Supervalu sale faces long odds

Supervalu Inc. has put itself publicly on the block but do not expect this company to get sold in 1 piece or in any of pieces for selling quickly, given the uncertainties that facing this embattled grocer. This was consensus of the stock analysts on Thursday, one day after Supervalu had said that it was reviewing the ways for boosting the value of shareholder, including selling of all or some parts of this company.

On Thursday, Supervalu was biggest loser on New York Stock Exchange. Their shares went down from $2.60, or about 49 percent, closing in at $2.69. announcement Supervalu’s of some possible sale came after this market had closed on Wednesday, with the news that company that is Eden Prairie-based suspended their dividend and had suffered terrible 1st quarter.

Michael Keara, one stock analyst @ Morningstar said that they are in plenty of trouble. This company is now in deepening down ward spiral as it now continues for losing their business to the competitors who are lower-priced. Owner of Twin Cities’ Cub Foods, called Supervalu is 1 of biggest national operators of super market having eleven separate chains. However, it is “highly unlikely” that buyer will snap up entire company, says Scott Mushkin, who is analyst @ Jefferies.

Keara had put odds of 1 shot acquistion @ “zero.” While there has been speculation some that outfit of private equity may make some run @ Supervalu, Keara had said that is very unlikely considering Supervalu already had saddled along with some debt. The private firms of equity typically do the leveraged buy outs, loading target company along with some debt. But along with Supervalu, “this isn’t happening,” says Keara. Any chance of industry competitor buying Supervalu is too is really unlikely, he says. Discounters of grocery just like Target and Wal-Mart are totally different in terms of business models.


Also, the Supervalu’s conventional rivals of grocery – for instance – Kroger are already getting market share @ Supervalu’s expense. You are taking the market share already so why should you commit any capital [for buy Supervalu]?” This maxim can apply for buying the individual chains of Supervalu, too, say the analysts, especially the laggards like Acme & Shaw’s @ New England & Philadelphia. Supervalu hasn’t given up yet & Wednesday had announced an accelerating program of price-cutting which is really important for their turnaround plans. If Supervalu succeeds, few competitors may take one harder look for buying the assets of Supervalu for avoid cost of extended war of price, Mushkin wrote in one research note.

On other hand, the potential buyers could just wait out for price war. The buyers do not have any incentive for paying the full price for asset of Supervalu “when there’s very strong possibility which they can buy cheaper if [Supervalu’s] turn around fails to turn up,” Jason DeRise, a UBS analyst, had wrote in one research note. Jonathan Feeney, who is analyst @ Janney Capital Markets, had wrote in one research note that “there is not much reason for believing deals which are now imminent.” However, he had noted that there can be “significant value in sale of strong [Supervalu] stand alone asset.”

Acme, Shaw’s, & Albertsons, latter being Supervalu’s large Western chain, all look like their struggling, wrote by Feeney. “This leaves Jewel, [Supervalu’s] the leading banner in biggest geography, as great unknown.” Jewel is commanding leader @ Chicago market of grocery, with share of above 30 percent. The sale or any other strategic action from Supervalu “can be quite complicated,” wrote analyst at JPMorgan called Ken Goldman. This company has complicated structure of organization. It has plenty of debt, & it isn’t clear about how this debt will get allocated in breakup. There is plenty of the “pension exposure,” wrote Goldman. Supervalu is a party for several plans of pension through the various chains.

New truck orders are soft in the month of June says ACT Research

Class 8 commercial vehicle net preliminary orders remained very soft in the month of June, says reports from the ACT Research. The classes net 5-7 orders too were falling below the trend, but decline was pretty much expected, say that officials at ACT. ACT ResearchThe activity of medium-duty trucks automobiles typically tapered off during months of summer. Final numbers, which will released around mid-July and they will approach around 16,500 units for the Class eight heavy-duty trucks & 12,900 for the Classes 5-7 medium duty vehicles. Preliminary numbers of net order are accurate typically to with in five percent of actual says ACT.

