Company also raises guidance for remainder of fiscal 2011
Kennametal Inc. today reported record third quarter fiscal sales of $615 million, a 25 percent increase compared to the same quarter last year.
Carlos Cardoso, Kennametal's Chairman, President and Chief Executive Officer said, "March quarter results continue to demonstrate that our global team is successfully executing our established strategies. We realized organic sales growth of 25 percent year-over-year, despite strong comparisons from the prior year. This growth reflected higher customer demand in both our served end markets as well as geographic regions. Even at a sales level that is lower than prior peak, we achieved a record operating margin for the March quarter. In addition, we again increased our guidance for sales and earnings per share for the current fiscal year. We continue to outperform the forecasted industrial production rate and expect to maintain our strong operating leverage."
Cardoso added, "Our long-term strategies remain consistent -- we continue to balance our served end markets, business mix and geographic presence. Kennametal is a 'Breakaway' company that has demonstrated its ability to be profitable throughout the economic cycle."
Here is a breakout of Kennametal’s segments for the quarter:
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• Industrial segment sales of $392 million grew 28 percent from $306 million in the prior year quarter, driven by organic growth of 29 percent and a 1 percent favorable foreign currency impact, partially offset by an unfavorable impact due to fewer business days. On an organic basis, sales increased in all served market sectors led by strong growth in general engineering and transportation sales of 34 percent and 29 percent, respectively. On a regional basis, sales increased by approximately 32 percent in Asia, 29 percent in Europe and 23 percent in the Americas.
• Industrial segment operating income was $54 million compared with $11 million for the same quarter of the prior year. Absent restructuring and related charges recorded in both periods, Industrial operating income was $56 million compared with $26 million in the prior year quarter. The primary drivers of the increase in operating income were higher sales volume and price realization, improved capacity utilization and incremental restructuring benefits. These benefits were partially offset by higher raw material costs and the restoration of temporary cost reductions. Industrial adjusted operating margin increased to 14.3 percent from 8.6 percent in the prior year.
• Infrastructure segment sales of $223 million increased 19 percent from $187 million in the prior year quarter due to organic growth. The organic increase was driven by higher sales in the energy and earthworks markets of 21 percent and 17 percent, respectively. On a regional basis, organic sales increased by approximately 20 percent in the Americas, 15 percent in Asia and 11 percent in Europe.
• Infrastructure segment operating income was $36 million, compared with $19 million in the same quarter of the prior year. Absent restructuring and related charges recorded in both periods, Infrastructure operating income was $37 million in the current quarter compared with $26 million in the prior year quarter. Operating income improved primarily due to higher sales volume and price realization, increased capacity utilization and incremental restructuring benefits, partially offset by higher raw material costs and the restoration of temporary cost reductions. Infrastructure adjusted operating margin increased from the prior year quarter to 16.5 percent from 13.8 percent.
Kennametal executives in a press release said global economic conditions and worldwide industrial production continues to remain positive. As such, Kennametal expects its fiscal 2011 organic sales growth to be 24 percent to 25 percent. This is in line with our goal of growing at least two times the rate of increase in global industrial production.
The company expects EPS for fiscal 2011 to be in the range of $2.75 to $2.85 per share, excluding charges related to previously announced restructuring programs, increased from the previous range of $2.50 to $2.65 per share, excluding charges related to restructuring.
Kennametal also announced that its Board of Directors declared a regular quarterly cash dividend of $0.12 per share. The dividend is payable May 25, 2011 to shareowners of record as of the close of business on May 10, 2011.
Showing posts with label indusrial manufacturing. Show all posts
Showing posts with label indusrial manufacturing. Show all posts
Thursday, April 28, 2011
Wednesday, April 27, 2011
Parker Hannifin reports record Q3 results
Sales increase 24 percent; company raises guidance for year
Diversified manufacturer Parker Hannifin Corporation today reported record results for the fiscal 2011 third quarter ended March 31, 2011. Fiscal 2011 third quarter sales were $3.2 billion, a third quarter record representing an increase of 23.9 percent from $2.6 billion in the same quarter a year ago. Net income was an all-time quarterly record of $281.6 million, an increase of 82.4 percent from $154.4 million in the third quarter of fiscal 2010. Earnings per diluted share for the quarter were also an all-time quarterly record at $1.68, compared with $0.94 in last year's third quarter.
Parker manufactures a number of products ranging from motion and control technologies, hose and accessories such as valves and fittings.
