(The following statement was released by the rating agency)
Oct 11 - Fitch Ratings expects adverse conditions in Europeantruck manufacturers' markets to depress profitability and cash generation in2012.
Most European truck-makers reported lower earnings from truck sales in H112compared with 2011. Fitch expects free cash flow (FCF) generation to bechallenged in 2012, in light of the continued order book deterioration andunfavourable product mix.
In a report on the industry, Fitch highlights that high dividends and capex arelikely to consume weaker cash flow in 2012. Further production cuts will benecessary, in light of high inventory levels. However, the agency does notexpect a broad deterioration in European truck makers' credit profiles, ascompanies are operationally and financially better positioned than in 2009.
The full report, 'European Truck Manufacturers: Long-Term Growth, but Short-TermConcerns' is available at fitchratings.com.
Link to Fitch Ratings' Report: European Truck Manufacturers