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Latest Trends In U.S. Capital Goods Sector's Pension And Other Postretirement Obligations Dec 06

  • ID: 2087192
  • December 2006
  • Region: United States
  • Standard & Poors
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  • AGCO Corp.
  • Cummins Inc.
  • Foster Wheeler AG
  • Illinois Tool Works Inc.
  • Milacron Inc.
  • Snap-on Inc.
  • MORE

Like other constituents of the old-line industries, many U.S. capital equipment manufacturers or engineering and construction companies bear the legacy of significant pension and other postemployment benefit (OPEBs) obligations, usually inherited from strong unions and a long corporate history of rich benefit programs. A variety of economic, accounting and legislative factors, however, is shaping the near-term and long-term future of U.S. pensions and OPEBs liabilities. Standard & Poor's Ratings Services believes that U.S. capital goods companies will continue to capitalize on the relatively favorable near-term industry outlook and cash generation capacity to gradually take steps to reduce their sometimes significantly underfunded plans and position themselves to be able to meet future funding requirements under the Pension Protection Act of 2006....

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

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.

Note: Product cover images may vary from those shown
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- Caterpillar Inc.
- Cummins Inc.
- Deere & Co.
- Eaton Corp.
- Emerson Electric Co.
- General Electric Co.
- Ingersoll-Rand Co.
- Kennametal Inc.
- Parker-Hannifin Corp.
- Rockwell Automation Inc.
- Snap-on Inc.
- Illinois Tool Works Inc.
- ITT Corp.
- Milacron Inc.
- Danaher Corp.
- Timken Co.
- AGCO Corp.
- SPX Corp.
- Hubbell Inc.
- Terex Corp.
- Foster Wheeler AG
- Pall Corp.
- Tyco International PLC
- Blount Inc.
- GenTek Inc.
- Pentair Inc.
- CNH Global N.V.
- Greif Inc.
- Joy Global Inc.
- Cooper Industries Ltd.

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown