Everyone who pays income tax — and some who don't —will feel it. The package of tax increases and spending cuts known as the "fiscal cliff" takes effect in January unless Congress passes a budget deal by then. The economy would be hit so hard that it would likely sink into recession in the first half of 2013, economists say.
Shares of AK Steel Holding Corp. fell Tuesday after the company forecast a larger-than-expected loss in the fourth quarter on lower steel prices and a large income tax charge. AK Steel expects to lose between 67 and 72 cents per share in the quarter. The company said it will ship more steel than it did in the third quarter, but prices will fall by about 5 percent.
The resilience of the U.S. manufacturing sector and the slow, but stable overall economic growth, may have been attractive for strategic, long-term investors. Moreover, the value of North American targets far exceeded the value of targets from any other region, an indication of both the size and maturity of targets from this region and the fairly attractive nature of the North American manufacturing market.
Trina Solar Ltd. lowered its third-quarter guidance on Monday, citing industry-wide oversupply and lower prices. The Chinese solar panel maker estimates shipments in the third quarter between 375 and 385 megawatts, down from previous guidance of 450 to 480 megawatts. The company said margins were squeezed by anti-dumping duties in the U.S. and an inventory write-down.
India's industrial production contracted 0.4 percent in September, government data showed Monday, far worse than expected as manufacturing output continued to slump amid signs of weakness in investment and consumer demand. The results indicate that Asia's third largest economy still has a way to go to pull itself out of its current slowdown.
The possibility of tariffs on China-made solar panels was causing some big swings in the stock prices of both U.S. and Chinese solar companies on Thursday. The U.S. International Trade Commission found that Chinese companies have materially injured U.S. manufacturers, upholding tariffs that can run as high as nearly 250 percent.
China's auto sales, consumer spending and factory output improved in October in a new sign of economic recovery as the Communist Party prepared to install a new generation of leaders. Growth in factory output accelerated to 9.6 percent over a year earlier from the previous month's 9.2 percent, the government reported Friday. Retail sales rose 14.5 percent, up from September's 14.2 percent.
The U.S. trade deficit declined to the lowest level in nearly two years because exports rose to a record high. The gain may not last given the global economic slowdown. Still, the narrower trade deficit could lead the government to revise its July-September economic growth estimate slightly higher than the 2 percent annual rate reported last month.
India's Tata Motors reported a 10 percent rise in quarterly net profit Wednesday, as the strong global performance of Jaguar Land Rover masked lackluster results from Tata's core brand. Net profit was $387M in the July to September quarter. Sales rose 19 percent from a year earlier to $8.1B, thanks to strong demand for Jaguar Land Rover vehicles, especially in China, which accounts for over 20 percent of global sales.
Here's the assignment President Barack Obama has won with his re-election: Improve an economy burdened by high unemployment, stagnant pay, a European financial crisis, slowing global growth and U.S. companies still too anxious to expand much.
Caterpillar Inc. says it will continue to idle factories and cut production into next year due to a slowdown in demand for its mining and construction equipment. Mike DeWalt is director of investor relations for Peoria-based Caterpillar. Crain's Chicago Business says DeWalt said that Caterpillar has been hard hit by a slowdown in mining.
Shares of some U.S. steel manufacturers rose Tuesday, a day after AK Steel Holding Corp. imposed a $50 per ton increase in spot market base prices for carbon flat-rolled steel used in such products as automobiles and appliances. AK Steel said Monday that the increase was effective immediately on new orders.
Strong sales of its luxury cars in China helped Germany's BMW AG overcome weak markets in crisis-ridden Europe. Net profit rose 16 percent in the third quarter to €1.29 billion ($1.65 billion) on a 13.7 percent jump in sales to a record €18.82 billion. The Munich-based carmaker said it was sticking to its forecasts for 2012 sales and earnings to be up on the previous year despite "an increasingly uncertain market environment."
Microsoft and Apple are garnering the highest profit margins for their tablets, followed by Google and then Amazon, according to research firm IHS. IHS' analysis excludes costs for marketing, sales or operating system-software, which Microsoft has been touting with its device. The research firm obtains the devices independently and breaks them apart to estimate the cost of the components.
The October registered 51.7 percent, an increase of 0.2 percentage point from September’s reading of 51.5 percent, indicating growth in manufacturing at a slightly faster rate. “This helps to remind people that manufacturing is growing, despite its ups and downs and everything going on around us,” said Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
Indiana's manufacturing industry has seen its recovery stall, and experts predict things will get worse as many of the state's largest companies feel the effects the European financial crisis and slowing growth in China. The U.S. Bureau of Labor Statistics reports the state lost an estimated 1,400 manufacturing jobs in September.
Boeing Co. and Kuwaiti airplane leasing company ALAFCO are saying they finalized an order for 20 Boeing 737 MAX 8s valued at $2.0 billion at their current list price. ALAFCO buys planes and then leases them to airlines. The deal was first announced in July at Britain's Farnborough Airshow
Toyota's quarterly profit tripled, driven by a recovery from natural disasters, and the company raised its full-year earnings forecast Monday despite a sales slump in China. Toyota Motor Corp., on track to regain the crown of world's No. 1 automaker this year, reported a July-September net profit of $3.2B. The result was better than the $3B quarterly profit forecast by analysts surveyed by FactSet.
Romney and Obama prominently collided during the campaign over the fate of the tax credit. Romney has called for its expiration, while Obama supports its renewal. Amid the gridlock, Vestas has closed offices and laid off hundreds of U.S. workers. Wind businesses from South Carolina to Washington state also have cut jobs.
Shares of Tesla Motors Inc. rose more than 3 percent in early trading Monday as the electric vehicle maker said it was now making enough cars to generate positive operating cash flow. But the Palo Alto, Calif., company's third-quarter net loss grew almost 70 percent, to $110.8 million, or $1.05 per share, compared with a loss of $65.1 million, or 63 cents per share, a year earlier.
The public feels that American leadership is off-course in improving manufacturing competitiveness and that the national economy is weak and fragile, according to a new survey from Deloitte and The Manufacturing Institute. The survey found that Americans have a jaundiced view of the nation’s overall economic health, with 59 percent indicating that the economy has “not improved or gotten better” in recent years.
U.S. companies boosted their orders for manufactured goods by the largest amount in 18 months in September, but companies remained cautious in ordering goods that signal plans to expand and modernize. Factory orders rose 4.8 percent in September compared to August, a month when orders had fallen 5.1 percent, the Commerce Department said Friday.
Toyota Motor Corp. said Thursday its sales in China nearly halved again in October, for the second consecutive month, compared with the same month a year earlier, amid a Sino-Japanese territorial row. Toyota, Japan's No. 1 automaker, said its October sales in China plunged 44.1 percent to 45,600 units. In September, its sales in the world's largest auto market nosedived 48.9 percent to 44,100 units.
The price of copper is higher after manufacturing expanded in the world's two largest economies and Americans spent more money on big-ticket items like automobiles. It was the second consecutive month of growth for U.S. manufacturing, suggesting the sector should continue to expand based on increased consumer spending.
U.S. manufacturing expanded for the second straight month in October, boosted by growth in new orders and production. The Institute for Supply Management said Thursday that its index of factory activity rose last month to 51.7, up from September's reading of 51.5. A reading above 50 indicates expansion.