Europe’s automakers, auto engineering groups and parts suppliers all enjoyed a strong recovery in shareholder value in Q-1 of Y 2019 following significant losses in Q-4 of Y 2018.
Overall, automakers gained 9.7%, parts suppliers + 8.9% and auto engineering companies, a new segment in Automotive News Europe/PricewaterhouseCoopers Transaction Services Shareholder Value Indices grew 10.9%.
These gainers were in line with European stock markets, with Germany’s DAX 30, + 9.2%, the French CAC40, +13.4%, and the Euro STOXX Blue Chip 50, up 12.3% over the same frame.
Following a review of auto-related companies now quoted on European exchanges, ANE and PwC have revised the Shareholder Value Indices, starting with the Q-1 Y 2019 report.
Ferrari (NYSE:RACE) joined the list of automakers and Autoliv spinoff Veoneer, German engine, transmission and chassis components maker Schaeffler and Melrose Industries, the UK company that recently acquired GKN, are now included in the suppliers’ index.
A new index of Europe’s Top automotive engineering firms replaces the retailer index, affording readers insight into a group of companies with a much wider global footprint.
Italian engineering specialist pininfarina, previously included in the suppliers index, has joined this group.
All the automakers, apart from BMW, saw gainers in Q-1.
Ferrari got off to a strong start by increasing its value to shareholders by 34.6% over the Quarter.
Ferrari was followed by Peugeot, +16.6% on the back of a 7% increase in Y 2018 group sales to 3.88-M vehicles and a 40% increase in net profit to EUR 3.3-B.
Among suppliers the performance was more mixed, with the Top 12 recording gainers that ranged from Kongsberg’s 0.7% to Aptiv’s 29.5%.
But 7 companies recorded decliners in shareholder value, with Autoneum (-22.1%) and Leoni (-42.5%) having the biggest declines. New entrants Schaeffler and Veonner recorded small declines.
For the parts supply sector overall, this was still a significant improvement on the performance in Q-4 of Y 2018, when all the companies in the index recorded double-digit declines.
The new engineering index, made up of 10 strong players in the automotive sector, achieved average gains in shareholder value of just under 11% in Q-1.
French digital engineering group Assytem led the way with a gain of 29.6%, followed by the Swedish autonomous solutions specialist Semcon, which improved by 26.0%, and Altran, an international consultancy firm with a focus on connectivity and electrification of powertrain, which gained 20.6%.
Ferrari is the Aristocrat of the automotive sector.
The iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.
HeffX-LTN overall technical outlook for RACE is Neutral to Bullish, there is resistance now at 140.58, then none, as the stock is very oversold, MACD and Stochastics 2 of my 3 of our Key indicators is Very Bullish in here.
Have a terrific weekend.