"Our third quarter performance reflects the continued strength that we see across our end markets and regions and our ability to leverage that strength into higher operating margins and record quarterly earnings per share," said Chairman, CEO and President Don Washkewicz. "Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21 percent in the quarter with acquisitions contributing 1 percent and currency contributing 2 percent. Margin performance was also a positive as total segment operating margin was a third quarter record of 14.8 percent, led by Industrial North America segment margin of 16.1 percent and Industrial International segment margin of 15.5 percent. Further reflecting our continued strong balance sheet and cash flow, the Board of Directors today approved a 16 percent increase in our quarterly dividend from 32 cents to 37 cents per common share."
In the Industrial North America segment, third quarter sales increased 23.0 percent to $1.2 billion, and operating income was $189.5 million compared with $133.6 million in the same period a year ago.
In the Industrial International segment, third quarter sales increased 29.9 percent to $1.3 billion, and operating income was $199.8 million compared with $109.3 million in the same period a year ago.
In the Aerospace segment, third quarter sales increased 12.1 percent to $503.8 million, and operating income was $69.0 million compared with $49.8 million in the same period a year ago.
In the Climate and Industrial Controls segment, third quarter sales increased 24.9 percent to $264.5 million, and operating income was $22.6 million compared with $16.3 million in the same period a year ago.
The company reported the following orders by operating segment:
• Orders increased 20 percent in the Industrial North America segment, compared with the same quarter a year ago.
• Orders increased 22 percent in the Industrial International segment, compared with the same quarter a year ago.
• Orders increased 44 percent in the Aerospace segment on a rolling 12-month average basis.
• Orders increased 14 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
For fiscal 2011, the company has increased guidance for earnings from continuing operations from the previous range of $5.80 to $6.20 per diluted share to a new range of $6.20 to $6.40 per diluted share.
Washkewicz added, "Our performance year-to-date reflects the ongoing economic recovery and the continued execution of our Win Strategy, now in its tenth year. Parker continues to position itself favorably for continued earnings growth by focusing on premier service to our customers, lean operations and ongoing investments in leading edge innovations across the company. Parker expects to deliver record earnings in fiscal 2011, with a strong order backlog going into fiscal year 2012."
Diversified manufacturer Parker Hannifin Corporation today reported record results for the fiscal 2011 third quarter ended March 31, 2011. Fiscal 2011 third quarter sales were $3.2 billion, a third quarter record representing an increase of 23.9 percent from $2.6 billion in the same quarter a year ago. Net income was an all-time quarterly record of $281.6 million, an increase of 82.4 percent from $154.4 million in the third quarter of fiscal 2010. Earnings per diluted share for the quarter were also an all-time quarterly record at $1.68, compared with $0.94 in last year's third quarter.
Parker manufactures a number of products ranging from motion and control technologies, hose and accessories such as valves and fittings.
"Our third quarter performance reflects the continued strength that we see across our end markets and regions and our ability to leverage that strength into higher operating margins and record quarterly earnings per share," said Chairman, CEO and President Don Washkewicz. "Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21 percent in the quarter with acquisitions contributing 1 percent and currency contributing 2 percent. Margin performance was also a positive as total segment operating margin was a third quarter record of 14.8 percent, led by Industrial North America segment margin of 16.1 percent and Industrial International segment margin of 15.5 percent. Further reflecting our continued strong balance sheet and cash flow, the Board of Directors today approved a 16 percent increase in our quarterly dividend from 32 cents to 37 cents per common share."
In the Industrial North America segment, third quarter sales increased 23.0 percent to $1.2 billion, and operating income was $189.5 million compared with $133.6 million in the same period a year ago.
In the Industrial International segment, third quarter sales increased 29.9 percent to $1.3 billion, and operating income was $199.8 million compared with $109.3 million in the same period a year ago.
In the Aerospace segment, third quarter sales increased 12.1 percent to $503.8 million, and operating income was $69.0 million compared with $49.8 million in the same period a year ago.
In the Climate and Industrial Controls segment, third quarter sales increased 24.9 percent to $264.5 million, and operating income was $22.6 million compared with $16.3 million in the same period a year ago.
The company reported the following orders by operating segment:
• Orders increased 20 percent in the Industrial North America segment, compared with the same quarter a year ago.
• Orders increased 22 percent in the Industrial International segment, compared with the same quarter a year ago.
