EU fines Intel $1.45 Billion for Squeezing out Rival
EU regulators on Wednesday slapped a record 1.06 billion euro ($1.45 billion) fine on Intel Corp for antitrust violations and ordered it to halt illegal efforts to squeeze out arch-foe AMD. Analysts say the move, which Intel CEO Paul Otellini vigorously contested, may help AMD recoup some of the market share lost to its bigger and nimbler rival over past years, but is not expected to radically transform Intel's operation. The decision may also force U.S. regulators to act, analysts say, with South Korea and Japan already accusing the company of antitrust violations.
General Motors Corp., under the direction of the U.S. Treasury, is near a deal that would cut its hourly labor costs by more than $1 billion a year and reduce its $20 billion pledge to the United Auto Workers to cover health-care obligations, said people familiar with the matter. The plan is still in flux, but GM and the union could finalize terms as early as next week. The Detroit auto maker expects to halve its remaining cash outlays for retiree health costs to about $10 billion, and supplement that contribution with a 39% equity stake in the reorganized GM, the people familiar with the matter said. Cutting GM's health-care costs is an essential part of the "controlled bankruptcy" plan the Treasury Department is formulating for GM.
In April 2009, average hourly earnings in manufacturing were $18.14, up .28 percent from March 2009’s $18.09 (preliminary), and up 2.83 percent from April 2008’s $17.64.
The hourly compensation of all manufacturing workers rose 12.8 percent during the first quarter of 2009 (from the previous quarter, at an annual rate), reflecting increases in hourly compensation of 15.7 percent in durable goods subsector and 8.6 percent gain in nondurable goods manufacturing.
Real hourly compensation rose 15.5 percent.
In 2009, hourly compensation of all manufacturing workers grew 7.9 percent, compared to a 4.0 percent increase in 2008. Real hourly compensation in the total manufacturing sector rose 8.1 percent in 2009 after increasing by 0.2 percent in 2008.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0481 First Quarter, Preliminary,” released May 7, 2009; next release is June 4, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
In the fourth quarter of 2008, manufacturing profits decreased 15.2 percent, or $41.4 billion (at an annual rate), to $231.2 billion from $272.6 billion in the third quarter. Compared with fourth quarter profits of 2007, manufacturing profits were down $60.9 billion in the fourth quarter of 2008. Manufacturing profits in 2008 were $76.8 billion less than manufacturing profits in 2007.
Fourth quarter 2008 profits estimates for all non-financial industries (manufacturing being a subcategory) decreased 9.8 percent from the third quarter of 2008 to $825.8 billion.
In April 2009, manufacturing employment fell by 149,000 to 12.2 million from March’s (preliminary) manufacturing employment levels.
In April, durable goods manufacturing lost 127,000 jobs, with decreases in all categories: Fabricated metal products (-28,700), Machinery (-21,500), Primary metals (-11,800), Wood products (-1,300), Furniture and related products (-7,600), Computer and electronic products (-11,700), Nonmetallic mineral products (-1,000), Electronics equipment and Appliances (-9,300), Transportation Equipment (-33,800) of which Motor vehicles and parts was -29,100, and Miscellaneous manufacturing (-600).
In April, nondurable goods manufacturing lost 22,000 jobs. Job losses occurred in Plastics and rubber products (-8,600), Printing and related support activities (-7,700), Chemicals (-4,400), Apparel (-3,900), and Paper and paper products (-3,500). However, Food manufacturing reported gain of 10,000 jobs, Leather and allied products (+200) and Petroleum and coal Product (+100).
The manufacturing employment of 12.2 million workers represents 9.2 percent of total non-farm employment.
In April 2009, manufacturing output fell 0.3 percent and was 14.5 percent below its year-earlier level.
The production index for durable goods declined 0.3 percent. The durable manufacturing industries that registered decreases in output of more than 1 percent in April included Furniture and related products (-2.8%), Fabricated metal products (-2.1%), Primary metal (-1.2%), Aerospace and miscellaneous transportation (-1.1%). The industries that registered increases in output of more than 1 percent in April included Nonmetallic mineral products (1.9%), Wood products (1.8%), and Motor vehicles and parts (1.4%).
The production of nondurable goods decreased 0.1 percent. Industries that registered notable decreases in output included Printing and support (-2.4%), and Apparel and leather (-1.4%). However, increased production was registered in Paper (1.2%), Petroleum and coal products (0.8%). Chemical production was unchanged from March. Plastics and rubber products was also unchanged.
The index for other manufacturing industries (non-NAICS) decreased 2.6 percent in April.
