inflation so high, these people would want to take care of necessities rather than spend on big- ticket items."
The Motor Traders Association said 23 of 33 member brands suffered a drop in sales in the first five months of 2008.
Of the 10 that bucked the trend, seven were luxury models such as Mercedes-Benz, BMW, Audi and Ferrari, the report said.
For luxury car owners, petrol is not a "big" consideration, Ng said.
The association, known as Anfavea, said auto sales are on track to jump 24.2 percent this year to a record 3.06 million units. It had previously forecast that sales would rise 17.5 percent in 2008 to 2.895 million units.
Total auto output in Latin America’s largest country should rise 15 percent this year to an all-time high of 3.425 million units, up from a previous estimate of an 8.9 percent increase, Anfavea said.
Even with domestic demand for new cars stretching production capacity to the limit, Anfavea said exports of cars and trucks made in Brazil are still on course to grow 7.4 percent in 2008, reaching $14.5 billion.
In the first five months of the year, auto sales in the country are already up 30.3 percent and production rose 21 percent, Anfavea said.
Brazil’s automobile market has been one of the main beneficiaries of an economic revival that has lifted millions of Brazilians out of poverty into the middle class, with many taking out loans to buy cars for the first time.
The country’s car market is dominated by global automakers such as Italy’s Fiat FIAT.MI, Germany’s Volkswagen AG (VOWG.DE: Quote,Profile, Research), U.S.-based General Motors Corp (GM.N: Quote,Profile, Research) and Ford Motor Co (F.N: Quote, Profile, Research), followed by Japanese and French manufacturers.
Both GM and Ford are doing so well in Brazil that their operations here are helping to offset major losses at home in the United States, where the soaring price of gasoline is forcing automakers to rethink their business models.
In Brazil, almost 90 percent of all new cars sold are equipped with flex-fuel engines, which run on either gasoline or cane-based ethanol, or any combination of the two. As a result, the recent surge in oil prices has had little impact on the country’s auto market.
TEHRAN (Reuters) - The Revolutionary Guards said Iran would impose controls on shipping in the vital Gulf oil route if Iran was attacked and warned regional states of reprisals if they took part, a newspaper reported on Saturday.
Fear of an escalation in the standoff between the West and Iran, the world's fourth largest oil producer, have been one factor propping up sky-high oil prices. Crude hit a record level on international markets near $143 a barrel on Friday.
Speculation about a possible attack on Iran because of its disputed nuclear ambitions has risen since a report this month said Israel had practiced such a strike, prompting increasingly tough talk of retaliation, if pushed, from Tehran.
"Naturally every country under attack by an enemy uses all its capacity and opportunities to confront the enemy," Guards commander-in-chief Mohammad Ali Jafari told Jam-e Jam newspaper in some of the toughest language Iran has used so far.
Analysts say Iran may not match the firepower of U.S. forces but could still cause havoc in the region using unconventional tactics, such as deploying small craft to attack ships, or using allies in the area to strike at U.S. or Israeli interests.
"Regarding the main route for exiting energy, Iran will definitely act to impose control on the Persian Gulf and Strait of Hormuz," Jafari said of the Gulf waterway through which about two-fifths of all globally traded oil passes.
Iranian officials have in the past sent mixed signals about whether Iran would use oil as a weapon. But such threats, when made, have sent jitters through the crude market for fear of disrupting supplies from big OPEC producers in the Gulf.
The Islamic Republic insists its nuclear program is peaceful and aimed at generating electricity. But the West and Israel fear Iran is seeking to build atomic bombs. Israel is believed to be the only Middle East state with nuclear arms. Continued...
Washington has said it wants diplomacy to end the nuclear row but has not ruled out military action should that fail.
'RIGHT TO RESPOND'
"If there is a confrontation between us and the enemy from outside the region, definitely the scope (of the confrontation) will reach the oil issue," Jafari said.
The Revolutionary Guards are the ideologically driven wing of Iran's military with air, sea and land capabilities, and a separate command structure to regular units.
