The Trump Administration’s push for lower taxes, trade wars, and intellectual property rights (or IPRs) are all pointing towards the strengthening of domestic manufacturing (VIS).
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 manufacturing sector has continued to improve in recent months, and the latest economic data including the ISM manufacturing (VIS) index, industrial production, and capacity utilization indicated that the improving trend remained intact.
Berkshire Hathaway’s (BRK.B) investments in manufacturing could yield results amid the push for the sector by the Trump administration in recent quarters.
Aerospace segment in 4Q17 Honeywell International’s (HON) Aerospace segment is the company’s largest revenue contributor, accounting for 36.0% of its total revenue. Despite revenue growth, the segment’s share has fallen from 36.7%. The segment reported revenue of $3.9 billion, an increase of 6.5% from its revenue of $3.7 billion. The Aerospace revenue increase was driven by growth […]
3M’s (MMM) Safety and Graphics segment had a revenue share of 19.3% in 4Q17 compared to 18.3% in 4Q16, implying an increase of 1.0 percentage points to its overall contribution to 3M’s revenue.
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 […]
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.
GE’s pension plan assets The percentage of a company’s pension plan assets made up of its own stock is an issue of debate among investors, as employees’ livelihood is strongly linked to their employer’s fortunes. General Electric’s (GE) US pension plans comprised ~$700.0 million in GE stock in mid-September 2017. Since then, the stock has fallen more than […]
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.
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.
Honeywell’s 3Q17 earnings resulted in attractive stock price gains. It also reiterated and maintained its fiscal 2017 EPS guidance of $7.05–$7.10 per share.
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.
3M’s (MMM) Safety and Graphics segment had a revenue share of 18.70% in 3Q17, compared to 19.50% in 3Q16, implying a dilution of 0.80 percentage points in the overall 3M’s revenue contribution.
Berkshire’s manufacturing division managed a 4.4% top-line growth in 2Q17, totaling $12.7 billion, fueled by growth in industrial, building, and consumer products.
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 […]
Berkshire’s (BRK.B) continued interest in manufacturing has placed it well among other big players to take advantage of the policies of the current US administration.
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.
Berkshire Hathaway’s (BRK.B) manufacturing division has seen continued deployment from Buffett in the recent years. The division managed 4.4% top-line growth to $12.7 billion in 2Q17.
Nondefense Capital Goods Excluding Aircraft is the part of capital goods orders that excludes any defense purchases and aircraft. The Conference Board LEI includes these data.
Of the 21 analysts tracking Honeywell (HON) stock, 84% of the analysts recommended a “buy,” 14% of the analysts recommended a “hold,” and none of the analysts recommended a “sell.”
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.
With the Trump administration, the US manufacturing space is expected to expand on reforms, lower taxation, and a push for domestic consumption over imports.
Deere’s Construction and Forestry segment reported revenue of $1.46 billion in fiscal 2Q17—an increase of 7.4% compared to $1.36 billion in fiscal 2Q16.
Deere’s (DE) Construction and Forestry segment reported revenue of $1.10 billion in fiscal 1Q17—a decline of 6% compared to $1.17 billion in fiscal 1Q16.
In 2Q16, Berkshire Hathaway’s Manufacturing business posted higher revenues of $12.2 billion compared to $9.5 billion in 2Q15, helped mainly by new acquisitions and partially offset by a 1% decline in other activities.
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.
Why General Electric’s lending arm was classified as a “SIFI” After the 2008 financial crisis, General Electric’s (GE) financial service business had substantial exposure to wholesale funding and underwriting. Underwriting involves signing and accepting liability and guaranteeing payment in case damage or loss occurs. Underwriting is provided by a large financial service provider such as a […]
Stanley Black and Decker (SWK) generates around 47% of its revenues outside the United States. Further, 22% of total revenues are derived from Europe and 18% from emerging markets.
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 UK (United Kingdom) exported goods and services worth 223 billion pounds to the EU (European Union) in 2015, and as the United Kingdom is a member of the EU, these exports didn’t attract any tariffs.
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.
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.
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.
We’ve calculated 3M’s operating cash flow-to-capital expenditure, OCFTI-to-total debt, and OCFTI-to-interest paid ratios. All three ratios are impressive.