• Orders increased 44 percent in the Aerospace segment on a rolling 12-month average basis.
• Orders increased 14 percent in the Climate and Industrial Controls segment, compared with the same quarter a year ago.
For fiscal 2011, the company has increased guidance for earnings from continuing operations from the previous range of $5.80 to $6.20 per diluted share to a new range of $6.20 to $6.40 per diluted share.
Washkewicz added, "Our performance year-to-date reflects the ongoing economic recovery and the continued execution of our Win Strategy, now in its tenth year. Parker continues to position itself favorably for continued earnings growth by focusing on premier service to our customers, lean operations and ongoing investments in leading edge innovations across the company. Parker expects to deliver record earnings in fiscal 2011, with a strong order backlog going into fiscal year 2012."
Friday, April 15, 2011
Graco will buy ITW unit for $650 million in cash
ITW unit had sales of $305 million in 2010
Graco, Inc. is buying the operations of the finishing business of Illinois Tool Works for $650 million in cash.
The ITW business makes and distributes equipment for industrial liquid finishing, powder coating and automotive refinishing worldwide.
The ITW business had revenue of $305 million in 2010.
The deal is expected to close sometime in June.
ITW's finishing business has about 40 percent of its sales coming from North America with significant operations in the United States, Switzerland, the United Kingdom, Japan, Brazil and Mexico. Its brands include Binks, Gema, Ransburg, DeVilbiss and BGK Finishing Systems.
Graco, which makes paint sprayers and fluid-handling equipment, said it plans to operate the businesses on a stand-alone basis and not integrate facilities, sales forces or distribution.
Graco's Chief Executive Officer Pat McHale said, "This acquisition is an excellent strategic fit with Graco's Industrial segment. It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment – a growing global market where we have no offering today. In liquid finishing, the acquired product technologies are complementary to Graco's Industrial offering and also give us a leading position in automotive refinish where we have little presence. The acquired businesses generate two thirds of revenue outside North America, increasing our critical mass in important international and emerging markets. This transaction will bring several widely recognized premium brands to Graco, a strong distribution channel, an installed base and approximately 40 percent of revenue from parts and accessories."
Graco, Inc. is buying the operations of the finishing business of Illinois Tool Works for $650 million in cash.
The ITW business makes and distributes equipment for industrial liquid finishing, powder coating and automotive refinishing worldwide.
The ITW business had revenue of $305 million in 2010.
The deal is expected to close sometime in June.
ITW's finishing business has about 40 percent of its sales coming from North America with significant operations in the United States, Switzerland, the United Kingdom, Japan, Brazil and Mexico. Its brands include Binks, Gema, Ransburg, DeVilbiss and BGK Finishing Systems.
Graco, which makes paint sprayers and fluid-handling equipment, said it plans to operate the businesses on a stand-alone basis and not integrate facilities, sales forces or distribution.
Graco's Chief Executive Officer Pat McHale said, "This acquisition is an excellent strategic fit with Graco's Industrial segment. It will advance all of our stated core growth strategies: new products and technology, geographic expansion, and new markets. We gain a leading position in industrial powder paint equipment – a growing global market where we have no offering today. In liquid finishing, the acquired product technologies are complementary to Graco's Industrial offering and also give us a leading position in automotive refinish where we have little presence. The acquired businesses generate two thirds of revenue outside North America, increasing our critical mass in important international and emerging markets. This transaction will bring several widely recognized premium brands to Graco, a strong distribution channel, an installed base and approximately 40 percent of revenue from parts and accessories."
Thursday, April 14, 2011
Inventories, sales increased in February
Report indicates orders will be rising
Business inventories rose 0.5 percent in February, marking the 14th consecutive monthly increase , according to a report from the U.S. Commerce Department. Sales increased for the eighth consecutive month, indicating that factory orders will be rising in the next few months.
Combined sales by manufacturers, wholesalers and retailers increased 0.2 percent during the month.
The inventories increase means that stockpiles rose to $1.46 trillion in February. It is 10.7 percent higher than the recent low of $1.32 trillion reached in September 2009.
Sales rose at the manufacturing and retail levels, but declined 0.8 percent at the wholesale level.
Business inventories rose 0.5 percent in February, marking the 14th consecutive monthly increase , according to a report from the U.S. Commerce Department. Sales increased for the eighth consecutive month, indicating that factory orders will be rising in the next few months.
