5 Companies With Huge Pensions Set Up to Fall

In this video, Motley Fool industrials analyst Blake Bos gives investors a look at five companies with huge pension costs that make up large portions of their total liability. He discusses LSI  (NASDAQ: LSI  ) , U.S. Steel (NYSE: X  ) , Xerox  (NYSE: XRX  ) , Caterpillar (NYSE: CAT  ) , and Ford Motor (NYSE: F  ) , and gives investors a feel for just how massive a burden these costs are to these companies. Blake also examines how much relief rising interest rates should provide to these companies in terms of pension burden and how much they stand to benefit as interest rates begin to come back up.

Looking for global superstars?
With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!



Read/Post Comments (2) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 25, 2013, at 11:42 AM, AmericanFirst wrote:

    You mentioned Ford, where is GM, which has a higher pension liability. Do you think Obama would rescue GM again?

  • Report this Comment On September 27, 2013, at 3:00 PM, TMFBos wrote:

    I can't speak to the Obama administration, but I highly doubt GM would need rescuing at all. They've been very successful as of late and are in trouble financially. As for not mentioning them in my discussion, I have more experience looking at Ford so I chose them instead, but you are correct GM has a larger liability.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2652595, ~/Articles/ArticleHandler.aspx, 12/21/2014 9:06:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,804.80 26.65 0.15%
S&P 500 2,070.65 9.42 0.46%
NASD 4,765.38 16.98 0.36%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/19/2014 4:01 PM
CAT $91.71 Up +0.02 +0.02%
Caterpillar, Inc. CAPS Rating: ****
F $15.03 Up +0.22 +1.49%
Ford CAPS Rating: ****
LSI $0.00 Down +0.00 +0.00%
LSI Corporation CAPS Rating: *****
X $28.59 Down -0.06 -0.21%
United States Stee… CAPS Rating: ***
XRX $13.96 Up +0.07 +0.50%
Xerox Corp CAPS Rating: *****

Advertisement