"After this action (of Iran imposing controls on the Gulf waterway), the oil price will rise very considerably and this is among the factors deterring the enemies," Jafari said.
He said any military action might "be able to delay Iran's nuclear activities but this delay will certainly be very short".
Jafari warned neighbors not to let their territory be used.
"If the attack takes place from the soil of another country ... the country attacked has the right to respond to the enemy's military action from where the operation started," he said.
Kuwait, the launchpad for the U.S.-led invasion of Iraq, and Iraq itself, where U.S. troops are now stationed, have both said they would not let their land be used for a strike on Iran. The U.S. military has bases in other Gulf states and Afghanistan. Continued...
Jafari said U.S. forces were "more vulnerable than Israelis" because of their troops in the area. Iran's top authority, Supreme Leader Ayatollah Ali Khamenei, has in the past said Iran would target U.S. interests if attacked.
"Iran can in different ways harm American interests even far away," the Guards commander said.
Jafari suggested Iran's allies in the region, who include Lebanon's Shi'ite militia Hezbollah, could also retaliate. He referred to Iran's ties with those living in Lebanon's Shi'ite heartland of south Lebanon but did not refer to any group.
"Israelis know if they take military action against Iran ... the abilities of the Islamic and Shi'ite world, especially in the region, will deliver fatal blows," Jafari said, adding that Israel was in range of Iranian missiles.
He also hinted that Hamas, the Palestinian Islamist group that receives Iranian funding and which has sent suicide bombers into Israel, might act. But, again, he did not name the group.
(Additional reporting by Hashem Kalantari, Writing by Edmund Blair; Editing by Charles Dick)
Macquarie Research slashed its forecasts for economic growth in Asia, joining other analysts who are downgrading their views for the region on inflation concerns and slower growth elsewhere in the world.
In a note, Macquarie Research hacked its 2008 growth forecasts for the Philippines, Thailand and India by at least 1 percentage point each from their previous forecasts in March.
It sliced its India growth forecast for the fiscal year ending in March 2009 to 7 percent, compared to previous expectations of 8 percent. That compares with growth of 9 percent in the year that ended in March 2008.
"Inflation rates continue to surge beyond the target ranges of Asia's central banks and we think the global slowdown will only intensify from here," analyst Bill Belchere said in the note.
"We expect rising inflation will force policy to tighten across Asia, even if many don't see the need yet."
For China, it sees 2008 growth of 10.5 percent versus a previous call of 11 percent. China's economy expanded 11.9 percent in 2007.
The economies of the Philippines and Thailand were expected to grow by 4.5 percent and 4.3 percent respectively this year, as opposed to previous calls of 6 percent and 5.5 percent.
Additionally, it trimmed its 2009 forecasts by 1 percentage point each for all Southeast Asian countries, except Singapore.
Rising food and fuel prices have driven inflation in many part of Asia to their highest in a decade, and analysts worry this will lead to smaller real incomes and depress consumption simultaneously as the effects of the credit crisis dampen global growth. However, the outlook for Taiwan appeared brighter and the forecast for Hong Kong remained largely unchanged, Macquarie Research said.
The group now forecasts Taiwan will see 4.2 percent GDP growth for 2008, rather than 3.5 percent previously, based on a "surprisingly strong" first-quarter outcome. Taiwan's economy expanded by an annual 6.06 percent in the first quarter. (Reporting by Melissa Chia; Editing by Neil Fullick)
Sony Ericsson Warns
Slowing Demand
Will Hurt Profit
By IAN EDMONDSON and ADRIAN KERR
June 28, 2008; Page B5
STOCKHOLM -- Sony Ericsson Mobile Communications AB issued another profit warning Friday, saying second-quarter sales and profit would be hit by slowing demand and a delay in shipping new products.
The profit warning is the second in as many quarters as the mobile-phone maker continues to be hit hard by a weakening economy in Western Europe, hurting demand for the mid- to high-end handsets it specializes in. In contrast, rival Nokia Corp. has a much broader portfolio of devices in the low and midtier segments, as well as higher sales in emerging markets.
