EMCOR under Review

We are placing EMCOR EME under review. The Architecture Billings Index, which is considered a forward-looking measure of construction activity, fell to a new low in January. This, combined with ongoing tightness in commercial construction lending, suggests that commercial and industrial construction activity is likely to remain weak over the next 12 to 18 months. While we think EMCOR is well positioned to benefit from federal stimulus-related "green building" initiatives, we now think that a slowdown in EMCOR's other segments will be more significant than previously forecast.