Zacks Analyst Blog Highlights: Lear Corp., General Motors Corp., Fomento Economico Mexicano SAB de C.V., Coca-Cola FEMSA, S.A.B. de C.V. and A.K. Steel Holding Corp

Business Wire, Oct 24, 2008

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lear Corp. (NYSE: LEA), General Motors Corp. (NYSE: GM), Fomento Economico Mexicano SAB de C.V. (NYSE: FMX), Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF) and A.K. Steel Holding Corp. (NYSE: AKS).

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Here are highlights from Thursday's Analyst Blog:

Lear Suffers Under Weight of SUVs

Lear Corporation (NYSE: LEA) is one of the largest independent automotive parts suppliers in the world, with a 9% global share. It is among the leading providers of seating and electrical distribution systems to the automotive industry.

On October 18, Lear Corporation planned to shut down operations in Janesville, WI and lay off 371 workers on December 23, when General Motors (NYSE: GM) closes its plant in Janesville and ends its production of SUVs there.

FEMSA Retains Its Buy Rec

Fomento Economico Mexicano SAB de C.V. (NYSE: FMX), also known as FEMSA, is one of Latin America's largest beverage companies exporting to the U.S., Canada, Europe and Asia. Headquartered in Monterrey, Mexico, Fomento operates through Coca-Cola FEMSA (NYSE: KOF), FEMSA Cerveza, and FEMSA Comercio. Coca-Cola FEMSA (around 48% of total revenue) produces and distributes carbonated beverages in Latin America. Indeed, it is the largest Coca-Cola bottler in Latin America and the second largest Coca-Cola bottler globally, in terms of sales volume.

We are reiterating our Buy recommendation on Fomento. The company posted positive results for the second quarter of 2008, including encouraging results for Coca-Cola FEMSA and FEMSA Comercio. Top-line growth in the FEMSA Cerveza segment was due to the positive pricing in the key Mexican markets for the quarter.

AK Steel Solidifies

Ohio-based AK Steel (NYSE: AKS) is a leading producer of flat-rolled carbon, stainless, electrical steel and tubular products. In the third quarter, AK Steel reported a robust 70% increase in profits. Earnings from continuing operations were $1.67 per diluted share of common stock, compared to $0.97 per diluted share in the third quarter of 2007. The rise in earnings was primarily driven by higher selling prices. Net sales were $2,157.6 million on shipments of 1.48 million tons, compared to the previous year's sales of $1,721.7 million on shipments of 1.61 million tons.

We expect that AK Steel's cost-reduction efforts and renegotiated higher-priced contracts will prevent excessive margin deterioration in light of higher commodity costs. The company has greater product diversification compared to its peers and is focusing on markets and products which have the greatest long-term potential to succeed.

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