Combined sales by manufacturers, wholesalers and retailers increased 0.2 percent during the month.
The inventories increase means that stockpiles rose to $1.46 trillion in February. It is 10.7 percent higher than the recent low of $1.32 trillion reached in September 2009.
Sales rose at the manufacturing and retail levels, but declined 0.8 percent at the wholesale level.
Thursday, April 7, 2011
Tramec LLC acquires Hill Fastener Corp.
Company will be named Tramec Hill Fastener, LLC
Fastener manufacturer Tramec LLC, has acquired the Hill Fastener Corporation located in Rock Falls, Illinois, This acquisition positions Hill Fastener as an integral part of the Tramec LLC fastener business, Tramec said. The acquisition will solidify the Tramec's presence in the industrial fastener market and creates instant synergies for both Tramec and Hill Fastener businesses, according to company officials.
Gary Sullo, president of Tramec LLC said, "The value proposition for both companies' customers will be immediately enhanced. The strategic acquisition of Hill Fastener adds manufacturing expertise to Tramec and represents a unique transaction where the sum of these two companies exceeds the individual components. We are enthusiastic about this acquisition, which is named Tramec Hill Fastener, LLC."
In a press release, Robert Hill, owner of Hill Fastener added, "I have had nearly 40 years of experience working here and it has always been my business strategy that, at the right time, Hill Fastener would be turned over to a company like Tramec LLC. As promised, our employees will be retained and the business will remain in the community where my father started it in 1957. I am very gratified by what has occurred for Hill Fastener and its employees."
The Tramec LLC product portfolio services the heavy-duty tractor and trailer OEM and aftermarket businesses, as well as the industrial market.
Tramec LLC is a business within the MacLean Investment Partners (MIP) portfolio owned by the MacLean family. This acquisition fits nicely with the long-range investment strategy to diversify manufacturing capabilities and customer base.
Fastener manufacturer Tramec LLC, has acquired the Hill Fastener Corporation located in Rock Falls, Illinois, This acquisition positions Hill Fastener as an integral part of the Tramec LLC fastener business, Tramec said. The acquisition will solidify the Tramec's presence in the industrial fastener market and creates instant synergies for both Tramec and Hill Fastener businesses, according to company officials.
Gary Sullo, president of Tramec LLC said, "The value proposition for both companies' customers will be immediately enhanced. The strategic acquisition of Hill Fastener adds manufacturing expertise to Tramec and represents a unique transaction where the sum of these two companies exceeds the individual components. We are enthusiastic about this acquisition, which is named Tramec Hill Fastener, LLC."
In a press release, Robert Hill, owner of Hill Fastener added, "I have had nearly 40 years of experience working here and it has always been my business strategy that, at the right time, Hill Fastener would be turned over to a company like Tramec LLC. As promised, our employees will be retained and the business will remain in the community where my father started it in 1957. I am very gratified by what has occurred for Hill Fastener and its employees."
The Tramec LLC product portfolio services the heavy-duty tractor and trailer OEM and aftermarket businesses, as well as the industrial market.
Tramec LLC is a business within the MacLean Investment Partners (MIP) portfolio owned by the MacLean family. This acquisition fits nicely with the long-range investment strategy to diversify manufacturing capabilities and customer base.
Thursday, September 9, 2010
Atlas Copco acquires Kramer Air Tool
Purchase price was not disclosed
Atlas Copco Tools & Assembly Systems LLC has agreed to acquire the sales and marketing operation of its current tool distributor Kramer Air Tool Inc., based in Michigan. The agreement further strengthens Atlas Copco’s presence, market coverage and support to customers.
“We are very pleased to integrate the Kramer distributor network into Atlas Copco sales organization and thereby offer our customers an even wider range of sophisticated products, services and accessories. This will bring us closer to our customers” says Mats Rahmström, business area president, Atlas Copco Industrial Technique.
Kramer was founded in 1984 and has been a sole Atlas Copco distributor for Michigan since 1999 for tools and related services to the motor vehicle and general industries. Its headquarters is located in Farmington Hills. Kramer employs around 50 people.
The agreement gives Atlas Copco the rights to sales and service of Atlas Copco’s industrial tools in the state of Michigan. Customers will be transferred to Atlas Copco’s customer center in Michigan. The parties have agreed not to disclose the price.
