Vanguard Industrials ETF

Jeff Bezos’s primary focus remains his role as the CEO of Amazon, but he’s made investments in many other industries and companies.

General Electric’s (GE) Transportation segment manufactures trains, marine diesel engines, and mining equipment.

The ISM manufacturing (VIS) index was close to the March high of 60.8 and was reported at 58.7 in June.

On June 14, Fitch downgraded the long-term IDR (issuer default ratings) for General Electric (GE) and GE Capital to an “A” rating from an “A+” rating.

Honeywell’s (HON) debt, which has been rising for the past five years, doubled between 2013 and 2017.

As per the latest Conference Board LEI report, the core capital goods orders for April were valued at $39.1 billion as compared to the downward revised March reading of $39.0 billion.

The ISM New Order Index for April was reported at 61.2, which represented the fourth consecutive monthly decline for the index.

Currently, Berkshire has stakes in chemicals, metals, agriculture, and other industrials.

3M’s (MMM) Safety and Graphics segment accounted for 21.5% of overall revenue in 1Q18 compared to 20.2% in 1Q17.

Honeywell International’s (HON) Aerospace segment is the company’s most significant revenue contributor.

The manufacturing sector continues to expand despite the minor drop recorded in March.

Berkshire Hathaway’s (BRK.B) investments in manufacturing could yield results amid the push for the sector by the Trump administration in recent quarters.

Policy changes announced in the last six months may have led to the increased projection for economic growth.

In 2018, Deere’s (DE) stock performance has been muted.

This ISM New Order Index is a diffusion index, and the respondents are asked to rate the conditions of their industry as either good or bad.

The ISM publishes a monthly manufacturing report on changes in new orders, supplier deliveries, inventories, production, and employment.

Durable goods orders rose 2.9% in December, closing 2017 at a high.

Honeywell (HON) is expected to post earnings per share (or EPS) of $1.84 in 4Q17, an increase of 37.3% on a year-over-year basis.

The number of analysts tracking 3M in the past three months has been reduced to 14.

Manufacturing growth Berkshire Hathaway’s (BRK.B) manufacturing investments have reaped benefits over the past few quarters, backed by portfolio additions Duracell and Precision Castparts. The division has continued to strengthen and will likely benefit from reforms such as tax rate cuts. Players in the manufacturing space will likely garner larger market share, at least in the interim, due to cost competitiveness. In 4Q17, the […]

MMM’s stock price reached an all-time high on November 30, 2017, with an RSI (or relative strength index) of 76, which indicates that the stock has moved into an overbought position temporarily.

Non-defense capital goods drop in November Non-defense capital goods orders exclude aircraft and defense purchases. The US Census Bureau releases a monthly report that tracks new orders for machinery, tools, and equipment for US industries. Defense and aircraft (ITA) orders are excluded from this report because they are usually large and distort the monthly reading. […]

The Institute of Supply Management’s New Orders Index The ISM’s (Institute of Supply Management) New Orders Index is a monthly report on changes in new orders, supplier deliveries, inventories, production, and employment. New orders are a measure of future activity in any industry (VIS), as companies’ production depends on incoming orders. The ISM’s New Orders […]

This has been one of the best years since 2004 for manufacturing activity, viewed through the Purchasing Managers’ Index (or PMI).

Honeywell’s (HON) fiscal 2018 earnings guidance pushed its one-year forward PE (price-to-earnings) multiple from 19.80x to 20.10x as of December 13, 2017.

As of December 6, 2017, 3M’s (MMM) one-year forward PE (price-to-earnings) multiple was 24.9x compared to its peer Honeywell International’s (HON) multiple of 19.8x.

Berkshire (BRK.B) has expanded its manufacturing portfolio with the addition of Duracell, Precision CastParts, and a stake in Apple (AAPL).

According to the November Conference board LEI, the core capital goods orders for October totaled ~$38.4 billion, compared to a revised September reading of ~$38.7 billion.

The October 2017 reading for the Conference Board LEI was released on November 20. The LEI rose 2.9% in the six-month period ended in October 2017.

The US Manufacturing PMI (purchasing managers’ index) for the month of October fell to 58.7, compared with 60.8 in September.

