LONDON -- Shares in Tomkins, Valeo and other European auto parts makers fell on Wednesday after Delphi Corp. warned of the impact of lower car production and high materials costs.
Delphi said its third-quarter loss would be far wider than expected and said it expected volume and commodity price pressures to continue in the fourth quarter, particularly from resins and steel.
It was the latest such company to warn of tough conditions. On Tuesday, Tower Automotive warned of a deeper loss, while last month the head of France's Valeo said it would be hurt by high prices for raw materials.
"Both factors, costs and volumes pressures, raise concern about third-quarter earnings for these companies," an analyst said. "There won't be any nasty surprises as most have already talked the market down but profit growth may just not be there."