A few earnings reports provide a beautiful snapshot of what's happening to corporate America.
First of all, DuPont earnings were a total horror show.
The stock is down over 5% in the pre-market after the company missed on EPS, missed on revenue, lowered guidance, and announced 1500 layoffs.
What made the report so especially bad is the situation in Asia:
Third-quarter sales from continuing operations were $7.4 billion or 9 percent below last year, primarily reflecting volume declines in Electronics & Communications and Performance Chemicals, particularly in Asia Pacific. Company sales reflect 5 percent lower volume, 4 percent negative currency impact and a 1 percent net reduction from portfolio changes, which were partly offset by 1 percent higher local prices.
Also on the weak US industrials front: A bad outlook from 3M:
3M also updated its 2012 performance expectations. Reflecting current economic realities, the company now expects full-year earnings to be in the range of $6.27 to $6.35 per share, including $0.03 per share of anticipated acquisition-related costs. 3M previously expected a range of $6.35 to $6.50 per share, which did not include acquisition-related costs. The company anticipates full-year organic local-currency sales growth of 2 to 2.5 percent and that currency translation will reduce sales by approximately 2.5 percent for the year. 3M expects that full-year operating income margins will be in the range of 21.5 to 22 percent.
This is consistent with what we're seeing: US industrial companies with big foreign exposure are getting creamed.
But there are good reports too.
Luxury brands company Coach is rallying, with growth strong everywhere among consumers:
- Total North American sales increased 8%, to $784 million from $729 million last year. North American direct sales rose 11% for the quarter with comparable store sales up 5.5%. At POS, sales in North American department stores were essentially even with prior year while shipments into department stores declined, as inventories were planned lower.
- International sales increased 15% to $362 million from $314 million last year. China results continued very strong, with total sales up nearly 40% and comparable store sales rising at a double-digit rate. Shipments into international wholesale accounts rose sharply reflecting strong underlying POS sales trends. In Japan, sales rose 1% on a constant-currency basis, while dollar sales were even with the prior year, adjusted for a slightly weaker yen.
Also on the domestic consumer front, Harley Davidson beat on the top and bottom line.
So again, if you're consumer and domestic focused you're good.
If you're global and industrial, you're not doing so hot.
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