Auto sales decline sharply while Infineon and Thomson Reuters forecast upward

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    US auto giants have seen their sales in their country fall sharply last month. General Motors (GM) delivered 15 percent less cars in July than a year earlier. Also with Ford and Fiat-Chrysler, solid memories were noted.

    Ford sold more than 7 percent less trucks except heavy trucks. The company’s passenger car sales quarried by 19 percent. The Italian-American Fiat-Chrysler saw the whole-line question with about a tenth fallback.

    This year, total car purchases in the United States so far have fallen every month, due to reduced demand for sedans and coupes by leasing companies and consumers. Analysts had therefore also counted on lower sales. However, the figures for July at GM, Ford and Fiat-Chrysler are worse than expected.

    Of the big guys in the car brand, only Japanese Toyota managed to sell more cars in the US in July. Toyota’s sales increased by almost 4 percent. At Nissan and Honda, however, US sales fell by 3 per cent and 1 per cent respectively. The Japanese companies knew that all three market forecasters’ forecasts exceeded slightly.

    The German chip company Infineon, a major supplier for the automotive industry, can look back in a strong financial quarter. The company achieved a third more profit over the past three month period. Turnover increased by more than 12 percent to over 1.8 billion euros, announced the group on Tuesday.

    Operating profit came to 338 million euros, above expectations of analysts. The group forecasts its profit margin for the whole fiscal year slightly upwards, by 1 percentage point to 18 percent. Infineon repeated its sales forecast, 8 to 11 percent growth for the whole year. In March of the previous quarterly report, the company already increased its expectations for sales.

    News and data provider Thomson Reuters achieved a higher operating profit in the second quarter of stable sales. The EBITDA result increased by 11 percent to $838 million at a revenue of nearly $2.8 billion.

    Excluding the impact of exchange rate effects, sales rose by 2 percent. The higher result is partly due to higher profitability, helped by cost savings. Thus, many positions were removed to simplify the business structure.

    Thomson Reuters maintained its expectations for revenue growth throughout 2017. However, the forecast for earnings per share was revised upwards.

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    Zac Berry is presently a full time editor at Market Morning. He covers the M&As and follows live market commentary. Before joining Markets Morning, Zac Berry worked with a start-up, where he worked in the capacity of a Team Leader tracking company events and results. Born in the U.A.E, he spent most of his growing up years in Dubai. Currently, he resides in U.S. and is pursuing his charter in Accountancy.

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