MORE ON GADGETS
Sony Ericsson
C905 Cyber-shot
• Despite Centro, Palm Swings to a Loss
06/27/08
• RIM's Net Jumps on BlackBerry Demand
06/26/08The announcement signals a difficult start for Sony Ericsson's president, Hideki Komiyama, who took over from Miles Flint late last year. Mr. Komiyama has said Sony Ericsson, which focuses on high-value music and camera phones, plans to expand its sales networks and take other steps to boost sales in Europe and emerging markets. Sony Ericsson issued a profit warning in March, citing slower growth in Western European markets.
The company, a joint venture between Sweden's Telefon AB L.M. Ericsson and Japan's Sony Corp., said it plans to ship about 24 million phones during the second quarter with an estimated average selling price of €115 ($181), for a possible €2.76 billion in sales.
In the first quarter, Sony Ericsson shipped 22.3 million units with an average selling price of €121, and reported revenue of €2.7 billion.
Gross margin is expected to decline both from a year earlier and from the first quarter, and pretax profit is estimated to be about break-even, the company said.
Aldo Liguori, vice president of communications, said a number of new products expected for release during the second quarter "started shipping later than we had originally planned," without elaborating. He said further details would be provided with second-quarter results July 18.
Mr. Liguori said the company continues to invest in research and development in high-end products. He said the first product in the company's new sub-brand, the Experia X1 slider phone, will ship in the fourth quarter.
Despite a growing global cellphone market, research firm Gartner said Western European mobile-phone sales fell 16% in the first quarter from a year earlier, the first drop in the region since Gartner began tracking device sales in 2001.
With its reliance on Western Europe, Sony Ericsson slipped to fifth-largest mobile-phone maker in terms of units shipped in the first quarter behind Nokia, Motorola Inc., Samsung Electronics Co. and LG Electronics Inc., according to Gartner.
Market leader Nokia increased its share to 39% in the first quarter from 38% in the fourth quarter; Sony Ericsson saw its market share drop to 7.5% from 9% in the fourth quarter.
Nomura analyst Richard Windsor said investors had expected Sony Ericsson to recover in the second half of the year despite challenges from its high exposure to the weak Western European market and competition from Korean peers such as Samsung and LG.
Still, it may no longer be just European markets that are the problem. "In the past few weeks we've been having more negative reports from emerging markets," where growth may not be as strong as anticipated, said Gartner research director Carolina Milanesi.
Ericsson shares fell five Swedish kronor (84 cents), or 7.6%, to 60.80 kronor in Stockholm. Nokia fell 73 European cents, or 4.5%, to €15.38 in Helsinki trading.
“Scania is continuing to grow with strong profitability, primarily driven by higher vehicle and service volume and increased prices. Order bookings were lower compared to the exceptionally strong order bookings during the first quarter of last year, but remained at a high level. Scania’s order book is expanding somewhat, since order bookings are still higher than deliveries. Delivery times are currently 9-12 months, compared to a normal situation of 3-4 months. This, in combination with uncertainty about economic developments, is causing customers in Europe to hold off on submitting orders. Demand remains strong in Russia and other CIS countries, Latin America and the Middle East. Our plan remains to increase production to an annual rate of 90,000 vehicles by year-end 2008 and to have an installed technical capacity of 100,000 vehicles by the end of 2009. Meanwhile our flexibility in production is increasing and we are well prepared for a continued volume upturn but also for possible lower demand. Our financial outlook remains unchanged.”
pippen er lige kommet hjem fra sin indkøbstur de sidste dage
og det første hun lægger mærke til er at aktierne stiger i dag
så hun har da haft helt ret i, at vi er midt i et bull marked, mener hun
KB homes ordrer i 2q er 3 gange så høje som i 1q fra ca 1500 til ca 4500 og de leverede ca 2800 huse, altså ordreindgangen er større end salget
så mellem linierne er der dog tale om en vis fremgang selvom det ser skidt ud
KB Home losses widen to $255.9M in fiscal 2Q
Friday June 27, 8:37 am ET
KB Home loss widens in 2nd quarter on inventory charges, abandonment of land option contracts
LOS ANGELES (AP) -- KB Home says its losses widened during its second quarter as sales dropped. It also took charges to lower the value of inventory, joint venture deals and land option contracts.
