In an earlier post I made, through October 28th, 2011, 61 US Big High Tech Corps, with Pretax Profits of at least $100 mil in any of the most recent three quarters, had reported their September 2011 Calendar 3Q Earnings.
The Total Pretax Income of these 61 US Big High Tech Corps was $49.4 bil, an increase of 13% over the 3Q 2010.
In this post, I am adding in the 14 US Big High Tech Corps, with Pretax Profits of at least $100 mil in any of the most recent three quarters, which reported their September 2011 Calendar 3Q Earnings after October 28th, 2011 and through today, November 15, 2011.
These 14 US Big High Tech Corp Late Additions generated 3Q 2011 Total Pretax Earnings Growth of 12%, very consistent with the 13% earnings growth of the 61 early earnings reporters.
Below here is the Pretax Income (PTI) of these 14 US Big High Tech Corp Late Additions in the 3Q 2011, and as compared with such one-year earlier earnings:
...............................................3Q............3Q............Increase
.............................................2011.........2010........(Decrease)
.............................................PTI..........PTI.......Amount......%
.............................................(in millions of dollars)......
Qualcomm 1,326 1,172 154 13%
Priceline 612 319 293 92%
TE Connectivity, Ltd 442 400 42 11%
Cognizant Technology 288 243 45 19%
Garmin 175 211 (36) -17%
Activision Blizzard 165 69 96 139%
Pitney Bowes(1) 146 143 3 2%
Teradata 121 106 15 14%
Verisk Analytics 117 105 12 11%
Atmel(2) 107 83 24 29%
CSC(3) 100 245 (145) -59%
Amdocs 99 105 (6) -6%
Microchip Technology 90 121 (31) -26%
Vishay Intertechnology 72 124 (52) -42%
Total 14 3,860 3,446 414 12%
(1) Pitney Bowes 2011 PTI excludes Goodwill Impairment Charge.
(2) Atmel 2011 PTI excludes Gain on Sale of Assets.
(3) CSC 2011 PTI excludes huge Goodwill Impairment Charge and US Government Claims Charge.
When I combine these 14 Late Addition US High Techs with the 61 US High Techs early earnings reporters, here is how the total earnings growth of these 75 High Tech Corps stacks up with what happened to the largest 6 Big Oil Corps?:
......................................................75................6........Negative
................................................High Tech......Big Oil......Spread
Annual 2010 over Annual 2009..+50%.........+57%..........(7)%
1Q 2011 over 1Q 2010.................+26%.........+47%.........(21)%
2Q 2011 over 2Q 2010.................+20%.........+44%.........(24)%
3Q 2011 over 3Q 2010.................+13%.........+57%.........(44)%
Clearly, this is a devastatingly negative trend for the entire US economy and US job creation.
Just the opposite should be happening where the true US job creators, like the US Technology Sector, and all US small and US medium-sized businesses, should be generating the robust earnings growth, and the "Pseudo Job Creators", like the 1% Big Oil Industry, should be returning some of its windfall profits earned over the past decade to the 99%ers.
One of the main reasons for this massive Earnings Growth Deceleration in the US High Technology Sector, as well as in many other sectors, is due to the uncertainty caused by inappropriate actions by Republicans in both the US House and the US Senate. In their consistently recalcitrant, uncompromising political strategy, they stopped cold their critical Debt Ceiling Negotiations with the Obama Administration.
And they also declared dead-on-arrival the American Jobs Act, which contains many very strong job creating initiatives.
Standard & Poors had it correct when it downgraded the US Government Debt, due mainly to an uncompromising US Congress that is clearly broken, and not willing to work in the best interests of the country.
And since the most recent approval rating of the US Congress is 9%, then my hunch is that such approval rating of the US Republicans in the US Congress must be only about 5%, since they are the main drivers of this US Congressional Action to prevent desperately needed US job creation.
As one step, the US Congressional Super-Committee should right this incredible wrong by killing the tax incentives for the Pseudo Job Creators, like Big Oil Corps, US Big Financial Corps, and US Multinational Corps overdosing on shipping jobs overseas, and properly grant job-creating tax and other incentives to the true Job Creators, like all of the small and medium-sized US businesses and like the portion of the US Technology Sector that is properly reshoring jobs back to the US.
And here's how these 75 US Big High Tech Corps total earnings growth of 13% in the 3Q 2011 stacks up with that of the 13 largest US Big Oil Corps and US Big Financial.
3Q 2011 Pretax Earnings Growth over 3Q 2010:
....75 US Big High Tech Corps................................13%
......4 US Largest Credit Card Corps.......................23%
......7 US Largest Financial Corps..........................25%
.....21 US Next Largest National/Regional Banks...38%
......6 US Largest Oil Corps....................................57%
......7 US Next Largest Oil Corps..........................107%
I don't think it is good for the US economy for its best-of-breed, envy-of-the-world US Big High Technology Sector's 3Q 2011 earnings growth to trail the earnings growth of both the US Big Oil sector and the US Big Financial sector by such a wide gap. I think this gives a good insight into why there is such a huge wealth gap between the 1%ers and the 99% rest of the country, the Occupy Movement's major beef.
The overall US economy and US job creation won't improve dramatically until this earnings growth gap between both US Big Oil and US Big Financial vs. the rest of the US business sectors, including all of small business, is substantially closed.
The Occupy Movement is spot on in their goal to rid the country of its major economic injustices, since the US Congress has repeatedly refused to act on this. The majority of the US Congress are bought and paid for by the US Big Corp Aristocracy. They should be removed from office for their devastatingly detrimental impact to the US economy, and to US job creation.
The Occupy Protesters are the true US Patriots.
The bulk of the US Big Corporations are the farthest thing from being true US Patriots. Their complete loyalty is only to their financial bottom line and to their stockholders, and they will remove any barrier in the way, despite the disastrous consequences to the country. Employees are viewed simply and coldly as a report line expense item, driving down their all-important profits on their Income Statements. It is a thoroughly disgusting, selfish, near-sighted strategy that history will look back upon with much disdain.
