Tuesday, July 29, 2008

Strong Earnings From US Steel Should Help Global Economy Story

The so called "global economy" stocks have sold off with the rest of everything else, as worries of US weakness have spread elsewhere. The earnings are saying otherwise. A few examples:

-US Steel(X)- Second-quarter net income rose to $668 million, or $5.65 per share, from $302 million, or $2.54 per share, in the year-ago quarter.

Excluding a charge related to inventories, the company posted a profit of $5.68 per share, easily beating analysts' consensus forecast of $3.84 per share, according to Reuters Estimates.

"We expect another excellent quarter with continued earnings improvement as price increases implemented during the second quarter and early in the third quarter are expected to improve average realized prices for each of our reportable segments," Chairman and Chief Executive John Surma said in a statement

-Manitowoc (MTW)- Manufacturer Manitowoc Company Inc. said Monday that second quarter earnings rose 37 percent on stronger overseas demand for its construction equipment unit and strength in its marine division.

-Mosaic (MOS)- Fertilizer chemicals company Mosaic Co. on Monday said its fiscal fourth-quarter earnings quadrupled from a year ago as sales doubled on continued strong demand for its agricultural products.

"The fundamental driver of our business -- the need for more food -- continues unabated," Jim Prokopanko, Mosaic's president and chief executive said in a statement.

-And don't forget oil stocks. National Oilwell Varco (NOV)- Oilfield service provider National Oilwell Varco Inc. on Tuesday reported its second-quarter profit grew 32 percent on strong demand for its equipment.

The company reported income of $421.7 million, or $1.04 per share, compared with $318.5 million, or 89 cents per share, during the second quarter of 2007.

Pete Miller, National Oilwell's chairman, president and chief executive, said in a statement that demand for capital equipment products remained strong, which was reflected in the company's record $10.8 billion backlog.

But apparently its time to buy financial stocks who's outlook is in the tank. Hmmm.

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