I’m not sure what this says, but last week, we pried Super Bowl predictions from aerospace, financial experts and a lone economist. Only the economist, Don Klepper-Smith took Green Bay. Klepper-Smith even gave us the score, GB 30 and Pitt. 24.
“I was pretty close!… only 2 points off,” was his delighted reaction to the outcome. As the world knows, Green Bay won 31-25.
Let’s hope Don sees unemployment heading down dramatically in coming months…
While critics are crowing over the artistic values of commercials — Eminem’s stirring Chrysler moment, the Darth Vadar kid and the Volkswagon — the real test will be in coming weeks and whether people actually buy.
The days of having a jazzy commercial without generating sales, ala BK’s creepy commercials of nearly a decade ago, are over. It’s back to checking the balance sheet for those shelling out the cash for SB commercials.
On a side note, InBev appears to still be stumbling with its Budweiser campaign. It appears confused when it comes to peddling the working man’s brew.
But they did a nice job with Stella Artois piece. Sophisticated European setting and music number fit the beer.
Financial Mines
Super Bowl an economic win?
Fewer shots fired from Connecticut for new rifle contract
The Wall Street Journal has a good piece today, Feb. 03, on the U.S. Army’s hunt for the next rifle.
But it got me thinking about the state of gun making here in Connecticut.
There was a time when it would have been a lock for a U.S. gun maker, and likely a Connecticut one, to win such a contract.
Yankee ingenuity was a key ingredient to the gun making indsutry in the U.S.
But the industry is just a shell of itself today.
To be sure, Colt up in Hartford appears to be the front runner for the new rifle contract. It holds a piece of the contract, along with a foreign partner, right now.
Ruger is still headquarters in Southport, but whether it will take a shot at the contract remains to be seen.
Beyond that, competition in Connecticut is lacking.
Marlin Firearms said last year it will close its North Haven rifle factory this year.
Winchester moved out of New Haven in 2006.
And Remington is a name used to refer to a derelict factory in Bridgeport.
Cost cutting and, to some degree, a failure to invest in updating factories, took their toll on Connecticut gun makers. The executives of those companies ultimately decided it was cheaper to open new factories in other parts of the nation and world.
While many weapons are still made here in the U.S., there is a real chance that the next rifle will be imported.
And it will be strange indeed, if it happens. Stranger still because after all, Connecticut and the Northeast are still filled with ingenuity, but apparently, the stuff is too expensive to use.
Super Bowl XLV
The Super Bowl will be in the Black—and Gold that is according to aerospace analysts and financial advisors. But a lone economist, looking at some of the intangibles, says Green Bay is due.
This Sunday, the Packers and Steelers square off in the big game in Dallas. Beer, chicken wings and chili sales should jump in the days leading up the game as people prepare for parties. Hold Hormel and Doritos. (We know Doritos is owned by PepsiCo.)
The Packers are actually favored by 2.5 points right now, but several financial and aerospace experts see Pittsburgh winning.
Doug Royce and Ray “Jaws” Jaworowski, both aerospace guys in Newtown, said they have Pittsburgh taking the NFL crown this year.
Paul Schatz, a Woodbridge financial advisor, also picked the Steelers.
“I am rooting so hard for Green Bay, but I think Pittsburgh will win. In a nutshell, good defense usually beats good offense. Pitt has been there before with the coach and the QB.”
Schatz agreed good defense isn’t such a bad idea these days in the market, either.
Greg Drahuschak, market strategist for a top advisory firm, issued a disclosure before giving his pick.
He said he grew up in Steeler country and so he’s biased, but he also sees his team waking away with the title.
“It’s the nature of the way the Steelers have won this season and their approach,” he said, indicating Pittsburgh is a no nonsense smash-mouth team.
But Donald Klepper-Smith, the most recent chair of the council of economic advisors to the Governor, was the lone voice calling it for the Wisconsin team.
