US Broad-Based Manufacturing Corps 2Q 2013 Earnings Up 5%

I found 48 US Broad-Based Manufacturing Corps which generated After-tax Adjusted Earnings of more than $100 mil in either the 2Q 2013 or the 2Q 2012.

These 48 Manufacturing Corp generated Total Adjusted Earnings growth of 5% in the 2Q 2013 over the 2Q 2012.

Driving this 5% total earnings growth were the 12 Motor Vehicle and Parts Corps, which experienced Total Earnings growth in the 2Q 2013 over the 2Q 2012 of a robust 20%.  When the Motor Vehicle and Parts Corps are removed, the remaining 36 Broad-Based Manufacturing Corps generated Total Adjusted Earnings in the 2Q 2013 which were precisely flat with the 2Q 2012.

I think the US economy, US real GDP growth, good-paying US job creation, business profits, and the US Debt level would all be substantially better off if the Obama Administration were to replicate some of its successful strategies used to rescue the Auto Industry to all of US manufacturing, and also even to all of US technology.  I'm just saying.

Below here are the earnings of these 48 US Big Broad-Based Manufacturing Corps for the 2Q 2013 and for the comparable 2Q 2012:
 

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net	Adjusted	Adjusted
	Income	Income	Net	Net
	From	From	Income	Income
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
US Broad-Based Manufacturing Corps
Ford Motor	1,833	1,203	630	52%
United Technologies	1,552	1,466	86	6%
General Motors	1,411	1,496	(85)	-6%
Boeing	1,289	1,128	161	14%
3M	1,197	1,167	30	3%
Deere	1,084	1,056	28	3%
Honeywell	1,021	902	119	13%
Caterpillar	960	1,699	(739)	-43%
Emerson Electric	701	764	(63)	-8%
Danaher	617	600	17	3%
Johnson Controls	535	455	80	18%
Chrysler	530	436	94	22%
Eaton	519	392	127	32%
Illinois Tool Works	489	486	3	1%
CNH Global NV	471	355	116	33%
Corning	469	388	81	21%
Precision Castparts	436	342	94	27%
Cummins	414	465	(51)	-11%
Delphi Automotive	388	336	52	15%
TE Connectivity	372	340	32	9%
PPG Industries	356	297	59	20%
Ingersoll-Rand	343	372	(29)	-8%
Paccar	292	297	(5)	-2%
Harley Davidson	272	247	25	10%
Parker Hannifin	271	302	(31)	-10%
TRW Automotive	252	221	31	14%
Dover	236	206	30	15%
Rockwell Automation	216	196	20	10%
AGCO	214	205	9	4%
Whirlpool	192	122	70	57%
Stanley Black & Decker	191	189	2	1%
Joy Global	186	238	(52)	-22%
Goodyear Tire & Rubber	181	85	96	113%
Borg Warner	174	121	53	44%
Amphenol	154	141	13	9%
Pentair	154	73	81	111%
Oshkosh	148	77	71	92%
Lear	138	135	3	2%
Crown Holdings	137	126	11	9%
Ametek	128	114	14	12%
Ball Corp	128	140	(12)	-9%
Flowserve	120	107	13	12%
Dana Holdings	115	120	(5)	-4%
Pitney Bowes	106	103	3	3%
Timken	89	133	(44)	-33%
Nucor	85	112	(27)	-24%
Xylem	66	116	(50)	-43%
US Steel	(51)	112	(163)	-146%
Total all 48	21,181	20,183	998	5%
Total 36 With Motor Vehicle and Parts Corps Removed	15,447	15,409	38	0%

US Big Motor Vehicle And Parts Corps 2Q 2013 Earnings Up 20%

I found 12 US Motor Vehicle and Parts Corps which generated After-tax Adjusted Earnings of more than $100 mil in either the 2Q 2013 or the 2Q 2012.

