These 25 Big US Metals Manufacturing Corps registered a Total Pretax Loss of $1.7 bil in 2009. In 2010, these same 25 Corps generated Total Pretax Income of $3.3 bil. Yeah, that's an incredible $5.0 bil Profit turnaround in just one year.
So, how did they do in 2011? Just great.
In 2011, these same 25 Corps generated Total Pretax Income of $7.5 bil, an increase of a massive 125% over the monster recovery year of 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.
I think a major contributor to this incredible profit turnaround in the Metals Manufacturing Industry 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 this industry will drop markedly.
The US economy needs a huge jolt in 2012. In addition to treating the clearly job-creating 2011 American Jobs Act as dead on arrival, what the US Congress also missed was not extending this 100% first-year tax expensing in 2012, but then to only let the very large US Corps be eligible for it if they also increase their full-time payroll head counts sufficiently in 2012. And then for all other companies, this 100% first-year tax expensing in 2012 should have no full-time payroll count requirements to be eligible for it. This would be 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.
Below here is the Pretax Income (PTI) or Pretax Loss (PTL) of these 25 US Big Metals Manufacturing Corps 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 | |||
| Metals Manufacturing | |||||
| Parker Hannifin | 1,414 | 755 | 683 | 87% | 107% |
| Nucor | 1,252 | 267 | 414 | 369% | 202% |
| Alcoa | 1,063 | 548 | (1,498) | 94% | 171% |
| Timken | 697 | 406 | 14 | 72% | 4879% |
| Steel Dynamics | 424 | 213 | (18) | 99% | 2456% |
| Allegheny Tech | 339 | 126 | 74 | 169% | 358% |
| Kennametal | 296 | 77 | (12) | 284% | 2567% |
| Crane | 292 | 211 | 185 | 38% | 58% |
| McDermott Intl | 251 | 304 | 270 | -17% | -7% |
| Valmont Industries | 234 | 153 | 226 | 53% | 4% |
| WorthingtonIndustries | 183 | 113 | (44) | 62% | 516% |
| Schnitzer Steel | 181 | 125 | (47) | 45% | 485% |
| Aleris Intl | 157 | 63 | (461) | 149% | 134% |
| Mueller Industries | 119 | 99 | 53 | 20% | 125% |
| Barnes Group | 117 | 64 | 43 | 83% | 172% |
| Titan Intl | 112 | 6 | (20) | 1767% | 660% |
| WattsWaterTechnol | 101 | 95 | 72 | 6% | 40% |
| SunCoke Energy | 66 | 193 | 232 | -66% | -72% |
| Haynes Intl | 49 | 16 | (17) | 206% | 388% |
| Harsco | 42 | 20 | 159 | 110% | -74% |
| US Steel | 27 | (385) | (1,845) | 107% | 101% |
| OM Group | 25 | 107 | 37 | -77% | -32% |
| Century Aluminum | 22 | 68 | (150) | -68% | 115% |
| AK Steel | 14 | (111) | (98) | 113% | 114% |
| Commercial Metals | 9 | (205) | 2 | 104% | 350% |
| Total all 25 | 7,486 | 3,328 | (1,746) | 125% | 529% |