Atlas Copco is an industrial group with positions in compressors, construction and mining equipment, power tools and assembly systems. The group delivers sustainable solutions for increased customer productivity through innovative products and services. Founded in 1873, the company is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries.
Atlas Copco’s Industrial Technique business area develops, manufactures and markets industrial power tools, assembly systems, aftermarket products, software and service. Principal product development and main manufacturing units are in Sweden, China, France, Hungary and Japan.
Atlas Copco Tools & Assembly Systems LLC has agreed to acquire the sales and marketing operation of its current tool distributor Kramer Air Tool Inc., based in Michigan. The agreement further strengthens Atlas Copco’s presence, market coverage and support to customers.
“We are very pleased to integrate the Kramer distributor network into Atlas Copco sales organization and thereby offer our customers an even wider range of sophisticated products, services and accessories. This will bring us closer to our customers” says Mats Rahmström, business area president, Atlas Copco Industrial Technique.
Kramer was founded in 1984 and has been a sole Atlas Copco distributor for Michigan since 1999 for tools and related services to the motor vehicle and general industries. Its headquarters is located in Farmington Hills. Kramer employs around 50 people.
The agreement gives Atlas Copco the rights to sales and service of Atlas Copco’s industrial tools in the state of Michigan. Customers will be transferred to Atlas Copco’s customer center in Michigan. The parties have agreed not to disclose the price.
Atlas Copco is an industrial group with positions in compressors, construction and mining equipment, power tools and assembly systems. The group delivers sustainable solutions for increased customer productivity through innovative products and services. Founded in 1873, the company is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries.
Atlas Copco’s Industrial Technique business area develops, manufactures and markets industrial power tools, assembly systems, aftermarket products, software and service. Principal product development and main manufacturing units are in Sweden, China, France, Hungary and Japan.
Thursday, June 17, 2010
Manufacturing activity slowing
An economic report issued today suggests that the economic recovery in manufacturing may be slowing.
The Philadelphia Federal Reserve Bank reported that its business activity index dropped to 8.0 in June from May's 21.4.
Economists had forecasted a much higher reading. Any reading above zero indicates expansion in the region's manufacturing, so growth is still occurring but at a slower rate than many had expected.
The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware.
The report follows on Monday that showed manufacturing growth in New York state increased only slightly in June.
The Philadelphia Federal Reserve Bank reported that its business activity index dropped to 8.0 in June from May's 21.4.
Economists had forecasted a much higher reading. Any reading above zero indicates expansion in the region's manufacturing, so growth is still occurring but at a slower rate than many had expected.
The survey covers factories in eastern Pennsylvania, southern New Jersey and Delaware.
The report follows on Monday that showed manufacturing growth in New York state increased only slightly in June.
Friday, June 11, 2010
Manufacturing showing signs of recovery
The U.S. domestic manufacturing sector is showing signs of health and continued recovery, according to the Manufacturers Alliance /MAPI quarterly report that analyzes 27 major industries.
“A recovery is clearly well under way, and the industrial rebound is stronger than that in the general economy,” said Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI and author of the analysis. “Consumer spending has returned to moderate growth, and the exceptionally severe winter prompted strong gains in non-automotive durable goods like clothing and utilities. An equally strong contributor is the swing in inventories. Since the beginning of the year, manufacturing has added about 100,000 jobs. Production grows faster than sales when firms move to less liquidation and then to rebuild inventories.”
Manufacturing industrial production, measured on a quarter-to-quarter basis, grew at a 7 percent annual rate in the three months ending April 2010, after expanding at a 6 percent annual rate in the three months ending January 2010. MAPI predicts the trend will continue, increasing 6 percent overall in 2010 and 6 percent in 2011.
Production in non-high-tech manufacturing expanded at a 6 percent annual rate during the February-to-April 2010 period. According to MAPI’s most recent economic forecast, non-high-tech manufacturing production is expected to increase approximately 5 percent both in 2010 and in 2011. High-tech industrial production rose at a 28 percent annual rate in the February-to-April 2010 time frame. MAPI anticipates that it will post strong 18 percent growth in 2010 and 15 percent growth in 2011.
There was a significant upward trend in the February-to-April 2010 figures for the various components of the manufacturing economy. Nineteen of the 27 industries tracked in the report had inflation-adjusted new orders or production above the level of one year ago, seven more than reported in the previous three months ending in January 2010, and one industry remained flat. Iron and steel production grew by 101 percent in the three months ending in April 2010 compared to the previous three months, while oil and gas well drilling activity advanced by 100 percent in the same window.
