October 1, 2018 / 6:53 PM / 8 months ago

FACTBOX-Rail and automaker shares among gainers from NAFTA deal

    NEW YORK, Oct 1 (Reuters) - Shares of U.S. carmakers, auto parts makers and
railroads were among gainers on Monday as a last-minute deal between the United
States and Canada to rescue the North American Free Trade Agreement and maintain
it as a trilateral deal eased investor worries.
    Canada and Mexico accepted more restrictive commerce in the deal, newly
named the United States-Mexico-Canada Agreement (USMCA), which will make it
harder for global automakers to build cars more cheaply in Mexico and aims to
bring more jobs to the United States.
    General Motors Co was up 1.3 percent, while Kansas City Southern
 was up 3.1 percent, outpacing a 0.4 percent rise in the benchmark S&P
500 index. Among other gainers were Lear Corp, up
2.9 percent, and Canadian Pacific Railway was up 1.3 percent.
    "The free flow of goods across North America without burdensome tariffs is a
net positive for U.S. workers, bedrock industries and the economy," said Edward
Hamberger, chief of the Association of American Railroads.
    The deal set a five-year transition period after the agreement enters into
force for the regional value content requirement for autos to increase to 75
percent, from the current 62.5 percent. In addition, Canada agreed to provide
U.S. dairy farmers access to about 3.5 percent of its approximately $16 billion
annual domestic dairy market, Canadian sources said.
    Here are some companies potentially affected by the NAFTA deal:
 Company          Sector          Market cap     Exposure       Monday price
                                  (as of                        move
 General Motors   Carmaker              $48.17   Operations in  up 1.3 pct
 Ford Motor       Carmaker               $37.44  Operations in  up 1.6 pct
 American Axle    Auto parts             $1.97   Manufacturing  up 1.1 pct
                                                 in Mexico      
 Lear Corp        Auto parts             $9.76   Most           up 2.9 pct
                                                 outside NAFTA  
 BorgWarner       Auto parts             $8.98   Most           up 0.4 pct
                                                 outside NAFTA  
 Visteon Corp     Auto parts             $2.73   Most           up 0.4 pct
                                                 outside NAFTA  
 Magna            Auto parts      C$24.44        sells to U.S.   up 3.3 pct
 Union Pacific    Railroads            $121.54   Connects with  up 1.0 pct
                                                 Canada rail/   
 Kansas City      Railroads             $11.87   Revenue from   up 3.1 pct
 Southern                                        Mexico         
 Canadian         Railroads       C$85.71        Cross-border   up 0.8 pct
 National                                        business       
 Canadian         Railroads            C$39.38   Operates in    up 1.3 pct
 Pacific Railway                                 Canada/U.S.    
 Werner           Trucking               $2.55   Cross-border   up 0.9 pct
 Enterprises                                     business       
 Constellation    Distillers and        $35.93   Mexican beer   down 0.9 pct
 Brands           Vintners                       brands         
 Dean Foods       Food                   $0.66   Sells dairy    up 1.5 pct
                  processing                     products in    
 Sanderson Farms  Packaged foods         $2.27   Major U.S.     down 4.1 pct
                  and meats                      poultry        
 Deere & Co       Agricultural          $48.41   Affected by    up 0.4 pct
                  and farm                       export crop    
                  machinery                      demand         
 PACCAR           Construction          $24.19   Production in  up 1.1 pct
                  machinery and                  Mexico         
                  heavy trucks                                  
 Canada Goose     Apparel,        C$8.73         Production in  down 3.8 pct
 Holdings         accessories                    Canada, sells  
                  and luxury                     in U.S.        
 The Kraft Heinz  Food and        $67.73         Products       up 0.5 pct
 Co               beverage                       include        
                  company                        ketchup and    
 Gildan           Apparel,        C$8.19         Sells to U.S.  up 0.1 pct
 Activewear       accessories                    retailers      
                  and luxury                                    

 (Reporting by Stephen Culp, Sinéad Carew and Caroline Valetkevitch
Additional reporting by Allison Martell
Editing by Leslie Adler)
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