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TWST: Please give us an overview of your coverage in this industrial
machinery space.
Mr. Brady: Our coverage right now consists of 11 companies ' Actuant
Corp. (ATU), which we rate outperform, Bucyrus (BUCY), rated outperform,
CIRCOR (CIR), rated outperform, Donaldson Company (DCI), which we rate
neutral, Flowserve (FLS), rated underperform, Gehl Corp. (GEHL), rated
outperform, Graco (GGG), rated neutral, IDEX Corp. (IEX), rated neutral,
Joy Global (JOYG), rated neutral, Nordson (NDSN), rated neutral, and
Oshkosh Truck (OSK), rated outperform. TWST: How has business been for these companies, year to date?
Mr. Brady: We think year to date, pretty much across the board, business
has been very healthy and very strong across a variety of different end
markets that these companies serve, and the expectation is that this is
going to continue. TWST: Why? Is it just the health of the general economy that's driving
them?
Mr. Brady: If you look at the backdrop of the overall US economy and
some of the economic data coming out and, more specifically, some of the
industrial and manufacturing data coming out, it looks pretty positive.
From the ISM (Institute of Supply Management) numbers to the durable
goods orders, you occasionally get a little chop in some of the numbers,
but I think on the whole, that data looks pretty good for products that
these companies are producing. Additionally, money is being spent for
products and equipment that serve the municipal market, because
municipal budgets are healthy. Tax proceeds are up, so money is
available to be spent for things like fire and rescue equipment, garbage
trucks, and other products that municipalities buy.
Tickers included in this excerpt: ATU, BUCY, CIR, DCI, FLS, GEHL, GGG, IEX, ISM, JOYG, NDSN, OSK
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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