Table of Contents
Sector summary ................................................................................................. 3
Aggregate demand – we are near the trough........................................................ 11
China – a V-shaped recovery? ........................................................................... 28
US – some end-markets finally hitting a bottom? ..................................................... 33
Supply side concerns in the near term? ................................................................ 38
Longer-term demand and supply conditions – lessons from the Tech sector?................. 48
Competitive threats........................................................................................... 53
Financial health of the sector – how stretched are balance sheets? ............................ 57
Valuation........................................................................................................ 58
How will the sector perform if we see substantial inflation? ...................................... 74
End market Analysis ......................................................................................... 76
Company Analysis ......................................................................................... 123
ABB ............................................................................................................ 124
Alstom ......................................................................................................... 133
Atlas Copco ................................................................................................. 142
Bodycote ..................................................................................................... 147
Demag Cranes.............................................................................................. 154
Electrolux...................................................................................................... 159
Invensys ....................................................................................................... 168
Kone ........................................................................................................... 176
Konecranes .................................................................................................. 184
Legrand ....................................................................................................... 189
Philips.......................................................................................................... 197
Rexel ........................................................................................................... 205
Sandvik........................................................................................................ 211
Schindler...................................................................................................... 220
Schneider..................................................................................................... 227
Siemens ....................................................................................................... 234
SKF ............................................................................................................. 244
Smiths.......................................................................................................... 250
Tognum........................................................................................................ 261
Tomkins........................................................................................................ 265
Appendix – company summary Financial Statements............................................. 273