In April 2009, manufacturing industries (NAICS based) operated at 65.8 percent of capacity, 13.6 percentage points below their 1972-2008 average of 79.4 percent and 0.1 percentage points lower than their revised capacity utilization in March 2009.
In durable manufacturing, capacity utilization decreased 0.2 percentage points in April from March (revised) to 59.7 percent. This reflects increases in capacity utilization in Nonmetallic mineral products (1.1 percent), Wood products (1.0 percent), Motor vehicles and parts (0.7 percent) and declines in Aerospace and miscellaneous transportation equipment (-0.9 percent), Electrical equip., appliances and components (-0.3 percent), Furniture and related products (-1.4 percent), Primary metals (-0.5 percent); Computer and Electronic products (-0.5 percent); Fabricated metal products (-1.2 percent); and Machinery (-0.4 percent), among others.
Capacity utilization in non-durable manufacturing in April was unchanged from March. Decreased capacity utilization was registered in Printing and support (-1.2 percent), Apparel and leather (-0.7 percent), and Food and beverage, and tobacco products (-0.2 percent). Increased capacity utilization was registered in Paper (0.9 percent), Petroleum and coal products (0.7 percent), Textile and product mills (0.1 percent), Plastics and rubber products (0.1 percent), and Chemical (0.1 percent).
Manufacturing productivity decreased 3.4 percent (seasonally adjusted annual rate) in the first quarter of 2009, as output dropped 22.4 percent and hours of all persons declined 19.7 percent. These were the largest-ever declines in the output and hours series, which begin with data for the second quarter of 1987. Over the last four quarters total manufacturing productivity decreased 3.3 percent. By contrast, output per hour increased at a 3.7 percent average annual rate during the 2000-2007 period.
In the durable goods manufacturing subsector, output plummeted at a 31.0 percent annual rate while hours dropped 23.4 percent, yielding a productivity decline of 10.0 percent.
In the nondurable goods producing industries productivity edged down 0.1 percent as a 13.1 percent decline in output was offset by a 13.0 percent decline in hours worked.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0481 First Quarter 2009, Preliminary,” released May 7, 2009; next release is June 4, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
Year to date March 2009, U.S. manufactured goods exports accounted for 82.2 percent of all U.S. exports of goods, compared with 81.3 percent a year ago. Manufactured goods exports in March were 9.7 percent higher than previous month, while imports were up 10.5 percent. Year to date March 2009’s trade deficit in manufactured goods of $70.4 billion was less compared with $103.9 billion a year ago.
In March 2009, shipments of manufactured durable goods decreased $3.0 billion or 1.7 percent to $175.0 billion, down eight consecutive months. This followed a 0.8 percent February decline. Primary metals, down eight consecutive months, had the largest decrease, $0.9 billion or 6.0 percent to $13.3 billion.
Shipments decreased in almost all the major manufactured durable goods categories:
Machinery (-2.9 percent), Computers and electronic products (-2.6 percent),Electrical equipment, appliances and components (-2.1 percent), and Fabricated metal products (-0.4 percent). However, Transportation equipment was up (0.4 percent).
In April 2009, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.1.
The index for finished energy goods was down 0.1 percent in April. On the otherhand, the index for gasoline prices increased 2.6 percent, liquefied petroleum 5.0 percent, Home heating oil and distillates 3.8 percent, and No. 2 diesel fuel 17.0 percent. The index for Residential gas declined 6.2 percent in April after declining 2.4 percent in March. The index for residential electric power also declined 0.6 in April.
Economic activity in the manufacturing sector failed to grow in April for the 15th consecutive month, and the overall economy contracted for the seventh consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
In April 2009, the ISM index (PMI) of manufacturing registered 40.1 percent, 3.8 percentage points higher than the seasonally adjusted 36.3 percent reported in March.
While this is a month-over-month improvement, it is still a sign of continuing weakness in the sector. An index above 50 percent indicates that the manufacturing economy is generally expanding; an index below 50 percent indicates that it is generally contracting.
The percentage-point changes in the components of the PMI in April were: New Orders up 6.0 percent to 47.2, Production up 4.0 percent to 40.4, Employment up 6.3 to 34.4, Supplier Deliveries up 1.3 percent to 44.9, and Inventories up 1.4 to 33.6.
Prepared by
Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce
(202) 482-2460-4691
Links
to Web sites outside the U.S. federal government or the use
of trade, firm, or corporation names within the International
Trade Administration Web sites are for the convenience of
the user. Such use does not constitute an official endorsement
or approval by the U.S. Commerce Department of any private
sector Web site, product, or service.
Indicates
a PDF file. If you can't open these, download a free 