China Automotive Systems, Inc Financial Results First Quarter ended March 31, 2011

China Automotive Systems, Inc Financial Results First Quarter ended March 31, 2011 : China Automotive Systems, Inc. ("CAAS" or the "Company"), (NASDAQ: CAAS), a leading power steering components and systems supplier in China, today announced financial results for the first quarter ended March 31, 2011.

China Automotive Systems, Inc First Quarter 2011 Results

    * Net sales rose 8.1% to $91.0 million, compared to $84.2 million in the first quarter of 2010;

    * Gross profit was $20.0 million, compared to $22.5 million for the comparative quarter in prior year; Gross margin was 22.0% in the 2011 first quarter;

    * Research and development expenses rose approximately $1.0 million to $2.3 million;

    * Net income attributable to the parent company's common shareholders was $17.2 million, or diluted earnings per share of $0.23, versus a loss of $4.1 million, or $0.15 loss per share, in the 2010 first quarter; and

    * Cash and cash equivalents were $40.6 million at March 31, 2011.

Net sales were $91.0 million for the three months ended March 31, 2011, compared with $84.2 million for the first quarter ended March 31, 2010, an increase of $6.8 million, or 8.1%. Sales rose because of increased sales of the Company's new Electronic Power Steering ("EPS") system, an increase in export sales and the appreciation of the RMB against the U.S. dollar.

In the first quarter of 2011, the Company's gross profit was $20.0 million, compared to $22.5 million in the first quarter of 2010. The first quarter 2011 gross margin was 22.0%, versus 26.8% in the same quarter in 2010, mainly due to sales price declines exceeding unit cost reductions. Gross margin in the fourth quarter of 2010 was 20%.

Selling expenses in the first quarter of 2011 increased $0.5 million to $2.4 million, from $1.9 million in the first quarter of 2010. Higher warehouse rental expenses related to an increase in the rented area, due to the need to accommodate higher sales volumes, and greater transportation expenses, which reflected both an increase in oil prices as well as a greater number of units being sold. As a percentage of sales, selling expenses were 2.7% in the first quarter of 2011, compared to 2.2% in the first quarter of 2010.

General and administrative expenses were flat at $3.9 million in both the 2011 and 2010 first quarters.

Research and development expenses rose by approximately $1.0 million to $2.3 million in the first quarter of 2011, compared to $1.3 million for the three months ended March 31, 2010. Demand for EPS is rising and to market EPS more quickly, CAAS added senior technicians and advanced manufacturing and testing equipment to the research and development program. As a percentage of sales, R&D expenses rose to 2.5% from 1.5% in the first quarter of last year.

Income from operations was $11.7 million for the three months ended March 31, 2011, versus $15.9 million in the first quarter of 2010. The decline of $4.2 million resulted primarily from lower gross profit and higher operating expenses compared to the first quarter of 2010. As a result, operating margin was 13% in the first quarter of 2011, as compared to 19% in the same period last year, but higher than the 12% in the fourth quarter of 2010.

NASDAQ: CAAS, China Automotive Systems, China Automotive Systems shares prices prediction, China Automotive Systems stock prices forecast, China Automotive market Prediction 2012, China Automotive stock, China Automotive Systems net profit 2011

Asbury Automotive Group (NYSE:ABG) shares Prices Prediction

Asbury Automotive Group (NYSE:ABG) share Prices Prediction : Asbury Automotive Group (NYSE:ABG) hit a new 52-week high Friday as it is currently trading at $20.14, above its previous 52-week high of $20.13 with 40,306 shares traded as of 12:06 p.m. ET. Average volume has been 414,500 shares over the past 30 days.

Asbury Automotive Group has a market cap of $642 million and is part of the services sector and specialty retail industry. Shares are up 7.8% year to date as of the close of trading on Thursday.

Asbury Automotive Group, Inc. operates as an automotive retailer in the United States. The company has a P/E ratio of 19.7, above the average specialty retail industry P/E ratio of 12.8 and above the S&P 500 P/E ratio of 17.7.

NYSE:ABG stock prices prediction. NYSE:ABG shares prices, Asbury Automotive Group, Inc, Asbury Automotive shares prices forecast 2012, Asbury Automotive stock prices prediction.

BMW AG (BMW.XE) raised its earnings and sales outlook for 2011

BMW AG (BMW.XE) raised its earnings and sales outlook for 2011 : Luxury-car maker BMW AG (BMW.XE) Tuesday raised its earnings and sales outlook for 2011, the latest sign that demand for premium vehicles is booming across the globe despite swirling sovereign-debt concerns in Europe.

"Thanks to strong demand ... during the second quarter and for the full year, the BMW Group now expects that business performance and earnings will be significantly better than previously forecast," the Munich-based company said.

The world's best-selling luxury car maker is now targeting a sales increase of more than 10% in 2011 to more than 1.6 million cars, up from a previous forecast of more than 1.5 million car sales. BMW posted a 20% sales rise to 833,366 cars of its BMW, Mini and Rolls-Royce cars in the first half of the year, which marks a new record level.

BMW reiterated, however, that sales volume and earnings growth is likely to slow in the second half of the year due to effects related to model changeovers.

BMW expects its core auto segment to achieve an earnings before interest and tax, or EBIT, margin of over 10% in 2011, up from a previous forecast of more than 8%.

BMW and its luxury-car making peers are currently reaping record profit margins, driven by strong demand in China, where demand particularly for the companies' large flagship models is booming.

Late Monday, Volkswagen AG (VOW.XE) Chief Executive Martin Winterkorn dismissed concerns that the European debt crisis would hurt demand for cars and said that the company is on track to reach the 8 million vehicle sales threshold this year for the first time. Volkswagen's Audi AG (NSU.XE) brand was the world's second-bestselling premium automaker in the first half of the year afer BMW.

BMW said in 2012 it still targets an EBIT margin of 8%-10% and a return on capital employed above 26% at its auto segment. BMW's financial services unit continues to target a return on equity of at least 18% next year.

Honda Motor (HMC) stock prices july 12 2011, Near $40.27 Resistance Level

Honda Motor (HMC) stock prices july 12 2011, Near $40.27 Resistance Level : Honda Motor (NYSE:HMC) closed Monday's unfavorable trading session at $39.75. In the past year, the stock has hit a 52-week low of $29.41 and 52-week high of $44.56. Honda Motor (HMC) stock has been showing support around $39.33 and resistance in the $40.27 range.

Technical indicators for the stock are Bullish and S&P gives Honda Motor (HMC) a positive 4 STARS (out of 5) buy rating. For a hedged play on Honda Motor (HMC), look at the Jan '12 $35.00 covered call for a net debit in the $34.15 area. That is also the break-even stock price for this trade. This covered call has a duration of 193 days, provides 14.09% downside protection and an assigned return rate of 2.49% for an annualized return rate of 4.71% (for comparison purposes only). Honda Motor (HMC) has a current annual dividend yield of 1.17%