Outlook

Car industry downgrades outlook after worst February in six decades

The automotive industry has downgraded its expectations for the year following the worst February for car sales since 1959.

Just 1.83 million new cars will be registered in the UK in 2021, according to the latest prediction from the Society of Motor Manufacturers and Traders (SMMT).

In January it had forecast a figure of 1.89 million.

The change comes after demand for new cars fell by 36% last month compared with February 2020.

Only 51,000 new cars were registered as showrooms remained shut.

February is generally a slow month for car sales due to many motorists waiting for new number plates to be released in March.

If the prediction of 1.89 million new cars being registered this year proves accurate, it would represent a 16% rise from 2020 but an 18% decline compared with 2019.

SMMT chief executive Mike Hawes said: “February is traditionally a small month for car registrations

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Chemical Specialty Industry Outlook Bleak on Muted Demand

The Zacks Chemicals Specialty industry consists of manufacturers of specialty chemical products for a host of end-use markets such as textile, paper, automotive, electronics, personal care, energy, construction and agriculture. These chemicals (including catalysts, surfactants, speciality polymers, coating additives, pesticides and oilfield chemicals) are used based on their performance and have a specific purpose. They have applications in the manufacturing process of a vast range of products, including paints and coatings, cosmetics, petroleum products, inks and plastics.

Some of the prominent industry players are Celanese Corporation (CE), W. R. Grace & Co. (GRA) and Ingevity Corporation (NGVT).

Here are the industry’s three major themes:

  • Companies in the chemical specialty space are facing the heat from a significant downturn in demand across certain major industries including construction and automotive in the wake of the coronavirus pandemic. The contagion brought industrial activities to a grinding halt globally, sapping demand for specialty
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Foreign Auto Industry Outlook: Multiple Headwinds Prevail

Companies in the Zacks Automotive – Foreign industry are involved in designing, engineering, manufacturing, distributing, and selling vehicles, components as well as production systems. Some of these companies are also engaged in research and development of electric and autonomous vehicles, fuel efficiency, along with low-emission technology.

Let’s take a look at the three major industry themes:

 

  • The foreign automotive industry, being consumer cyclical, is dependent on business cycle and economic conditions. The industry is in disarray amid weak vehicle demand and falling consumer confidence due to coronavirus woes. Sluggish demand in the world’s biggest auto market, China, has been hcarmakers in doing brisk business in the country. Indeed, auto sales in China have witnessed a rebound in April and May. However, amid the prevailing macro-economic conditions, vehicle sales in China are expected to fall 10% year over year in 2020. As it is, the nation’s EV sales have taken a
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