Textile, heavy machinery sectors receive bailouts

yesterday rolled out its third and fourth industry-specific bailout packages in three weeks, targeting the textile and heavy machinery manufacturing sectors, as stock markets rose on optimism about a quick recovery in the embattled economy....
http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/
?vgnextoid=c6924a0b1324f110VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Companies&s=Business

Don't Let Heavy Machinery Weigh You Down

First came the whiskers, followed by a furry little face that didn't look very threatening. But now, investors are being whipped by a destructive tail.

Yes, Fools, the cat is now fully out of the bag. Global industry simply fell off a cliff sometime last fall, and the more plant closures and layoffs we see, the more this once-bagged cat resembles a rabid, ferocious lion. After Terex (NYSE: TEX) became the latest heavy-equipment manufacturer to reduce guidance this week, the time is ripe to reassess the landscape for these machinery makers.

Back in September 2008, before the feline had extended its claws, Terex reduced 2008 earnings guidance to less than $6.65 per share and watched investors crush the stock. This week, Terex reduced guidance yet again, this time to a range of $5.40 to $5.45 per share, but the shares traded resiliently in the aftermath. The difference, I believe, is all about sentiment, which suggests that markets have already priced in a barrage of earnings disappointments. With a final growl, Terex even warned of a potential $600 million impairment charge relating to tumbling asset valuations, and still, shares refused to head lower.

Elsewhere in the sector, investors are licking their wounds after Caterpillar (NYSE: CAT) dumped dismal earnings and deep labor cuts upon them. CNH Global (NYSE: CNH) set the mood by forecasting huge sales declines and announcing plant closures to work through burgeoning inventories. Manitowoc (NYSE: MTW) posted a fourth-quarter loss last week despite some one-time gains from the divestiture of its marine segment. Meanwhile, mining-equipment specialist Joy Global (Nasdaq: JOYG) notably bucked the trend, with a 68% increase in net earnings for the fiscal fourth quarter and a still-expanding backlog of equipment orders.

As we await earnings from both Bucyrus (Nasdaq: BUCY) and Deere (NYSE: DE) in mid-February, Fools with an interest in the sector have time to review balance sheets and operational outlooks. With stimulus packages under consideration around the world, and indications that some portion of demand disruption is related to credit and liquidity issues, I believe several of these companies will find themselves on the road to recovery by 2010. Now that the cat is out of the bag with respect to a massive global recession and the frightful derailment of the worldwide industrial machine, I believe that a recovery process can soon begin for the heavy industrials with the lightest debt burdens.
http://www.fool.com/investing/general/2009/02/04/dont-let-heavy-machinery-weigh-you-down.aspx

Dallas Heavy Machinery Sales – TenList

A new Dallas Heavy Machinery Sales and service website was unveiled today. The need of top quality heavy machinery and heavy equipment service and sales directory has become apparent for contractors due to current economic conditions.

The advent of http://dallas.tenlist.com/heavy-machinery-sales/tx has been designed to help contractors maximize their return on investment. "It is our hopes that giving contractors the ability to find the best heavy machinery sales in Dallas will provide them the means to stimulate the growth of their companies" stated President of TenList Shawn Sandifer in an online interview.

The online directory of heavy machinery sales in Dallas follows the traditional guidelines of TenList. The companies found in the new online heavy machinery sales directory are verified using the VeriFIDO process. The TenList VeriFIDO process gives consumers and businesses the ability to find services, with a degree of confidence that is unmatched in online directories.

The heavy machinery sales directory has been greeted with much interest from Dallas contractors during the pre-launch phase. The overwhelming interest has resulted in TenList making this service available in Houston see: http://houston.tenlist.com/heavy-machinery-sales/tx and also in Fort Worth Texas http://fortworth.tenlist.com/heavy-machinery-sales/tx

The value of these directories may be felt from the large construction companies that can now save money and time when searching for heavy machinery sales to the construction workers that may be aided in finding employment due to these savings. The long term effect of promoting construction thru providing heavy machinery sales brings the promise of economic stimulus that can benefit the entire state of Texas.
http://www.webwire.com/ViewPressRel.asp?aId=86043

Sector Snap: Heavy machinery manufacturers slip

Shares of several heavy machinery manufacturers fell Friday as an analyst said CNH Global NV's warning about a turbulent 2009 demonstrates "the view is abysmal" for the year.

Analyst Robert F. McCarthy of Robert W. Baird & Co. said in a note to investors that he sees "particularly negative implications" for Caterpillar Inc., Deere & Co., Terex Corp. and Astec Industries Inc., which will follow CNH Global in reporting earnings results.

CNH Global, a supplier of agricultural and construction-equipment businesses, reported Thursday it earned $114 million, or 48 cents per share, in the fourth quarter, about the same as a year ago. Excluding restructuring charges, it earned 49 cents per share.

Revenue for the Amsterdam-based company dropped 10 percent to $3.67 billion.

Analysts surveyed by Thomson Reuters, on average, had expected earnings per share of 69 cents on much higher revenue of $4.75 billion.

