Zacks.com Features the Following Top Stocks in the Auto & Accessories Industry: ArvinMeritor, ASV, Inc., Delphi Corporation, and Lear Corporation

Business Wire,  August 16, 2004  

Tags: Delphi Corp., industry, Lear Corp., stock

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CHICAGO -- The auto & accessories industry may face challenges from a difficult market, but the All Stars can keep you cruising toward higher returns with a handful of recommendations from the sector. Here are some of the top recommendations in the auto & accessories industry: ArvinMeritor, Inc. (NYSE:ARM), ASV, Inc. (NASDAQ:ASVI), Delphi Corporation (NYSE:DPH), and Lear Corporation (NYSE:LEA). Discover the full story at Zacks.com http://at.zacks.com/?id=96

What Do The All Stars Recommend:

ArvinMeritor, Inc. (NYSE:ARM) is a premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and related aftermarkets. The company reported net income of 77 cents per share on sales of $2.4 billion for its fiscal third quarter. The earnings result topped the year-ago performance and beat the consensus by more than +5%. Meanwhile, sales increased +13% year-over-year. The company was able to report a strong quarter even though higher raw material costs continued to be a challenge. Specifically, ArvinMeritor reported that Light Vehicle Systems sales improved +5%to $1.25 billion, while Commercial Vehicle Systems sales jumped +34% to $862 million. Light Vehicle Aftermarket sales were flat at $224 million.

ASV, Inc. (NASDAQ:ASVI) designs, manufacturers and sells rubber-tracked, all-purpose crawlers and related accessories and attachments. ASV also manufacturers rubber-tracked undercarriages, which are a primary component on Caterpillar's Multi Terrain Loaders (MTL). In late July, ASV reported net earnings of 32 cents per share for its second quarter, which was 10 cents better than last year, on net sales that improved to $39.1 million from $26.4 million. Analysts were expecting a result of 29 cents on average, which marked a positive earnings surprise of more than +10%. Due to the first half's earnings growth, ASV decided to raise its fiscal 2004 guidance for anticipated diluted earnings per share to between $1.12 and $1.20, compared to the prior forecast of $1.05 to $1.17.

Delphi Corporation (NYSE:DPH) is a global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology to vehicle manufacturers. Pro forma earnings reached 28 cents per share in Delphi's second quarter, which was in-line with the consensus. Meanwhile, driven by a +23% growth in non-GM sales, revenues rose +6% to $7.5 billion from $7.1 billion year-over-year. Delphi credited its record non-GM sales to high-tech product portfolio sales, global expansion and adjacent market growth. As for consumer electronics, Delphi reached the 1 million mark in sales of portable satellite radio receivers to retailers, and has now sold 2.6 million receivers total. Another bright spot in the quarter was operating cash flow growing +36%, which Delphi said demonstrated its operational strength. Solid operating cash flow has allowed the company to strengthen its balance sheet through pension contributions while funding ongoing restructuring activities.

Lear Corporation (NYSE:LEA) focuses on integrating complete automotive interiors, including seat systems, interior trim and electrical systems. The company is the world's largest automotive interior systems supplier. For its second quarter, Lear earned $1.65 per share, which was up +7% from last year's $1.54. The consensus was expecting $1.63. Net sales advanced +4% from last year to $4.3 billion vs. $4.1 billion, reflecting the addition of new business globally and the impact of foreign currency. There was a lot of activity at Lear in the quarter, including the integration of its Grote & Hartmann acquisition. Grote & Hartman, a manufacturer of electrical components based in Germany, and Lear completed its acquisition in early July. The move supports Lear's strategy to grow its electronics and electrical distribution systems business while further diversifying its sales.

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