Manufacturing

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

5 September 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 August 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 August 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 July 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 July 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 July 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 June 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 June 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 April 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 April 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 April 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.

Review: A flawed compass for post-Brexit Britain

31 March 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 March 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 February 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 January 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 January 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 December 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 November 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 October 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.