According to the October Conference Board LEI, core capital goods orders for September were valued at $37.85 billion compared to a revised reading of $38.0 billion in August.

UTC (UTX) stock has generated more than 130% returns over the last decade. This is nearly double the S&P index returns during the same time period.

Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on markets.

Non-defense capital goods data Data on core capital goods orders, which exclude aircraft and defense purchases, is released by the US Census Bureau monthly. Investments in machinery, tools, and equipment by industries require capital outlay, and companies make them only when there is an expectation of increased demand. All new orders, shipped goods, and company inventories […]

For Honeywell, 79% of the analysts recommended a “buy,” 21% recommended a “hold,” and none of the analysts recommended a “sell” as of September 6.

Nondefense capital goods increase three months in a row Nondefense capital goods exclude aircraft and core capital goods. The census bureau releases a monthly report that includes data on core capital goods. All machinery, equipment, and tools used by industries requiring large capital investments are collectively known as core capital goods. The durable goods order […]

Honeywell bagged two new airline clients with its GoDirect software. Brussels Airlines and Air Serbia will use Honeywell’s connected aircraft software.

Honeywell’s (HON) Aerospace segment continued to be the highest revenue contributor in 2Q17, accounting for 36.5% of overall revenue.

In 1Q17, the Advisory Board earned a major part of its healthcare business revenues from consultancy services, but it expects to see higher demand for health tech.

On July 3, 2017, 17 different brokerage companies were actively tracking 3M Company (MMM) stock. Among them, 41% of analysts had recommended “buys” on the stock.

For 2Q17, Canadian National Railway (CNI) declared a quarterly dividend of $0.4125 Canadian dollars per common share to be paid on June 30, 2017.

On an annualized basis, Union Pacific’s expected yearly dividend for 2017 turns out to be $2.42 per share.

Honeywell’s (HON) Home and Building Technologies (or HBT) segment is a new segment that began reporting in 3Q16.

Berkshire Hathaway reported revenues of $12.0 billion and profits of $129 million for McLane in 2Q16, as compared to revenues of $12.2 billion and profits of $147 million in 2Q15.

UniFirst Corporation (UNF) has a market cap of $2.3 billion. Its stock rose by 9.0% to close at $114.89 per share on June 29, 2016.

If the United Kingdom doesn’t strike a deal with EU, tariffs on industrial goods and services would range between 0% and 16%, depending on the nature of the products.

The United States is 3M Company’s (MMM) largest regional market. Its US sales rose from 33.9% of its total sales in 2011 to 39.8% of its total sales in 2015.

The Asia-Pacific region is 3M Company’s (MMM) second-largest market, and it’s also the region with the best operating margins on offer.

3M’s Industrials and Consumer segments are its largest and smallest segments in terms of revenue and operating income, respectively.

In this part, we’ll be examining 3M Company’s (MMM) asset base by analyzing the change in the composition of 3M’s balance sheet over time.

3M’s long-term debt, excluding the current portion, rose from 14.2% ($4.4 billion) of total capital in 2011 to 26.8% ($8.7 billion) of total capital in 2015.

3M Company (MMM) has an ongoing streak of 58 years of dividend increases. It has paid dividends without interruption for the last 99 years.

3M Company’s (MMM) acquisition strategy for the last ten years can be classified as “BI” (before Inge) and “AI” (after Inge).

In February 2016, 3M Company (MMM) set financial objectives for the five-year period from 2016 to 2020 that were slightly below its previous expectations.

Realizing that its capital structure was sub-optimal and was leading to a high cost of capital, 3M Company started adding leverage.

3M Company’s (MMM) accruals ratios using the balance sheet and the cash flow methods rose considerably in 2015.

3M Company’s (MMM) Consumer Solutions segment is made up of four diverse businesses, which garnered a combined annual revenue of $4.4 billion in 2015.

The Industrial segment is 3M Company’s (MMM) largest segment. It accounted for 32%–34% of the company’s total annual revenue in the 2011–2015 period.

3M Company is generating a massive 30%–32% of its annual revenue from products it’s introduced in the last five years.

3M Company has racked up impressive returns over the years. It has a mean annual return on equity of 30.1% for the ten-year period between 2005 and 2015.

