A Wall Street Transcript Interview with Ajay Kejriwal, a Senior Analyst and Senior Vice President of FBR Capital Markets & Co., Covering the Multi-Industry Electrical Equipment Sector: Slow Growth Caps Equipment Manufacturing Stock Prices

Wall Street Transcript

67 WALL STREET, New York - May 29, 2014 - The Wall Street Transcript has just published its Industrial Equipment, Aerospace and Defense Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Capital Equipment Technology Investing - Growth Opportunities in Data Security - Professional Security Equipment - Emerging Markets Penetration - Heightened M&A Activity - Future Growth and Market Share Gains - Increased Commercial Aircraft Production Rate - Aircraft Manufacturing Supply Chain

Companies include: United Technologies Corp. (UTX), 3M Co. (MMM), Danaher Corp. (DHR), Illinois Tool Works Inc. (ITW), Carlisle Companies Inc. (CSL), Tyco International Ltd. (TYC), Crane Co. (CR) and many others.

In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Let's start with of a snapshot of your coverage universe to set the stage.

Mr. Kejriwal: My coverage is the multi-industry electrical equipment sector. I have also added an adjoining space, advanced industrial technology, and the names within that space are at this moment essentially the 3D printing companies. Within multi-industry electrical equipment, these are mostly large-cap, diversified industrials, names such as United Technologies (UTX), 3M (MMM), Danaher (DHR) and ITW (ITW).

TWST: What overarching themes or trends are you seeing in the industrial equipment space, in terms of their businesses, products and end users?

Mr. Kejriwal: From an investment perspective, the big theme - and this is really the last couple of years - has been organic growth. Growth has been very anemic since the downturn, since the 2008-2009 recession. Basically we saw one year of solid growth, but since then it's been anemic, 2% to 3% organic.

That's been the big question with investors in the space: Do we see a pickup in this growth rate, and a pickup to closer to what we have seen historically? Historically coming out of downturns we have seen the group grow mid-to-high single digits for a couple of years, and then the trend growth rate has been in the 3% to 5% range, but that's certainly not been the case the last couple of years.

There are lots of cross currents that feed into why growth has been where it has been, and a lot of theories as to why we have not seen a pickup in growth. To me one of the biggest factors has been very slow growth in capital spending here in the U.S. ...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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