Construction Backlog Indicator up by 3.9% in Q2
Associated Builders and Contractors (ABC) reported a 3.9% increase in its Construction Backlog Indicator (CBI) last quarter, representing 8.2 months of backlogged work, up from 7.9 months in the first quarter of 2013.
The CBI is a metric that details the amount of commercial and industrial construction work that is currently under contract and not yet completed.
“For several quarters, various surveys on nonresidential construction firms operating across the United States have indicated a growing sense of confidence regarding the near-term outlook,” said Associated Builders and Contractors chief economist Anirban Basu. “Now we know why: They’re getting busier."
Basu said that while the sporadic recovery of the nonresidentail construction industry is buoyed by jobs gains and the economic recovery at large, a full recovery still lies just beyond the industry’s grasp.
Compared to 2012’s second quarter, the backlog is up by 6.6%.
More details can be found on ABC’s website.
Deere beats estimates with $997 million in Q3 income
Deere & Company outpaced the expectations of analysts with its third quarter earnings. The company made $997 million in net income, a 26% year-over-year increase.
Net sales, which experienced a 4% gain, were at $10.01 billion.
According to the company, the performance boost is largely attributed to robust sales in farm machinery and financial services, with sales and income higher than any previous third quarter period.
"John Deere is well on the road to another year of impressive performance after reporting record third-quarter results," said chairman and CEO Samuel R. Allen. "Deere’s success is a reflection of considerable strength in the farm sector, especially in North and South America. We also are making further progress executing our wide-ranging operating and marketing plans, which call for expanding our global market presence while keeping a close watch on costs and assets."
The company expects full-year income to reach $3.45 billion, but according to Reuters, some analysts predict that Deere has "reached a high-water mark." Deere had lowered its outlook for 2013 revenue earlier this year, and while the new full-year expectation reverses that trajectory, the new outlook also implies a lower-than-expected fourth quarter turnout.
Nardelli considered for Office Depot chief
Former Home Depot CEO Bob Nardelli, the hard-charging executive with a reputation for a top-down management style, is among the candidates for the top executive post at Office Depot and OfficeMax.
According to an article in the WSJ, the combined office products company hopes to name its CEO by September.
Nardelli left Home Depot in January of 2007 amid a clash with the board of his pay. He is the former CEO of Chrysler, and he currently serves as an advisor for private-equity firm Cerberus.