In 1Q16, Berkshire Hathaway’s manufacturing business reported revenues of $10.6 billion, as compared to $8.9 billion during the same quarter in 2015.

In 1Q16, Flowserve (FLS) was just able to keep its gross margins at 33.3%, which is 170 basis points lower than its 35.0% in 1Q15.

Honeywell’s ACS unit uses the software-as-a-service (or SaaS) business model. In the SaaS model, software is licensed on a subscription basis to users.

In 3Q15, Berkshire Hathaway’s manufacturing business reported revenues of $9.1 billion, compared with $9.5 billion during the same quarter last year.

Berkshire Hathaway’s manufacturing business reported revenues of $9.1 billion as compared to $9.5 billion in the prior year’s quarter.

United Parcel Service has grown its revenues steadily over the past few years, from $49,545 million in 2010 to $58,232 million in 2014, with a four-year CAGR of 4.12%.

United Parcel Service (UPS), originally called American Messenger Company, was founded in 1907 by 19-year-old James E. Casey with $100 borrowed from a friend.

L-3’s Aerospace Systems segment was hit the hardest due to the defense budget cuts. The segment saw a 5% year-over-year decline in 2014.

An investment in Raytheon stock would have generated about 94% returns in the past five years. This is just slightly more than the 88% returns from the S&P Index.

Raytheon’s Space and Airborne Systems, or SAS, fourth quarter performance was a mixed bag. The segment saw growth in revenue and its operating margins.

Raytheon’s Integrated Defense Systems, or IDS, segment had a strong performance in 4Q14. The segment’s net sales were $1,627 million.

The ISM issued its monthly “Manufacturing ISM Report On Business” on January 2, 2015. A reading above 50% means a general expansion in manufacturing activity.

Part of Boeing’s strategy in Asia-Pacific will be to offer its reengineered 737 MAX, which the company says is 14% more fuel-efficient than competing jets.

Markit PMI Manufacturing Index Markit Economics’ release of its PMI for the month of July released on Friday, August 1. Markit’s U.S. Manufacturing PMI is based on monthly questionnaire surveys of a selected panel of over 600 companies from all areas of U.S. manufacturing activity.   Markit PMI July reading The flash (indicative) index for […]

The Institute for Supply Management (or ISM) was the first supply management institute in the world. ISM aims to enhance the value and performance of procurement and supply chain management practitioners and their organizations worldwide.

The Dallas Fed conducts a monthly survey of manufacturers in Texas regarding their operations in the state to come out with the production index and the business activity index.

The Monthly Wholesale Trade Survey gives you nationwide estimates of monthly sales, end-of-month inventories, and inventories-to-sales ratios by businesses for wholesale firms.

Unlike the regional manufacturing surveys conducted by the Federal Reserve Banks of other districts, the CFNAI is a nation-wide measure.

The Philadelphia Fed will release the results of its Business Outlook Survey for June, on Thursday, June 19.

The ADP-NER for the month of May, released on Wednesday, June 4.

Manufacturing growth appears to be steady in the Fifth District. Although new orders declined sharply month-on-month, firms remained upbeat for business prospects.

These releases provide guidance on the course of the economy, and they’re crucial to understanding the financial health of the economy.

Job growth is improving, but not quite as much as forecast. Total non-farm payroll jobs rose 192,000 in March after a 197,000 boost in February and a 144,000 increase in January.

As we’ve seen in this series, there are three major Purchasing Managers Index (or PMI) reports issued in the U.S.

The ADP National Employment Report (also popularly known as “the ADP Jobs Report” or “ADP Employment Report”) is a monthly report summarizing the employment situation.

In this series, we’ll focus on the manufacturing PMI issued by three major institutions, measuring manufacturing activity in the U.S.

Yellen highlighted the fact that according to research, employers are less willing to hire the long-term unemployed and often prefer other job candidates.

The Chicago Business Barometer is a closely watched leading indicator of U.S. economic activity, and it’s based on a survey panel of purchasing or supply-chain professionals.

Although the industrial sector accounts for less than 20% of GDP, it creates much of the cyclical variability in the economy.