The outlook for commercial HVAC is constrained by continued weakness in new construction and exposure to Europe. Further, refrigeration is mature and slow growth.Daikin’s 2012 purchase of rival Goodman will lead to more price competition and a possible more aggressive foray into commercial HVAC and
Charter's restructuring continues to drive impressive EPS growth for Colfax.
Even with the spin-off of Allegion, Ingersoll-Rand remains a collection of disparate businesses with questionable operational synergies. None of the individual businesses are likely to receive the extent of upper management attention they deserve.The firm significantly overpaid for Trane. Prospects
With customers retreating, the company has few immediate growth catalysts.With such a big bet in emerging markets, the company may spread itself too thin reaching for growth in distant markets.Competitive issues in network power continue to overshadow other businesses in the portfolio and may soak
Pall's products are not immune to reverse engineering threats, which may eventually steal share and erode margins the company currently enjoys.Pall has mentioned a desire to grow via acquisition. Given the company's industry generally has higher valuations, it may be difficult to execute this
3M still has a wide economic moat and should continue to enjoy decent near-term growth.
While manufacturers come back to their factories, it is difficult to project when those companies will begin upgrading technology and needing Rockwell's services.Growth in Asia has slowed considerably since its peak, potentially reducing the growth available to Rockwell.Although margins are higher
Crane's asbestos-related cash outflow is not decreasing. The firm paid out $67 million in asbestos-related charges in 2010, a 20% increase from 2009.Some of Crane's costs will return with better economic conditions, and the firm's operating margin improvement may not hold as a result.Crane's
ITT's remaining businesses are disparate and difficult to understand. Potential investors may be put off by the steep learning curve.ITT has relatively high exposure to Europe at 30% of revenue. Secular economic troubles facing the Continent could pressure ITT's financial results.Significant
By starting to provide services as well as manufacturing tools, Actuant is entering an entirely new area, and may not be as equipped to operate profitably.Actuant made a big bet on energy services when the peak in oil prices occurred. The payback period for these investments is likely longer than