UK Manufacturing Sector Growth Slows In July

The UK manufacturing sector growth slowed in July as supply gridlock resulted in a moderate deceleration in the rates of expansion of production, new orders and job creation, final survey results from IHS Markit showed on Monday.

The Chartered Institute of Procurement & Supply manufacturing Purchasing Managers’ Index came in at 60.4 in July, in line with flash estimate, but down from May’s record high of 65.6. Nonetheless, the index signaled expansion for 14 months.

Production rose for the fourteenth consecutive month in July, as companies benefited from increased new order intakes, rising client confidence and the re-opening of the economy. New business inflows reflected stronger demand from domestic and overseas markets.

That said, rates of growth in both output and new work both eased to four-month lows. Manufacturers reported another growth in new export business.

Solid jobs growth continued, but the rate was insufficient to prevent a further increase in backlogs.

Logistic delays caused by stretched international supply chains led to a further marked lengthening of supplier lead times in July.

With demand outstripping supply, price pressures continued to grow in July. Average input costs rose at a near survey-record pace.

The outlook for the manufacturing sector remained on the upside in July, with 63 percent of companies forecasting output to rise over the coming year.

Keller H1 Profit Climbs, Sees FY21 Results Materially Ahead Of Previous View; Stock Climbs

Shares of Keller Group plc (KLR.L) were gaining around 11 percent in the morning trading in London after the geotechnical specialist contractor reported Tuesday a better than expected first half profit. Looking ahead, the company’s performance for fiscal 2021 is now anticipated to be materially ahead of the Board’s previous expectations, with a modest second half bias.

For the first half, profit before tax climbed 41 percent to 29.2 million pounds from last year’s 20.8 million pounds.

Earnings per share were 28.2 pence, up 104 percent from last year’s 13.8 pence.

Underlying earnings per share were 35.6 pence, compared to 39.5 pence a year ago.

Revenue for the period declined 5 percent to 984.1 million pounds from 1.04 billion pounds last year.

Revenue was flat on a constant currency basis, with a slow first quarter followed by improved momentum in the second quarter.

Further, the company maintained dividend of 12.6 pence, continuing the Group’s uninterrupted record of maintaining or increasing the dividend since flotation in 1994.

The company said its order book at the end of June was up 11 percent to 1.2 billion pounds on the prior period and on a constant currency basis.

In London, Keller Group shares were trading at 963.46 pence, up 10.61 percent.

The Pressures and Privileges of Being a Parent in 2021

By Lauren Smith Brody

THE FAMILY FIRM
A Data-Driven Guide to Better Decision Making in the Early School Years
By Emily Oster
304 pp. Penguin Press. $28.

PepsiCo to sell majority stake in juice business for $3.3 billion

(Reuters) -PepsiCo Inc will sell its controlling stake in Tropicana, Naked and other juice brands in North America to private equity firm PAI Partners for $3.3 billion, the beverage giant said on Tuesday.

The company will retain a 39% stake in the new joint venture.

Arconic Lifts FY Revenue Outlook

Arconic Corp. (ARNC) said it updated its full-year 2021 outlook in light of the effects of increased metal price on revenue and working capital.

Arconic now expects full-year 2021 revenue to be in a range of $7.3 billion to $7.6 billion, compared with the prior outlook of $7.1 billion to $7.4 billion. Analysts polled by Thomson Reuters expect the company to report revenues of $7.29 billion for fiscal year 2021. Analysts’ estimates typically exclude special items.

The outlook assumes an average annual LME aluminum price of $2,330/mt and Midwest Premium of $540/mt for the full year, versus prior assumptions for LME of $2,200/mt and Midwest Premium of $430/mt.

Adjusted EBITDA expectations for full-year 2021 remain in a range of $710 million to $750 million. Adjusted free cash flow outlook for full-year 2021 is now expected to be approximately $250 million compared to the prior outlook of $300 million to $400 million.

Adjusted free cash flow outlook excludes a $250 million contribution to U.S. pension plans in April in connection with the $1 billion annuitization, and approximately $350 million in other funding of legacy pension, OPEB, and environmental liabilities.

2021 Audi RS5 Sportback India launch on August 9

The Audi India range is set to expand with the launch of the 2021 RS5 on August 9, 2021. The new Audi RS5 will join the S5 Sportback and the RS7 Sportback in Audi’s line-up of performance models in India.

Compared to the RS5 coupe that was launched in India in 2018, the updated RS5 looks more aggressive and gets two more doors. It features new headlights, reshaped air intakes and a larger single-piece grille. At the back, a reshaped diffuser, new tail-lights and a subtle design update are also part of the package. Additionally, as has been seen on other RS models, the new RS5’s wheel arches sport a 40mm extension.

On the inside, the overall layout and design remain largely unchanged when compared to the previous model. However, the new RS5 features a new free-standing 10.1-inch touchscreen, with Audi’s new MMI acoustic response technology. The new system also does away with the old rotary controller from the centre console. The RS5 will also get an updated version of Audi’s 12.3-inch Virtual Cockpit digital instrument cluster and RS-specific touches such as the steering wheel, sporty seats and Alcantara trim elements.

Under the hood, the 2021 Audi RS5 Sportback continues to use a 2.9-litre, twin-turbo V6 engine that churns out 450hp and 600Nm. The engine comes mated to an 8-speed automatic transmission with Audi’s Quattro all-wheel-drive system sending power to all four wheels. As a result, it can sprint from 0-100 kph in just 3.9 seconds with an electronically limited top speed of 250kph (that can be optionally raised to 280kph).