The Los Angeles-based homebuilder said Friday it lost $255.9 million, or $3.30 per share during the quarter ended May 31. It lost $148.7 million, or $1.93 per share, during the year-ago period.
KB Home says it took a charge of $176.5 million to cut the value of its inventory and to abandon some land option contracts.
It says revenue fell 55 percent to $639.1 million.
Thomson Financial says analysts were expecting a loss of 94 cents per share before items on sales of $691.3 million.
KB Home Reports Second Quarter 2008 Financial Results
Friday June 27, 8:00 am ET
LOS ANGELES--(BUSINESS WIRE)--KB Home (NYSE: KBH - News), one of America’s largest homebuilders, today reported financial results for its second quarter ended May 31, 2008. Results include:
Revenues totaled $639.1 million in the second quarter of 2008, down from $1.41 billion in the second quarter of 2007, largely due to lower housing revenues. Second-quarter housing revenues of $636.7 million declined from $1.30 billion in the year-earlier quarter, reflecting a 41% decrease in homes delivered and a 17% decline in the average selling price. The Company delivered 2,810 homes at an average selling price of $226,600 in the second quarter of 2008 compared to 4,776 homes delivered in the year-earlier quarter at an average selling price of $271,600.
The Company reported a net loss of $255.9 million or $3.30 per diluted share for the quarter ended May 31, 2008, after recognizing pretax, non-cash charges of $176.5 million for inventory and joint venture impairments and the abandonment of certain land option contracts, and $24.6 million for goodwill impairment. The net loss also reflected a $98.9 million valuation allowance charge against the net deferred tax assets generated during the quarter. For the year-earlier quarter, the Company reported a net loss of $148.7 million or $1.93 per diluted share, which included pretax, non-cash charges of $308.2 million associated with impairments and abandonments, partially offset by income of $25.5 million, or $.33 per diluted share, associated with the Company’s French discontinued operations that were sold in July 2007.
The Company’s cash balance at May 31, 2008 totaled $1.31 billion compared to $390.6 million at May 31, 2007. Its ratio of debt to total capital was 62.9% at May 31, 2008 compared to 50.3% at May 31, 2007. Net of cash, the Company’s ratio of debt to total capital was 40.2% at May 31, 2008 compared to 46.6% at May 31, 2007. During the first half of 2008, the Company generated positive cash flows from its operations, a trend that the Company expects will continue in the second half of the year.
At May 31, 2008, the Company’s backlog totaled 6,233 homes, representing potential future housing revenues of approximately $1.47 billion. These measures declined 54% and 61%, respectively, from the 13,672 backlog homes and approximately $3.74 billion in backlog value at May 31, 2007. Company-wide net orders for new homes in the 2008 second quarter decreased 42% to 4,200 from 7,265 in the year-earlier quarter, reflecting a 37% year-over-year decrease in the Company’s number of active communities. The Company’s cancellation rate in the second quarter of 2008 was 27%, an improvement from 53% in the first quarter of 2008 and 34% in the second quarter of 2007.
On June 12, 2008, the Company announced that it would redeem all of its outstanding 7 3/4% senior subordinated notes due 2010 in the aggregate principal amount of $300 million. The redemption date is July 14, 2008 and the redemption price is 101.938% of the principal amount, plus all accrued interest to the date of redemption.
“Housing market conditions remain difficult for the homebuilding industry, with inventories of unsold homes expanding as foreclosures rise to record highs, and consumer confidence continuing to deteriorate amid signs of weakness in the general economy,” said Jeffrey Mezger, president and chief executive officer. “Persistently poor demand for new homes during the second quarter amplified pricing pressures and diminished asset values in many of our served markets, requiring us to recognize additional non-cash charges for inventory and joint venture impairments, abandonments and the write-off of goodwill, all of which significantly reduced our operating results. Despite substantially lower home prices, relatively low interest rates and an abundance of choices, potential new home buyers remain reluctant to purchase a home. But as housing affordability continues to improve, we expect today’s hesitant buyers to become a healthy source of demand for new homes, fueling the eventual housing market recovery.”
