Summit Notebook
Exclusive outtakes from industry leaders
AUDIO – The Spiral
This has not been a cheerless week — after all, Chicago is a pretty fun place to be.
In reviewing many of the stories, though, from this week’s Reuters Manufacturing and Transportation Summit, one gets the idea that all was gloom in the Windy City.
So, while there have been many discussions this week about opportunities for growth and hopes of better things to come, the situation at many of the nation’s largest manufacturing companies remains pretty serious.
Such was the case presented by Brad Bell, chief financial officer for Nalco Co, a global provider of water treatment services, chemicals and equipment programs for industries.
The company’s products and services are used ito prevent corrosion, contamination and the build up of deposits in production. Essentially, there’s not a single sector of the manufacturing world that doesn’t have something water-related that is, or could be, made by Nalco.
So that’s a pretty good space to be in … when times are good. It creates some unique challenges (a popular word this week) during tough times.
While Bell sees some positives, he also thinks that this is not the end of the crisis and more tough days are ahead.
from Ruben Ramirez:
Change lightbulbs. Save millions.
Norfolk Southern says it is working hard to reduce the rail operator's carbon footprint. CEO Wick Moorman says the company is in the midst of a 2-year, $10 million project to change the lighting in it's facilities...he says he's even changed the lightbulbs in his office. Click here to listen to how much money Norfolk is saving and what else it's doing to be more "green." Wick from Tony Johansson on Vimeo.
AUDIO – For Nordson — “Get ‘em right, or get ‘em out”
Throughout the current recession, many of the companies’ executives at this week’s Reuters Manufacturing and Transportation Summit have found an opportunity to review, pare back and possibly add on to their existing business mixes.
Such is the case for Edward Campbell, chief executive of Nordson Corp, which has a uniquely diversified set of businesses under its umbrella and is looking at what makes sense for them going forward.
Campbell makes the clear point that if something isn’t working for Nordson long term, the company has a responsibility to really consider whether that is a business they should be in.
Nordson makes a wide range of precision dispensing, testing and inspection, surface preparation and curing products. Its products can be found in everything from appliances to autos to bookbinding to furniture. It operates in three segments: adhesive dispensing systems, advanced technology systems and industrial coating and automotive systems.
Campbell said all of its businesses were subject to review, but did mention a couple that might be pared back in the attached audio clip.
Campbell was one of the featured speakers for the third day of the annual Manufacturing and Transportation Summit, which continues through Thursday in our Chicago offices. The Summit program is in its fifth year, and in 2009 will include top-level executives from industries and sectors including everything from Infrastructure; to Mining; to Investing in India, China, Japan and Russia; to Food and Beverages.
AUDIO – Staying the course at CAT — But it’s a rough row to hoe
Caterpillar Inc Group President Ed Rapp knows that 2009 has been a tough one for his company, but he still thinks they can hit their numbers on revenue and earnings per share.
Speaking at the Reuters Manufacturing and Transportation Summit, Rapp (who, incidentally, has been with Caterpillar for almost 30 years and is still considered something of a “youngster” there!!) said that while there are still many hurdles for the company to avoid in the short term, he thought CAT’s previous guidance was within reach.
Rapp said he remains worried about the state of the credit markets and said government efforts to stabilize banking had yet to cut the cost of borrowing for captive finance companies. But his optimism comes from the sometimes painful steps the company has made in the past few months to cut costs and realign their business thinking.
Rapp is one of a team of six executives under CEO Jim Owens who run CAT’s day-to-day operations.
His presentation was one of the Tuesday highlights at this year’s summit, which runs through Thursday in our Chicago offices.
The Reuters Summit program is in its fifth year, and in 2009 will include top-level executives from industries and sectors including everything from Infrastructure; to Mining; to Investing in India, China, Japan and Russia; to Food and Beverages.
AUDIO – GE sees the problems … and the opportunities
On the first day of this year’s Reuters Manufacturing and Transportation Summit, one of the guests told us of the Chinese theory of the word “crisis” — the symbols for which are a combination of “problem” and “opportunity”.
On Tuesday, Vice Chairman John Rice told Reuters that both sides of the equation were in play for GE, but voiced confidence that the company would be able to hit its marks.
General Electric shares have had a tough run in 2009, but Rice’s comments — first reported by Reuters — did seem to turn the tide for GE on Tuesday, which had been lower on the day, but recently were 4 percent higher.
Rice, who runs GE’s Technology Infrastructure group, was one of the featured speakers at this year’s summit, which continues through Thursday in Chicago.
AUDIO – What’s going on with the economy? Ask a trucker.
That was the advice from truck manufacturer Navistar International Corp’s CEO Dan Ustian at this week’s Reuters Manufacturing and Transportation Summit in Chicago.
Ustian said the current slowdown has been worse and deeper than expected — even though the trucking industry had a sense that things were starting to go south as far back as 2007.
Ustian, one of our featured guests on the first day of the summit, told Reuters that the trucking industry is a great place for people to start if they want to get a good read on the economy. Most things that are made in the U.S. get where they’re going with the help of a truck somewhere along the way.
The breadth of the company’s businesses supports his view.
Navistar is a manufacturer of commercial trucks, IC Bus, LLC (IC) brand buses, MaxxForce brand diesel engines, Workhorse Custom Chassis, LLC (WCC) brand chassis for motor homes and step vans, Navistar Defense, LLC military vehicles, and is a provider of service parts for all makes of trucks and trailers. Additionally, it also designs and manufactures diesel engines for pickup trucks, vans, and SUVs.
The Manufacturing and Transportation Summit continues through Thursday in Chicago.
from Ruben Ramirez:
And we’re off…
The Manufacturing and Transportation Summit in Chicago kicks off our 2009 global coverage of Reuters Summits. Over the next 41 weeks we'll bring you exclusive interviews from around the world with corporate executives, government leaders and others who can give us key insights into what's ahead for their industries. First off, to get us ready for a more in-depth look at the manufacturing industry we spent a day last week in Rock Hill, SC home to two of Terex's (TEX.N) manufacturing operations. Rock Hill is located just about 20 minutes south of Charlotte, NC. Terex Hydra Platforms manufactures a product that looks like something out of the movie Transfomers. Check out the story:
Video – Building for the future
The U.S. is expected to spend an extra $28 billion to upgrade the nation’s bridges and roads and one manufacturer is hopeful some of those dollars will flow their way.
Ruben Ramirez, Reuters, Rock Hill, South Carolina.
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