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Toyota (TM) Halts Operations in China Amid New COVID Lockdown
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Toyota Motor (TM - Free Report) has temporarily suspended operations at a joint venture plant with FAW group in Changchun in China after a lockdown was imposed in the city last week in view of a surge in COVID-19 infections. Considering the restrictions on travel and movement, supplier status, and the safety of its employees, the company has come to such a decision. The Changchun facility produces the mainstay RAV4 sports utility vehicle.
Although the situation may affect its new car sales in China, the Japanese automaker is yet to announce its plans to reopen the plant.
Toyota, in January, had halted activities at a joint venture plant in Tianjin, China, following the onslaught of the Omicron variant of coronavirus in the city. The hiatus resulted in a drop in its sales by about 20% in January from the year before.
There has been an uptick in the sales figure by about 10% since then, but it is likely to be dented once more if operations at the Changchun plant remain suspended for a prolonged period.
Another auto giant, Volkswagen (VWAGY - Free Report) , has suspended a part of its operations in China amid government restrictions to combat the largest COVID-19 outbreak in the country in two years.
Volkswagen also runs a joint venture operation with FAW, and has suspended production at its vehicle and component plants for a short duration.
FAW, headquartered in Changchun, is a major automobile industry base for China that is home to five automakers, including the Volkswagen and Toyota ventures.
Changchun's authorities have strictly banned all non-essential movements of the city’s residents. All corporate activities have come to a standstill, excluding companies that engage in important activities.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 3.3% over the past year.
LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 20.4% over the past year.
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Toyota (TM) Halts Operations in China Amid New COVID Lockdown
Toyota Motor (TM - Free Report) has temporarily suspended operations at a joint venture plant with FAW group in Changchun in China after a lockdown was imposed in the city last week in view of a surge in COVID-19 infections. Considering the restrictions on travel and movement, supplier status, and the safety of its employees, the company has come to such a decision. The Changchun facility produces the mainstay RAV4 sports utility vehicle.
Although the situation may affect its new car sales in China, the Japanese automaker is yet to announce its plans to reopen the plant.
Toyota, in January, had halted activities at a joint venture plant in Tianjin, China, following the onslaught of the Omicron variant of coronavirus in the city. The hiatus resulted in a drop in its sales by about 20% in January from the year before.
There has been an uptick in the sales figure by about 10% since then, but it is likely to be dented once more if operations at the Changchun plant remain suspended for a prolonged period.
Another auto giant, Volkswagen (VWAGY - Free Report) , has suspended a part of its operations in China amid government restrictions to combat the largest COVID-19 outbreak in the country in two years.
Volkswagen also runs a joint venture operation with FAW, and has suspended production at its vehicle and component plants for a short duration.
FAW, headquartered in Changchun, is a major automobile industry base for China that is home to five automakers, including the Volkswagen and Toyota ventures.
Changchun's authorities have strictly banned all non-essential movements of the city’s residents. All corporate activities have come to a standstill, excluding companies that engage in important activities.
Zacks Rank & Key Picks
Currently, TM has a Zacks Rank #3 (Hold).
Better-ranked players in the auto space include Harley-Davidson (HOG - Free Report) and LCI Industries (LCII - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harley-Davidson has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for its current-year earnings has been revised around 21.7% upward in the past 60 days.
Harley-Davison’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. HOG pulled off a trailing four-quarter earnings surprise of 77.59%, on average. The stock has rallied 3.3% over the past year.
LCI Industries has an expected earnings growth rate of 27.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 16% upward in the past 60 days.
LCI Industries’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in the other one. LCII pulled off a trailing four-quarter earnings surprise of 12.86%, on average. The stock has declined 20.4% over the past year.