I am including Tyco Intl, TE Connectivity Ltd, and Ingersoll-Rand here below, because even though they are foreign corporations, they have extensive US operations.
The earnings of these US Big Conglomerate Corps have rocketed under the Obama Administration.
For the most recent year 2011, these 11 US Big Conglomerate Corps registered Total Pretax Income of $63.8 bil, which was an increase of 16% over 2010, and an increase of a very robust 70% over 2009.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Asset Impairment Charges, Berkshire Hathaway's Investment and Derivative Gains/Losses and Honeywell's Mark-to-Market Pension Adjustments.
Clearly, the Obama Administration has created a US economic environment which has permitted these US Big Conglomerate Corps to flat out flourish.
I do think that at least several of these Conglomerates could help the US economy if they broke up. And their stockholders would also be helped by their breakups.
Below here is the Pretax Income and Pretax Losses of these 11 US Big Conglomerate Corps for each of the most recent three years.
|
