Capital Goods Snapshot Suggests Sector Growth, Challenges In The Year Ahead Feb 06

  • ID: 2086070
  • February 2006
  • Standard & Poors
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  • AGCO Corp.
  • Danaher Corp.
  • Emerson Electric Co.
  • Hughes Supply Inc.
  • JLG Industries Inc.
  • Terex Corp.
  • MORE

Standard & Poor's Ratings Services' quarterly roundup of 11 bellwether capital goods companies indicates a somewhat uneven and disappointing earnings season in the sector. Several companies saw demand decelerate, and in some cases, companies experienced margin erosion as a result of either component shortages or raw material cost inflation. Business remains fundamentally positive in the sector, however, and credit rating activity will likely be prompted by the companies' financial policies as they turn toward acquisitions to speed growth or pursue additional share repurchases to satisfy equity constituencies. At Dec. 31, 2005, the peer capital goods companies detailed in this report had approximately $43.8 billion in total debt outstanding. Key industrial economic indicators suggest that capital goods firms ran up against...

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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

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- Caterpillar Inc.
- Deere & Co.
- Dover Corp.
- Emerson Electric Co.
- General Electric Co.
- Grainger (W.W.) Inc.
- Ingersoll-Rand Co.
- Parker-Hannifin Corp.
- Rockwell Automation Inc.
- Illinois Tool Works Inc.
- Danaher Corp.
- Thomas & Betts Corp.
- AGCO Corp.
- Terex Corp.
- Tyco International PLC
- WESCO Distribution Inc.
- United Rentals Inc.
- JLG Industries Inc.
- Hughes Supply Inc.
- Cooper Industries Ltd.

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Note: Product cover images may vary from those shown




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