That big second-half rebound in industrial demand is starting to look weaker and weaker. Although companies like Grainger (NYSE:GWW) and Fastenal (Nasdaq:FAST) have been reporting decent demand for industrial supplies and equipment among manufacturing customers, Actuant's (NYSE:ATU)
guidance suggests that most industrial, energy, and vehicle markets are
still crawling along. While I do believe growth should pick up again,
the value proposition here doesn't look very compelling.
Sluggish Results Due To Sluggish Demand
Actuant's results aren't showing much underlying strength in key
end-markets like industrial, energy, or vehicles. Overall revenue was
flat on a reported basis and down 2% on a “core” or organic comparison.
Industrial revenue rose 1% as reported, and energy rose 3%, but sales in
the engineered products business were down about 2%.
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