China’s Steel Production in March Is Flat as Demand Slows Down
Chinese steel production in March was almost flat on a year-over-year (or YoY) basis. However, it increased 12% as compared to the previous month.
Passenger car sales in China have been on an uptrend. The rising disposable income in Chinese households is one reason behind the higher vehicle sales.
The China real estate climate index measures the aggregate business activity for land and real estate.
Clearly, Chinese real estate demand indicators are weakening. This is a negative sign for steel companies like Mechel (MTL) and Companhia Siderurgica Nacional (SID).
The construction sector accounts for more than half of China’s steel demand, as it uses steel products like rebars, decks, and joists.
China’s steel exports registered a year-over-year (or YoY) decline of 15% in March.
Metal service centers acquire primary metals like carbon steel and aluminum from metal producers and process them to customer specifications.
The global steel industry (XME) has seen its fortune change ever since OPEC decided against reducing its daily oil production.
In this depressed commodity price environment, it’s very important for a company to have a manageable balance sheet to weather the downturn in commodities.
UTC offers some products and services through UTC Building & Industrial Systems, a combination of two segments, Otis and UTC Climate, Controls & Security.
For the coming year, airline companies will likely be looking to regain capacity and strengthen markets. Delta plans to focus on the Latin American region.
Despite weaker earnings, Delta’s stock strengthened during the last year. It was able to return $1.35 billion to its shareholders through dividends and stock buybacks.
Delta has an active strategy of hedging its fuel costs. This helped the company guard against the volatility in oil prices. This year, the strategy went against the company.
Delta Air Lines (DAL) is the third largest domestic airline in the US. The company serves more than 170 million customers each year across the globe.
In the latest traffic highlights for March 2015, Delta saw its passenger numbers grow by about 3%. Its passenger numbers grew by 15.5 million—up 3.2% YoY.
Raytheon’s PE ratio is 15, much lower than its competitors and the defense industry as a whole at 17. This shows the company is a good option for investors.
Raytheon’s financial condition has seen growth. Operating income grew 8.6% over ten years and 3.6% in three. Net income grew 18.33% over ten years and 6.3% in three.
Raytheon has historically been an acquisition-based company and has seen stellar growth by following this path. The company recently acquired Blackbird Technologies and Sensitel.
Revenues for Raytheon’s Space and Airborne Systems segment declined in 2014 by 5%. This led to lower income and slight growth in margins.
US top defense companies such as Boeing, Lockheed Martin, General Dynamics, and Raytheon are expected to reap the highest benefits from the war against ISIS.
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