Lincolnshire, Illinois, January 3, 2006 - "In November, the
delinquency rate on machine tool leases was much lower than on home mortgages.
Shops are not booming but are uniformly in good financial shape," commented
Harry Moser, President of Agie Charmilles Corp.
The Agie Charmilles Machining
Business Activity Index was unchanged at 60 in November. The Index is created by
surveying machine tool users concerning their current business level versus
three months earlier (August '06). Any reading above 50 indicates that business
activity has improved. The Index was inaugurated in October 2004 and is the only
known monthly index of business in the U.S. machining industries. Business
activity was strongest in the EDM Job Shop sector and in the Central region.
Historical data is shown in Figure 1, and, along with a detailed breakdown of
results by geographic region and application/sector, is at
www.charmillesus.com/newsroom/bizindex.cfm.
The November 30 day delinquency
rate on machine tool leases was less than 2%, which is lower than the 4.7%
delinquency rate on home mortgages. The Agie Charmilles/USBEF Machining Industry
Financial Strength Index was 333, vs. 294 in October 2006, 370 in November 2005
and 55 in January 2002, the lowest reading on record. Any reading above 100
indicates that US Bancorp Equipment Finance's (USBEF's) machine tool lease
payment delinquencies (a good measure of liquidity and consistent profitability)
are at a rate below the average rate of 1990 to 1999. As profitability rises,
liquidity rises, delinquencies fall and the Index rises. Historical data is
shown in Figure 2 and is available at the Charmilles URL mentioned above.
The approximately 126,000
U.S. companies that use machine tools
have about 2 million machine tools and 750,000 to 1,000,000 directly related
employees (toolmakers, machinists, operators, programmers, etc.). Almost all
mid-size to large manufacturing companies use, and periodically purchase or
lease, machine tools. Thus, these indices give timely insight into the condition
of U.S. manufacturing. The Machining
Business Activity Index is a coincident indicator of this key manufacturing
sector. The Financial Strength lags business activity and leads capital
investment.
About Agie Charmilles
Corp.
Agie Charmilles Corp., a
Swiss company, is the North American leading supplier of wire EDM, CNC,
diesinking and manual EDM systems and high speed/performance and 5-axis CNC
milling machines. For more information on the company's products and services,
contact Gisbert Ledvon, Agie Charmilles Corp., 560 Bond St., Lincolnshire, IL
60069-4224, Tel:
1-800-CTC-1EDM. Gisbert.Ledvon@AgieCharmilles.us, Fax: 847-913-5340, or visit
http://www.agiecharmilles.us.
About US Bancorp Equipment
France
The Machine Tool Finance
Group of US Bancorp Equipment Finance (USBEF) offers manufacturers and vendors,
flexible and competitive lease financing for metal cutting, fabrication and
plastics and wood manufacturing equipment. As a subsidiary of U.S. Bank, USBEF
is one of the largest bank-affiliated equipment finance companies in the nation.
Telephone (800) 255-8029 ext. 492.
###
MEDIA
CONTACTS:
Gisbert Ledvon
Business
Development Manager
847.913.5300
or
dgs Marketing Engineers®
Leslie
Galbreath 317.813.2223