Slower Construction and Robust Manufacturing

123jump.com Staff
30 Nov, -0001
New York City

Commerce Department reported residential and commercial construction spending for June dropped from the spending in May but grew at 8% from a year earlier. The ISM manufacturing survey indicated robust manufacturing activity for the 26th month.

U.S. Averages

In the morning trading major averages have positive bias as nation’s industrial activity continues in the 26th month. The ISM manufacturing survey reported that the July PMI index came in at 56.6 indicating 2.8% jump from activity level in June.

Commerce Department reported slowing but still strong construction activity for the month of June. The June spending was 0.3% lower than revised level in May and 7.9% higher than a year ago.

Proctor & Gamble reported 4Q profit of 56 cents vs. 50 cents a year ago on 10% rise in sales. Humana reported 2Q profit of 51 cents vs. 50 cents a year ago and raised earnings guidance for 2006 and reaffirmed 2005 earnings.


Economic News

Construction Spending

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during June 2005 was estimated at a seasonally adjusted annual rate of $1,093.0 billion, 0.3 percent below the revised May estimate of $1,096.0 billion. The June figure is 7.9 percent above the June 2004 estimate of $1,013.2 billion.

During the first 6 months of this year, construction spending amounted to $514.8 billion, 9.3 percent above the $471.0 billion for the same period in 2004.

Spending on private construction was at a seasonally adjusted annual rate of $843.8 billion, 0.2 percent below the revised May estimate of $845.6 billion. Residential construction was at a seasonally adjusted annual rate of $602.4 billion in June, 0.4 percent below the revised May estimate of $604.8 billion. Nonresidential construction was at a seasonally adjusted annual rate of $241.4 billion in June, 0.2 percent above the revised May estimate of $240.9 billion.

In June, the estimated seasonally adjusted annual rate of public construction spending was $249.2 billion, 0.5 percent below the revised May estimate of $250.3 billion. Educational construction was at a seasonally adjusted annual rate of $64.6 billion, 1.2 percent below the revised May estimate of $65.4 billion. Highway construction was at a seasonally adjusted annual rate of $67.0 billion, 0.4 percent below the revised May estimate of $67.3 billion.

ISM Manufacturing Survey

The Institute for Supply Management reported that the ISM Manufacturing Index PMI for July came in at 56.6 indicating that manufacturing activity has picked up in the last month.

The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. ""The manufacturing sector grew for the 26th consecutive month in July based on the ISM data. An improved rate of growth in New Orders and Production continues to drive improvement in the sector. It appears that the sector hit a low point in May, and has rebounded nicely in June and July. The Prices Index apparently reached the end of its run in June, as the July index indicates that pricing power, at least for the short term, is now once again favoring buyers.""

Earnings News

Harvest Natural Resources, the Houston oil and gas producer, posted 2Q earnings of 37 cents a share, up vs. 16 cents for the year-ago period on revenue growth.

Oregon Steel Mills, commodity steel products manufacturer, posted 2Q net income of 80 cents a share, up vs. 52 cents, gained last year the same period on strong sales, missing analyst forecasts by a penny.

Humana, health insurer, announced 2Q net profit was up to 51 cents a share on strong revenue growth, meeting analyst forecasts

HSBC, banking and related financial services group, annouced first-half pre-tax profit was up to 5.1%, following a 8.66% gain in North American pre-tax profits and 32.1% growth in Asian ex-Hong Kong profits on expanding personal financial services and commercial banking businesses in new and emerging markets.

ABN Amro, banking services group, reported 2Q net profit rise of 11% from a year 39.2% on growth in retail revenue and performance of structured derivatives, beating analysts expectations considerably, although the Dutch bank warned that second-half net profit will go down vs. the first half, on weker income from asset and liability management and increased provisions.

Teva, pharmaceuticals group, posted 2Q net income earnings per share rose up to 36 cents, compared with last year the same period on strong net sales and balanced business model.

Playtex, consumer and personal products manufacturer, posted 2Q earnings of 10 cents a share, down against 13 cents a share in the same period a year earlier. Non-recurring items aside, earnings would have been 14 cents a share, topping analyst of 12 cents a share on decline in revenue.

CommScope, cables and fiber optic cable producer, posted 2Q earnings of 25 cents a share, down vs. $1.16 a share, despite a rise in revenue, beating analysts forecasts of 18 cents a share.

Holly Energy Partners pipelines and distribution terminals operator, announced it gained 40 cents a share, in 2Q ended June 30 on strong revenue, missing analysts predictions of 48 cents a share.

Cal-Maine Foods, shell eggs producer and distributor, posted 4Q net loss of 28 cents a share, down from an income of 70 cents a share in the same period last year on decline in sales.

The Dixie Group, marketer and manufacturer of carpet and rugs, posted 2Q earnings from continuing operations of 28 cents a share, up vs. 27 cents a share in the same period a year earlier on sales growth.

Symbol Technologies, mobile and wireless information management systems designer, posted a 2Q loss of 12 cents a share, vs. a year-earlier net income of 12 cents a share on restructuring charge. Special charges and benefits aside, the company would have earned 2 cents a share in the quarter, matching analysts' estimates.

Martin Marietta, aggregates for the construction industry producer, posted 2Q earnings of $1.30 a share, up from 92 cents a share in the year-ago period on revenue growth, beating analysts’ expectations by a penny.

Bluegreen, vacation and residential lifestyle choices marketer, posted 2Q earnings of 46 cents a share, up vs. 31 cents a share in the same period last year on revenue growth, beating analysts’ expectations of 33 cents a share.

Tyson Foods, prepared foods producer, posted 3Q net income of 36 cents a share, down from 45 cents a share the same period last year despite sales growth, missing the forecasts by a penny.

Administaff, personnel management system provider, posted 2Q earnings of 28 cents a share, up against 10 cents a share in the same period last year on accelerated unit growth and increased pricing, beating analysts’ predictions of 19 cents a share.

Mercury General, automobile insurance underwriter, posted 2Q earnings of $1.35 a share, down vs. $1.43 a share in the same period last year. Apart from a one-time investment gain, earnings would have been $1.31 a share, beating analysts’ expectations of $1.26 a share.

Public ServiceEnterprise, electric energy group, posted a 2Q loss of 34 cents a share, down from 52 cents a share in the year-ago period despite a rise in revenue, missing analysts’ expectations of 54 cents a share.