The Big 3 Motor Vehicle Corps.....Ford, GM and Chrysler.....generated Total Adjusted Earnings in the 2Q 2013 which were up a robust 20% over the 2Q 2012, led by Ford's 52% earnings growth.

GM's 2Q 2013 Adjusted Earnings declined by $85 mil.  However, this was only because GM reported $500 mil of higher income tax expense in the 2Q 2013.  Absent this $500 mil of increased income tax expense, the Big 3 Total Earnings grew by an even more robust 36%.

The Remaining 9 Motor Vehicle and Parts Corps also had their Total After-tax Adjusted Earnings grow by a robust 20% in the 2Q 2013.

I think the US economy, US real GDP growth, good-paying US job creation, business profits, and the US Debt level would all be substantially better off if the Obama Administration were to replicate some of its successful strategies used to rescue the Auto Industry to all of US manufacturing and all of US technology.  I'm just saying.

Below here are the earnings of these 12 US Big Motor Vehicle and Parts Corps for the 2Q 2013 and for the comparable 2Q 2012:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net	Adjusted	Adjusted
	Income	Income	Net	Net
	From	From	Income	Income
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mils	mil $s	Amount	%
US Big Motor Vehicle and Parts Corps
Big 3
Ford Motor	1,833	1,203	630	52%
General Motors	1,411	1,496	(85)	-6%
Chrysler	530	436	94	22%
Total Big 3	3,774	3,135	639	20%
The Remaining 9
Delphi Automotive	388	336	52	15%
Paccar	292	297	(5)	-2%
Harley Davidson	272	247	25	10%
TRW Automotive	252	221	31	14%
Goodyear Tire & Rubber	181	85	96	113%
Borg Warner	174	121	53	44%
Oshkosh	148	77	71	92%
Lear	138	135	3	2%
Dana Holdings	115	120	(5)	-4%
Total Remaining 9	1,960	1,639	321	20%
Grand Total all 12	5,734	4,774	960	20%

US Big Retail Corps 2Q 2013 Earnings Up 4.8%, Revenues Up 2.8%

I found 35 US Retail Corps which generated After-tax Adjusted Earnings of more than $100 mil in either the 2Q 2013 or the 2Q 2012.

These 35 Retailers generated 2Q 2013 Total After-tax Adjusted Earnings which were up 4.8% over the 2Q 2012. This compares to their Total Revenue growth of 2.8% in the 2Q 2013.

So many of these Retailers have very aggressive common stock buyback programs, which should add another 4% to their total earnings growth in the 2Q 2013, which brings the Total Earnings Per Share growth to 9%.

These large US retailers are where many of the country's minimum wage, and just above minimum wage, workers are located.

Given the huge economic inequality which not only exists in the US, but continues to expand monthly, it only makes sense to increase the US Federal minimum wage by a substantial amount.  This would put a substantially higher amount of money in the hands of consumers which will dramatically increase consumer demand.

To make a huge increase in the US Federal minimum wage more palatable to businesses, I would consider pairing it with an accompanying continuing substantial income tax break for businesses most impacted by it.

Below here are the earnings of these 35 US Big Retailers for the 2Q 2013 and for the comparable 2Q 2012.  Also included are the percentage changes in both earnings and total revenues:

	2Q 2013	2Q 2012
	Adjusted	Adjusted
	Net	Net	Adjusted	Adjusted	2Q 2013
	Income	Income	Net	Net	Total
	From	From	Income	Income	Revenues
	Continuing	Continuing	Increase	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%	%
US Retailers
Walmart	3,784	3,742	42	1%	1%
McDonalds	1,397	1,347	50	4%	2%
Home Depot	1,226	1,035	191	18%	7%
Target	683	744	(61)	-8%	-1%
Lowes	540	527	13	2%	0%
Kroger	481	439	42	10%	3%
Costco	459	386	73	19%	8%
TJX	453	419	34	8%	7%
Starbucks	418	333	85	26%	13%
Publix Super Markets	401	382	19	5%	4%
GAP	333	233	100	43%	7%
Yum Brands	281	331	(50)	-15%	-8%
Autozone	266	249	17	7%	4%
Sherwin Williams	257	228	29	13%	5%
Ross Stores	235	209	26	12%	8%
Dollar General	232	215	17	8%	9%
Macys	217	181	36	20%	4%
Bed Bath & Beyond	202	207	(5)	-2%	18%
OReilly Automotive	177	146	31	21%	10%
Staples	170	193	(23)	-12%	-3%
Kohls	147	154	(7)	-5%	-1%
CarMax	147	121	26	21%	19%
Nordstrom	145	149	(4)	-3%	5%
L Brands	143	125	18	14%	5%
Whole Foods Market	142	117	25	21%	12%
Foot Locker	139	128	11	9%	4%
Dollar Tree	134	116	18	16%	8%
Darden Restaurants	133	152	(19)	-13%	11%
Tractor Supply	124	107	17	16%	13%
Family Dollar Stores	121	125	(4)	-3%	9%
Fastenal	121	112	9	8%	5%
Advance Auto Parts	117	100	17	17%	6%
Dillards	113	95	18	19%	0%
Best Buy	110	262	(152)	-58%	-10%
PetSmart	102	95	7	7%	5%
Total all 35	14,150	13,504	646	4.8%	2.8%

Fannie Mae and Freddie Mac 2Q 2013 Total Earnings $15 bil, Up 85%

Fannie Mae and Freddie Mac both generated blow-out earnings in the 2Q 2013 as you can clearly see in the below chart.

It's pretty clear to me that there has been a substantial upgrade in the top executives at both of these key institutions.  And it is also clear to me that the Obama Administration has helped substantially in the resurrection of both Fannie and Freddie.  And so has the US Fed.

It is especially good to see the substantial earnings turnaround in Derivatives at both Fannie and Freddie.

It is also really good to see the substantial improvement in Bad Debts at both Fannie and Freddie.

So the blow-out 2Q 2013 earnings of both Fannie and Freddie continue the very positive earnings trend of all US Big Financial.  Not so with the US Big Non-Financial Corps.

Below here are the earnings of these two for the 2Q 2013 and for the comparable 2Q 2012:  

	2Q 2013	2Q 2012
	GAAP	GAAP
	Net	Net
	Income	Income
	From	From
	Continuing	Continuing	Increase	Increase
	Operations	Operations	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
Fannie Mae	10,095	5,119	4,976	97%
Freddie Mac	4,988	3,020	1,968	65%
Total of both	15,083	8,139	6,944	85%

US Big Insurance Corps 2Q 2013 Earnings Up 20%

I found 15 US Insurance Corps which generated After-tax Operating Income of more than $200 mil in either the 2Q 2013 or the 2Q 2012.

These 15 Insurance Corps generated 2Q 2013 Total After-tax Adjusted Earnings which were up a very robust 20% over the 2Q 2012.  And 13 of the 15 had earnings increases, with 11 of them generating at least double-digit percentage earnings growth. 

In addition, this 20% Total Earnings growth is substantially higher on an Earnings Per Share (EPS) basis since so many of them have aggressive common stock buyback programs.  For instance, AIG had its Earnings decline by 1%, whereas its EPS grew by 17%, both in the 2Q 2013......yeah, that's an 18% positive swing.

So the strong 2Q 2013 earnings of US Big Insurance Corps continue the very positive earnings trend of all US Big Financial.  Not so with the US Big Non-Financial Corps.

