Manufacturing

Review: A flawed compass for post-Brexit Britain

31 Mar 2017

The vote to leave the European Union exposed a new political fault line, David Goodhart argues in “The Road to Somewhere”. The solution is for cosmopolitan elites to share more power with those left behind. The tension is real, but the distinction too broad to be a useful guide.

Luxury watch deal builds on Hong Kong shell pile

1 Mar 2017

Luxury watch retailer Hengdeli wants to sell its prized China business to its chairman and leave stakeholders Swatch and LVMH with a gutted listed entity. Proliferating empty shells is a real problem in Hong Kong. Better to force a buyout, or block such sales.

Insurgency is logical byproduct of Alcoa spinoff

1 Feb 2017

Alcoa coped with an irrational aluminum market by plowing capital into expensive acquisitions. Management hoped a separation would attract investor attention to its Arconic parts business, and provide a cozy escape hatch. It got what it wanted – but in the form of a proxy fight.

Detroit can power-steer around political obstacles

26 Jan 2017

The new president wants more U.S. factories and jobs. In theory that could cost the car industry $60 bln-plus. But Ford and GM have spare capacity and good PR folks. Other Trump policies should help carmakers, too. They can turn connected and driverless tech to their advantage.

Foxconn’s $7 bln U.S. bet goes beyond politics

23 Jan 2017

Building a huge American factory would fit neatly with President Trump's push to create domestic jobs. That could help the Taiwanese iPhone maker navigate trade disputes. Grabbing a share of the U.S. television market could also help revive recently acquired subsidiary Sharp.

GE’s succession path lit by dueling deals

29 Dec 2016

The $275 bln industrial giant has a long list of executives capable of taking over when Jeff Immelt retires. In addition to engines and turbines, GE manufactures CEOs. The progress of two major M&A transactions will give the board a clearer view in 2017 on who should get the job.

Mr. Market is way ahead of next U.S. president

9 Nov 2016

Donald Trump's economic plans have been sparse on detail. Investors are filling in the blanks themselves. Caterpillar and Vulcan leapt on an expected infrastructure boom. For-profit prisons and schools are back in vogue. Ford, Amazon, Whirlpool - firms Trump shamed - not so much.

Baker Hughes investors overly pessimistic about GE

31 Oct 2016

Shares of the oilfield-services firm tumbled after announcing a merger with GE's oil and gas unit. Shareholders get a $7.4 bln special dividend and a big stake in an industry leader. But having been burned before, Baker's owners have their reasons for discounting GE's promises.

Ford’s messy quarter is a slowdown, not a crash

27 Oct 2016

Weaker sales contributed to the 56 pct drop in the carmaker's third-quarter earnings. But so did recalls and other funnies. Strip those out and the Mustang maker's margins are healthier than they look. The rally in U.S. vehicle sales may be over, but the off-ramp is manageable.

Tesla’s surprise profit paves way for more capital

26 Oct 2016

Elon Musk's electric-car maker moved back into the black. The small Q3 income could help investors see clear to approving the silly SolarCity deal. Tesla and Musk also have sent mixed signals about needing fresh money, but now would be as good a time as any to try and top up.

GM rides cruise control to top of auto cycle

25 Oct 2016

A strong third-quarter showing extended the smooth ride Detroit's top carmaker is having as U.S. sales peak. Ford's engine, meanwhile, is already sputtering. GM may even have a bit more gas in the tank. CEO Mary Barra, though, may find that the going will soon get tougher.

Bayer upstaged by its unloved plastics spinoff

25 Oct 2016

Plastics maker Covestro’s share price has doubled in the past year whereas that of its former parent is heavily weighed down by the pricey acquisition of U.S. seed maker Monsanto. Their divergent destinies are a lesson in how focus can beat a restless hunger for mega-deals.

Rockwell’s smart-jet hopes crash into reality

24 Oct 2016

Investors wiped up to 6 pct off the avionics supplier's stock after it agreed to pay $6.4 bln for seatmaker B/E Aerospace. Rockwell is betting the tie-up will win it a larger share of commercial airlines' digital transformation. The market for new planes, though, is stalling.

Tata’s Cyrus Mistry changed too little, too late

24 Oct 2016

India's $110 bln conglomerate has sacked its chairman of four years. Mistry was slow to tackle problems at Tata Motors and Tata Steel; growth has also ground to a halt at cash cow Tata Consultancy. Fresh blood could put the nation's most prominent group back on a positive track.

Caterpillar CEO exit looks like preemptive strike

17 Oct 2016

Doug Oberhelman will retire as boss of the $51 bln earth-moving equipment maker next year. Cat will also split the CEO and chairman jobs. It looks like a calculated attempt to get in front of would-be activist investors after bad deals and poor performance damaged credibility.

Viewsroom: Samsung’s fiery future

13 Oct 2016

Cancelling production of its self-combusting Note 7 smartphone puts the company's reputation as well as $17 bln or more at risk. Cities, businesses and investors are putting Trump and Clinton to shame on climate change. Plus: Brexit politics get shaken up by the pound's decline.

Apollo finds a line yield-seekers won’t cross

10 Oct 2016

Leon Black's buyout shop yanked a 500 mln euro debt issue for French bottle maker Verallia after investors balked. They disliked that they might be paid in more debt while Apollo returned itself some cash. Brexit, Trump and ECB fears finally are rousing bond buyers to push back.

Danaher returns to dealmaking with $4 bln dud

6 Sep 2016

Fresh from splitting off its industrial arm, the healthcare giant is buying molecular tester Cepheid. Cost cuts cover barely half the 54 pct premium and investors aren't buying promises of extra revenue. CEO Tom Joyce's claims of greater efficiency and growth are falling flat.

VW jolt not enough to end Icahn trucking nightmare

6 Sep 2016

The investor's 20 pct stake in Navistar got a boost from the troubled U.S. manufacturer's partnership with the German giant. Five years agitating for change has yielded nothing for Icahn or fellow activist owners. The stock needs to rise by half again just for him to break even.

Peugeot well positioned for yesterday’s car market

27 Jul 2016

Bumper half-year operating profit shows the French carmaker is cutting costs neatly. Yet a radical shakeup in the car industry means getting up to speed with fuzzier stuff like self-driving cars, electric vehicles and new mobility services. That's a big ask for smallish Peugeot.