Controls Industry Outperforms Other Markets

The industrial controls business in 1997 outdid even the volatile and booming stock market. Dancing around the 8,000 level, the Dow Jones Industrial Average (DJIA) and other market indexes managed to recover on "Turnaround Tuesday" most of the losses suffered on "Meltdown Monday" in late October.

03/01/1998


The industrial controls business in 1997 outdid even the volatile and booming stock market. Dancing around the 8,000 level, the Dow Jones Industrial Average (DJIA) and other market indexes managed to recover on "Turnaround Tuesday" most of the losses suffered on "Meltdown Monday" in late October. The general market indexes made gains of 20% to 30% for the year while the Control Engineering (CE) Index soared, gaining about 50%.

The big gains industrial controls made in market value in the second quarter carried over for the year. Even when the CE Index figures are dampened by factoring in both the stock price increases and decreases with the market value, the increase in quarter-to-quarter and year-to-year numbers are between 35% and 45%.

The CE Index was also recently adjusted to accommodate the acquisition of valve manufacturer Keystone International by Tyco International in 1997. Even the DJIA bounces some of its 30 stocks and replaces them when needed. Name changes also tend to confuse some indexes.

Tyco's addition increases the number of large companies in the CE Index. Keystone was small compared to Tyco, which ranks with Emerson, Honeywell, and Rockwell.

The earnings picture for industrial controls took a big dip in 1Q97 due to a negative performance by one company's stock and a big drop for another company, though it still achieved positive earnings overall. Both companies turned around later in the year, while most of the other companies secured either positive or improved results.

CONTROL ENGINEERING STOCK INDEX

Stock prices close 12/31/96

($)close 12/31/97

% chg. in year

52-wk high

Annual div. yield

Price/earn ratio

12-month EPS($)

NC = Noncalculable or not meaningful
EPS = Earnings per share Yield = Percent based on closing price
Div = Dividend
Data: Nordby International Inc., Boulder, Colo.; Call 303/938-1877
Table: Control Engineering, Reed Elsevier Business Information

Ametek Inc. 22.25

27.00

21.35

28.00

0.74

18

1.52

Badger Meter Inc. 19.19

40.75

112.38

57.50

1.23

25

1.65

Daniel Industries 14.75

19.25

30.51

21.94

1.04

NC

0.00

Elsag Bailey Process 18.75

16.50

-12.00

21.75

0

275

0.06

Emerson Electric Co. 48.44

56.44

16.52

60.38

2.13

22

2.52

Honeywell Inc. 65.75

68.50

4.18

80.75

1.61

20

3.51

K-Tron Intl. 10.25

17.25

68.29

19.75

0

11

1.54

Moore Products Co. 18.00

37.00

105.56

39.25

0

22

1.69

National Instruments 21.33

29.00

35.94

33.63

0.00

31

0.95

Rockwell Intl. 60.88

52.25

-14.17

61.88

1.91

17

3.01

Transmation Inc. 5.13

8.50

65.85

9.88

0

280.

30

Tyco Intl. Ltd. 23.76

45.06

89.65

45.50

0.22

46

0.97

Wonderware 8.89

14.13

58.94

20.38

0

NC

-0.25





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Learn how to create value with re-use; gain productivity with lean automation and connectivity, and optimize panel design and construction.
Go deep: Automation tackles offshore oil challenges; Ethernet advice; Wireless robotics; Product exclusives; Digital edition exclusives
Lost in the gray scale? How to get effective HMIs; Best practices: Integrate old and new wireless systems; Smart software, networks; Service provider certifications
Fixing PID: Part 2: Tweaking controller strategy; Machine safety networks; Salary survey and career advice; Smart I/O architecture; Product exclusives
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Look at the basics of industrial wireless technologies, wireless concepts, wireless standards, and wireless best practices with Daniel E. Capano of Diversified Technical Services Inc.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.