By Mark Pender
NEW YORK (MNI) – MNI’s U.S. capital goods index slipped a little
more than one point in the Nov. 19 period to 69.4, still indicating
strong year-on-year growth and pointing to moderate sequential growth,
according to Market News International’s weekly survey.
The index peaked at 71.7 in late October reflecting very strong
fourth-quarter guidance during the early run of third-quarter earnings,
roughly the same as the 72.3 peak hit during the prior earnings season.
Sales data are very stable, at an on-year +14.0% vs. +14.4% for the
four-week average and +14.1% for the 12-week average. Currency effects
are shaving 2% from export sales with companies seeing currency moving
to a slight positive during the fourth quarter.
On-year sales growth was slightly higher this time last quarter, at
+15.9% on the four week average with currency effects cutting 1% from
export sales.
Income for the period’s 481-company sample are an on-year +23%,
roughly unchanged over the last five weeks.
The sample points to strength for related data in Wednesday’s
durable goods report including nondefense capital goods shipments. The
October readings will shape expectations for fourth quarter business
investment.
Advanced alloy maker Haynes International (HAYN) has reported
sequential sales gains over the last four quarters and sees another
sequential gain for the December quarter. The company said trends are
strongest in aerospace.
Despite what it describes as global economic uncertainty, Sirona
Dental Systems (SIRO) reports strong demand for advanced products and
expects “robust” sequential sales growth for the fourth quarter.
Medical device maker Zoll (ZOLL) posted an on-year 18% rise in
hospital sales in its October quarter yet still sees the North American
market in no better than a slow recovery.
Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.
** Market News International New York Newsroom: 212-669-6430 **
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