More Firms Worry Over GM
Two more U.S. auto parts makers, ITT Industries Inc. and Simpson Industries Inc., said Thursday that labor strikes crippling General Motors Corp.'s North American production will reduce their second-quarter profits.
ITT Industries, a White Plains, N.Y.-based maker of auto parts, pumps and electronics, said the walkouts will trim about $16 million in operating profit, or 8 cents a share. Plymouth, Mich.-based Simpson expects its profit to be cut as much as 5 cents a share.
The latest warnings come two days after Southfield, Mich.-based Lear Corp. said it expects the GM strikes to cut 14 cents a share from its second-quarter profit.
Simpson Industries, which makes powertrain and chassis parts, was expected to earn 33 cents a share in the second quarter, according to a survey of five analysts by First Call Corp. It earned $5.42 million, or 30 cents a share, a year ago. ITT Industries had been expected to earn 69 cents a share in the latest quarter, according to a survey of nine analysts by First Call Corp. In the year-ago quarter, it earned $82.6 million, or 68 cents a share.
ITT Industries’ shares fell 63 cents to close at $37.13 on the New York Stock Exchange, and shares of Simpson Industries slid 19 cents to close at $13.06 on Nasdaq.