This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“Cars and light trucks are strong, of course. Semiconductor and telecom. One of the strongest segments for us right now is oil and gas, but offshore oil and gas, not land-based oil and gas. Offshore. Farm and ag, forestry and machine tools, those are all solid as well, as far as positives. So then the negative market segments would be the defense part of our business, the aerospace, the OEM and the aftermarket defense. Mining, of course, is a negative. Power gen and oil and gas, but the land-based oil and gas part of the business. And then, residential air-conditioning, commercial air conditioning are all both negative as well. So that — and then anything that I did not mention would be kind of flat, which would include like process industries, heavy-duty truck, off-highway construction, industrial trucks and so forth, those kind of markets.”
“I think that everybody has been managing their inventories pretty good, at least in that channel, for over this cycle. And I think now, they are really seeing end market demand, and I think that’s consistent with the overall order trend and the indices that I’ve kind of highlighted. I think that would be more end market demand than anything.”
“I would have a tendency to agree that usually when you’re up into that 56 territory, which is where the U.S. PMI is now, that you would expect to see more activity. I think there’s a little bit of a lag this time. But when we look at our 3/12 data, which is our more recent 3 months order trends, they’re tending to trend in the direction of that PMI where you expect them to be. So I think that’s just a little bit of a lag here, maybe a month or 2. And I think we’re going to be caught up with it. That’s just really off the top. That’s my gut feel based on looking at our order trends and the current PMI trends that we’re looking at.”
“some of the markets that are down, primarily the construction equipment market, is not coming back quite as quickly as we thought, primarily in our international”