Capital Goods Sector Review: Caterpillar’s Economic Commentary, Earnings Galore

Briggs & Stratton Corp. (NYSE:BGG) announced that it will move existing manufacturing from its Newbern, Tennessee facility to its McDonough, Georgia facility. The company will also close its Ostrava, Czech Republic plant, shifting production to the company’s Murray, Kentucky facility. Also, the company will continue reducing capacity by reconfiguring and idling certain assets at its Poplar Bluff, Missouri facility. The Newbern, Tennessee facility currently manufacturers walk behind lawn mowers and snow throwers for the U.S. domestic market. The Ostrava, Czech Republic facility currently manufactures small engines for the outdoor power equipment industry. These changes will result in the closing of the Company’s facility in Newbern Tennessee, affecting approximately 240 regular employees and 450 temporary employees. Additionally, the closing of the Ostrava, Czech Republic facility will affect approximately 77 regular employees. The company does not anticipate significant employment changes at its Poplar Bluff, Missouri facility. Operations in Ostrava are expected to wind down by March 15 and Newbern are expected to wind down by approximately May 15.

The shares closed at $15.70, down $1.5, or 8.72%, on the day. Its market capitalization is $786.00 million.

Precision Castparts Corp. (NYSE:PCP) reported revenue $1.82B vs. consensus $1.92B.

The shares closed at $166.34, down $9.94, or 5.64%, on the day. Its market capitalization is $23.98 billion.

Caterpillar Inc. (NYSE:CAT) said, “Prospects for economic growth have improved over the past quarter, and we expect the world economy to grow about 3.3% in 2012, a small improvement from about 2.8% in 2011. In response to economic concerns, some central banks began easing policies late in 2011. Underpinning our growth expectations for 2012, we expect this easing to continue and contribute to the improvement in growth…Our outlook assumes most commodity prices will increase slightly in 2012 and continue at levels that encourage investment. We expect that copper will average over $4 per pound, Central Appalachian coal about $75 per ton and West Texas Intermediate crude oil about $100 per barrel.”

The shares closed at $111.31, up $2.26, or 2.07%, on the day. Its market capitalization is $71.98 billion.

Precision Castparts Corp. (NYSE:PCP) reported revenue $1.82B vs. consensus $1.92B.

The shares closed at $166.34, down $9.94, or 5.64%, on the day. Its market capitalization is $23.98 billion.

The Boeing Company (NYSE:BA): The new budget to be proposed by Defense Secretary Leon Panetta may seek a greater role for the U.S. Navy’s Virginia-class submarines, built by General Dynamics (NYSE:GD) and Huntington Ingalls (HII), reported Bloomberg. Panetta also will propose cutting Army staff to 490,000 from 562,000, the Marines to 182,000 from 202,000, and canceling the C-27J transport plane made by a L-3 Communications (NYSE:LLL) joint venture, the report added.

The shares closed at $75.31, down $0.51, or 0.67%, on the day. Its market capitalization is $56.08 billion.

Harsco Corporation (NYSE:HSC) reported revenue $793M vs. consensus $804.1M.

The shares closed at $21.22, up $0.97, or 4.79%, on the day. Its market capitalization is $1.71 billion.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com