This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Auto Parts Makers Downplay Resin Shortage

TOM KRISHER

DETROIT (AP) â¿¿ Executives from four auto parts companies said Tuesday that they don't expect widespread fallout from a shortage of a key ingredient in plastic resin following a factory explosion.

Officials with Delphi Automotive, Illinois Tool Works, AK Steel and Parker Hannifin said during conference calls to discuss their companies' earnings that a shortage of PA-12 shouldn't disrupt their operations.

Automakers and parts companies have been scrambling to find substitutes since a factory in Germany that makes much of the world's supply of the ingredient suspended production after it exploded in March.

The resin is used in hundreds of parts. It's most critical in fuel and brake lines because it can carry gasoline and other fluids without deteriorating.

Companies that make fuel lines, brake lines and connectors have been worried they will run out of PA-12 and they may have to stop shipments to automakers and larger parts suppliers. One key fuel line maker, TI Automotive, warned last week that the auto production interruptions are likely in the next few weeks. TI and a trade group of suppliers held an industrywide meeting last week to look at the remaining supply of PA-12 and encourage faster testing of alternatives.

But Rodney O'Neal, CEO of Delphi, one of the largest parts suppliers, said he sees little impact on Delphi or auto production.

"I don't see this as a crisis in terms of tremendous downtime at all for anyone around the world," O'Neal said. He said the auto industry is addressing the problem quickly and with flexibility.

Delphi, a Troy, Mich., supplier of audio systems, fuel pumps, wiring connectors and other items, uses PA-12 in a small number of parts and has lined up substitutes, O'Neal said.

"We believe there's enough inventory in the channel right now to handle this," John Brooklier, vice president of investor relations for Illinois Tool Works, told investors on a separate call Tuesday. He said the Glenview, Ill., maker of metal and plastic parts such as door handles uses little PA-12 but is watching the impact on auto companies.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,106.70 +29.83 0.17%
S&P 500 2,000.02 +2.10 0.11%
NASDAQ 4,570.6370 +13.29 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs