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Second Quarter Update - Three Diversified Industrials

August 13, 2013 | About:
Sally Jones

Sally Jones

49 followers
In spite of uncertain market conditions, a number of large-cap engineering and production companies are up, and second quarter trading activity reflects the investing billionaires’ interest in them. Here are the highlights of most recent trading of three diversified industrial companies, each up 26% or more over 12 months.

ABB Ltd. (ABB) – Up 27% over 12 months

ABB Ltd. (ABB) is up 27% over 12 months with a market cap of $51.76 billion.

The current share price is $22.54, and trades with a P/E of 18.90. The dividend yield is 3.20.

Founded in 1988, ABB Ltd. is a global leader in power and automation technologies, based in Zurich, Switzerland. On a worldwide basis, ABB is the largest supplier of industrial motors and drives, the largest provider of generators to the wind industry, and the largest supplier of power grids. The company employs 145,000 people and operates in approximately 100 countries. ABB maintains seven corporate research centers around the world.

The company reported second quarter 2013 results of net income at $763 million, up 16% from the same quarter a year ago. Orders for the quarter were at $9.3 billion, down 7% from the same period a year ago. Income from operations was up 19% at $1.18 billion for the quarter, compared to $1 billion for the same quarter a year ago.

Guru Action: As of June 30, 2012, one Guru Jim Simons bought anew holding of 1,104,100 shares at an average price of $22.14 for a gain of 1.9%. Guru Ken Fisher reduced his position by 26.43% selling 8,068 shares at an average price of $22.14 for a gain of 1.9%.

Here’s more ABB trading action.

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Danaher Corporation (DHR) – Up 26% over 12 months

A global science and technology manufacturer, Danaher Corporation is up 26% over 12 months with a market cap of $46.93 billion.

The current share price is $67.47, and trades with a P/E of 8.90. The dividend yield is 0.10.

Danaher is a Fortune 200 that designs, manufactures and markets products and services to professional, medical, industrial and commercial customers. The Danaher Business System employs 63,000 around the world and customers in more than 125 countries. The company has five reporting segments: Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental and Industrial Technologies.

Danaher Corporation reported results for the second quarter of 2013 with net earnings for the quarter ended June 28, 2013, at $616.8 million, or $0.87 per share on a diluted basis, a 3.5% increase over diluted net earnings per share of $0.84 for the second quarter of 2012. Revenues for the quarter were $4.7 billion, 4% higher than the $4.6 billion reported for the second quarter of 2012. Core revenues increased 2.5% in the second quarter of 2013 compared to the second quarter of 2012. In 2012, Danaher generated $18.3 billion of revenue.

Guru Action: As of June 30, 2012, Guru Jeremy Grantham increased his position by 64.98%, buying 154,354 shares at an average price of $61.61 for a gain of 9.5%. Grantham’s trading history shows an average gain of 95% on 8,221,025 shares bought at an average price of $34.68 and 98% on 7,848,823 shares sold at an average price of $34.11 per share:



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Illinois Tool Works Inc. (ITW) – Up 30% over 12 months

Another diversified industrial company, Illinois Tool Works Inc. (ITW) is up 30% over 12 months with a market cap of $33.22 billion.

The current share price is $74.17, and trades with a P/E of 12.60. The dividend yield is 2.10.

Founded more than 100 years ago, ITW is a global diversified manufacturer of specialized industrial equipment, consumables, and related service businesses. The company has operations in 58 countries and employs approximately 60,000 people. ITW has a broad portfolio of nearly 12,000 active patents.

Illinois Tool Works Inc. reported second quarter 2013 diluted earnings per share from continuing operations of $1.03. According to a company press release, ITW’s total revenue of $4.2 billion increased 1.0%, excluding the impact of the Decorative Surfaces segment in 2012 results. The company’s total adjusted operating margin of 17.4% was 40 basis points higher than the same period a year ago. The 17.4% operating margin included $38 million of restructuring costs in the quarter, $25 million more than the same period a year ago. The company reported free operating cash flow of $554 million.

Guru Action: As of June 30, 2012, six Gurus were trading ITW. John Rogers increased his position by 22.47%, buying 1,541,134 shares at an average price of $66.88 for a gain of 10.9%.

Chuck Royce increased his position by 32.74%, buying 19,775 shares at an average price of $66.88 for a gain of 10.9%.

Here are more ITW trade details on two Gurus who reduced their positions and two who sold out.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (6 votes)

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