Core Adjusted After-tax Earnings is what these companies report as their Ongoing Earnings in their quarterly earnings releases. It is also the key earnings element that the stock market uses to value common stocks.
These 36 US Broad-Based Manufacturing Corps, in the aggregate, were just crushed in the 1Q 2013, with their Total Core Adjusted After-tax Earnings down a huge 10.4% from the 1Q 2012. And it was really worse than that since many of these companies included their full year 2012 Research and Development Tax Credits in their 1Q 2013 Core Adjusted After-tax Earnings. And also, Eaton's very healthy Adjusted Earnings increase below benefits from having no interest expense charge related to the portion of its acquisition of Cooper Industries which was financed with its common stock.
The Motor Vehicle and Parts Corps were especially crushed with their Total Adjusted Earnings in the 1Q 2013 down a massive 19% from the 1Q 2012. General Motors and Chrysler both had huge Adjusted Earnings declines.
All Other Manufacturing Corps had their Total Adjusted Earnings in the 1Q 2013 decrease by 6% from the 1Q 2012. The major driver of this earnings decline was Caterpillar.
It's pretty clear that this key Manufacturing Sector needs a huge dose of US economic fiscal stimulation. This is particularly important since this is where many of the good-paying US jobs are. But with such lousy 1Q 2013 earnings, some of these well-paying, full-time US jobs of these Manufacturing Corps won't be there for at least the rest of 2013, unless there is a sharp upward earnings reversal. And certainly the near-term huge Sequester US Government spending cuts will not help here.....just the opposite.
And since these larger US Broad-Based Manufacturing Corps are doing so poorly on an operating basis in the 1Q 2013, it is certain that the smaller ones are doing likewise, and probably even more so.
Don't get misled by the massive stock market upward move so far in 2013. It's not about strong operating earnings in the 1Q 2013 because they are just not there. It is all about the US Fed providing such low interest rates for an extended period of time, thereby making fixed income investments unattractive, coupled with the massive, incredibly lucrative common stock buybacks of large US Corporations, which buoys EPS and long-term EPS growth, the drivers of common stock values. This was all explained in a post I made on March 20, 2013, which you can access in the below link:
Common Stock Buybacks: Main Cause of US Stock Market Sharp Ascent in 2013
Below here is the Core Adjusted Earnings of each of these 36 US Broad-Based Manufacturing Corps for the 1Q 2013 and the 1Q 2012:
| Core | Core | |||
| 1Q | 1Q | Adjusted | Adjusted | |
| 2013 | 2012 | Net | Net | |
| Core | Core | Income | Income | |
| Adjusted | Adjusted | Increase | Increase | |
| Net | Net | (Decrease) | (Decrease) | |
| Income | Income | Amount | % | |
| mils of $s | mils of $s | mils of $s | ||
| Broad-Based Manufacturing Corps | ||||
| Motor Vehicle and Parts | ||||
| Ford Motor | 1,642 | 1,578 | 64 | 4% |
| General Motors | 1,010 | 1,574 | (564) | -36% |
| Paccar | 236 | 327 | (91) | -28% |
| Harley Davidson | 224 | 172 | 52 | 30% |
| TRW Automotive | 189 | 211 | (22) | -10% |
| Chrysler | 166 | 473 | (307) | -65% |
| Borg Warner | 152 | 158 | (6) | -4% |
| Lear | 124 | 141 | (17) | -12% |
| Total all 8 Motor Vechicle & Parts | 3,743 | 4,634 | (891) | -19% |
| All Other Manufacturing | ||||
| 3M | 1,129 | 1,125 | 4 | 0% |
| Honeywell | 966 | 823 | 143 | 17% |
| Caterpillar | 880 | 1,586 | (706) | -45% |
| Deere | 650 | 533 | 117 | 22% |
| Danaher | 531 | 520 | 11 | 2% |
| Corning | 445 | 397 | 48 | 12% |
| Illinois Tool Works | 437 | 432 | 5 | 1% |
| Eaton | 400 | 313 | 87 | 28% |
| CNH Global NV | 326 | 269 | 57 | 21% |
| TE Connectivity | 323 | 294 | 29 | 10% |
| Johnson Controls | 287 | 378 | (91) | -24% |
| Cummins | 282 | 455 | (173) | -38% |
| Parker Hannifin | 257 | 312 | (55) | -18% |
| PPG Industries | 235 | 216 | 19 | 9% |
| Dover | 192 | 188 | 4 | 2% |
| Rockwell Automation | 189 | 173 | 16 | 9% |
| Stanley Black & Decker | 163 | 165 | (2) | -1% |
| Whirlpool | 159 | 111 | 48 | 43% |
| Amphenol | 142 | 127 | 15 | 12% |
| Joy Global | 140 | 135 | 5 | 4% |
| Ingersoll-Rand | 126 | 115 | 11 | 10% |
| Ametek | 125 | 110 | 15 | 14% |
| Alcoa | 121 | 105 | 16 | 15% |
| AGCO | 118 | 120 | (2) | -2% |
| Ball Corp | 88 | 101 | (13) | -13% |
| Nucor | 85 | 145 | (60) | -41% |
| Pitney Bowes | 85 | 128 | (43) | -34% |
| Timken | 75 | 156 | (81) | -52% |
| Total all 28 Other Manufacturing | 8,956 | 9,532 | (576) | -6% |
| Total all 36 Broad-Based Manufacturing Corps | 12,699 | 14,166 | (1,467) | -10.4% |
