Fiat Gets Going with Google; April Showers Bring Great Car Sales; Building-A-Profitable-Bear

Behind the wheel…

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Image courtesy of atibodyphoto/FreeDigitalPhotos.net

It might just have been a bit of good luck that car company Fiat gets to team up with Google to engineer some self-driving cars. The company will supply Google with 100 Chrysler Pacifica hybrid minivans and it will mark the first time that Google shares its inside information with outside entities. If you’re thinking of saving up to buy one, don’t bother. They won’t be for sale. Besides, they’re minivans. Google has dealt with other car companies, like Toyota, except Google did the work on the cares rather than working together with Toyota. This collaboration is a sweet deal for Fiat, which has a lot of catching up to do in the way of technological advancements in their vehicles. Besides, the company is kind of low on cash and wouldn’t have had enough of it to make a meaningful investment towards tech upgrades. But with this new collaboration in the works, it doesn’t have to worry about raising money for that. How very convenient.

New car smell…

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Image courtesy of atibodyphoto/FreeDigitalPhotos.net

Speaking of Fiat, global sales of the company sank around 2%, keeping up with the rest of the grim state of the global economy. But all was not lost as sales in the U.S. picked up 5%, selling 200,000 cars and trucks while dealing a minor blow to analysts’ estimates of a paltry 4.6% increase. Sales of Jeep also scored big compared to the same time last year as it increased 17%. But that’s minor compared to sales of Compass and Renegade automobiles which more than doubled. Sales of automobile in the U.S. in April were so good that it just might be coming off of the best April. Ever. Car sales are considered a fairly accurate barometer of consumer spending and last months’ numbers indicate that the economy, the U.S. economy, that is, is looking good and healthy. Individual sales of cars throughout the industry was up 3%, with a lot of help from SUV and pick-up truck sales. Unfortunately I did not contribute to any sales growth. The volume of cars sold told a very different and unpleasant story by dropping 3.5%. Some companies have also lopped off major chunks from their incentive programs seeing as how they tend to eat the bottom line. Not that this should come as any great shock but VW was down 9.7% as it continues its brutal journey back from its emissions scandal. Some analysts thinks the car industry is about to hit a peak. But apparently it’s just a cyclical issue and nothing that should cause you to lose sleep. Unless of course you’re in the business of selling cars.

Bear market…

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Image courtesy of atibodyphoto/FreeDigitalPhotos.net

Build-A-Bear just released its earnings – yes, it is a publicly traded company – and the results didn’t exactly leave investors feeling…warm and fuzzy. Ya dig? The DIY stuffed animal biz that boasts some 400 stores picked up $3.53 million in profit, adding 22 cents per share. Too bad the company missed expectations of 37 cents per share and didn’t perform nearly as well as last year at this time when the company scored a profit of $6.82 million with 40 cents per share added. Revenue was up 1.7% to $95 million for the quarter compared to last year, but again, the workshops missed estimates of $96.6 million, fuzzy ears and all. To be fair, however, it will probably still get a fourth straight year of profitability, even if the numbers don’t wow investors. In the fiscal blame game, the company pointed the finger at some expenses tied to store remodeling, international expansion and the ever-pesky high tax rate. The board announced that it hired advisers to come up with “a full range of strategic alternatives.” Which is basically code for trying to figure out a bunch of ways to make more money. Investor J. Carlo Cannell, who happens to own an 8% stake in the company, feels that the board is the real problem and called them and their actions “financially unsophisticated, lacking in proper corporate governance and shareholder unfriendly.” Don’t hold back now, J. Carlo.

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