Canaccord Genuity Morning Coffee on Hitachi (HIT) and Toyota (TM): HIT Hard
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Price: $1.00 -1.96%
Rating Summary:
2 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 0 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Hitachi (NYSE: HIT) and Toyota (NYSE: TM): HIT hard.
Canaccord analyst said, "Shares of Hitachi tumbled as the manufacturing giant said that they had suspended operations at six manufacturing facilities in areas that had been impacted by Friday’s earthquake. The facilities produce home appliances, autoparts, elevators and power generation systems. A spokesman for the company said they are still trying to fully assess the damage caused by the quake and are unsure when the doors to the plants will re-open. Meanwhile, shares of Toyota fell as the automaker announced they will be keeping manufacturing plants closed until at least Wednesday as they try to adjust to logistics complications created by the earthquake and tsunami. The closures will reduce output by at least 40,000 vehicles, and Goldman Sachs estimates each day without production will impact profit by approximately $73.3 million. Additionally, rolling blackouts will be affecting Tokyo and its surrounding areas over the next few weeks, another challenge facing manufacturers as they attempt to assess and repair damage to their plants. An analyst at SMBC Friend Securities said, “It will take quite some time until investors; confidence in Japanese manufacturers returns. When we look back at the Kobe earthquake, it took about a week to get an overall picture of the magnitude of the damage.” The same analyst speculates that the effects of the blackouts will be severe as it remains unclear when manufacturers will be able to return to full production."
Canaccord analyst said, "Shares of Hitachi tumbled as the manufacturing giant said that they had suspended operations at six manufacturing facilities in areas that had been impacted by Friday’s earthquake. The facilities produce home appliances, autoparts, elevators and power generation systems. A spokesman for the company said they are still trying to fully assess the damage caused by the quake and are unsure when the doors to the plants will re-open. Meanwhile, shares of Toyota fell as the automaker announced they will be keeping manufacturing plants closed until at least Wednesday as they try to adjust to logistics complications created by the earthquake and tsunami. The closures will reduce output by at least 40,000 vehicles, and Goldman Sachs estimates each day without production will impact profit by approximately $73.3 million. Additionally, rolling blackouts will be affecting Tokyo and its surrounding areas over the next few weeks, another challenge facing manufacturers as they attempt to assess and repair damage to their plants. An analyst at SMBC Friend Securities said, “It will take quite some time until investors; confidence in Japanese manufacturers returns. When we look back at the Kobe earthquake, it took about a week to get an overall picture of the magnitude of the damage.” The same analyst speculates that the effects of the blackouts will be severe as it remains unclear when manufacturers will be able to return to full production."
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