Kenny Vieth, the president & senior analyst @ ACT Research that explanation for soft patch does remains of ‘death by 1000 cuts’ type. He said that as has been case since the late of February and early March, this issue looks to have boiled down for the truckers who are credit-buying confidence in economy that is relative to risk of taking sizeable loan for buying truck. To this end, the risk, political or economic, global or domestic, does remain very high, and the memories of the year 2009 are still very fresh.

Auto Sales Stall With 500,000 Cut From 2013 U.S. Outlook

Pace of the U.S.A auto sales has probably stalled for 2nd straight month for June as market of labor had stumbled & the confidence had waned, leading the analysts @ Citigroup Inc. & Deutsche Bank AG for lowering the estimates for the demand in the year 2013.

The sales of light-vehicle for June, set for the release soon, might have run @ 13.8 million adjusted seasonally rate annualized, average estimate of around 15 analysts that is surveyed from Bloomberg. This average estimate matches the rate of May, this year’s 1st month for dipping below the mark of 14 million, & trails 14.5 million pace for 1st 4 months of the year 2012. Even with slow down, U.S.A. auto sales are now on the pace for total that is best annual since the year 2007. With the sales for Europe falling 5th straight year & market of China slowing, the auto makers like Ford are now counting on the demand for warranting more of production at North America for offsetting the losses for the other regions.

Emmanuel Rosner, who is New York-based analyst in CLSA – Credit Agricole Securities Inc.’s, said in phone interview that they are talking regarding less strength as compared to what things were one year ago. He says that they are talking of less strength as compared to what the things were one year ago. Macro data which correlates best along with U.S.A. auto sales is the consumer confidence & the employment figures. For both the cases, there is some of deceleration.

Chrysler, Ford, & affiliates Hyundai & Kia probably will be reporting smaller June gains of sales as compared to what they had recorded in this year through the month of May, says the estimates of analysts’. Itay Michaeli from Citigroup & Rod Lache of Deutsche Bank each had cut the industry sales for 2013 estimates by 500,000 cars & light duty trucks in the last month as the U.S.A. gains of job had slowed & the consumer confidence had weakened.

‘Additional head winds’

Michaeli lowered had the outlook for the year 2013 to the 14.5 million sales, from about 15 million. Lache had cut the estimate of 2013 to about 14.2 million, from approx. 14.7 million.

Lache had written that they are seeing a potential for the additional headwinds from crisis of Europe, & head winds from the U.S.A. cuts of federal budget which might take effect in the month of January. Confidence amongst U.S.A. consumers had dropped for 4th month, index of Conference Board’s had showed on June 26. This private research measure of group fell to around 62 for the month of June, and is the lowest since the month of January. Employers had added about 69,000 workers in the month of May, fewest in year, & job less rate had gone to around 8.2 percent.

Lincoln Blackwood review

Lincoln has entered small-yet-growing SUT or sport utility truck segment for model year of 2002 with the Lincoln Blackwood. This SUT was seen first in the form of concept vehicle in the year 1999 at North American International Auto Show at Detroit, where it had taken competition by total surprise.

Basically, the designers had transformed Lincoln’s Navigator SUV sport utility vehicle in to crew-cab luxurious pick up truck. The other manufacturers did follow the suit: Chevrolet had announced development of the Avalanche pick up/SUV cross over, & Ford had introduced the Explorer Sport Trac, which does combines attributes of SUV & pickup Cadillac too had entered the arena along with 2002 Escalade EXT.

Lincoln had announced their plans for selling around 10,000 Blackwoods in a year, & this company said that this vehicle will come along with sticker price of about $52,500. The production was not just delayed, but few of the Blackwoods had started to reach the dealerships – & sales were in hundreds instead of thousands. After few months of the uncertainty, the manufacture had announced that the production for Blackwood will halt in the time of mid-2002. This final, 2003 model of Blackwood will come in the smaller numbers at the dealerships.

Exterior

Signature grille of Lincoln leads Blackwood, which had originated as Navigator which had the chassis lowered by around three inches. While creating concept model, designers replaced regular Navigator rear end along with pick up-style box cargo which had the sides finished along with wood and aluminum accents. Production-model Blackwood followed this same principle. Though Blackwood is loaded fully as a luxury vehicle, the manufacturer has claimed that it’s almost 50/50 in terms of weight balance.