The Company’s total revenues of $639.1 million in the quarter ended May 31, 2008 decreased 55% from $1.41 billion in the year-earlier quarter, reflecting lower housing and land sale revenues. Housing revenues of $636.7 million in the 2008 second quarter declined 51% from $1.30 billion in the prior year’s second quarter due to a 41% year-over-year decrease in homes delivered to 2,810 from 4,776 and a 17% year-over-year decrease in the average selling price to $226,600 from $271,600. The steep decline in homes delivered was due in large part to a 37% reduction in active communities as the Company continues to strategically trim inventory in line with reduced market demand. Land sale revenues in the second quarter of 2008 totaled $.4 million, down from $112.6 million in the second quarter of 2007.
The Company’s homebuilding business generated operating losses of $262.4 million in the second quarter of 2008 and $263.0 million in the second quarter of 2007. Within the Company’s housing operations, the current quarter loss was largely due to the recognition of pretax, non-cash charges of $167.1 million for inventory impairments and land option contract abandonments, and $24.6 million for goodwill impairment, as well as a decline in margins due to competitive pricing pressures. In the year-earlier quarter, the loss within housing operations reflected inventory impairment and abandonment charges of $244.5 million. The Company’s housing gross margin fell to a negative 17.5% in the second quarter of 2008 from a negative 3.9% in the second quarter of 2007. Excluding inventory-related non-cash charges, the housing gross margin would have been 8.7% in the current quarter and 14.9% in the second quarter of 2007. Land sales generated a loss of $7.4 million in the second quarter of 2008, including $7.3 million of impairment charges related to planned future land sales. That compares to a loss of $18.5 million in the second quarter of 2007, which included $22.4 million of similar impairment charges. Reflecting the Company’s continuing efforts to adjust its overhead to match the lower volume of its homes delivered and corresponding decrease in revenues, the Company reduced its selling, general and administrative expenses by $74.5 million, or 38%, to $119.1 million in the second quarter of 2008 from $193.6 million in the year-earlier quarter.
For the 2008 second quarter, the Company reported a net loss of $255.9 million, or $3.30 per diluted share, including a charge of $98.9 million to record a full valuation allowance against the net deferred tax assets resulting from its current quarter loss. As of May 31, 2008, the Company’s valuation allowance on deferred tax assets exceeded $720 million. The valuation allowance is required under generally accepted accounting principles. For tax purposes, however, this potential tax benefit may be carried forward for up to 20 years. To the extent the Company generates taxable income in the future, it expects to be able to reverse the valuation allowance and reduce its effective tax rate on that future income. The Company’s net loss of $148.7 million, or $1.93 per diluted share, in the second quarter of 2007 included income of $25.5 million or $.33 per diluted share from its discontinued French operations that were sold in July 2007.
Net new home orders totaled 4,200 in the second quarter of 2008, decreasing 42% from 7,265 net orders in the second quarter of 2007. The decrease was largely due to a lower community count in 2008, the result of the Company’s strategic efforts to lower inventory over the past several quarters in alignment with market conditions. Second-quarter net new home orders were nearly triple the 1,449 net orders reported in the first quarter of 2008. In addition, the second quarter year-over-year net new home order comparison improved from the steep 75% year-over-year decline in the first quarter of 2008. The improved comparison reflected, in part, the impact of a lower cancellation rate in the 2008 second quarter. The Company’s cancellation rate improved to 27% in the second quarter of 2008 from 53% in the first quarter of 2008 and 34% in the second quarter of 2007. Homes in backlog at May 31, 2008 decreased 54% on a year-over-year basis to 6,233, reflecting year-over-year decreases ranging from 46% to 65% in each of the Company’s geographic operating regions. Backlog value declined 61% on a year-over-year basis to approximately $1.47 billion, reflecting fewer homes in backlog and lower average selling prices.
