Companies across a wide range of sectors are being disrupted by the parts shortage coming from the consequences of the earthquake in Japan, including Apple (NASDAQ:AAPL), Harley-Davidson Inc (NYSE:HOG), General Motors (NYSE:GM), Texas Instruments (NYSE:TXN) and Intel (NASDAQ:INTC).
Then by extension, a company like Sirius XM (NASDAQ:SIRI), which relies on the performance of the auto industry for growth and sustainability, are adversely affected by lower production levels and sales. And this can be looked at for any company that has an indirect connection to the shortages of parts.
Bryan Keane, equity analyst for the Alpine Mutual Funds noted, "It's cross-sector. Electronics are used in so many areas. It has the potential to be very wide-ranging. To some extent, it's going to affect everyone. Even if your direct supplier isn't impacted, your supplier could get their materials from someone in Japan."
"The big issue is that even if everything now is under control in Japan, they've lost a big portion of their power," said Keane. "Even if they get the big factories up and running, how often are they going to be able to run them?"
In other words, there continues to be enormous uncertainty as to how all of this will impact business around the world, and there is little in the way of a road map as to what to expect.
As for semiconductors, Japan accounts for about 20 percent of the world's supply.
The length, width and depth of the disruptions are still yet to be discovered, and it appears only time will tell, as it seems the companies themselves have no idea, or at least they aren't talking.
Guidance as the earnings season unfolds should give a clearer look at the extent of the damage.
Tuesday, April 19, 2011
Supply Chain Disrupts (AAPL) (HOG) (GM) (INTC) (TXN), Others
Labels:
Apple,
General Motors,
Harley Davidson,
Intel Corp,
Sirius XM,
Texas Instruments
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