By Mark Pender

NEW YORK (MNI) – MNI’s U.S. capital goods index rose more than
3-1/2 points in the July 30 period to 71.5 indicating robust
year-on-year gains and pointing to rising month-to-month gains ahead,
according to the results of Market News International’s weekly survey.

Sales are at an unadjusted year-on-year +15.7%, the best rate of
the recovery. Distribution is very deep with 61% of the sample posting
gains of 10% or more. Currency effects are holding down export sales by
only 1.0%.

Income is very strong at +35%. Sample size is 403 companies.

Last week’s durable goods report showed solid gains for June
shipments and this sample points to strong gains for July as well. New
orders were no better than mixed but backlogs are up.

Below is a run of useful comments.

Moog (various – MOGA): “Our recession is over. Sales are strong and
continue to grow. Our major aircraft development programs are moving
into production. Space & Defense and the Components Group are having a
very strong year. Sales are improving in both Industrial and Medical.”

Ametek (electronic instruments & motors – AME): “Our markets
overall continue to show good growth as evidenced by our strong order
input this year. While we remain watchful for any effects to our
business from a slowing global economy, we are not experiencing any
impact at this point.”

Specialty materials maker Entegris (ENTG) cites favorable business
trends in the semiconductor and microelectronics markets and expects the
second half of the year to be stronger than the first half.

Keithley (KEI), which makes test instruments for electronics
manufacturing, believes the global electronics industry is recovering
faster than other industries. It cites strength in demand for consumer
electronics and automotive electronics and it cites capital equipment
spending on hardware and software.

Off-highway wheel maker Titan (TITN) believes strength in the
Brazilian currency makes it a good time for the U.S. farmer. It sees
strong big-equipment sales over the next three years.

Lincoln Electric (welding products – LECO) offers a warning: “While
demand levels have significantly improved in most markets and geographic
regions on a year-over-year basis, volume trends are stabilizing.”

Steel-products maker Universal Stainless (USAP) warns that its
customers are cautious, pointing to a sequential moderation in backlog.
Industrial services provider Harsco (HSC) warns that steel mill capacity
rates have leveled off. United States Lime & Minerals (USLM) warns that
demand from the steel industry is slowing though it says demand for
highway construction is improving.

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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