“I’m going with Green Bay, the underdog,” Klepper-Smith said. “The people in Wisconsin wear cheese on their heads to protect themselves from the snow. After years of enduring the God-forsaken white stuff, they are deserving.”
Klepper-Smith even gave us a score,
Green Bay 30, Pittsburgh 24.
Have fun watching.
Sikorsky’s S-92 heads to Afghanistan
Sikorsky, whose S-92 line has largely been confined to oil rigs and VIP transport, is going to get a work out in Afghanistan.
On Monday, Sikorsky delivered the second of two S-92s to AAR Corp., which has a $450 million contract to provide transportation services for up to five years in Afghanistan.
“Deployment to Afghanistan is a tremendous opportunity for AAR and the U.S. Government to see what the multi-mission S-92 aircraft is capable of in some very challenging flight conditions at high altitude,” said Ed Beyer, vice president for Sikorsky Global Helicopters. “The unique interior configuration of these two aircraft also will give AAR greater mission flexibility to perform its utility and transport missions.”
For years, analysts have said for the S-92 line to be succesful, it needs to have a viable military variant.
Sikorsky is building the CH-148 Cyclone for the Canadians, which based on the S-92. And the Stratford-based helicopter maker is also offering the S-92 to the Marines for the Presidential helicopter contest.
Earnings this week good proxy for factory, pharma and finance
Earnings this week should provide a glimpse of what kind of year 2010 was for insurance, manufacturing and pharma both nationally and locally here Fairfield and New Haven counties. Reports should also provide indications of executive expectations, which could foretell what kind of job opportunities will be available in these key sectors.
Beginning Tuesday, Energizer Holdings, the parent of Schick Wilkinson-Sword in Milford, reports earnings after recent surves showed consumer spending and sentiment is at last improving in the U.S. Also reporting is Pfizer, a proxy for both the pharmaceutical business and personal health in the U.S.
On Wednesday, Greenwich-based commercial insurer/re-insurer W.R. Berkley reports ahead of more traditional insurance companies, Cigna and Aetna who unveil their profits later in the week.
Danbury-based ATMI which makes semiconductors, also reports on Wednesday, giving us some idea of how key materials costs are impacting the tech sector. Harman International in Stamford goes on Thursday and its profits and outlook should tell us whether the sound and fury out of the auto industry is real or just significant so much nothing. Harman makes high-end audio and entertainment systems for the industry.
Important regional players are also reporting this week, including PerkinElmer, CB Richard Ellis and Time Warner.
Ethan Allen sales up 21 percent for 4Q 2010
Ethan Allen Interiors Inc., the Danbury-based maker of home furnishings that saw revenues plummet during 2009, seems to be making a rebound as it on Monday reported a sales spike of 21 percent year over year for the fourth quarter.
The press release is below:
Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:ETH) reported operating results for the three and six months ended December 31, 2010.
Mr. Farooq Kathwari, Chairman, President and CEO commenting on the results stated, “We are pleased with continued increases in revenues and profitability during the quarter ended December 31, 2010. With a sales increase of 21% and operating income of $10.5 million, we have benefited from the many initiatives we have taken to improve our marketing and operations. We also continue to maintain strong liquidity, ending the quarter with cash and securities of $85.6 million. Fiscal year to date, we have retired $6.9 million of our bonds and repurchased $5.4 million of our common stock. Later this year, we also expect to receive a federal tax refund of approximately $17 million.”
Three Months Ended December 31, 2010
Net sales for the quarter ended December 31, 2010 were $173.3 million, an increase of 21.0% compared with the prior year quarter. The Company’s Retail division net sales were $131.0 million, an increase of 22.3% from the prior year quarter. Written orders booked during the quarter by the Retail division were 5.7% greater than the prior year quarter including comparable design center orders which grew 10.7%.
Net income for the quarter ended December 31, 2010 was $14.7 million or $0.51 earnings per diluted share compared with a net loss the prior year of $3.3 million or a $0.12 loss per diluted share. Excluding special items in both periods, net income for the quarter ended December 31, 2010 was $5.6 million or $0.19 per diluted share compared with a net loss the prior year quarter of $1.6 million or $0.06 loss per diluted share.