“We have significantly reduced inventory and debt levels at KB Home over the past several quarters, while building a sizable cash balance,” said Mezger. “I believe the Company is well positioned to successfully navigate through the current housing environment and to capitalize on new opportunities that emerge. As of the end of the second quarter, we have tremendous financial liquidity and flexibility, with $1.31 billion in cash on our balance sheet, nearly $1.1 billion of borrowing capacity available under our bank credit facility, and a leverage ratio, net of cash, at the low end of our targeted range. Seizing a strategic opportunity available to us through the strength of our cash position, we recently decided to call for the redemption of our $300 million 7 3/4% senior subordinated notes, which will lower our debt level further. We will continue with our stated objective of maintaining a strong balance sheet and being prudent with respect to land investments and other expenditures for the foreseeable future, while focusing on initiatives designed to expedite our return to profitability.”
“KB Home continues to build on its reputation as a leader and innovator in the homebuilding industry by addressing its environmental footprint,” said Mezger. “Recently, we were recognized by Calvert Asset Management and the Boston College Institute for Responsible Investment as the nation’s #1 Green Homebuilder. Achieving this recognition differentiates KB Home in the marketplace, especially from resale homes, which we see as our biggest source of competition. In addition, eight of our divisions recently received the Environmental Protection Agency’s 2008 ENERGY STAR® Leadership in Housing Award in recognition of their efforts to build more energy-efficient new homes. We intend to expand on these accomplishments through our “My Home. My Earth.™” initiatives and similar efforts as we pursue our goal of becoming a leading environmentally friendly national homebuilder.”
Company-wide revenues for the six months ended May 31, 2008 totaled $1.43 billion, down 49% from $2.80 billion for the six months ended May 31, 2007. Homes delivered in the first six months of fiscal 2008 declined 42% year-over-year to 5,738, and the average selling price decreased 12% year-over-year to $237,600. The Company generated a net loss of $524.1 million, or $6.77 per diluted share, in the first half of fiscal 2008, including pretax, non-cash charges of $400.5 million for inventory and joint venture impairments and land option contract abandonments and $24.6 million for goodwill impairment. The net loss also reflected a $198.9 million valuation allowance charge against the deferred tax asset. For the first half of fiscal 2007, the Company posted a net loss of $121.1 million, or $1.57 per diluted share, including pretax, non-cash charges of $316.9 million for inventory and joint venture impairments and land option contract abandonments, and income of $42.3 million, or $.55 per diluted share, from the Company’s French discontinued operations.
The Conference Call on the Second Quarter 2008 earnings will be broadcast live TODAY at 8:30 a.m. Pacific Daylight Time, 11:30 a.m. Eastern Daylight Time. To listen, please go to the Investor Relations section of the Company’s website at kbhome.com.
KB Home, one of the nation’s largest homebuilders, has been building quality homes for families for more than 50 years. Headquartered in Los Angeles, the Company has operating divisions in nine states, building communities from coast to coast. KB Home, ranked the #1 homebuilder in FORTUNE magazine’s 2008 list of America’s Most Admired Companies®, is a Fortune 500 company listed on the New York Stock Exchange under the ticker symbol “KBH.” For more information about any of KB Home’s new home communities or complete mortgage services offered through Countrywide KB Home Loans, call 888-KB-HOMES or visit kbhome.com.
Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to: general economic and business conditions; adverse market conditions that could result in additional inventory impairments, abandonment charges or goodwill impairments; material prices and availability; labor costs and availability; changes in interest rates; our debt level; declines in consumer confidence; increases in competition; weather conditions, significant natural disasters and other environmental factors; government regulations; the availability and cost of land in desirable areas; government investigations and shareholder lawsuits regarding our past stock option grant practices and the restatement of certain of our financial statements; other legal or regulatory proceedings or claims; conditions in the capital, credit (including consumer mortgage lending standards) and homebuilding markets; the ability and/or willingness of participants in our unconsolidated joint ventures to fulfill their obligations; our ability to access our available capacity under our unsecured revolving credit facility; and other events outside of our control. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business.
