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Hilbroy Advisory: INSIGHT: Japan crisis weighs on Europe's auto industry
Hilbroy Advisory: INSIGHT: Japan crisis weighs on Europe's auto industry
Japan’s export-driven economy is struggling to get back on its feet, and some have speculated that it may take at least six months for it to return to normal.
Montreal,
Quebec,
Canada
(prbd.net)
19/04/2011
Montreal, Quebec, April 18, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: The European automotive industry is starting to feel the effects of the Japanese earthquake and tsunami, as several car makers struggle for parts and supplies, forcing them to reduce production.
Japan’s export-driven economy is struggling to get back on its feet, and some have speculated that it may take at least six months for it to return to normal.
As Japan is a major supplier of vital components to the global automotive industry, the lack of supply has had a negative effect on some chemicals used in the sector.
Demand for nylon 6.6, which is used for engineering plastics in automotives, fell by up to 30% following the 11 March earthquake and tsunami.
However, some manufacturers, such as Germany’s BASF – which supplies coatings, plastics and polyurethanes – remain relatively optimistic beyond the short term. BASF has forecast 6.1% year-on-year growth in global auto production this year.
“BASF is carefully monitoring the situation at its customers' and suppliers' sites worldwide. At the moment, it is still too early to determine whether there will be any financial impact on BASF,” spokesperson Julia Buchner said.
“However, we do not expect that the disaster in Japan will have a major impact on our global business with the automotive industry with regard to full-year 2011,” she added.
US plastics compounder A Schulman also forecasts a minimal impact on its business. A Schulman's two materials sourced from Japan are an anti-block UV additive and a specialty polyvinyl chloride (PVC) resin.
The company acknowledged the possibility of a “secondary impact” on global downstream industries, such as electronics and automotive, saying: “It’s still too early to quantify what impacts these secondary factors may have on our business.”
Short working weeks for several manufacturers have been announced for European plants affected by the earthquake, as Toyota Motor, Honda Motors, Bosch and Nissan have all had to slow down production.
Toyota has had to shut down facilities in the UK, France, Poland and Turkey for several days this month and will also do so in May. In its most recent statement, the company said it is continuing to address its production situation in Japan.
Vehicle production from 10 May to 3 June “will proceed at approximately 50% of normal”, Toyota said. It is estimated that the company will lose 40% of its global production in the second quarter. There are still serious problems posed by the Fukushima Daiichi nuclear plant, which has led to power shortages in Japan.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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