The Total Pretax Income of these 19 US Big Home Products Corps was $29.2 bil in 2011, up only 2% from 2010, and which was a deceleration from the earnings growth of 11% in 2010.
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 Impairments, Gains/Losses on Asset Sales, and Gains/Losses on Debt Retirements.
I don't think it is good for the US economy to have the Total Pretax Income growth of the 80 largest US Big Oil Corps for the most recent two years of 112%, which just crushes the 13% earnings growth in the most recent two years of these key, very well run 19 US Big Home Products Corps. And by far the main driver of this 112% earnings growth of these US Big Oil Corps was simply substantially higher oil prices in the market, unfortunately driven in part by heavy oil speculation in derivatives on the commodity trading exchanges.
Clearly, US Congress inaction, on many important fronts, was a main player in this substantial earnings growth deceleration of these US Big Home Products Corps in the most recent year. This Congressional lack of compromise caused a major decline in consumer confidence and a significant increase in business uncertainty.
Below here is the Pretax Income of these 19 US Big Home Products Corps for each of the most recent three years.
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