Diversified

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 levels.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

We are skeptical of management's profit growth forecasts, but expect good cash flow generation.

Efficient manufacturing programs like Six Sigma and lean manufacturing have been around long enough for other firms to successfully implement and catch up to GE, reducing the strength of GE's cost advantage.By shifting to long-term financing, GE is opting for more expensive financing, which will

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

SPX doesn't have significant economies of scale, and profits are highly variable because of its project-based customer focus and manufacturing mix.SPX has very little pricing power in its component and specialty engineering businesses.Pending recessions in the U.S. and in European countries may

While Eaton has diversified itself, it is still tied to the economic cycle. ROICs can fall below its cost of capital in downturns.Exposure to developing markets such as Brazil adds a layer of geopolitical and operating risk to the company.Acquisitions may not generate the type of returns produced

Quarter after quarter, Canadian National sets the standard for Class I railroad operating ratios.

Volatile oil prices reduce the willingness to take on sizable investments in oil and gas exploration. Dover's exposure to these markets may create an earnings headwind.Dover's underfunded pension plan will depress earnings and cause additional cash outflow.As commodity prices ease, material costs