Engineering

ThyssenKrupp skates on thin ice with debts

21 May 2003

The German conglomerate has bought back shares and hinted at big acquisitions, even though its balance sheet is in a mess. There may be charitable explanations for all this. But ThyssenKrupp upsets creditors at its peril.

Alstom’s fate rests on cashflow

14 May 2003

The French engineering group can probably meet this year s liquidity needs from asset disposals. But Alstom has to squeeze out more cash from operations if it is to remain viable in the long run.

Alstom sells turbines to Siemens for E1.1bn

28 Apr 2003

The struggling French engineer is finally getting some momentum behind its turnaround plan. Siemens appears to have overpaid.

Siemens makes the most of the downturn

24 Apr 2003

Siemens must be careful not to burn cash on daft acquisitions. But its planned deal with Alstom will probably stack up. The German conglomerate is capitalising on its broad spread of businesses and rock solid balance sheet.

Invensys opts for partial break up

15 Apr 2003

Given the downturn in trading, big disposals are necessary to secure the UK engineer's finances. Invensys is trying to preserve value for its shareholders. But they are in for a choppy ride.

ABB paves way toward equity issue

14 Apr 2003

The mood music is suggesting a convertible bond. If ABB wants to get its share price up beforehand, it may have several opportunities.

Should Invensys break itself up?

11 Apr 2003

The best current assessment has to be no. But if trading deteriorates, the UK conglomerate s days are numbered.

Finmeccanica may cut STM stake

28 Mar 2003

The Italian defence conglomerate will almost certainly take a third of FiatAvio alongside Carlyle. That E500m will need to come from somewhere. The likely source is a slice of STM.

Alstom holds gun to shareholders’ heads

12 Mar 2003

The French engineer is negotiating new credit facilities. But these would have to be repaid if shareholders don't approve a rights issue. That might trigger bankruptcy. But Alstom has so little equity value left that it is touchandgo whether the gun will be effective.

Government shareholders sharpen up their act

4 Mar 2003

France's new State Shareholdings Agency promises a more transparent and rational approach to running government stakes in companies. The change is long overdue. The UK is doing something similar but the French could still teach it a thing or two.

Rolls-Royce maintains forecast and dividend

4 Mar 2003

The UK engineering group is delivering on its restructuring promises. But debt, pensions and contingent liabilities leave the group's equity perilously exposed to any fallout from war in Iraq.

ABB reaches $1.2bn asbestos deal with lawyers

17 Jan 2003

Plaintiffs may yet reject the settlement. But the risk seems low. And the deal looks good for the SwissSwedish engineer. ABB securities have discounted this. If they are to get another leg up, the group must sell assets and generate cash.

Alstom needs to make disposals

16 Jan 2003

The French engineer has made slow progress on asset sales. And not all of it counts towards debt reduction. Falling orders threaten to drain cash. Alstom must sell businesses to keep its creditors on board.

Tronchetti’s latest pre-nup could cost nearly E300m

24 Dec 2002

The Pirelli boss s deal to shore up control of Telecom Italia has involved giving his new partners a getout in the event of a divorce. Still, that s better than Pirelli pumping in more cash. It couldn t afford to: its net asset value is barely above E200m.

ABB nears $1.5bn bank facility

17 Dec 2002

The deal will provide the SwissSwedish engineer with sufficient liquidity to attempt its turnaround plan. ABB securities have rallied ahead of this deal and a likely asbestos settlement. After that, the going may get tougher.

ABB nears $1.5bn bank facility

17 Dec 2002

ABB shares surge on asbestos hopes

25 Nov 2002

It looks as though the SwissSwedish engineer has made good progress on capping its asbestos liability. But the shares more than discount this. They rest on the shaky foundations of bid speculation and ambitious restructuring.

ABB shares surge on asbestos hopes

25 Nov 2002

New Alstom boss has Herculean task

5 Nov 2002

Top of the new chief executive's priority list must be generating free cashflow at the French engineering group. That means stabilising operations in a vicious downturn and delivering on an aggressive disposals plan.

New Alstom boss has Herculean task

5 Nov 2002