Engineering

Atlas Copco expands smartly into a vacuum

19 Aug 2013

The Swedish group is buying Edwards, a UK vacuum-technology specialist. The $1.6 bln deal looks both logical and inexpensive. Luckily for Atlas, the buyout firms behind Edwards were keen to exit an old investment, after a brief and underwhelming experiment with a U.S. listing.

Siemens’ new CEO shows lack of a better choice

30 Jul 2013

Joe Kaeser, the current CFO, is to become new chief of the troubled German group. While a member of the old regime, he’s not a bad pick. His attention to detail, in-depth knowledge of Siemens and long-standing focus on profitability are what the company needs at the moment.

Siemens needs a new chief executive

26 Jul 2013

Once again, Peter Loescher is unable to deliver on his promises. He has been forced to admit that his 2014 targets are out of reach. This chronic inability to execute puts the future of Germany’s second-largest company at risk. It’s time for Siemens to find a new head.

Schneider has powerful chance of winning Invensys

12 Jul 2013

The French group has tentatively offered 3.3 bln stg for Invensys, the UK engineer chaired by veteran dealmaker Nigel Rudd. A counter-bid is possible: ABB, Emerson and GE could have a look. But the “for sale” sign has hung over Invensys for months and this is a pretty full price.

Independence from Siemens could make Osram shine

5 Jul 2013

The German engineering giant is spinning off its lacklustre lighting unit. Osram shares may wobble as Siemens’ big-cap investors shy away from this smaller unit. Operationally, however, Osram could work well as a standalone. It may better cope with fast-changing market dynamics.

Smiths medical sale would create a fresh headache

31 May 2013

The UK conglomerate is in talks to sell one of its biggest units. A fully priced deal would highlight the turnaround under CEO Philip Bowman. But he needs a good plan for the more than 2 billion pounds in proceeds. That will probably include a mixture of pensions funding and M&A.

Siemens struggles to make strategy work

2 May 2013

The German industrial giant issued yet another profit warning, and disclosed an embarrassing delay in getting out of its cash-burning solar operations. Execution difficulties are tarnishing management’s credibility. CEO Peter Loescher can’t afford any more blunders.

Big oil’s novel problem: fifty shades of gray

27 Feb 2013

Nearly half of petroleum engineers will hit retirement age in the next decade, leaving a skill shortage because of a 1980s hiring hiatus. Based on the last such occurrence, the lack of experience may lead to a $120 bln productivity drain. It’s a hidden risk in the price of crude.

Siemens outsmarts market with $2.8 bln rail deal

29 Nov 2012

The German group will buy the rail arm of Invensys for a hefty $2.8 bln - surprising analysts and investors who had soured on the UK group and its pension deficit. For Siemens there’s strategic logic and synergies. For pension trustees, relief. For the Invensys chairman: déjà vu.

Twitter gives peace a chance in patent wars

19 Apr 2012

The social network will allow engineer-inventors to veto lawsuits against alleged infringers. That’s a model for curbing the expensive legal salvos that Apple, Microsoft and others lob just to slow each other down. If the rest of tech one day follows, innovation could benefit.

Schneider would struggle with $30 bln Tyco bid

13 Apr 2011

The French electrical giant has reportedly approached U.S. security group Tyco, although it is denying ongoing talks. The premium it would have to pay would probably top the value of synergies. Financing the deal would be a highwire act. Schneider might do better to let this go.

Daimler and Rolls pioneer the friendly hostile

9 Mar 2011

The carmaker and engineer have unveiled a planned 3.2 billion euro offer for German engine maker Tognum in the middle of talks. That sounds hostile, and Tognum doesn't like the price. But the two sides agree on the logic of a deal. As contested M&A goes, it's oddly civilised.

Smiths validates case for its break-up

17 Jan 2011

The UK conglomerate's shares have jumped after it said it rebuffed a seemingly punchy $3.9 bln bid for its medical unit from buyout firm Apax. Smiths has good reason to think it can get a better price. Explaining why it shouldn't be dismantled looks harder.

Whole airline industry shakes in Rolls turbulence

2 Dec 2010

The aeroengine maker's reputational fug may deepen as new details of the Qantas engine explosion emerge. Though the nearterm financial damage to Rolls is unchanged, the industrywide finger pointing serves only to beggar civil aviation neighbours.

ABB’s fully priced $4.2 bln Baldor bid is worth it

30 Nov 2010

This SwissU.S. engineering tieup looks set to motor. ABB may not have got a bargain in agreeing to buy its U.S. rival. But the likely returns look tolerable and the industrial logic is convincing.

Rolls-Royce provides comfort but no guarantees

12 Nov 2010

The UK engineer has provided convincing reassurance about the oil leaks in its troublesome Trent 900 engine. Costs are likely to be tens of millions of pounds, far lower than feared. But the risks exposed by the episode mean Rolls may struggle to regain its previous rating.

Three-way dogfight in UK defence

3 Mar 2010

VT Group has been given a deadline to mount its hostile bid for struggling Mouchel, another support services company. Defence group Babcock has burst in and wants to buy VT if it walks away from Mouchel. But VT should persevere; diversifying away from defence makes more sense.

How Sarko sent Siemens into Russia’s nuclear embrace

5 Mar 2009

Siemens has signed up with Rosatom, the Russian stateowned nuclear agency. That will create a stronger competitor for French powerplants maker Areva, Siemens traditional partner. This wouldn't have happened without President Sarkozy s illadvised meddling.

Failed $12.8bn road deal bodes ill for US infrastructure

1 Oct 2008

Thanks to dithering by Pennsylvania s lawmakers, the $12.8bn offer by Spain s Abertis and Citi to operate the state's Turnpike has slipped away. The fact they couldn t even muster a vote on this pot of gold could present problems for other US infrastructure deals.

Eads must not rest on its first quarter laurels

14 May 2008

The panEuropean aerospace group beats expectations with strong operating profit at its Airbus branch. But the company isn t out of the woods yet. It is still plagued by manufacturing delays and currency fluctuations. Its restructuring plan should be strengthened.