Ohio Governor John Kasich and the Republican-controlled Ohio State Legislature want to roll back the collective bargaining rights of State public employees, including teachers.
With the jobless recovery, Ohio State financial coffers are suffering severely, as are many State citizens. And certainly, many companies, particularly small businesses, were decimated by the Great Recession.
However, I think it would be wise to get an update of how Ohio Big Corps have fared very recently, so we can better assess where Ohio Big Corps stand now financially, as compared with the present financial status of Ohio citizens. By doing this, I think we can get a better insight on what should constitute a fair sharing of the financial burden to balance the State Budget between Ohio Big Corps and Ohio citizens. And frankly, Big Corps outside of Ohio, including foreign-owned Big Corps, that do business in Ohio, should also be included in this mix of a fair sharing of this very expensive financial burden to balance Ohio's State Budget.
The first schedule below shows how Ohio’s 22 largest publicly-held, Non-Utility Corps, which had a Fiscal Year End (FYE) of either December 2010 or January 2011, have very recently performed on an operating basis. The information here was disclosed in either the Ohio companies’ most recent annual reports in their SEC filings or in their most recent annual earnings releases.
Ohio 22 Largest Publicly-Held Corps, with FYEs of either December 2010 or January 2011, Most Recent Annual Pretax Earnings (PTI)
...................................................................................Increase
..............................................FYE.....PTI......PTI.......(Decrease)
Ohio Big Corp…….................2010...2010....2009....Amount....%..
..........................................................(millions of dollars)
Ohio's 3 Big Banks
Fifth Third Bancorp...............Dec......940......(991)A..1,931...195%
KeyCorp................................Dec......793...(2,298)....3,091...135%
Huntington Bancshares.........Dec......352....(1,071)B..1,423...133%
Total OH 3 Big Banks.......................2,085...(4,360)...6,445..148%
Ohio's 4 Big Retailers (C)
Macy's..................................Jan....1,320........507.......813...160%
Limited Brands.....................Jan....1,103........641........462....72%
Sherwin Williams..................Dec......678........623.........55.......9%
Abercrombie & Fitch............Jan.......229........120.......109.....91%
Total OH 4 Big Retailers..................3,330.....1,891....1,439....76%
Ohio's 7 Big Manufacturers
Eaton...................................Dec....1,036........303.......733...242%
Lubrizol...............................Dec....1,004........726.......278.....38%
Owens Illinois......................Dec........424........215.......209.....97%
Timken................................Dec........406........(94)......500...532%
Dana Holding.......................Dec..........35......(298)D....333...112%
Goodyear Tire......................Dec...........8.......(357)......365...102%
NewPage Holding.................Dec......(485)D....(681)E....196...112%
Total OH 7 Big Manufacturers........2,428......(186)..2,614..1,405%
Ohio's 4 Big Insurance Cos
Progressive Corp.................Dec.....1,565.....1,557..........8.......1%
Nationwide(F).....................Dec........959........716......243.....34%
American Fincl Group.........Dec........689........812.....(123)...(15)%
Cincinnati Financial.............Dec........501........582......(81)....(14)%
Total OH 4 Big Insurance Cos..........3,714.....3,667.......47........1%
Ohio's Other 4 Big Corps
Cliff's Natural Resources......Dec.....1,298.........291....1,007...346%
Scripps Networks Interactives.Dec...740........520.......220.....42%
Teradata..............................Dec.......414.........334.........80.....24%
EW Scripps..........................Dec.........30........(231)......261...113%
Total OH 4 Other Big Corps............2,482.........914....1,568...172%
Total all OH 22 Big Corps............14,039.......1,926...12,113..629%
(A) Fifth Third Bancorp 2009 PTI excludes large one-time Gain of Sale of Processing Business.
(B) Huntington Bancshares 2009 PTI excludes large Goodwill Impairment Charge.
(C) Kroger is excluded since it hasn't released its FYE January 2011 earnings yet.
(D) Dana Holding 2009 PTI and NewPage Holding 2010 PTI exclude large Asset Impairment Charges.
