A handful of surprisingly good earnings reports suggested that some of the major U.S. companies that make things and move them around - including Caterpillar, 3M and UPS - could lead the way to economic recovery.
 
According to AP writers Christopher Rugaber and Alan Zibel this would be an unusual path back to better times as consumer spending and housing usually lead the way. But all three of those companies, plus AT&T and Union Pacific railroad, indicated business was picking up, and most said they expected it to get even stronger later this year.
 
To read the full story click here. 

 

Economic Outlook
Peter Buchanan, a senior economist at CIBC World Markets, said executives have been careful not to raise hopes too high for big profits in future quarters. But he says earnings results from UPS and Union Pacific should help ease such worries.
 
"If you're moving stuff, it's a broad indicator covering spending by both businesses and consumers," Buchanan says. "Companies are erring on the side of caution in their forecasts...but on the ground the real results don't look so bad."
 
Local Results
This is particularly good news for Adams County where manufacturing remains the third largest employment sector (18.55%) following "education and health services" at number two (19.93%) and "trade, transportation and utilities" at number one (25.97%).
 
Two publicly traded, international companies based in Quincy - Gardner Denver, Inc. and Titan International - released second quarter reports that mirror the national trends. 
 
Gardner Denver Report
Gardner Denver is one of Quincy's top employers and number 350 on Industry Week's 2010 list of the top 500 US manufacturers. According to the report, compared to the second quarter of 2009, revenues in 2010 increased 3 percent, and orders increased 37 percent.
 
President and CEO, Barry L. Pennypacker attributes these increases, in part, to investments made during the downturn to help streamline Gardner Denver processes. "As a result of these efforts, the incremental profit on the revenue growth has increased and our lead times have been reduced," Pennypacker said in a recent release.
 
He was also quoted saying, "As a result of our expectation for a slow economic recovery, we anticipate demand for industrial products to gradually improve as the year progresses, but continue to remain cautious in our outlook."
 
Titan International Report
Another primary employer in Quincy, Titan International, also expects the last two quarters in 2010 to meet or exceed goals set at the end of last year. "The third quarter is starting out stronger than in 2009," said Chairman and CEO Maurice M. Taylor Jr in a press release, "and I believe the goals we set last December will be met on the mid to high side if business keeps going as it is today."
 
According to the report, Titan's sales increased by approximately 11 percent compared to the second quarter of 2009, a result of increased demand in all of the company's segments; agricultural, earthmoving/construction and consumer.
 
Taylor also noted the "effort, talent and prompt action" taken by the management team and all Titan employees that helped make the second quarter successful.
 
To read the full second quarter reports from Gardner Denver or Titan International, please see our "Quick Links" on the side of this page.