Your Source for Up-To-Date News and Research on the Collision Repair Industry

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

This article originally appeared in the August 2004 Issue of INSIGHT

Winding Up the Summer

Our industry stocks are outperforming the Dow again this month, despite an overall flat Collision Repair Industry market, for both repair facilities and their suppliers.

INSIGHT’s repair suppliers index is off a bit from last month’s nearly ten percent overall increase from January levels, but its six percent increase looks better to me than the Dow’s showing of an almost three percent decline YTD. I am wondering if the (Dare I write the words?) boring calm of our U.S. summer stock market will remain during what looks to be a heated presidential campaign season.

The most excitement I have seen so far this summer on Wall Street has come from outside our industry: Martha Stewart’s possible plans to redecorate the Big House, and Microsoft’s Bill Gates’s just-announced decision to share some of the company’s piles of money with stockholders.

PPG Industries gave us some good news this month, although the company’s per share stock price is down almost five percent YTD at a hair over $61. Sales for the second quarter of 2004 were $2.43 billion, a PPG record for any quarter. Coatings sales were $1.35 billion, also a PPG record for any quarter, up $105 million, or eight percent.(See page 15 for details of the PPG Q2 report.)

Sherwin-Williams shares continue to outperform our other refinish paint manufacturers. The company’s stock price is over 17 percent higher YTD, at $40.20 per share.

Akzo Nobel has announced plans to restructure its auto refinishes unit. About 600 jobs will be cut. (See full story on page 3.)

Both Copart and Insurance Auto Auctions are still shining in the stock market this month.

Copart’s per share stock price is up over 50 percent since the beginning of the year. Insurance Auto Auctions has shown a healthy 27 percent rise YTD.

AutoNation and the United Auto Group groups’ stock prices are down again this month from their initial 2004 levels.

CCC Information Systems continued its per share price climb this month. The company will hopefully end 2004 a little above its initial $16.90 level.

Keystone Automotive Industries is preparing to say farewell to CEO Charlie Hogarty, who is retiring from the company he successfully steered through the State Farm aftermarket parts legal rough waters.

Hogarty has set Keystone on what I see as a sensible path of careful growth and product line development. He will be missed by many in the industry, and is definitely a hard act to follow.

INSIGHT continues to hear that insurers are taking a very close look at their direct repair programs. State Farm in particular looks poised to cut back on the number of collision repair facilities in its body shop program.

Enjoy these last days of summer!

-Charles Baker-

Feedback

Have a comment about this article? Send Email to Charles Baker, INSIGHT's Publisher

SUBSCRIBERS-ONLY Today's News INSIGHT This Month INSIGHT Archives Survey Center Letter to the Editor

Business Tools Subscription Information CSI Reporting Financial Analysis IRS Audit Guide