KB HOME
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months and Three Months Ended May 31, 2008 and 2007
(In Thousands, Except Per Share Amounts - Unaudited)
Six Months Three Months
2008 2007 2008 2007
Total revenues $ 1,433,289 $ 2,802,046 $ 639,065 $ 1,413,208
Homebuilding:
Revenues $ 1,428,402 $ 2,794,635 $ 637,094 $ 1,409,986
Costs and expenses (1,939,754 ) (3,054,491 ) (899,475 ) (1,672,990 )
Operating loss (511,352 ) (259,856 ) (262,381 ) (263,004 )
Interest income 22,554 10,268 9,522 5,600
Equity in loss of unconsolidated joint ventures (45,361 ) (41,700 ) (5,483 ) (39,495 )
Homebuilding pretax loss (534,159 ) (291,288 ) (258,342 ) (296,899 )
Financial services:
Revenues 4,887 7,411 1,971 3,222
Expenses (2,232 ) (2,411 ) (1,113 ) (1,071 )
Equity in income of unconsolidated joint venture 8,302 10,191 2,154 3,396
Financial services pretax income 10,957 15,191 3,012 5,547
Loss from continuing operations before income taxes (523,202 ) (276,097 ) (255,330 ) (291,352 )
Income tax benefit (expense) (900 ) 112,600 (600 ) 117,200
Loss from continuing operations (524,102 ) (163,497 ) (255,930 ) (174,152 )
Income from discontinued operations, net of income taxes
- 42,348 - 25,466
Net loss $ (524,102 ) $ (121,149 ) $ (255,930 ) $ (148,686 )
Basic earnings (loss) per share:
Continuing operations $ (6.77 ) $ (2.12 ) $ (3.30 ) $ (2.26 )
Discontinued operations - 0.55 - 0.33
Basic loss per share $ (6.77 ) $ (1.57 ) $ (3.30 ) $ (1.93 )
Diluted earnings (loss) per share:
Continuing operations $ (6.77 ) $ (2.12 ) $ (3.30 ) $ (2.26 )
Discontinued operations - 0.55 - 0.33
Diluted loss per share $ (6.77 ) $ (1.57 ) $ (3.30 ) $ (1.93 )
Basic average shares outstanding 77,413 77,046 77,462 77,102
Diluted average shares outstanding 77,413 77,046 77,462 77,102
KB HOME
CONSOLIDATED BALANCE SHEETS
(In Thousands – Unaudited)
May 31, November 30,
2008 2007
Assets
Homebuilding:
Cash and cash equivalents $ 1,305,077 $ 1,325,255
Receivables 190,010 295,739
Inventories 2,608,823 3,312,420
Investments in unconsolidated joint ventures 294,504 297,010
Deferred income taxes 222,458 222,458
Goodwill 43,400 67,970
Other assets 123,500 140,712
4,787,772 5,661,564
Financial services 53,236 44,392
Total assets $ 4,841,008 $ 5,705,956
Liabilities and stockholders' equity
Homebuilding:
Accounts payable $ 609,989 $ 699,851
Accrued expenses and other liabilities 778,261 975,828
Mortgages and notes payable 2,161,220 2,161,794
3,549,470 3,837,473
Financial services 17,109 17,796
Stockholders' equity 1,274,429 1,850,687
Total liabilities and stockholders' equity $ 4,841,008 $ 5,705,956
KB HOME
SUPPLEMENTAL INFORMATION
For the Six Months and Three Months Ended May 31, 2008 and 2007
(In Thousands – Unaudited)
Six Months Three Months
Homebuilding revenues: 2008 2007 2008 2007
Housing $ 1,363,433 $ 2,670,624 $ 636,719 $ 1,297,366
Land 64,969 124,011 375 112,620
Total $ 1,428,402 $ 2,794,635 $ 637,094 $ 1,409,986
Six Months Three Months
Costs and expenses: 2008 2007 2008 2007
Construction and land costs
Housing $ 1,520,091 $ 2,508,766 $ 748,098 $ 1,348,306
Land 148,390 146,918 7,742 131,099
Subtotal 1,668,481 2,655,684 755,840 1,479,405
Selling, general and administrative expenses 246,703 398,807 119,065 193,585
Goodwill impairment 24,570 - 24,570 -
Total $ 1,939,754 $ 3,054,491 $ 899,475 $ 1,672,990
Six Months Three Months
Interest expense: 2008 2007 2008 2007