Lincoln Blackwood has paint of Gloss Black, hence this automobiles name. Power-operated, lockable cover of hard tonneau encloses four by eight foot box of cargo, or the trunk. Pushing the buttons on fob of remote key raises & lowers tonneau, which the automaker says is 1st manufacturer installed cover of power tonneau. It’s side hinged, raises for height of six feet eight inches tall & then nests in to rear doors of Dutch. The doors are then used instead of conventional lift gate.

Insignia of Lincoln star decorates cladding of front-door & latch cover of tonneau. Trim of stainless-steel & accent LED lighting adorn Blackwood’s interior of “trunk”. Unlike Avalanche & Escalade EXT, which have movable mid gate, this Blackwood comes with fixed bulkhead.

The touches of styling include chrome for handles of door, mirrors & door that is fuel-filler. The fog lamps are offered standard. The low-profile eighteen inches tires of Michelin are mounted on the wheels of machined-aluminum, & load-leveling hybrid leaf/air spring rear suspension too is installed. Blackwood rides has sizable 138.5-inches of wheel base, measures about 220.2 inches long over all & it stands about 73.6 inch tall.

Interior

4 bucket seats are now mounted in space which might other wise hold around 6 occupants; each of the rider gets a lot of room. Seats are upholstered with Connolly black leather & they are controlled with climate—cooled or heated through the perforated surfaces of leather. Interior has trim of crystal oak dark-stained wood. Power front seats come with extended support of power lumbar. Driver faces wood-&-leather-trimmed wheel of steering. Seven-speaker Alpine system of stereo includes 6 disc changer. Capacity of cargo-box is about 26.5 cubic feet. Only option of luxury that is offered in Blackwood is CD-operated system of navigation voice-activated which costs $1,995 more.

Under Hood

Black wood’s V-8 5.4-liter engine, which too used in Navigator & Ford’s pickups of full-size, has 300 horse power with 5,000 rpm & 355 pounds-feet torque @ 2,750 rpm. Blackwood has automatic 4-speed- transmission & either rear-wheel drive or 4-wheel drive. This vehicle tows max 8,700 pounds.

The Safety

Side-impact seat-mounted air bags are very well installed in front, & rear seats come with seat child-safety tether capability of anchor. The anti lock brakes have EBD or electronic brake-force distribution & Reverse Sensing System which warns you of any obstacles to rear while this vehicle is going back.

The impressions of driving

This Lincoln Blackwood is more like curiosity than practical vehicle. It drives very easily, & feels lot like Navigator of previous-generation while driving on high way. But that isn’t any surprise, considering origin of Navigator. Though this Blackwood is truck like, it’s very quiet in cruising. It maneuvers easily than what dimensions may suggest.

Apart from the price, this Blackwood’s space of cargo is the biggest drawback. Power tonneau is pretty innovative & enjoyable for watch, but it does covers area which is not really tall enough for holding a lot of items which the travelers might yearn to carry.

Germany’s VDA Sees 2012 Global Truck Market Up 5%

German car association of manufacturers VDA is expecting global truck growth of market of about five percent for this year, driven by the demand in U.S.A., Japan, Russia, & India. This was said by Matthias Wissmann, the VDA President on this Friday @ event ahead of IAA commercial automobiles fair later in this year.

The growth for demand U.S.A trucks is very likely to be about 20%, says Wissmann. Market out look in Europe for this year is a bit less fortunate, as demand is will fall some where between 2 percent and 4 percent, he says. He also said that the market of commercial vehicles will regain the momentum are the financial markets get stabilized.

Weaker growth of economy for boom-markets like Brazil and China will be taking toll on the truck markets, & demand from Chinese will fall by around 3 percent in this year, he says.

Globally speaking, Wissmann is expecting the registrations of new truck to reach around 3.27 million automobiles. For the year 2013, Wissmann had noted very strong fundamentals for market of transportation, & had said that the momentum will increase if Europe does resolve the crisis of debt. Trade fair of IAA will by taking place at Hanover, starting from September 20.