Business Watch

U.S. AUTOMOBILE SALES LAGGING, LIGHT TRUCKS STILL HOT

Retail automotive sales in the United States for the 11-month period from January through November of 1995 trailed 1994 figures by about 300,000 units, according to The Wall Street Journal. Reports indicate that higher vehicle prices, overall, slowed sales. Also, the radical styling of the new Ford Taurus did not help sales of that model, industry analysts say.

Total retail car and light truck sales in the U.S. for the first 11 months of 1995 were just more than 8 million for cars, and 5.5 million for light trucks. General Motors had the most car sales during the period, and Ford had the most light truck sales. For the first time ever, Ford expects to finish 1995 with more light truck sales than car sales. Ford retailers continue to report brisk light truck sales, some selling three times as many trucks as cars.

Overall, General Motors contines to hold the lead in total share of the U.S. passenger vehicle market with 32.7 percent. Ford is second with 26 percent, and Chrysler is third with 14.6 percent. Toyota has the greatest share of the imports, with 7.2 percent of the market.

ENVIRONMENTAL FIRMS GROW IN ‘95

Publicly-traded environmental firms in all sectors showed revenue growth well in excess of the rate of inflation in the first half of 1995 compared with the same period of 1994, according to data compiled by Farkas Berkowitz & Co., Washington.

"The growth was largely the result of acquisitions," says Joan Berkowitz, principal. "Operating margins were either unchanged or declined for all sector except solid waste."

Improved cost management, however, led to a decline in the number of firms experiencing operating losses, from 14 in the first half of 1994 to nine in the first half of 1995.

The index of solid waste collection, treatment and disposal firms saw the highest revenue growth, at close to 25 percent, and also the highest operating margin, at 18 percent. Median operating margin improved by 3 percent over the first half of 1994.

The hazardous waste treatment and disposal firm index saw revenue growth of close to 12 percent, due mainly to the impact of industry consolidation. "Volumes of hazardous waste have held fairly steady, but prices continue to decline," says Berkowitz. "Median operating margins in the first half of 1995 were barely break-even."

The indices of water pollution control systems, air pollution control systems and environmental consulting and remediation firms saw revenue growth of 9 percent, 10 percent and 8 percent, respectively, in part due to acquisitions.

Looking ahead to 1996, Alan Farkas, principal, says that budget cuts in the Department of Defense remediation budgets will adversely impact the remediation services market. "Appropriations for 1996 will likely drop 20 percent from 1995 levels to less than $1.9 billion," he explains. "Fortunately, the DOE environmental restoration budget will probably increase nearly 20 percent to just over $1.6 billion."

The reduction in the U.S. Environmental Protection Agency’s budget will also weaken growth in the environmental sector, Farkas adds.

 

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January 1996
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