Engineering

Alstom rides fast on world’s transport, energy hunger

7 May 2008

The French engineering group posted net profit up 56% for the year and will double its payout. Chief executive Patrik Kron says he s still interested in a tieup with Areva, the nuclear powerhouse, but his numbers show he can do without it.

Siemens turns over rock – finds worms

17 Mar 2008

Just three months ago, the German conglomerate was giving bullish guidance on growth and margins. Now it has discovered that it was too optimistic about some long term contracts and given an E900m profit warning. That casts doubts on Siemens' management credibility.

ABB bust-up leaves question mark over strategy

13 Feb 2008

Chief executive Fred Kindle, who nursed the Swiss engineering group from nearbankruptcy to rude health, has walked out citing irreconcilable differences . ABB s $14bn warchest looks to be the issue. Kindle was a bastion for caution. Investors are right to be nervous.

Lafarge finds growth in Egyptian sands

10 Dec 2007

The French cement and building material group will buy Orascom Cement from Nassef Sawiris for E9bn worth of cash and shares. The purchase will boost Lafarge s drive in emerging markets. And it will give the company another major shareholder to balance Albert Frere.

Singapore sells China, buys Western banks

10 Dec 2007

The citystate s $10bn cash injection in Swiss bank UBS is the largest single investment by a sovereign wealth fund into a Western Bank. Singapore has been trimming its holdings in overvalued Chinese banks. It looks like a good trade. Western banks certainly need the support.

Sarkozy should let markets fix Areva’s price

11 Sep 2007

The French president has asked for a privatisation plan for the nuclear company. Alstom and its shareholder Bouygyes are interested. The main risk isn t nuclear safety it s cronyism. Martin Bouygues is a friend of Sarko. A float would be fairer than a secretive deal. The French president has asked for a privatisation plan for the nuclear company. Alstom and its shareholder Bouygues are interested.

Areva’s strength is sapped by Sarko’s hesitation

26 Jul 2007

The French stateowned nuclear company is bagging contracts abroad as demand is booming. But its corporate future is uncertain. Sarkozy would like to merge it with Alstom and Bouygues. But he s yet to make up his mind on whether Areva should even be privatised.

Siemens E18bn asset swap looks sensible

25 Jul 2007

The German group will sell its automotive unit to a German firm for E11bn, or 17 times operating profit. The deal should quell union ire. Nearly half the money is going to buy a US medical technology company, at 31 times operating profit. It s a costly investment in growth.

Siemens shouldn’t forsake value in E11bn disposal

20 Jul 2007

New chief Peter Loescher inherits the planned float of the German giant s automotive parts unit VDO. But a trade sale would make more money. Blackstone s TRW might pay the most, but private equity comes with high political costs. Continental could be a good compromise buyer.

Siemens squeezed in CEO choice

21 May 2007

The German conglomerate needed a dynamic leader who had not been seduced by the cosy national governance style. Peter Loescher, Austrian hierapparent at US Merck, fits the bill. But Siemens is a complicated business and it s a big promotion for him.

ABB moves from sick list to predator

26 Apr 2007

The Swiss engineering group posted stellar firstquarter results. In five years, its market cap has jumped from a washout $1bn to $33bn. This well managed turnaround proves ABB is ready to go on the prowl. Indeed, it has almost $15bn of buying power.

Ackermann shamed by Kleinfeld ouster

26 Apr 2007

Deutsche Bank stood by Ackermann when he faced two trials. Yet the Deutsche boss used his own role on Siemens board to edge Kleinfeld out. Ackermann doesn t have to back Kleinfeld just because Deutsche backed him. But Kleinfeld's case is as strong as his was maybe stronger.

Von Pierer departure will help Siemens recover

20 Apr 2007

The chairman is too closely associated with the scandals and bad old ways of the German conglomerate. His resignation will help draw a line. Current chief executive Klaus Kleinfeld has done a pretty good job at cleaning up problem areas. He should now have a freer hand.

VW to MAN: can’t we all just get along?

12 Jan 2007

The German auto group has finally nixed MAN s E10bn hostile bid for truck maker Scania. It insists on some kind of friendly tieup. That sounds awfully touchyfeely. It s not clear, though, what form that friendliness will take or whose interests it will best serve.

Stork should listen to investors

2 Oct 2006

The Dutch group is under proxy attack from hedge funds that want to break it up. It's hinting it might ignore any vote calling for breakup. Dutch law oddly allows Stork to do this. But it would mean ignoring the corporate governance code, which the group s chairman cowrote.

ThyssenKrupp should seize chance to sell auto unit

7 Mar 2006

Keeping the business makes little sense for the German conglomerate, and the favourable M&A environment may help Thyssen get a decent price. Disposing of the unit could help to close the group s wide conglomerate discount.

MAN shares look expensive

21 Feb 2006

Samuelsson s first year at the German conglomerate went well. All core divisions posted good results. MAN gave the dividend a generous hike. But MAN s stock is up almost 90% since he took the wheel. It now trades at close to its cyclical highs. It s time to catch some breath.

MAN restructuring delivers the goods

2 Nov 2005

The German truck and engine maker delivered strong thirdquarter figures and is on the way to meeting its margin targets. But the valuation leaves little room for disappointment. Investors should question whether planned cost cuts will really materialise.

Metso an odd target for Icahn and Gardell

26 May 2005

The activist investors are using the same blueprint for change at the Finnish industrial group as they did with Blockbuster and Skandia. But this relies on persuading hedge funds that the shares can rise quickly. And it s not a given that Metso s can.

Rolls Royce boosted by civil aerospace recovery

10 Feb 2005

The British engine maker s profits have jumped as it grabbed an everincreasing share of lucrative maintenance business. But much of the recovery has already been priced in. And Rolls continued heavy investment will make further margin improvements difficult.