(E) NewPage Holding 2009 PTI excludes large Refundable Excise Tax Credit.
(F) Nationwide is a Mutual Company and the numbers above are Net Income.
Yeah, that's correct....these 22 Largest Ohio HQed Corps, with FYEs in either December 2010 or in January 2011, had their Total Pretax Earnings for their most recent fiscal year increase by a staggering 629% over the preceding year, going from $1,926 million to $14,039 million.
And about half of the country still thinks that the Obama Administration is not helping the US economy. These incredibly strong most recent Ohio earnings numbers are telling the same story that the stock market has been saying for the past two years….that the Obama Administration has really helped the US economy.
Earnings drive stock prices. And when you combine these extremely strong most recent Ohio Big Corp earnings, with both Wisconsin Big Corp superlative earnings, and with Indiana Big Corp superb earnings, I think it tells you that even though the stock market has almost doubled in the past two years, it is going much higher, assuming the US government can effectively and fairly deal with Big Oil windfall profits.
And here are the most recent annual December 2010 Pretax Earnings numbers for Ohio's two Big Utility Corps:
............................................FYE.......PTI........PTI.......Increase
Ohio Big Corp……................2010....2010.......2009..Amount....%..
.........................................................(millions of dollars)
American Electric Power(1).Dec.....2,208.......1,915....293......15%
FirstEnergy..........................Dec.....1,626(2)..1,235....391......32%
Total OH 2 Big Utility Corps.............3,834......3,150....684.....22%
(1) American Electric Power's earnings above are its Ongoing Pretax Earnings.
(2) FirstEnergy's 2010 PTI excludes a large Asset Impairment Charge.
And lastly, here are the most recent 2010 annual Pretax Earnings numbers for all Ohio Big Corps that do not have either a December or a January FYE:
...................................................................................Increase
........................................FYE.......PTI..........PTI.......(Decrease)
Ohio Big Corp……............2010.....2010........2009....Amount....%..
.....................................................(millions of dollars)
Ohio's Dominant Big Corp
Procter & Gamble............Jun.....15,047.....14,413.......634.....4%
Ohio's Not-So-Dominant Big Corps
Cardinal Health...............Jun.......1,212........1,160.........52.....4%
Parker Hannifin...............Jun.........755..........683.........72....11%
JM Smucker....................Apr.........731..........396........335....85%
Cintas..............................May........344..........362........(18)...(5)%
Scott's Miracle-Grow........Sep.........338..........241.........97....40%
RPM International...........May........268..........181.........87....48%
Greif..................................Oct.........252.........138........114....83%
Total OH 7 Other Big Corps..........3,900.......3,161.......739....23%
I knew Big Corps were recently doing well, but I had no idea just how incredibly well, until I put together the above three earnings schedules, particularly the nearly real-time first one.
I think it's high time for Big Corps to start giving back to the country and hiring employees. I also think it's high time for all State Governors and State legislators to start working on real job creating stimulative initiatives, rather than going off target on things like attempting to roll back the collective bargaining rights of State public employees, including Educators. And the State Governors and the State Legislatures should intensely focus on serving all of the citizens of their States, not just their big business constituents.
The above research was performed through the end of March 2011. Since then, in April and May 2011, I extended this research, and I found 5 additional Ohio Big Corps, which are shown here below.
..........................................2010.......2009.........Increase
...........................................Core........Core........(Decrease)
.......State..........................PTI(L)......PTI(L).....Amount.....%
..............................................(millions of dollars)....
Late Big Corp Additions
Ohio (5)
Kroger(1)..........................1,734.........1,702............32.......2%
Big Lots...............................355............323............32.....10%
Mettler Toledo....................308............225............83.....37%
TransDigm...........................251............251.............0.......0%
Nordson(2)..........................231............116...........115.....99%
(1) Kroger 2009 PTI excludes Goodwill Impairment charge.
(2) Nordson 2009 PTI excludes Asset Impairment charges.
