Mr. De Maria: I am the lead analyst in the global industrial infrastructure space for capital goods, specifically agriculture and construction equipment. We also follow companies that have mining and crane exposure. As well, I am a lead analyst in South American infrastructure.
TWST: What's your overall take on the construction and agriculture machinery space right now?
Mr. De Maria: They are definitely in diverging cycles, so to speak. The ag markets are very geographically focused, and we are seeing extremely strong activity in North America and in South America, whereas other regions, such as Europe, are very slow. And whereas the economy for capital goods, particularly construction equipment, is essentially booming in emerging markets in South America and greater Asia, end-market demand remains very limited in Europe and U.S. developed markets. In the U.S. and European markets, we are seeing sales increase, but they are being driven more from inventory issues as opposed to end-market demand. So there are very different drivers right now, different demand characteristics in the different regions and for the different products.
Tickers included in this excerpt: AGCO, ALLL11f, CAT, CNH, DE, F.MI, GT, PBR, TEX, TWI, WEGE3
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