The 2020 Mid-Year Economic Update_long

Day: October 31, 2007

NAHB: Housing Market Should Stabilize in 2008

Though there is currently downward momentum" in the housing market right now, the downswing is poised to move back up again in 2008, economists at a recent National Association of Home Builders forecast conference said.

The economists gave these reasons:

  • The overall economy and job growth continue to move ahead at a decent pace;
  • Core inflation is under control;
  • The late-summer credit crunch in mortage markets is easing; and
  • And the supply-demand equation will balance out as builders "whittle down" excess inventory.

"Home sales should bottom out by ...

Rockwell Collins Sales Up 13% in Fiscal 2007

Rockwell Collins, Inc., Cedar Rapids, IA, reported profit for the fiscal year ended Sept. 30, 2007, of $585 million, an increase of 23% over fiscal year 2006. Fiscal year 2007 revenues increased 14%, to $4.42 billion. Organic revenue growth was 13%.
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For the fiscal year 2007 fourth quarter, profit increased 13% to $156 million. Revenues increased $165 million, or 16%, to $1.23 billion from revenues of $1.06 billion last year.
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Government Systems
Government Systems, which provides defense communications and defense electronics systems, products and services, including subsystems, displays, navigation equipment and simulation systems, to the U.S. Department of Defense, other government agencies, civil agencies, defense contractors and foreign ...

Advance Estimates Put 3Q GDP Growth at 3.9%

Real gross domestic product -the output of goods and services produced by labor and property in the U.S. -increased at an annual rate of 3.9% in the third quarter 2007, according to advance estimates released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.8%.
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The Bureau emphasized that the third-quarter advance" estimates are based on source data that are incomplete or subject to further revision by the source agency. The third-quarter "preliminary" estimates, based on more comprehensive data, will be released on Nov. 29, 2007.
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The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), exports, federal government spending, equipment and software, ...

September Construction Spending Slightly Below 2006

Construction spending in September 2007 was estimated at a seasonally adjusted annual rate of $1,162.8 billion, 0.3% above the revised August estimate. The September figure is 0.8% below the September 2006 estimate.
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During the first nine months of this year, construction spending was $872.2 billion, 3.2% below the same period in 2006.
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Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $869.0 billion, 0.2% below the revised August estimate. Residential construction was at a seasonally adjusted annual rate of $511.4 billion in September, 1.4% below the revised August estimate. Nonresidential construction was at a seasonally adjusted annual rate of $357.7 billion in September, 1.5% above the revised August ...

Lawson Products Sales Up Slightly in 3Q

Lawson Products, Inc., Des Plaines, IL, a distributor of products to the maintenance, repair and operations and original equipment manufacturers, reported sales from continuing operations in the third quarter ended Sept. 30, 2007, were $127.9 million, up $0.6 million from the comparable prior-year period. Profit was $2.4 million.
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Third quarter 2007 results include severance costs of $3.7 million related to several executive departures and re-alignment of the company's sales management.
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In April, 13 sales agents for Lawson were &nbsp ; indicted on federal fraud charges. The sales agents were accused of paying kickbacks totaling $140,000 to employees of some of their customers, including suburban municipalities, school districts, a federal agency, a non-profit ...

SPX Corp. to Buy APV for $510M

SPX Corp., Charlotte, NC, has agreed to buy APV, a global manufacturer of process equipment and engineered solutions primarily for the sanitary market, for 250 million British pounds (US$510 million). APV is a division of Invensys plc, an industrial automation, transportation and controls group based in London.
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APV will become a part of SPX's flow technology segment. APV's primary products include pumps, valves, heat exchangers and homogenizers for the food, dairy, beverage and pharmaceutical industries. Revenues for APV were $800 million for the fiscal year ended March 31, 2007.
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APV is a strong strategic fit with SPX and will expand our manufacturing, sales and distribution operations for process equipment in Europe, Asia Pacific and worldwide," said Chris ...