Bharat Forge falls 2% on sharp fall in North America Class 8 truck orders

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Bharat Forge falls 2% on sharp fall in North America Class 8 truck orders

Bharat Forge shares declined 2 percent in morning on Wednesday after the steep decline in North America class 8 truck orders.

The stock was quoting at Rs 515.90, down Rs 9.80, or 1.86 percent on the BSE, at 09:49 hours IST.

North American Class 8 truck orders for February remained subdued for the second consecutive months at 16,700 units, falling sharply by 58 percent compared to same month last year, FTR Transportation Intelligence said.

On month-on-month basis, however, the orders increased 6.7 percent against 15,642 units in January.

FTR said January-February 2019 are the lowest two-month period for Class 8 truck orders since October-November 2016 and Class 8 orders for the past 12 months have now totalled 4,29,000 units.

“Several OEM’s are booked solid for 2019 with limited sales slots open for the remainder of the year, so orders are likely to stay in this depressed range until 2020 order boards are opened up. The weaker orders mean that backlogs will tumble for the second straight month, but they remain at historically high levels,” it added.

The fall in North America orders is a big negative for Bharat Forge and 15 percent its sales come from North America truck market.

Analysts said the current order book is high and it will not impact production this year, but considering the weak orders for January-February the impact on production will be seen 6-9 months later.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-03-06 22:42:56

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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