67 WALL STREET, New York - May 29, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online. <\/p>\n
Topics covered: Commercial Aviation and Energy Expenditures - Industrial Restructuring - Emerging Markets Penetration - Heightened M&A Activity - Defense Budget Uncertainty - Capital Equipment Technology Investing <\/p>\n
Companies include: Boeing Co. (BA), Rockwell Automation Inc. (ROK), ABB Ltd. (ABB), Emerson Electric Co. (EMR), General Electric Co. (GE), Caterpillar Inc. (CAT), SPX Corporation (SPW) and many more. <\/p>\n
In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, an expert analyst discusses the outlook for the sector for investors: <\/p>\n
TWST: So which verticals and geographies are you especially positive on right now? <\/p>\n
Mr. Langenberg: Our macro outlook will be similar to others; where we differ is in how to play it. In the growing now bucket, U.S. residential is recovering nicely. We are seeing growth in the 10%, 15%, even 20% range, driven by refurbishing and higher new starts. This is the easiest growth you can find, because it is really recovering off a low base. <\/p>\n
Homebuilding doesn't need to recover to 2 million units for an investor to win; going from 500,000 to 700,000 and then 1 million units is walking a worn path. We do not formally track those names, but it supports the entire HVAC\/construction complex, construction equipment, and power transmission and distribution. We really like this theme, but also seek to find higher-return\/lower-risk ways to express our view in the market than simply buying every homebuilder or HVAC-related company. This is a U.S.-centric driver, but since most of our companies are 50% to 60% U.S., it matters. <\/p>\n
Globally, we and everybody else likes the commercial aerospace market, given large backlogs at Boeing (BA) and Airbus (EAD.PA) and ramping production schedules. Aftermarket has been weak. While shop visits are fine, in line with global flight hours, the revenue per visit has surprised everybody to the downside as airlines opt to do just enough to get by. <\/p>\n
The suppliers are going, \"sooner or later you have to upgrade.\" They are probably right, but then again, if you are waiting on new aircraft, maybe you don't. Since spares and upgrades are the highest margin, this is a fly in the ointment, but not enough to dampen our enthusiasm. It is a consensus call really. <\/p>\n
Within commercial aerospace, we really like Bombardier (BBD-A.TO) because of the CSeries, which already has commitments on 388 aircraft; 145 firm, first flight coming soon, and initial deliveries in 2014. Global defense spending will also be more resilient... <\/p>\n
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Aerospace Backlog Grows While Defense Approaches Bottom: A Wall Street Transcript Interview with Brian K. Langenberg ...<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" 67 WALL STREET, New York - May 29, 2013 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online Continue reading