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Pricing power is what's allowing many companies — including seven of our Club holdings — to support revenue growth and enhance, or at the very least protect, profitability during an earnings season marked by a still-elevated inflationary environment. When we're talking about "pricing power," it's the ability of companies with strong brands to raise prices without seeing too much impact on demand. Here's a list of Club holdings with pricing power, starting with a closer look at P & G. PG YTD mountain Procter & Gamble's stock performance year to date. LIN YTD mountain Linde's stock performance year to date. Halliburton has exhibited strong pricing power due to massive demand from global end markets, benefitting from years of under-investment in drilling.
Caterpillar shares turn around CAT YTD mountain Caterpillar YTD Dow component Caterpillar delivered a blowout first quarter. Caterpillar revenue in Q1 increased 16.7% year over year to $15.86 billion, exceeding estimates of $15.26 billion, according to Refinitiv. Better-than-expected operating margin of 17% was so strong, due mostly to manufacturing costs that were not as high as expected as well as higher prices. Bottom Line on CAT This was a very strong quarter from Caterpillar as business continues to benefit from pricing power that outweighs costs. Even with oil down in the quarter, Caterpillar continues to see a lot of activity and strength in new engine sales to customers.
Hong Kong CNN —A key index measuring the strength of China’s massive services sector jumped to its highest level in more than a decade, as the country’s economic recovery gained traction. The official non-manufacturing Purchasing Managers’ Index (PMI) soared to 58.2 in March from 56.3 in February, marking the best level since 2011, according to the National Bureau of Statistics (NBS). “The official PMIs suggest that China’s rapid reopening recovery remained robust this month,” Capital Economics analysts wrote on Friday. In a keynote speech, the newly minted premier told more than a thousand international business and political leaders that China’s economic growth was “strong,” with March’s performance even better than January and February’s. Top economic officials have also been trying to reassure both foreign business and the domestic private sector.
WASHINGTON, March 14 (Reuters) - U.S. small-business confidence improved further in February, but many owners continued to experience difficulties finding workers, according to a survey on Tuesday. The National Federation of Independent Business (NFIB) said its Small Business Optimism Index increased 0.6 point to 90.9 last month. Forty-seven percent of owners reported job openings that were hard to fill, up 2 points from January, with workers scarce for both skilled and unskilled positions. According to the NFIB, worker shortages were acute in the transportation, services and construction industries. About 38% of owners reported raising average selling prices, down 4 points from January.
Hong Kong CNN —China has set an official economic growth target of “around 5%” for 2023, as it seeks to revive the world’s second largest economy after a year of tepid growth because of pandemic measures. The new figure was released Sunday alongside the opening of the annual gathering of the National People’s Congress (NPC), the country’s rubber-stamp legislature, in a government work report. Chinese Premier Li Keqiang speaks during the opening session of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Sunday, March 5. Ng Han Guan/APMoody’s Investors Service has since raised its China growth forecast to 5% for both 2023 and 2024, up from 4% previously, citing a stronger than expected rebound in the short term. Global growth will likely slow from 3.4% in 2022 to 2.9% in 2023.
Moreover, breaking the top line down, consolidated sales growth is attributable to solid double-digit growth in all three primary operating segments. That's in line with our mantra of owning companies that do things, make stuff, and generate real profits and cash flow that will be returned to investors. Excluding China, management expects growth in the Asia/Pacific region "due to public infrastructure spending and supportive commodity prices." Energy & transportation: Management predicts "sales growth due to strong order rates in most applications," citing "strength in demand in order intakes for the year." Caterpillar generated full-year free cash flow of $5.8 billion and returned a total of $6.7 billion to shareholders via share repurchases and dividends.
U.S. small-business sentiment skids to half-year low
  + stars: | 2023-01-10 | by ( ) www.reuters.com   time to read: +2 min
Jan 10 (Reuters) - U.S. small-business confidence slid to a six-month low in December, according to a survey on Tuesday, which also showed that inflation and worker shortages remained major issues for firm owners. On net, about 43% of owners reported raising average selling prices, down 8 points from November and the lowest since May 2021. Forty-one percent of owners reported job openings that were hard to fill, down 3 points from November. "Overall, small business owners are not optimistic about 2023 as sales and business conditions are expected to deteriorate," said William Dunkelberg, NFIB chief economist. "Owners are managing several economic uncertainties and persistent inflation and they continue to make business and operational changes to compensate."
Nickel and tin have slumped 50% and 70% respectively. Spiralling inflation, COVID lockdowns in top consumer China and aggressive interest rate rises are behind economic weakness and dwindling demand growth for industrial metals such as copper, used in the power and construction industries. However, BoA noted that metals prices had already fallen significantly and that they would outperform energy in the first half of next year. For soldering material tin, a major theme is consumer belt tightening, which has hit demand for electronic goods. "Slowing (tin) demand is perhaps best illustrated by global semiconductor billings, which had retraced 18% by September, since reaching an all-time high in February," Macquarie analysts said in a note.
We're making several updates to our Bullpen watch list: adding five names, including Caterpillar (CAT), and removing two. Also, adding a stock to the Bullpen does not necessarily mean we would buy it at the current price. Let's go company by company to explain the reasons behind the additions and the removals. 5 stocks added to the Bullpen This aerospace and defense company was formed in 2020 through the combination of Raytheon Company and United Technologies Corporation's aerospace business. 2 stocks removed by the Bullpen We put Barrick Gold in the Bullpen back in March, thinking investors may seek out gold stocks as a safe haven during times of crisis.
As the trend toward pay transparency continues, companies across the nation are starting to include salary ranges in their job postings – but there are some industries and organizations that lead the pack. According to recent research from Adzuna, a job search engine, the best industries for pay transparency are charitable jobs and trade/construction jobs. Adzuna also found the worst industries for salary transparency – only 1% of job postings in the travel industry include pay ranges, and retail jobs ate the least transparent at 0.5%. Paul Lewis, chief marketing officer at Adzuna, says that the fallout from trends like the Great Resignation prompted these industries to increase salary transparency as a means to attract more workers. Based on Adzuna's findings, these are the 5 best companies for salary transparency as of November 2022:1.
The Bank of England has warned that the U.K. is facing its longest recession since records began a century ago. LONDON — The U.K. economy contracted by 0.2% in the third quarter of 2022, signaling what could be the start of a long recession. The preliminary estimate indicates that the economy performed better than expected in the third quarter, despite the downturn. The ONS said the level of quarterly GDP in the third quarter was 0.4% below its pre-Covid level in the final quarter of 2019. Prime Minister Rishi Sunak has warned that "difficult decisions" will need to be made in order to stabilize the country's economy.
watch nowRecession fears may be looming in Asia-Pacific, but that hasn't stopped companies in India, Australia and Singapore from continuing their hiring spree, according to LinkedIn. All three countries saw an increase in job postings on LinkedIn for jobs in the accommodation sector, such as hotels, motels, casino hotels and bed-and-breakfast inns. According to data collected by LinkedIn, paid job postings for careers in Australia, India and Singapore increased in June compared to a year ago, with the following sectors seeing the most growth:Australia1. Ang noted that the cutback of job postings for Singapore's construction sector was likely due to measures introduced by the government to cool the private and residential property market. Remote job optionsIn both Australia and Singapore, paid job postings that offered remote work options fell.
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