Everyone is familiar with how the Obama Administration helped resurrect the US Auto Industry from the dead.
For the 12 Big Auto and Auto Part Corps which generated Pretax Income (PTI) of at least $100 mil each in the most recent quarter, here are their earnings results for annual 2010, and as compared with 2009.
............................................Year........Year..............
............................................2010......2009................
.............................................Core.......Core........Increase..
...........................................PTI(L)......PTI(L)......Amount....%
............................................(in millions of dollars).........
Ford Motor...................MI..8,002.....(2,115)......10,117....478%
General Motors.............MI..5,737...(25,659)......31,396....122%
Oshkosh........................WI..1,212............12.........1,200.....NM
TRW Automotive..........MI..1,041..........140............901....644%
Paccar...........................WA...660.........109.............551....506%
Borg Warner..................MI....479...........18.............461...2561%
Lear...............................MI....449........(262)............711....271%
WABCO Holdings...........NJ....223............13.............210...1615%
Visteon..........................MI....109........(256)............365....143%
Dana Holding.................OH......35........(298)............333....112%
Goodyear Tire&Rubber.OH........8........(357)............365....102%
Chrysler........................MI...(513).....(8,325)........7,812......94%
Total all 12.........................17,442....(36,980).....54,422....147%
After this near miraculous earnings recovery in 2010, the earnings base has been massively elevated. Thus, it only makes sense that 2011 earnings growth will substantially decelerate.
Thus, when these 12 Big Auto and Auto Part Corps generated Total Pretax Earnings growth of 34% in the 1Q 2011, this was really good news.
And continuing this really good news, these 12 Big Auto and Auto Part Corps generated Total Pretax Earnings growth of 32% in the 2Q 2011.
But then this earnings growth for these 12 Big Auto and Auto Part Corps decelerated to 20% in the most recent 3Q 2011.
Below here are the Pretax Income (PTI) of these 12 Big Auto and Auto Parts Corps in the 3Q 2011, along with a comparison with the prior year’s 3Q of 2010:
................................................3Q.........3Q.......Increase...
..............................................2011......2010....(Decrease)...
...............................................PTI......PTI(L)...Amount....%
..............................................(in millions of dollars).........
Ford Motor 1,846 1,887 (41) -2%
General Motors 1,822 1,847 (25) -1%
Paccar 395 177 218 123%
Goodyear Tire&Rubber 305 42 263 626%
Chrysler 259 (45) 304 676%
TRW Automotive 204 236 (32) -14%
Borg Warner 193 116 77 66%
Lear 139 104 35 34%
WABCO Holdings 96 58 38 66%
Visteon 85 (104) 189 182%
Dana Holding 75 42 33 79%
Oshkosh 57 187 (130) -70%
Total all 12 5,476 4,547 929 20%
Total all but Big 2 1,808 813 995 122%
While the Big 2, Ford Motor and GM, had slightly down earnings in the most recent 3Q 2011, look at the other 10. Their Total Pretax Earnings more than doubled, up 122%, in the 3Q 2011, an acceleration from 95% growth in the 2Q 2011, and from 44% in the 1Q 2011.
Still, there is absolutely no way it is good for the US economy, and US job creation, for the the earnings growth in the Auto Industry in the 3Q 2011 to trail by so much that of the Big Oil Industry, as you can see below:
3Q 2011 Pretax Earnings Growth over 3Q 2010:
.....12 US Big Auto and Auto Part Corps.................20%
......6 US Largest Oil Corps....................................57%
......7 US Next Largest Oil Corps..........................107%
