Industrials

Technology doesn’t make Sony Ericsson king

19 Mar 2008

These days having an edge on technology is typically a winning strategy. Yet a profitwarning from this handset maker proves that s not always the case. Weak highend sales are dragging it down. Consumer preferences are a problem, and a global economic slowdown won t help.

Best Buy’s warning may have silver lining

15 Feb 2008

The US electronics retailer has fared better than most during the recent funk. Its earnings warning for the year ahead is hardly welcome news for its shareholders. But its competitors have the most to fear.

Bang & Olufsen meltdown highlights consumer malaise

9 Jan 2008

While the Danish luxury electronics company s mostly European customers should be price insensitive, they have rushed to cut back spending. The UK represents the biggest problem. Other luxury companies could experience similar turbulence.

Credit crunch vindicates GE model

13 Dec 2007

Investors yawned at Jeff Immelt's forecast of 10% EPS growth in 2008. But with the prospect of recession ahead and continuing uncertainty in credit markets, that might be a pretty good performance. And it may vindicate GE's diversified portfolio.

Rexel gets second chance to make good with shareholders

12 Nov 2007

The French electricalparts distributor s bid for Hagemeyer has turned friendly after it sweetened its offer. With its own shares down 12% since its April IPO, Rexel should use the opportunity to focus on valuecreating growth.

Credit crunch may help some deals get done

22 Oct 2007

Look at Techem, the E1.9bn German metermaker in the midst of a yearlong tussle among management, hedge funds and wouldbe private buyers. The latest agreement with Macquarie might stick, if hedge fund shareholders decide tighter markets make a higher offer improbable.

Harman’s compromise is better than nothing

22 Oct 2007

KKR and Goldman will buy $400m in converts instead of taking the stereomaker private. It's better than paying a $225m break fee. Harman gets an infusion of cash and the consolation prize of a vote of confidence in its shares. Sallie Mae might want to take note.

Ericsson Q3 warning may not be so bad

16 Oct 2007

The telecom equipment maker has shocked the market by revealing that highmargin sales of network kit to existing customers have collapsed. Yet, as mobile traffic continues to grow, operators will eventually need to upgrade their systems. And Ericsson, as the market leader, should then benefit.

Sonepar signals readiness to pay more for Hagemeyer

16 Oct 2007

The secretive French electrical parts group has been buying shares in the market at a premium to its E4.25 a share indicative offer. Its Dutch target may be right in saying the offer substantially undervalues the group.

Sarko should drop Thales-Safran merger idea

12 Sep 2007

The French president reportedly has ideas for another national champion in the defence sector, with a merger of Thales and Safran. He should forget it. Neither the electronics group nor the plane engine maker want to merge. Making them invest in Eads would be even worse.

Sir Alan Sugar takes well-timed curtain call

31 Jul 2007

"The Apprentice" may be a hit, but Sugar s Amstrad empire isn t. He is selling it to James Murdoch s BSkyB for 10% of its stock market peak. Amstrad's new owner is a younger, more dynamic breed of entrepreneur. Maybe it s time "The Apprentice" had a new guy in the boss's seat.

Motorola forced into shrinking niche

12 Jul 2007

The US handset maker sold 30% fewer phones in the second quarter than it did last year. Nokia has won most emerging markets. Apple's iPhone and Blackberry are tough highend rivals. The shrivelling middle isn t a fun place to live.

eSpeed’s BGC deal unlikely to pacify its shareholders

30 May 2007

US electronic broker eSpeed is buying BGC, a fellow Cantor Fitzgerald unit, for $1.3bn a 7% discount to BGC s fair value, Cantor says. But the deal isn t as favourable as it looks. If eSpeed is valued on peer multiples, it is buying BGC for a hefty 17 times 2007 profits.

Icahn doesn’t deserve Motorola seat

4 May 2007

Activist investors can wake up sleepy companies. But yelling loudly isn t justification enough for a directorship. Icahn repudiated his one big idea for the tech company and he s too busy as is. Shareholders should vote his candidacy down.

Stub equity makes first grand US appearance

26 Apr 2007

KKR and Goldman are offering shareholders of hifi maker Harman a chance to take a ride alongside them in the $8bn buyout. In theory this approach should mitigate MBO conflict concerns and head off protracted negotiations on price. That may be wishful thinking.

Enel and Acciona trump E.on’s sweetened bid

26 Mar 2007

The Italian utility and Spanish builder are offering at least E1 a share more than the Germans, provided E.on s bid fails. But their bid still carries risks. As for E.on, it will have to do more than throw money at the problem if it wants to stay in the game.

Palm offers cautionary tale to tech titans

6 Mar 2007

The handset maker was a hot consumer tech company worth $92bn. Now its most attractive attributes are its cash and tax losses. Palm s shift from darling to alsoran illustrates the challenge of retaining a competitive advantage in consumer electronics.

Vista’s slow start could hit semi firms

19 Feb 2007

Semiconductor companies are geared up for a party. But the slow uptake of Microsoft s new operating system has intensified a chip glut. The chipmakers are likely to suffer. And their suppliers may get hit too.

Siemens telecoms unit stirs up trouble for Kleinfeld

23 Nov 2006

The German boss has been trying to sort out its underperforming Com telecoms unit to show he means business with his restructuring plan. But in doing so, he has stirred up a political ruckus and a fraud probe. These may cost Kleinfeld his job or turn him into a lame duck.

NBC is still GE’s albatross

13 Oct 2006

The industrial giant s entertainment business remains a drag on earnings and the company s weak link. Things may improve next quarter, but patience is wearing thin. Shareholders should support a spinoff of the business.