Business Abroad Drives U.S. Profits
While the U.S. economy is struggling, U.S. corporations aren't.</br></br>A third of the way through the second-quarter reporting season, earnings at companies in the Standard & Poor's 500-stock index are the highest in four years, according to S&P analyst Howard Silverblatt, who predicts the second half will be even stronger. Yet there is little indication that the strong results will jump-start the U.S. economy and get the millions of Americans idled by the recession back to work.</br></br>About three-quarters of the companies that have reported so far have done better than analysts expected. Many of them -- ranging from manufacturers Honeywell International Inc. and Caterpillar Inc. to drug maker Abbott Laboratories -- raised their earnings forecasts for later in the year.</br></br>Corporate profits -- one of the few areas of strength in the limp U.S. recovery -- appear to be weathering the economy's soft patch. But the gains in many cases have come from international operations, particularly in emerging markets.</br></br>"We aren't creating jobs," said Paul Huck, chief financial officer of Air Products & Chemicals Inc., on a conference call Friday.