Below here are the earnings of these 15 US Insurance Corps for the 2Q 2013 and for the comparable 2Q 2012: 

	2Q 2013	2Q 2012
	Operating	Operating	Increase	Increase
	Income	Income	(Decrease)	(Decrease)
	mil $s	mil $s	Amount	%
US Big Insurance
AIG	1,655	1,678	(23)	-1%
MetLife	1,593	1,432	161	11%
Prudential Financial	1,090	648	442	68%
Travelers	816	495	321	65%
ACE Ltd	790	743	47	6%
AFLAC	759	755	4	1%
Allstate	529	432	97	22%
Chubb	463	374	89	24%
Marsh & McLennan	403	337	66	20%
Lincoln National	351	319	32	10%
Progressive	325	119	206	173%
Hartford Financial Services	324	274	50	18%
Principal Financial Group	271	211	60	28%
Unum Group	219	225	(6)	-3%
CNA Financial	204	152	52	34%
Total all 15	9,792	8,194	1,598	20%

Student Loan Corp SLM (Sallie Mae) First Half 2013 Earnings Up 146%

Publicly-held SLM Corp, which is the old Sallie Mae, is clearly a student education loan company, having $180 bil of Total Student Loans on its Balance Sheet at Dec 31, 2012.

Of these $180 bil of Student Loans, $37 bil of them are Private Education Loans.  The weighted average effective interest rate on these $37 bil of Private Education Loans is a very hefty 6.58%.  Further, the interest rates on many of these loans, about half of them, must be above 6.58%, and no doubt some of them have interest rates substantially higher than 6.58%.  Further, the majority of these student private education loans are co-signed by parents and/or grandparents.

So clearly, SLM is charging steep interest rates to students on many of these Private Education Loans.

So, how can someone get a handle on how fair this is to students?

Well, just see how well SLM has done on the earnings front and also how well SLM's common stock has done.

Below here is Net Income from Continuing Operations attributable to SLM Corp for the most recent five years:

.....2008........$2 mil
.....2009....$544 mil
.....2010....$597 mil
.....2011....$600 mil
.....2012....$938 mil

Yeah, that's right, due mainly to wise actions by the Obama Administration and by the US Fed, SLM was effectively bailed out, with its earnings increasing from only $2 mil in 2008 to $938 mil in 2012.  Its 2012 earnings of $938 mil was up a very robust 56% over 2011.  And on an Earnings Per Share (EPS) basis, which drives common stock prices, this earnings growth in 2012 over 2011 advanced from up 56% to up 70%, due to SLM's huge common stock buybacks.

So, what about lately?

Well, in the first half of 2013, SLM's earnings were $889 mil, an off-the-charts increase of 121% over the $403 mil SLM earned in the first half of 2012.  And its EPS increased by an even higher 146% in the first half of 2013.

OK, so what about SLM's common stock price?

SLM's common stock price hit a low of only $3.19 in early March 2009, shortly after the financial meltdown hit.

In comparison, SLM's common stock price closed at $24.49 today.

So, its common stock advanced an incredible 668% from early March 2009 to now.

When you put this altogether, SLM, its executives, and its common stockholders have made out like bandits, little from what they have done, but mostly thanks to the US Government bailing them out and continuing to prop them up.

And just who funded this massive accumulation of wealth by SLM executives and SLM common stockholders?

Well, you probably guessed it.  It nearly all came from the massive interest SLM received from students. 

And just what interest rates does SLM pay on its borrowings used to finance these student loans?

Well, it has $19.8 bil of short-term borrowings, which it pays a weighted average interest rate of only 1.25% on.  And it has $152.4 bil of long-term borrowings, which it pays a weighted average interest rate of only 1.57% on.

This isn't right.....not even close to being right.

So why did it happen, and even continues to happen.

It's because the US Congress is controlled by the Big Financial Industry.  And the US Congress, nearly all Republicans and also even some Democrats, just hopes that students with education loans and their co-signers don't figure it out.

If I either had or co-signed on a Private Education Loan held by SLM, or really held by any other Private Financial Institution, I would be hitting the Streets in protest at my Congressman's office.  And I would be asking why he hasn't addressed this clear economic injustice to students who have private education loans.