| Obama | |||||
| Bump | |||||
| PTI | PTI | ||||
| 1 Year | 2 Year | ||||
| PTI(L) | PTI(L) | PTI(L) | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Total 28 Motor Vehicle and Parts | 27,831 | 20,738 | (36,433) | 34% | 176% |
Total 7 Farm and Construction Equipment | 14,990 | 9,239 | 2,926 | 62% | 412% |
Total 25 Metals | 7,486 | 3,328 | (1,746) | 125% | 529% |
Total 16 Electronic/Electric Equipment and Products | 8,756 | 6,431 | 4,633 | 36% | 89% |
Total 12 Industrial Machinery | 6,475 | 5,058 | 2,599 | 28% | 149% |
When you look at the above just incredible earnings growth in the most recent two years, you have to give it to the Obama Administration, which somewhat under the radar screen, has created a US economic environment that has permitted US manufacturing companies to flat out flourish.
And then there are many other manufacturing companies included as part of separate earlier posts in other sectors, and they too also did just great in the most recent two years.
Now in this post, I am addressing the 55 Corps in Other Manufacturing Sectors, with Pretax Income or Pretax Loss of more than $100 mil in any of the most recent three years. I am excluding any of these Manufacturers, headquartered in Texas or in New York, with Pretax Income of between $100 mil and $200 mil.
For the most recent fiscal year 2011, these 55 US Corps in Various Other Manufacturing Sectors registered Total Pretax Income of $19.0 bil, which was an increase of a robust 23% over 2010, and an increase of an even more robust 96% over 2009.
And even more impressive were the earnings growth percentages of the smaller manufacturing companies.
For the 24 of these 55 Manufacturing Corps which had Positive Pretax Income of less than $200 mil in 2011, their Total Pretax Income growth was a very impressive 57% over 2010, and an off-the-charts 183% over 2009. It is great for the US economy to see these smaller US manufacturers do so much better than the larger ones, which also did quite well.
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.
I think a major contributor to this strong profit performance in the all US Manufacturers was the 100% first-year tax expensing of equipment purchases, which was in effect for all of 2011 and for the last part of 2010.
Since this 100% first-year tax expensing goes away in 2012, the earnings growth of these manufacturers will drop markedly.
The US economy needs a huge jolt in 2012.
The US Congress has been the major reason that the earnings growth of manufacturers will be declining markedly in 2012.
First, the US Congress recalcitrantly treated the clearly job-creating 2011 American Jobs Act as dead on arrival. This Jobs Act had some powerful job creation, particularly the US infrastructure investments in it.
And second, and more importantly, the US Congress decided to not extend the 100% first-year tax expensing in 2012. The most effective way this extension could have occurred is for it to permit the very largest US Corps, perhaps just the top 100, or even fewer, be eligible for it only if they also increase their full-time payroll head counts sufficiently in 2012. The very largest US Corps, like ATT and Verizon, were the ones that selfishly abused the 100% tax expensing by taking massive advantage of it, while at the same time, slashing their US full-time payroll counts.
And then for all other companies, this 100% first-year tax expensing in 2012 should have had no full-time payroll count requirements to be eligible for it.
If the first-year 100% tax expensing would have been extended in the above manner, this would have been substantially more of a US job creator in 2012 than the 2% payroll tax holiday, and also less costly to the US Government over the long term.
And if some form of more explosive acceleration in 2012 of first-year tax depreciation on building investments by businesses would have been enacted, it would have taken the 2012 US job creation to a completely different level, and clearly where it should be to be fair to all US citizens.
Below here is the Pretax Income and Pretax Losses of these 55 US Big Corps in Various Other Manufacturing Sectors for each of the most recent three years.
