Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Sr K who wrote (167013)	9/15/2001 1:06:47 PM
From: John Koligman	Read Replies (1) \| Respond to of 176388

Again in the same vein, there were some comments on 'just in time' production in 'The Trader' column of Barron's... Regards, John The economic effects of the World Trade Center attack began to take shape last week as several big insurance companies released sizable loss estimates. Then on Friday, Ford Motor said its third-quarter operating profits would fall short of its previous guidance of 10 cents a share owing to parts shortages stemming from freight transportation problems, particularly air freight and cross-border deliveries. The parts shortages will cut Ford's vehicle output in the current quarter by more than 10%. Air cargo traffic was severely disrupted by the midweek commercial aviation shutdown and the ensuing havoc when flights resumed, while trucking traffic slowed to a crawl at the Canadian and Mexican borders. The dislocations stemming from the terrorist attacks could be affecting many more companies, which may announce earnings shortfalls in the coming days and weeks. Dennis Gartman, publisher of the Gartman Letter, noted last week before the Ford news that disruption of freight transportation could accelerate the shift away from just-in-time inventory management, which has been popular in recent years with companies seeking to improve financial performance. Gartman says that increasingly risk-averse businesses will look to build inventories to avoid the kind of shortages experienced by Ford. The implication, he told clients, is bullish for a host of commodities. General Electric's multi-year string of meeting or beating analysts' profit estimates is coming to an end. The company said late Friday that its third-quarter profits would fall about four cents shy of the current consensus of 37 cents a share because of losses stemming from the World Trade Center disaster at its reinsurance division, Employers Reinsurance. GE said that its preliminary estimate is that Employers Re will suffer about $600 million in pre-tax losses. The setback in the unit, a part of GE Capital, may not have much impact on GE's stock Monday because it was an extraordinary event, but it does suggest that there's more risk in GE Capital than GE's fans assert