The manufacturing sector continues to lead the economic recovery in metro Milwaukee and across the Midwest, according to quarterly results and dividend payments made by publicly traded companies, as well as the April business survey by the Milwaukee chapter of the Institute for Supply Management.
The organization’s Seasonally Adjusted Milwaukee Index is up two points to 68. A year ago, it was at 66. Any reading over 50 indicates an expanding economy.
New orders received increased 12 points to 80. Production is up 12 points also to 81. Backlog rose 18 points to 68. Supplier lead times improved a point to 27. Blue collar employment is up five points to 69. White collar employment did not change, remaining at 61.
Inventory levels rose seven points to 64. Capital equipment expenditures are up to 69.
The survey, when paired with the latest quarterly earnings of publicly traded manufacturers based in southeastern Wisconsin, begins to paint a larger picture of expanded production, increased sales and rising profitability within the manufacturing sector. The companies with expanding balance sheets include:
- Johnson Controls Inc. reported record sales and earnings with double-digit improvements by all three of its business segments for its fiscal second quarter. The company also increased its estimate for full fiscal year 2011 revenues. The Glendale-based company had quarterly net income of $385 million, or 51 cents per share, up from $297 million, or 40 cents per share, in the same period a year ago. Its quarterly net sales grew to a record $10.1 billion from $8.3 billion a year earlier. The company’s Automotive Experience sales in the quarter increased 25 percent to $5.2 billion due to higher production levels and launches of new automotive seating and interior programs. The company’s revenues increased 22 percent in North America, while European sales were up 26 percent, Asian sales increased 37 percent and Chinese sales grew 31 percent.
- Cudahy-based Ladish Co. reported first quarter net earnings of $9.4 million, or 60 cents per share, a significant rise from $5.3 million, or 34 cents per share, in the same period a year ago. The company’s quarterly sales grew to $114.1 million from $98.9 million a year earlier.
- Milwaukee-based Briggs & Stratton Corp. posted fiscal third quarter net income of $51.5 million, or $1.02 per share, up from $24.1 million, or 48 cents per share, in the same period a year ago. Its quarterly net sales grew to $720.3 million from $694.6 million a year earlier.
- Milwaukee-based Rockwell Automation Inc. reported fiscal second quarter net income and income from continuing operations of $166.4 million, or $1.14 per share, up from $137 million, or 95 cents per share, in the same period a year ago. Rockwell reported quarterly revenue of $1.5 billion, up from $1.2 billion a year earlier.
On Friday, Milwaukee-based Harley-Davidson Inc. declared a cash dividend of $.125 per share for the second quarter. The dividend, payable on June 17, is a 25 percent increase over the previous dividend paid on March 4, 2011.
