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Stocks in the electrical equipment industry underperformed the market during the 4th qtr of 1998, due to the uncertain economic situation in Asia and other factors. The achievement of earnings improvements through operational efficiency has been driven by industry maturity in Europe and the US, and research and development expenditures have grown during the 1990s, as well. These stocks are not timely in 1999 and investors should seek opportunities in other industries.

The electrical equipment industry has benefitted from the current trend of all industries to cut costs by providing them with industrial automation equipment, products that reduce energy and environmental management costs, and outsourcing services. However, the US electrical equipment market has matured and international expansion offers both opportunities and drawbacks. Because of the diversity of products produced by the industry, investments should be based on individual company performance rather than on the industry as an entity.

The Republican-dominated Congress will stem the decline in defense spending, boosting the fortunes of aerospace and defense companies. Other developments favorable to the industry include a $1.5 billion UK contract for Lockheed's C-130J cargo-carrier and renewed Air Force support for McDonnell-Douglas' C-17. The depressed airliner market will soon benefit from large Chinese and Saudi Arabian orders. Still, only stocks bearing Value Line rankings of 1 or 2 are recommended.

The prospects for aerospace/defense industry stocks are evaluated. Defense spending cuts could level off, if the Nov 1994 Congressional elections result in gains for conservatives. Lockheed and Martin Marietta plan to form a 'merger of equals,' but the deal is subject to antitrust review. No upturn is in sight for the commercial aircraft sector. Evaluations of individual stocks are included.

The aerospace and defense industry should continue to exhibit little if any growth in the near term. The airliner manufacturer sector could exhibit strong growth in 1995 or 1996 due to an increase in demand by air transportation operators. The defense sector of this industry should continue to exhibit declines in its performance, part of which is due to the net decline in military appropriations. Investors should be careful with their choices in this industry.

The aerospace and defense industries are suffering from a decline in aircraft demand. However, demand for commercial aircraft will eventually rise because 2,900 aircraft in the current fleet are destined for the scrap pile. The turn in demand could happen as soon as 1996 and become strong by the end of the century. Potential investors should choose company stocks with Timeliness ranks of 1 or 2 and realize that any investment in this industry is risky.

The aerospace and defense industries have entered a time of transition, as the US enters a peacetime economy with peacetime prospects for industrial manufacturing. With cuts in defense spending, it is unlikely that the companies can maintain high growth in 1994 and beyond. A number of companies have found buyers for their products overseas, or have switched their manufacturing lines to other products, but most investors should avoid these investments until the industry stabilizes.

The summer of 2001 may well be remembered for some of the most dismal economic news heard in years, as one controls company after another reported declining profits and layoffs […]

Rockwell Automation reports its storefront at PT place.com recorded $70 million in on-line sales after one [...]

Milwaukee, WI--Rockwell International expects to report third quarter 2001 earnings per share of approximately $0.45, before special charges, due to a decline in revenue in the automation business. This revised […]

Shareholders of Milwaukee-based Rockwell International Corp. will receive one share of Rockwell Collins stock for each share of Rockwell International stock they own when the Collins avionics and communications business [...]

Rockwell International Corp. In the fiscal year ending Sept. 30, 2000, 62 percent of Rockwell Internatonal Corp.'s sales and 60 percent of its operating earnings came from its automation business. [...]

Suppliers can't seem to catch a break on Wall Street. Their problems include sagging heavy-truck sales, declining aftermarket orders, falling light-truck production and the weakening euro - and they are [...]

A Rockwell Automation gift of $955,900 in cash and equipment will help establish the Rockwell Automation Laboratory in Texas A&M University's Dwight Look College of Engineering's engineering technology and industrial [...]

Rockwell Automation said PT-place.com, its online vendor of Dodge and Reliance Electric power transmission products, has posted $10 million in sales since the site's creation in April. The Web site [...]

SourceAlliance.com, an e-commerce business that is being spun off by Rockwell International, has raised $25 million in outside financing to beef up its Triangle headquarters and launch its online sales. [...]

McDonnell Douglas posted the highest first-quarter performance, with profits up 42% to $134 million. Lockheed Corp saw a 21% profit increase, while Raytheon Co made $169.3 million in sales. Figures are given for Rockwell International Corp, TRW Inc, and Northrop Corp.