The largest drop came in private nonresidential construction, which declined 22 percent, while engine, turbine, and power transmission equipment production experienced a 14 percent decline.
Meckstroth reports that 19 industries are in the accelerating growth (recovery) phase of the business cycle; no industry is in the decelerating growth (expansion) phase; one industry, private nonresidential construction, appears to be in the accelerating decline (either early recession or mid-recession) phase; and seven are in the decelerating decline (late recession or very mild recession) phase of the cycle.
The report also offers economic forecasts for 24 of the 27 industries. The manufacturing sector will show improvement in 2010, with MAPI forecasting 20 of 24 industries to show gains, led by iron and steel production with expected 54 percent growth and industrial machinery with 42 percent growth. The recovery should continue in 2011 with growth likely in 22 of 24 industries, including nine industries which are predicted to grow at double-digit rates, led by housing starts at 63 percent—albeit from current historically low levels—and engines, turbines and power transmission equipment at 28 percent.
“A recovery is clearly well under way, and the industrial rebound is stronger than that in the general economy,” said Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers Alliance/MAPI and author of the analysis. “Consumer spending has returned to moderate growth, and the exceptionally severe winter prompted strong gains in non-automotive durable goods like clothing and utilities. An equally strong contributor is the swing in inventories. Since the beginning of the year, manufacturing has added about 100,000 jobs. Production grows faster than sales when firms move to less liquidation and then to rebuild inventories.”
Manufacturing industrial production, measured on a quarter-to-quarter basis, grew at a 7 percent annual rate in the three months ending April 2010, after expanding at a 6 percent annual rate in the three months ending January 2010. MAPI predicts the trend will continue, increasing 6 percent overall in 2010 and 6 percent in 2011.
Production in non-high-tech manufacturing expanded at a 6 percent annual rate during the February-to-April 2010 period. According to MAPI’s most recent economic forecast, non-high-tech manufacturing production is expected to increase approximately 5 percent both in 2010 and in 2011. High-tech industrial production rose at a 28 percent annual rate in the February-to-April 2010 time frame. MAPI anticipates that it will post strong 18 percent growth in 2010 and 15 percent growth in 2011.
There was a significant upward trend in the February-to-April 2010 figures for the various components of the manufacturing economy. Nineteen of the 27 industries tracked in the report had inflation-adjusted new orders or production above the level of one year ago, seven more than reported in the previous three months ending in January 2010, and one industry remained flat. Iron and steel production grew by 101 percent in the three months ending in April 2010 compared to the previous three months, while oil and gas well drilling activity advanced by 100 percent in the same window.
The largest drop came in private nonresidential construction, which declined 22 percent, while engine, turbine, and power transmission equipment production experienced a 14 percent decline.
Meckstroth reports that 19 industries are in the accelerating growth (recovery) phase of the business cycle; no industry is in the decelerating growth (expansion) phase; one industry, private nonresidential construction, appears to be in the accelerating decline (either early recession or mid-recession) phase; and seven are in the decelerating decline (late recession or very mild recession) phase of the cycle.
The report also offers economic forecasts for 24 of the 27 industries. The manufacturing sector will show improvement in 2010, with MAPI forecasting 20 of 24 industries to show gains, led by iron and steel production with expected 54 percent growth and industrial machinery with 42 percent growth. The recovery should continue in 2011 with growth likely in 22 of 24 industries, including nine industries which are predicted to grow at double-digit rates, led by housing starts at 63 percent—albeit from current historically low levels—and engines, turbines and power transmission equipment at 28 percent.
Industrial energy tax in Baltimore?
To help cover a budget gap, the Baltimore City Council is studying a proposed city energy tax on manufacturers. The council could take up the matter next week, according to the Baltimore Busindess Journal.
The city is facing a $120 million shortfall in its budget.
Baltimore’s finance department estimates the industrial energy tax would bring in $9.1 million each year. Stu FitzGibbon, refinery manager of the Domino Sugar plant in South Baltimore, said it would cost his business alone $1.4 million a year. The Journal reported.
The city is facing a $120 million shortfall in its budget.
Baltimore’s finance department estimates the industrial energy tax would bring in $9.1 million each year. Stu FitzGibbon, refinery manager of the Domino Sugar plant in South Baltimore, said it would cost his business alone $1.4 million a year. The Journal reported.
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