Performance of the controls industry improved greatly in the second quarter (2Q03), mirroring the market in general. The Control Engineering

The CE Index was more compatible with the NASDAQ, which is heavy with high-tech, smaller companies. The CE improved 23% in 2Q03, compared to 21% for the NASDAQ. The Dow Jones Industrial Average and the S&P 500 improved 12% and 15% respectively in 2Q03.

Meanwhile, the controls industry's Market Value and EPS indexes are finally tracking each other, which is what is expected. They were quite scattered over the past two years, but the good news is that they were both on the way up in 2Q03. Only two companies in the CE Index showed a decrease in market value from the previous quarter. The 23% increase for all the companies was fueled, not so much by a 68% increase by a small company, but a 48% increase by Tyco, which is the index's second largest company.

Overall earnings picture for the controls field is a bit more muddled. Only three of the CE Index's companies had positive increases; two had less negative earnings; while six had decreased earnings. Two companies had no change. However, all of this was overshadowed by the total 23% increase in earnings for all of the companies. With an improvement like this in the second quarter, it looks like 2003 will end up on better terms than the past two years.