Quicker Rebound For Exporters To China, India

EMILY FREDRIX

MILWAUKEE (AP) — Companies that ship coal, chemicals, soft drinks and purses to emerging markets like India and China appear to be snapping out of the recession faster than those that are closely tied to the U.S. and Europe.

Earnings reports out Tuesday show that sales in emerging markets are providing a glimmer of hope for both the companies and their investors. In more developed parts of the world, companies still have to rely on cost-cutting to muddle through.

Caterpillar Inc., which makes heavy equipment, raised its earnings forecast for the year because of performance in Asia, its best-performing region. Deliveries of its products in China were higher than they had ever been for the third quarter.

Other companies, including drugmaker Pfizer and handbag maker Coach, say sales are picking up in Asia, and they're rushing to add salespeople and open new stores.

Asian economies are stronger now because they adopted fiscal stimulus plans right away when their economies started to weaken, said Jay Bryson, global economist at Wells Fargo Securities.