Search Results for: acquisitions-boost-briggs-stratton-fiscal-2015-earnings

2021-04-25

Hyundai Group Seals Doosan Infracore Deal

Media outlets in Korea are reporting that Hyundai Heavy Industries is to acquire a 34.97% share in Doosan Infracore from Doosan Heavy Industries & Construction for €630 million (Korean Won 850 billion). Doosan Infracore is the heavy construction division of the Seoul-headquartered Doosan Group.

The transaction does not include Doosan Bobcat, which accounted for 57% of Infracore’s 2019 revenues. The deal will mean that Hyundai will own Hyundai Construction Equipment as well as the Doosan Infracore construction equipment business. Regulatory authorities in South Korea and other countries including China must approve the acquisition; plans call for completion of the acquisition by the third quarter of 2021.

Source: International Construction.com

PSR Analysis: This appears to be a strategy by Hyundai Heavy Industries to gain economies of scale by bringing Hyundai Construction Machinery and Doosan Infracore into the fold, and to expand its market share, especially in the Chinese market.

Hyundai Heavy Industries has positioned the construction machinery division as its core business, the third pillar after shipbuilding and plants. Demand for construction machinery is strong in China, India, and Southeast Asia, and the company is hastening its overseas expansion by expanding its scale through acquisitions in the same industry. Chinese companies such as XCMG and Sany are growing rapidly, supported by domestic demand. Hyundai Heavy Industries seems to have decided that deepening its cultivation of the Chinese market through the acquisition of Doosan’s business is essential for its survival.

On the other hand, Doosan Heavy Industries has been in the red for six consecutive fiscal years through 2019, as its mainstay heavy electric machinery division has been underperforming due to the government’s policy of freezing nuclear power plants. While receiving support from government-affiliated financial institutions, the company has been selling off its non-core businesses in order to rebuild its business. So far, the company has sold off businesses including construction companies, real estate, and hydraulic equipment. Once this sale is completed, the company is expected to be able to achieve a certain degree of financial improvement. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

2023-02-17

Union Budget 2023 Focuses on Capex

INDIA REPORT
Aditya Kondejkar

As part of its 2023 Budget, the government has reiterated its focus on capital expenditures, the vehicle scrappage policy, and a reduction in customs duty for electric vehicle components that is designed to stimulate new vehicle sales. A reduction in customs duties and a plan to replace older, polluting vehicles will boost the adoption of green mobility.

“The increase in capex on infrastructure and the emphasis on green growth will help the mobility sector,” said Sudarshan Venu, MD, TVS Motor Company. “This budget gives something to everyone, from rural India and start-up India, to middle-class India and digital India. It is about inclusive growth and building on the recovery we are seeing after the pandemic. It strikes a fine balance between growth and fiscal prudence.”

Read The Article

Read More»

2020-02-25

New India Budget Disappoints Auto Industry

This article initially appeared in the February 2020 issue of PowerTALK News.

Source: Business Today   Read The Article

Ritvik Kulkarni
Ritvik Kulkarni

PSR Analysis: The Indian Automotive Industry was largely left disappointed with the budget after no direct steps were taken to arrest the decline in automotive sales. Although keeping long term benefits in mind, the budget did introduce measures to boost the rural economy, which in turn will directly benefit the commercial vehicle industry which is an important driver for the economy.

Read More»

PowerTALK, March 2019

PowerTALK_March 2019Download

Forklift Production Climbs in 2019

Production of Rough Terrain Forklifts in the U.S. this year is expected to be about 14,400 units, according to Carol Turner, PSR Senior Analyst, Global Operations. Her report is one of the Top Stories in the March 2019 issue of the PSR PowerTALK newsletter.

Other stories include a report on the 2019 Moscow Boat Show, a report on Q4 2018 gen-set sales in North America as part of PSR’s quarterly PowerTRACKER proprietary survey, plus stories from Asia, India, South America and Europe.