McCarthy said the implications also are negative for lifting equipment manufacturers such as Manitowoc Co. Inc., Oshkosh Corp. and suppliers such as Parker Hannifin Corp. and Sun Hydraulics Corp.

Shares of Caterpillar fell $1.89, or 5 percent, to $35.34 in morning trading as the overall market was down. Deere was down $1.53, or 4 percent, to $35.98. Terex slipped to 56 cents, or 4 percent, to $13.50. Astec dropped 43 cents, or 1.6 percent, to $25.50. Manitowoc slipped 11 cents, or about 2 percent, to $6.27 and Oshkosh dropped 43 cents, or 4 percent, to $9.57.

http://www.forbes.com/feeds/ap/2009/01/23/ap5957560.html

Machining center for heavy workpieces

Hermle Machine says its C 50 U Dynamic machining center extends the C series' capabilities to cut larger, heavier parts. With XYZ axis travels of 1,000 x 1,100 x 700 mm, the machine can accommodate workpieces weighing as much as 2,000 kg. Rapid traverse rates are 60 m per minute in the X and Y axes and 55 m per minute in the Z axis. In addition, the Y axis is equipped with tandem drive for higher machine dynamics.

The machine is available with an NC swiveling rotary table with clamping surface diameter of 700 mm or an optional 1,150 x 900 mm diameter. Both tables use an integrated torque motor on the C axis and a tandem drive motor on the A axis. The A axis is capable of speeds of 20 rpm, while the C axis can reach 30 rpm. Both are said to increase flexibility by offering a swivel range extending to +30 degrees/-115 degrees.

According to the company, the machine is useful for simultaneous five-axis and/or five-sided machining of large automotive parts, aircraft parts or precision molds. It can accommodate parts with diameters as large as 1,000 mm and heights ranging to 810 mm. Precision is in the single-digit micron range, the company says.

http://findarticles.com/p/articles/mi_m3101/is_2_80/ai_n19362157?tag=content;col1

Fluids for heavy machining and grinding

Designed for moderate- to heavy machining and grinding applications, the Cimstar 3800 family of fluids has been developed to meet the challenges of aluminum machining and grinding in the automotive industry.

The line is suitable for use with titanium, exotic alloys and ferrous and non-ferrous alloys and provides cleanliness and bimetallic corrosion control for parts, individual machines and central plant systems, the company says.

For more information from Milacron Inc., call (513) 487-5643 or enter MMS Direct code 434KK at www.mmsonline.com

http://findarticles.com/p/articles/mi_m3101/is_10_77/ai_n13455093?tag=content;col1

Mitsubishi Heavy Said to Abandon Sale of Tokyo Base

Jan. 7 (Bloomberg) -- Mitsubishi Heavy Industries Ltd., Japan’s largest heavy-machinery maker, canceled a plan to sell its Tokyo headquarters because bids for the property failed to meet expectations, two people familiar with the sale said.

The sale of the 28-story building was scrapped in October, the people said, declining to be identified because the information wasn’t public. The company had aimed to sell the property for about $800 million, according to one of the people.

Mitsubishi Heavy joins other Japanese companies seeking to reduce non-revenue producing assets and instead expand its power equipment and aerospace business. The company, which makes everything from ships to nuclear reactors and wings for Boeing Co.’s 787 Dreamliner jet, is developing Japan’s first passenger jet, slated to come into service in 2013.

“As general practice of our company, Mitsubishi Heavy periodically evaluates its assets, including real estate,” spokesman Hideo Ikuno said by telephone. He declined to discuss the Tokyo building.

Mitsubishi Heavy is spending 235 billion yen ($2.5 billion) on facilities and equipment each year to March 2011, 28 percent more than the average of the past two years, it said last year.

Lack of Capital

Other Japanese companies have started to sell off properties or real estate units to focus on their main businesses. Banks including Resona Holdings Inc., Shinsei Bank Ltd. and Citigroup Inc. sold their Tokyo headquarters last year to raise capital.

The Mitsubishi Heavy Industries Building is located in Shinagawa, southwest of central Tokyo. The tower, completed in March 2003, has space of 227,527 square meters (2.4 million square feet). The company occupies about one third of the property.

Shinagawa Mitsubishi Building, a 32-story tower next to Mitsubishi Heavy’s headquarters, was sold to Morgan Stanley’s real-estate fund for 140.2 billion yen in January 2005.

A lack of financing forced 25 public traded real estate and construction companies to file for bankruptcy in Japan in 2008. The less a potential buyer of a building can borrow, the less they can pay.

The banking units of Japan’s top four lenders -- Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Resona -- cut commercial real estate lending by almost 770 billion yen in the six months through September, compared with the end of March, according to earnings statements published in November.

To contact the reporter on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net; Masumi Suga in Tokyo at msuga@bloomberg.net.

http://www.bloomberg.com/apps/news?pid=20601101&sid=aJUEuhuAlT00&refer=japan