Posts Tagged: ‘steel research’
Unemployment Rate Drops to 8.3% in January
In a bit of good news for the steel market, the U.S. unemployment rate slightly declined from 8.5% in December 2011 to 8.3% in January 2012, according to the latest figures from the Bureau of Labor Statistics. Total nonfarm payroll employment increased by 243,000 in January, primarily as a result of 257,000 new jobs in private sector areas such as professional and business services (70,000), leisure and hospitality (44,000), and manufacturing (50,000). The number of new manufacturing jobs added more than doubles the 23,000 added in December. The most recent previous months where manufacturing gained roughly 50,000 or more jobs were January 2011 (49,000) and August 1998 (142,000). Almost 154.4 million people participated in the civilian labor force, up from about 153.9 million in December, and 140.8 million people were employed, up from about 140.6 million in December.
Close to 13M Unemployed
A total of 12.8 million people were classified as unemployed in January, down 2% from about 13.1 million in December. Of these, 5.5 million, or about 43%, were long-term unemployed (27 weeks or more without a job). The remaining 7.3 million either lost a job or completed a temporary job.
Participation Rate Falls Slightly
In January, the civilian non-institutional population age 16 and older measured about 242.3 million, up from about 240.6 million in December. The civilian labor force participation rate fell slightly, however, in January from 64% in December. . Meanwhile, the employment-population ratio held steady at 58.5% and has changed little since September 2011 (58.4%).
Part-Time, Marginal, Discouraged Workers (please compare with December)
There was little month-over-month change in the number of people employed part-time for economic reasons (up 1%, from 8.1 million in December to 8.2 million in January). However, a more substantial increase occurred in the number of people marginally attached to the labor force (up 12%, from 2.5 million to 2.8 million), and discouraged (marginally attached people not currently looking for work, up 16%, from 945,000 to 1.1 million).
Source: Bureau of Labor Statistics
Carpenter Technology (CRS) – Fiscal June Outlook Stronger on Better Aerospace and Energy Demand – Thoughts from the DecQ Conference Call
New Report Preview – Stainless Steel
Carpenter Technology (CRS) reported DecQ (fiscal 2Q) diluted earnings of $0.52/share, which adjusted to $0.57/share excluding costs related to the acquisition of Latrobe Specialty Metals, ahead of the Street’s $0.51/share.
Guidance for the second half of fiscal 2012 (ending in June) was for higher volume, revenue and operating income levels on the Carpenter business compared to the first half with the company still on track to achieve the full-year target of a 50% increase in operating income (excluding non-cash pension EID expense). Management said second half margins will likely remain around current levels as the benefits from higher volume are offset by some negative LIFO impact from reducing inventory at current nickel prices. Regarding the Latrobe acquisition, the company still expects positive EPS accretion in the first full year of ownership, although there will be some initial costs immediately following closing (sometime in MarQ), which will cause a small negative EPS impact in the remainder of fiscal year 2012.
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Timken (TKR) – Stronger 2012 Expected; Capacity Constrained on Steel Side – Thoughts from the 4Q Conference Call
New Report Preview – Machinery Steel
The Timken Company (TKR) reported 4Q earnings from continuing operations of $1.11/share, which adjusted to $1.15/share excluding one-time items, ahead of company guidance of $0.97-1.07 and the Street’s $1.06/share. The beat was due to a lower-than-expected tax rate as well as a richer product mix.
Guidance for 2012 was for EPS of $4.90-5.20/share, up from $4.59/share in 2011 with overall sales up 5-8% from 2011. The company is expecting a 10-15% uptick in Aerospace and Defense sales, an 8-13% increase in Process Industries sales, a 5-10% gain in Steel sales and flat Mobile Industries sales.
Management noted that the growth in Steel sales would be driven by improved pricing and a richer product mix as the company is currently capacity constrained (for SBQ and seamless mechanical tubing), with orders on allocation.
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