Manufacturing

Emerson’s tilt at Rockwell lacks killer blow

31 Oct 2017

The rejected $28 bln offer for the U.S. automation group represents a premium of just 15 pct, paid partly in stock that has systematically undershot Rockwell’s. With valuations high, an all-cash bid might have tested the target’s independence. That looks beyond Emerson’s means.

Tesla could hit second gear with Shanghai factory

22 Oct 2017

Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.

Daimler’s reform drive lacks horsepower

20 Oct 2017

Bumper third-quarter sales do little to address the Mercedes parent’s long-term problems, which include a margin-sapping global shift to electric vehicles. Plans to split in three would lift valuations if that led to a separate listing. But progress is at walking pace.

iPhone boost is prelude to bumper year for TSMC

19 Oct 2017

Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.

Japan is developing a quality-control problem

10 Oct 2017

Kobe Steel admits it sold substandard metals to hundreds of clients. After Takata’s lethal airbags and testing scandals at various carmakers, this is yet another blemish on Japan’s reputation for product quality. Something is going badly wrong with corporate cultures.

Ford’s clever electric van plan in China

4 Oct 2017

The U.S. carmaker is changing course in China, insiders told Reuters, as sales slow. New state policies open an opportunity for Ford to build electric commercial vehicles. That could help meet quotas - and electrify Ford SUVs. Much depends on the partner, and battery supply.

Rivals circle Taiwan’s TSMC in new chip era

3 Oct 2017

Morris Chang, father of Taiwan's chip sector, is retiring at 86. His successors were groomed for years to take over the $189 bln behemoth Chang founded three decades ago. They'll need to work hard to defend TSMC's dominance against Samsung and rising mainland competitors.

Trump’s new Democrat friends put China on notice

26 Sep 2017

The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.

Guest view: Tax relief made for U.S. manufacturers

5 Sep 2017

President Trump's broad reforms probably will take many months to craft, but Congress already has a narrower bipartisan plan to help. Offering credits for putting R&D side by side with domestic factories can help productivity, argues Dhaval Jadav, the CEO of a tax consultancy.

VF stitches up signature deal for the MAGA era

14 Aug 2017

The North Face owner is dropping $820 mln for Dickies, a maker of apparel for manufacturing and construction laborers. It gives VF a strong position in the workwear marketplace, which Donald Trump has promised to revitalize – or at least a hedge against fashion's fickleness.

Infrastructure-services merger owes Trump little

2 Aug 2017

Shares of engineer Jacobs popped when the U.S. president was elected in November. They’ve since faded along with hopes of heavy government spending. The company’s $3 bln combination with water expert CH2M may have some domestic benefits, but Jacobs’ bet looks more global.

Foxconn’s U.S. move sends false reshoring signal

27 Jul 2017

The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.

U.S. Steel forges best argument against trade war

26 Jul 2017

Rising demand and restrained imports led to blowout earnings at the $4.7 bln steelmaker. While management's hopes for tariffs on bogus national-security grounds are receding, investors are better served by a focus on upgrading high-cost production over protectionist lobbying.

Despite help from SUVs, GM still isn’t there yet

25 Jul 2017

The $54 bln U.S. automaker made more money than expected in the second quarter thanks to a shift from cars towards trucks and crossovers. Now, though, it’s making too many smaller vehicles. After exiting unprofitable overseas markets, CEO Mary Barra has to slim down at home, too.

Ford’s new driver veers back onto old road

20 Jun 2017

Jim Hackett is shifting production of the Focus compact to China from Mexico. The move risks angering President Trump but it’s a smart use of capital and a sign globalization isn’t dead. It’s also ex-CEO Mark Fields’ idea, proof there’s no quick fix for what ails the automaker.

Hexagon would be a pointy-edged takeover target

14 Jun 2017

At a price of almost $20 bln, the Swedish manufacturing software group offers a poor return for a buyer. That may not deter a rival such as ABB tooling up for the switch to automated factories. If globalisation goes into retreat, such a deal could even prove forward-thinking.

Viewsroom: CEO presidency needs boardroom pushback

17 May 2017

Donald Trump’s promise to run the government like a business is proving difficult but Congress could act like strong independent directors to rein in his wayward management.  China’s ambitious Silk Road project could leave its people holding the bag. Plus: job cuts at Ford.

Safran can wiggle out of Zodiac mess in own time

28 Apr 2017

The French engine maker clearly needs to reduce or scrap its 8.2 billion euro bid for the plane-seat maker. The current offer, a third above Zodiac’s share price, is financially and politically daft. But there’s no rush to renegotiate. Clever timing might produce a better result.

Ericsson turnaround has a static problem

25 Apr 2017

The Swedish telecoms kit maker made a $1.4 billion first-quarter operating loss after provisions and writedowns announced in March. New boss Borje Ekholm has the right strategy. But investors will still fret about further nasty surprises and a lack of progress on non-core sales.

Review: The demise of unions and the rise of Trump

11 Apr 2017

The new Broadway hit "Sweat," about a Pennsylvania steel plant’s closure, offers insight into the forces that put the U.S. president in office. Yet economic insecurity need not necessarily have fueled nativism. The dwindling power of organized labor is a compelling contributor.