Interest incurred $ 76,905 $ 102,889 $ 38,403 $ 51,340
Interest capitalized (76,905 ) (102,889 ) (38,403 ) (51,340 )
Total $ - $ - $ - $ -
Six Months Three Months
Other information: 2008 2007 2008 2007
Depreciation and amortization $ 6,341 $ 10,334 $ 2,958 $ 5,096
Amortization of previously capitalized interest 54,898 53,598 26,322 27,825
KB HOME
SUPPLEMENTAL INFORMATION
For the Six Months and Three Months Ended May 31, 2008 and 2007
(Unaudited)
Six Months Three Months
Average sales price: 2008 2007 2008 2007
West Coast $ 362,300 $ 470,800 $ 331,400 $ 471,600
Southwest 236,700 273,500 229,100 264,100
Central 170,000 166,300 171,800 171,800
Southeast 216,400 235,900 205,300 233,300
Total $ 237,600 $ 269,400 $ 226,600 $ 271,600
Six Months Three Months
Homes delivered: 2008 2007 2008 2007
West Coast 1,217 1,845 603 950
Southwest 1,274 2,246 534 1,061
Central 1,762 2,663 863 1,236
Southeast 1,485 3,158 810 1,529
Total 5,738 9,912 2,810 4,776
Unconsolidated joint ventures 149 19 74 11
Six Months Three Months
Net orders: 2008 2007 2008 2007
West Coast 1,516 3,140 977 1,673
Southwest 946 2,545 760 1,437
Central 1,195 3,236 964 1,903
Southeast 1,992 4,088 1,499 2,252
Total 5,649 13,009 4,200 7,265
Unconsolidated joint ventures 179 194 131 109
May 31, 2008 May 31, 2007
Backlog data: Backlog Homes Backlog Value Backlog Homes Backlog Value
(Dollars in thousands)
West Coast 1,489 $ 516,073 2,910 $ 1,357,973
Southwest 978 222,279 2,829 733,211
Central 1,444 260,404 3,628 633,775
Southeast 2,322 467,141 4,305 1,012,098
Total 6,233 $ 1,465,897 13,672 $ 3,737,057
Unconsolidated joint ventures 239 $ 101,748 229 $ 84,773
Cycle Country Announces Orders Up 200% Quarter to Date Over Last Year Due to Advanced Orders for Q.4
Tuesday June 24, 7:00 am ET
SPENCER, Iowa--(BUSINESS WIRE)--Cycle Country Accessories Corp. (AMEX:ATC), the recognized leader in development, sales, marketing, and manufacturing of a variety of products for all terrain vehicles (ATV), garden tractors, and golf carts, today announced orders for the third fiscal quarter through mid-June are up 200% compared to the orders received for the same time period last year.
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Current orders have deliveries scheduled to occur between June and October of 2008 with the majority scheduled to ship by the end of September; therefore, the bulk of the revenue from the orders will be realized in the current fiscal year, (which ends on 9-30-08). The increases in orders are in almost every business segment, Contract Manufacturing, OEM business, and ATV accessories.
About Cycle Country Accessories Corporation
Cycle Country has been an industry leader in the marketing, sales, design and manufacturing of custom fitting accessories for utility all-terrain vehicles (ATV's) for over 27 years. Products include snowplows, mowers, 3-point hitches and implements, storage, bed lifts, brush guards and more. Cycle Country also produces accessories for the lawn and garden market through its subsidiary, Weekend Warrior and makes high performance oil filters for the motor sports industry through its wholly owned subsidiary, Perf-Form. In April of 2005, Cycle Country acquired Simonsen Iron Works, now operating as Cycle Country-Spencer, providing metal fabrication and contract manufacturing services to clients in the mid-west.
www.cyclecountry.com