I found 29 US Broad-based Manufacturing Corps, which file with
the SEC, which have already reported their calendar December 2012
quarterly
earnings through the end of today February 1, 2013, and which reported
Adjusted After-tax Net Income or Net Loss of at least $100 mil in either
the 4Q 2012 or in the 4Q 2011.
These 29 US Broad-based Manufacturing Corps generated Total Adjusted After-tax Net Income in the 4Q 2012 of $11,784 mil, down 3% from the $12,149 mil of like earnings generated in the 4Q 2011.
This Adjusted After-tax Net Income above was used when this amount was disclosed in the company's earnings release, and it excludes Special, Unusual Items which are significant in amount relative to Reported Net Income.
This 3% 4Q 2012 earnings decline was also pretty consistent with the earnings results of the largest US Manufacturing Corps in the first 9 months of 2012.
The stick out winners here were Ford, which generated 4Q 2012 Earnings growth of $444 mil, or 56% over the 4Q 2011; Whirlpool, which registered 4Q 2012 Earnings growth of $159 mil, or an off-the-charts 636% growth over the 4Q 2011; and Chrysler, which posted 4Q 2012 Earnings growth of $153 mil, or 68% over the 4Q 2011.
It's pretty clear to me that a non-action US Congress was the main driver of these weak earnings, not just in the key Broad-based Manufacturing sector, but also in the Technology sector, which I covered in an earlier post.
The Republicans in the US Congress stubbornly only want to reduce costs to resolve the remaining portion of the US Debt Grand Bargain. The President and the Democrats in the US Congress want a fair balance between US Government Cost Cuts and additional US Tax Revenues, including the closing of some Corporate Tax Loopholes.
A substantial majority of US Citizens agree with the President on a fair balance of Cost Cuts and Additional Tax Revenues approach.
The Republicans in the US Congress, being protectorates of US Big Corporations, do not want them to have to pay a dime of Additional Tax Revenues, despite the fact that their effective tax rate they are paying now is extremely low, the result of both a massive number and a massive amount of Tax Loopholes the US Congress has bestowed on them.
Instead of moving the country's economy forward with wisely-designed fiscal stimulus, which is desperately needed in this continuing weak US economy, these mean-spirited Republicans in the US Congress are instead focusing all of their efforts solely on reducing the US Debt, and by doing so only with Cost Cuts period, including massive cuts to both Medicare Benefits and Social Security Benefits.
There is something seriously wrong with the US economy when the very
largest Big 8 US Financial Corps generate Total Earnings growth of 56%
and the next 13 largest US Banks generate Total Earnings growth of 40%,
both in the most recent 4Q 2012, while at the same time, these above 29
of the largest Corps in the key Broad-based Manufacturing sector had their 4Q 2012 Total
Earnings decline by 3%. And the same story happened in the key US Technology sector, which also experienced very weak earnings in the 4Q 2012.
It's pretty clear that the US Congress needs to provide some robust fiscal stimulus to the Broad-based Manufacturing and Technology sectors that especially benefits the smaller manufacturing and smaller technology Corps.
And both the Manufacturing and Technology sectors would benefit greatly if at least one, or perhaps even two people, with an exceptionally keen business intellect like Sheryl Sandberg ends up in the second-term Obama Cabinet. That's the only critical ingredient which is missing from the very talented Obama Cabinet. With this addition, I think there should be an exceptional, continuing, broad-based US economic uplift which fairly benefits all US citizens in the second Obama Administration term.
Below here are the Adjusted After-tax Net Income of each of these 29 Broad-based Manufacturing Corps in the 4Q 2012 and in the 4Q 2011:
| 4Q 2012 | 4Q 2011 | |||
| Non-GAAP | Non-GAAP | |||
| Adjusted | Adjusted | Increase | Increase | |
| Net | Net | (Decrease) | (Decrease) | |
| Income | Income | Amount | % | |
| mils of $s | mils of $s | mils of $s | ||
| Broad-Based Manufacturing Sorted by Sub-Sector | ||||
| Motor Vehicle and Parts | ||||
| Ford Motor | 1,241 | 797 | 444 | 56% |
| Chrysler | 378 | 225 | 153 | 68% |
| Paccar | 254 | 328 | (74) | -23% |
| Navistar (Pretax Adjusted Income) | (314) | 275 | (589) | -214% |
| Total all 4 | 1,559 | 1,625 | (66) | -4% |
| Conglomerates Manufacturing | ||||
| United Technologies | 1,176 | 1,269 | (93) | -7% |
| 3M | 1,004 | 974 | 30 | 3% |
| Honeywell | 873 | 827 | 46 | 6% |
| Johnson Controls | 384 | 459 | (75) | -16% |
| Ingersoll-Rand | 230 | 240 | (10) | -4% |
| Total all 5 | 3,667 | 3,769 | (102) | -3% |
| Farm & Construction Equipment | ||||
| Caterpillar | 980 | 1,562 | (582) | -37% |
| Deere | 689 | 672 | 17 | 3% |
| CNH Global NV | 230 | 189 | 41 | 22% |
| Joy Global | 208 | 194 | 14 | 7% |
| Dover | 196 | 197 | (1) | -1% |
| Total all 5 | 2,303 | 2,814 | (511) | -18% |
| Miscellaneous Large Manufacturers | ||||
| Danaher | 630 | 564 | 66 | 12% |
| Corning | 498 | 513 | (15) | -3% |
| Illinois Tool Works | 412 | 427 | (15) | -4% |
| Total all 3 | 1,540 | 1,504 | 36 | 2% |
| Aircraft and Parts | ||||
| Boeing | 1,116 | 1,050 | 66 | 6% |
| Electronic/Electrical Equipment & Products | ||||
| Whirlpool | 184 | 25 | 159 | 636% |
| Rockwell Automation | 174 | 189 | (15) | -8% |
| Amphenol | 154 | 121 | 33 | 27% |
| Total all 3 | 512 | 335 | 177 | 53% |
| Paints | ||||
| PPG Industries | 238 | 216 | 22 | 10% |
| Metals | ||||
| Parker Hannifin | 181 | 242 | (61) | -25% |
| Nucor | 137 | 137 | 0 | 0% |
| Timken | 75 | 109 | (34) | -31% |
| US Steel | (59) | (149) | 90 | -60% |
| Total all 4 | 334 | 339 | (5) | -1% |
| Miscellaneous Manufacturing | ||||
| Stanley Black & Decker | 225 | 203 | 22 | 11% |
| Pitney Bowes | 170 | 192 | (22) | -11% |
| Ametek | 120 | 102 | 18 | 18% |
| Total all 3 | 515 | 497 | 18 | 4% |
| Grand Total all 29 | 11,784 | 12,149 | (365) | -3% |