TOP STORIES

  • Rough Terrain Forklifts
  • EGSA Conference Report
  • NA Gen-Set Sales
  • Argentina LV Production Drops
  • Columbia LV Sales Forecast
  • China Boosts Methanol Use
  • Deutz Posts Strong Earnings
  • Kawasaki Completes India Plant
  • Doosan Wins Contracts
  • Indonesia Backs EVs
  • India Plans Tariffs
  • India Car Sales Decline
  • Moscow Boat Show Report
  • Russia Electric Car Market
  • Japanese Trucks in Moscow

2020-02-04

Near Term Recession Fears Recede in North America

SUMMARY.  The North American economy remained stable in 2019 and pure economic conditions as well as fundamentals in the region were favorable. Most industries performed very well, and the short-term outlook remains stable to flat for most market segments. However, we see many new developments that could suggest a shift in the trend.

Yosyf Sheremeta
Yosyf Sheremeta

Consumer confidence declined slightly in December, following a moderate increase in November.  The Conference Board’s Consumer Confidence Index stood at 126.5 in December, 1.4 points higher than in September 2019. 

Per Lynn Franco, Senior Director of Economic Indicators at The Conference Board: “While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects. While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”

Read More»

2020-09-27

Generac Capitalizes on Series of (Un)fortunate Circumstances

In last month’s issue of PowerTALK™ News, I wrote about how the pandemic was impacting some of the giants of the power generation industry, and Generac stood out as an OEM that had been well-positioned to capitalize on the disruptions in the marketplace.

Tyler Wiegert
Tyler Wiegert

They were already dominant in home backup power, a household name, and a clear early thought for the many people who were suddenly working and learning from home and searching for a way to make sure they did not lose power. At the same as this enormous upheaval affected our lives, wildfires blazed across California and continue to ravage the state, and hurricanes devastated the Gulf Coast.

While other residential power suppliers ran into supply chain bottlenecks that kept their dealers from being adequately stocked for the surge in demand, Generac managed to keep inventory flowing, leading to profits that are incredible by the standard of what we expect in this time, and a 20.8% jump in their share price in August alone.

Read More»

2021-05-24

Powersports Recreational Equipment Update

EDITOR’S NOTE. Power Systems Research tracks the global trends powersports recreational equipment, especially the electrification of these units. This is one of a series of reports on these trends.

Michael Aistrup
Michael Aistrup

HARLEY-DAVIDSON LAUNCHES LIVEWIRE. Harley-Davidson has announced the launch of LiveWire as an all-electric motorcycle brand.  With LiveWire, H-D hopes to redefine electric, delivering a better experience for the urban rider.

The first LiveWire branded motorcycle is scheduled to launch on July 8, 2021, and to premiere at the International Motorcycle Show in Irvine, Calif., on July 9, 2021.

Harley-Davidson’s LiveWire strategy includes these key take-aways:

  • Unique lineage: LiveWire draws on its DNA from the lineage of Harley-Davidson, capitalizing on a decade of experience in the EV sector.
  • Motorcycles + beyond:  with an initial focus on the urban market.  
  • Virtual HQ: LiveWire will be headquartered virtually, with initial hubs in Silicon Valley, CA (LiveWire Labs) and Milwaukee, WI.
  • Marketplace: LiveWire will work with participating dealers from the Harley-Davidson network as an independent brand. A go-to-market model will blend digital and physical retail formats.
  • Dedicated showroom: LiveWire will operate dedicated EV showrooms in select locations, starting in California.
  • Technology focus: LiveWire plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling. LiveWire expects to benefit from Harley-Davidson’s engineering expertise, manufacturing footprint, supply chain infrastructure, and global logistics capabilities.  
  • Technology sharing: Harley-Davidson and LiveWire intend to cooperate and share their technological advancements to ensure an industry leading application in their respective core segments.

POLARIS FIRST QUARTER 2021 EARNINGS RESULTS. Polaris released first quarter 2021 results with reported sales of $1,951 million, up 39% from reported sales of $1,405 million for the first quarter of 2020. The company reported first quarter 2021 net income of $134 million compared with a net loss of $5 million for the 2020 first quarter.

