By Mark Pender

NEW YORK (MNI) – MNI’s U.S. capital goods index remains little
changed near recovery highs, at 73.4 in the Feb. 11 period to show
steady and strong year-on-year growth, according to Market News
International’s weekly survey.

At +12.9% in the latest period, year-on-year sales growth has been
steady in the low double digits for the past several months.

The sample’s year-ago sales base is sloped increasingly higher
which, given steady year-on-year growth rates consistent with guidance,
points to monthly and quarterly gains ahead.

Distribution of strength is deep with 58% of the period’s
445-company sample posting a sales gain of 10% or more against only 5%
posting a 10% or deeper decline. Income is steady at +29%.

MNI’s data point to an 11th straight monthly gain for the business
equipment index in Wednesday’s industrial production report for January.
On year-on-year terms, growth for this index has been steady in the low
double digits since June.

Terex (TEX) said Latin America, India and China are driving large
crane and off-highway truck demand with demand for small equipment
improving in the Americas and Western Europe.

Orders at electrical products maker Littlefuse (LFUS) rose in
January as channel inventories decreased. Despite high metals prices,
the company believes margins will hold up and earnings will rise in line
with sales.

Citing its strong backlog and forecasts that domestic truck-trailer
volume will rise 30% to 60% this year, trailer maker Wabash National
(WNC) sees a year of strength ahead. The company ended a long string of
disappointments in the fourth quarter.

Backlogs are building at filter-systems maker Peerless
Manufacturing (PMFG) which believes the power market is now turning
higher. It further cites new U.S. environmental regulations that are
forcing power generators to review their systems.

Building-equipment maker Ingersoll Rand (IR) believes the North
American commercial HVAC market is now in slow recovery though it warns
that the overall commercial building market, both here and in Europe,
will continue to limit its results.

Power-supply maker Magnetek (MAG) reports that demand from the
material-handling markets is down this quarter, which it warns is likely
to result in a sequential decrease for its March quarter sales.

Many with interests in aerospace, such as diversified industrial
manufacturer Albany International (AIN), continue to be hurt by 787
delays. Albany is warning that growth at its engineered composites unit,
which makes up 9% of the company’s sales and produces landing gear
braces, will he held back through the first three quarters of the year.

Aerospace lighting maker Astronics (ASTRO) warns that 2011 sales
will become more dependent on new aircraft production and less on
retrofit.

Editor’s Note: MNI compiles its capital goods index based on a
weekly sample of company news and data.

** Market News International New York Newsroom: 212-669-6430 **

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