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Summary: KUKA AG Jan 12
Standard & Poors, January 2012
The ratings on Germany-based industrial automation and robotics manufacturer KUKA AG reflect Standard & Poor's Ratings Services' view of the company's weak business risk profile and highly leveraged financial risk profile. In our opinion, the ratings are constrained by KUKA's high exposure to the cyclical auto industry and, consequently, its weak and volatile operating margins. Further weaknesses include KUKA's difficult position as a supplier to price-aggressive original equipment manufacturers (OEMs) and its limited geographic, end-market, and customer diversity. These constraints are partly offset by KUKA's strong and leading market positions in its niche markets and longstanding relationships with OEMs, which provide high barriers to entry for competitors. In addition, KUKA benefits from end-market diversity, albeit on a weak level, and...
Companies mentioned in this report are: KUKA AG
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