Gross profit increased 64% to $481 million for the first quarter of 2021 from $293 million in the first quarter of 2020. Reported gross profit margin was 24.6% of sales for the first quarter of 2021.

Polaris Product Segment Highlights:

  • Off-Road Vehicles (“ORV”) and Snowmobiles totaled $1,232 million for the first quarter of 2021, up 50% compared to $824 million for the first quarter of 2020. PG&A sales for ORV and Snowmobiles combined increased 51% in the first quarter of 2021 compared to the first quarter last year.
  • Motorcycles totaled $166 million, up 31% compared to the first quarter of 2020, driven primarily from increased sales of Slingshot, Indian Motorcycles. 
  • Global Adjacent Markets segment sales, including PG&A, increased 27% to $125 million in the 2021 first quarter compared to $98 million in the 2020 first quarter driven by increases in demand in North America and EMEA.
  • Aftermarket segment sales of $230 million in the 2021 first quarter increased 14% compared to $202 million in the 2020 first quarter. Transamerican Auto Parts (TAP) sales of $193 million in the first quarter of 2021 increased nine percent compared to $177 million in the first quarter of 2020.
  • Boat segment sales increased 29% to $199 million in the 2021 first quarter compared to $155 million in the 2020 first quarter, driven by sales growth in all three brands, Bennington, Godfrey and Hurricane.

POWERSPORTS MARKET ANALYSIS. The powersports market observed a slowdown during the first two quarters of 2020 driven by the spread of the COVID-19. Shortages of labor and materials in the first quarter led to many industry challenges. Governments began lifting the lockdown restrictions to stabilize the economic activities in the third quarter of 2020. During this period, the powersports industry witnessed steady growth owing to the rising inclination of individuals toward participating in outdoor recreational activities while complying with social distancing norms. 

Powersports market size exceeded $34 billion in 2020 and is expected to grow at around 6% CAGR between 2021 and 2027. The global power sports unit sales are anticipated to reach over 3 million units by 2027.     PSR

Michael Aistrup is Senior Analyst covering Recreational Products for Power Systems Research

2022-09-29

Can EV Enthusiasm Trigger Global Growth?

Consumer adoption of EVs has gathered momentum this year, spurred by higher global oil prices. The Russia-Ukraine war has made EVs suddenly more appealing to many car buyers, accelerating adoption globally. The higher oil prices are driving EVs closer to cost parity with internal combustion engine (ICE) vehicles. In Bloomberg New Energy Finance’s most recent Electric Vehicles Outlook 2022 report, it projected EV sales to hit 20.6 million units by 2025.

On Tesla’s most recent earnings call, Elon Musk admitted, “We do not have a demand problem but a production problem.” Other car manufacturers such as Ford, for instance, says it can build its F150 Lightning and the Mustang Mach E fast enough to keep up with demand

Read More»

2019-08-27

Recession May Come Before CASE Is Realized

GUEST EDITORIAL


President and Founder, Japan Electrification Research Institute, Ltd.

SUMMARY. The global auto industry is bubbling with changes and dramatic new ideas, but the current declining financial performances of Japanese auto OEMs may force them to drop out of the race temporarily before they can take advantage of the growing demand for autonomous vehicles.

Read More»

2020-02-25

Auto Expo 2020 Misses Majors But Shows Many New Products

This article initially appeared in the February 2020 issue of PowerTALK News.

Ritvik Kulkarni
Ritvik Kulkarni

The 15th edition of the biennial Auto Expo 2020 in New Delhi posted a record turnout of visitors. Despite missing out on mega launches and lukewarm participation by many OEMs, and absentees like Honda, Toyota, Fiat-Chrysler, Ford, Nissan, Audi, Hero Moto Corp, TVS Motors, Bajaj Auto and Royal Enfield the auto show presented many futuristic concepts and cleaner vehicles.

Source: ET Auto.com  Read The Article

PSR Analysis: With the entire country gearing up for the imminent transition to cleaner emission norms in BS6, and the uncertainty over the recovery of a bad 2019, it was impressive that the Auto Expo 2020 registered a record attendance.

Read More»