Morgan Stanley downgrades 2012 sale forecast

Morgan Stanley has degraded its 2012 U.S sales forecast for automotive sector due to the weaker than earlier anticipate second quarter. The firm also warned that the debt crisis prevailing in the Europe may bring down the U.S based automakers.

Morgan Stanley now predicts that the U.S automakers may be able to finish the sales this year with 14.4 million units.This figure is directly down from the earlier anticipated value of about 14.8 million. The decrease can be mainly attributed to the weaker U.S sales during the second quarter, which saw a gradual drop from the annualized sale figures of about 14.5 million units to 14.1 million units during the given period.

Morgan Stanley downgrades 2012 sale forecast

Morgan Stanley also showed its concern over the European crisis and warned that the Europe may cast a shadow on the earnings during the other half of the 2012. The firm also anticipated that the General Motors may witness a cut in the earning per share outlook for the year up to about $3.40 per share, which is about 10 percent, but according to some analyst the figures could fall to $3.25 per share.

Morgan Stanley also predicts that the Ford’s earning during the period could dip down 3.1 percent to $1.26. Ithas estimated that Ford will be losing about $1.1 billion in the European market, which is nearly double the $600 million loss predicted by the Ford.

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