NEW YORK, March 19 (Reuters) - Merrill Lynch said on Wednesday it had cut its full-year 2003 earnings forecasts for General Motors Corp. and Ford Motor Co. because of slowing U.S. sales and flagging North American production estimates.
In a research note, Merrill Lynch analyst John Casesa said he was cutting his full-year estimate for GM, the world's largest automaker, from $4.05 per share to $3.35 per share.
For Ford, the No. 2 automaker, Casesa said he was now projecting full-year earnings per share of 37 cents, down from a previous estimate of 50 cents per share.
Casesa said he was also cutting his 2003 earnings forecast for 10 leading U.S. automotive parts suppliers by an average of 9.7 percent.
"As we are foprecasting that significant production cuts lie ahead, we do not believe that vehicle sales have bottomed in the current cycle yet," Casesa said.