Six Months Ended December 31, 2010
For the six months ended December 31, 2010, net sales were $338.2 million, up 21.0% from the prior year comparable period. Net income year to date was $18.6 million or $0.64 per diluted share compared with a year to date net loss of $16.9 million or $0.58 loss per diluted share the prior year. Excluding special items in both periods for the six months, current year earnings were $0.30 per diluted share compared with a net loss per diluted share of $0.25 the prior year.
Commenting on future prospects, Mr. Kathwari continued, “The ‘Great Recession’ has afforded us an opportunity to reinvent and restructure many aspects of our vertically integrated enterprise. While the economic recovery is still in the early stages, we remain cautiously optimistic and continue to take steps to grow our business. In our third quarter ending March 31, 2011, we plan to invest to increase our direct mail advertising by approximately 50% over the prior year. We look forward to discussing in greater detail our initiatives during our upcoming conference call.”
The conference call was held on Tuesday.
UTC earnings up 14 percent
Big questions facing the company include concerns over raw material access and prices, threats to the stability of markets due to growing international trade disputes and how serious Congress and President Obama are about cutting federal spending.
A conference call with analysts is scheduled for later this morning.
UTC reported the following on their website, utc.com, this morning before the bell.
HARTFORD, Conn. – United Technologies Corp. (NYSE:UTX) today reported fourth quarter 2010 earnings per share of $1.31, up 14 percent over prior year. Results for the current and prior year quarters included net charges for restructuring and one-time items of $0.03 and $0.08 per share, respectively. Before these charges, earnings per share increased 9 percent year over year. Currency hedges at Pratt & Whitney Canada, net of all foreign exchange translation, contributed $0.02 to the earnings per share increase.
Sikorsky Aircraft had a net operating profit of $239 million for the fourth quarter of 2010 compared to $202 million for the fourth quarter of 2009. Net profit margin at the Stratford-based helicopter maker was more than 11 percent for the fourth quarter of last year.
Consolidated sales for the quarter of $14.9 billion were 6 percent above prior year, including 6 percent of organic growth. Net income attributable to common shareowners of $1.2 billion increased 12 percent year over year. Cash flow from operations was $1.7 billion, including $600 million of global pension contributions. Capital expenditures were $386 million in the quarter.
Full year earnings per share of $4.74 and net income attributable to common shareowners of $4.4 billion increased 15 and 14 percent, respectively, from 2009 results.
“UTC’s fourth quarter results reflect strong sales growth, particularly in the commercial aerospace aftermarket and shorter cycle Carrier businesses,” said Louis Chênevert, UTC Chairman & Chief Executive Officer. “Our proactive focus on structural cost reduction resulted in solid conversion on higher sales and exceptional margin expansion for the year. For the first time in UTC’s history, all six business units delivered double digit operating margins for the full year, adjusted for restructuring and one-time items. In typical UTC fashion, cash generation was strong in the quarter and throughout the year.”
Extreme couponing
The first word that comes to my mind is “Whoa.” It may not be the most sophisticated or eloquent word — especially for a journalist with an English degree — but there it is. I’m talking about this phenomenon recently documented on The Learning Channel called “extreme couponing.” The second word that comes to my mind is “scary.” Anyone can easily surmise what “extreme couponing” may be, but to see it is to believe it. Take Amanda, the first “extreme couponer” featured on the show who bought $1,175 worth of groceries for $52 by scrupulously collecting coupons of all sorts. At first, I thought her feat was ingenious, even heroic, until she said a 10-foot-high pile of 3,000 rolls of toilet paper she amassed among other piles of groceries brought her “joy.” Joy? Her husband, who mentioned they’ve taken out a $35,000 insurance policy on what they call their “stockpile,” didn’t seem as enthusiastic as he stood among the piles, one of which was overtaking his man cave. I’ll close with a third word, if I may — “hoarder.”