| Obama | |||||
| Bump | |||||
| PTI | PTI | ||||
| 1 Year | 2 Year | ||||
| PTI(L) | PTI(L) | PTI(L) | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Other Manufacturing Sectors | |||||
Industrial Instruments | |||||
| Danaher | 2,448 | 1,939 | 1,326 | 26% | 85% |
| Teradyne | 219 | 389 | (144) | -44% | 252% |
| Sansata Technologies | 195 | 125 | 125 | 56% | 56% |
| MKS Instruments | 186 | 196 | (27) | -5% | 789% |
| Esterline Technologies | 158 | 155 | 118 | 2% | 34% |
| Itron | 104 | 121 | (33) | -14% | 415% |
| Engines & Turbines | |||||
| Cummins | 2,671 | 1,617 | 640 | 65% | 317% |
| Babcock & Wilcox | 235 | 236 | 232 | 0% | 1% |
| Dresser-Rand | 182 | 216 | 312 | -16% | -42% |
| Packaging and Containers | |||||
| Ball Corp | 660 | 606 | 537 | 9% | 23% |
| Crown Holdings | 587 | 614 | 459 | -4% | 28% |
| Silgan Holdings | 290 | 222 | 248 | 31% | 17% |
| Sonoco Products | 284 | 303 | 214 | -6% | 33% |
| Rock-Tenn | 256 | 266 | 264 | -4% | -3% |
| PackagingCorpAmer | 244 | 239 | 149 | 2% | 64% |
| Greif | 243 | 252 | 138 | -4% | 76% |
| Owens-Illinois | 235 | 424 | 215 | -45% | 9% |
| Graphic Packaging | 139 | 37 | (59) | 276% | 336% |
| Paints | |||||
| PPG Industries | 1,597 | 1,295 | 617 | 23% | 159% |
| Valspar | 307 | 319 | 238 | -4% | 29% |
| RPM Intl | 295 | 268 | 181 | 10% | 63% |
| Pumps & Pumping Equipment | |||||
| Flowserve | 588 | 530 | 585 | 11% | 1% |
| Xylem | 470 | 388 | 277 | 21% | 70% |
| IDEX | 274 | 232 | 169 | 18% | 62% |
| Graco | 210 | 149 | 69 | 41% | 204% |
| Plastics | |||||
| Aptargroup | 275 | 254 | 184 | 8% | 49% |
| Polyone | 199 | 141 | 93 | 41% | 114% |
| ArmstrongWorldIndust | 193 | 89 | 93 | 117% | 108% |
| Hexcel | 176 | 100 | 78 | 76% | 126% |
| Chemtura | 137 | (102) | (80) | 234% | 271% |
| MomentiiveSpecChem | 135 | 103 | (100) | 31% | 235% |
| Entegris | 128 | 101 | (60) | 27% | 313% |
| Motors & Generators | |||||
| Ametek | 557 | 406 | 295 | 37% | 89% |
| Regal Beloit | 226 | 221 | 138 | 2% | 64% |
| AO Smith | 162 | 109 | 92 | 49% | 76% |
| Office Equipment & Furniture | |||||
| Pitney Bowes | 544 | 535 | 693 | 2% | -22% |
| Diebold | 164 | 174 | 124 | -6% | 32% |
| NCR | 137 | 93 | 62 | 47% | 121% |
| Herman Miller | 103 | 35 | 99 | 194% | 4% |
| Paper and Products | |||||
| Bemis | 292 | 327 | 240 | -11% | 22% |
| Sealed Air | 281 | 382 | 330 | -26% | -15% |
| Avery Dennison | 233 | 239 | (95) | -3% | 345% |
| Boise | 125 | 130 | 18 | -4% | 594% |
| Misc Manufacturing | |||||
| Snap-On | 413 | 277 | 205 | 49% | 101% |
| Owens Corning | 353 | 216 | 81 | 63% | 336% |
| Pentair | 313 | 300 | 173 | 4% | 81% |
| Carlisle | 254 | 188 | 176 | 35% | 44% |
| Hillenbrand | 158 | 146 | 161 | 8% | -2% |
| Brady | 144 | 109 | 97 | 32% | 48% |
| Middleby | 140 | 114 | 100 | 23% | 40% |
| WMS Industries | 124 | 171 | 140 | -27% | -11% |
| Ceradyne | 119 | 28 | (1) | 325% | 12000% |
| Matthews Intl | 112 | 110 | 91 | 2% | 23% |
| ITT | 78 | (276) | (208) | 128% | 138% |
| USG | (347) | (381) | (370) | 9% | 6% |
| Total all 55 | 19,005 | 15,477 | 9,699 | 23% | 96% |
| Smaller Manufacturers | |||||
| PTI $0-$200 mil | |||||
| Polyone | 199 | 141 | 93 | 41% | 114% |
| Sansata Technologies | 195 | 125 | 125 | 56% | 56% |
| ArmstrongWorldIndust | 193 | 89 | 93 | 117% | 108% |
| MKS Instruments | 186 | 196 | (27) | -5% | 789% |
| Dresser-Rand | 182 | 216 | 312 | -16% | -42% |
| Hexcel | 176 | 100 | 78 | 76% | 126% |
| Diebold | 164 | 174 | 124 | -6% | 32% |
| AO Smith | 162 | 109 | 92 | 49% | 76% |
| Esterline Technologies | 158 | 155 | 118 | 2% | 34% |
| Hillenbrand | 158 | 146 | 161 | 8% | -2% |
| Brady | 144 | 109 | 97 | 32% | 48% |
| Middleby | 140 | 114 | 100 | 23% | 40% |
| Graphic Packaging | 139 | 37 | (59) | 276% | 336% |
| Chemtura | 137 | (102) | (80) | 234% | 271% |
| NCR | 137 | 93 | 62 | 47% | 121% |
| MomentiiveSpecChem | 135 | 103 | (100) | 31% | 235% |
| Entegris | 128 | 101 | (60) | 27% | 313% |
| Boise | 125 | 130 | 18 | -4% | 594% |
| WMS Industries | 124 | 171 | 140 | -27% | -11% |
| Ceradyne | 119 | 28 | (1) | 325% | 12000% |
| Matthews Intl | 112 | 110 | 91 | 2% | 23% |
| Itron | 104 | 121 | (33) | -14% | 415% |
| Herman Miller | 103 | 35 | 99 | 194% | 4% |
| ITT | 78 | (276) | (208) | 128% | 138% |
| Total all 24 Smaller Companies | 3,498 | 2,225 | 1,235 | 57% | 183% |
