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Multinationals Increase Value as Investors Develop Appreciation for Complex Businesses: an Interview with Nick Heymann, Co-Group Head, Global Industrial Infrastructure for William Blair & Company

67 WALL STREET, New York - May 28, 2013 - 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: Commercial Aviation and Energy Expenditures - Industrial Restructuring - Emerging Markets Penetration - Heightened M&A Activity - Defense Budget Uncertainty - Capital Equipment Technology Investing

Companies include: ABB Ltd. (ABB), Siemens AG (SI), General Electric Co. (GE), Honeywell International Inc. (HON), United Technologies Corp. (UTX), EMBRAER - Empresa Brasileira d (ERJ), United Technologies Corp. (UTX), Dover Corp. (DOV), SPX Corporation (SPW), Gardner Denver Inc. (GDI), Boeing Co. (BA), Emerson Electric Co. (EMR), Eaton Corporation (ETN) 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: What are some of your favorite names in your coverage universe right now and why?

Mr. Heymann: In the near term, we like companies where the business model is simply not understood, such as ADT (ADT), or where the changes in a company's business model are not fully grasped or completely appreciated, such as the case with, we believe, Dover (DOV), and also with UTX and ABB. We are not trying to pick companies based on what stage they are in the business cycle, or whether they are better defensive or offensive investments near term. Nor are we looking to pick more economically sensitive stocks, because we believe the macro uncertainty near term is likely to be dispelled by stronger global GDP growth.

Instead, if a company's business model, or changes to its old business model, is working but not understood, we expect in the current environment of modest global growth that these companies stand the best chance of sustainable outperformance.

TWST: Are there any names you are particularly cautious about today?

Mr. Heymann: Companies that are still trying to optimize the performance of their existing portfolio, rather than to build before they've managed to improve the performance of their existing set of businesses, would be certainly areas for caution. For instance, Siemens is undergoing a restructuring program between now and the end of their fiscal 2014 year - September of next year - that is designed to take out about 6 billion euros worth of costs. This could prove optimistic, depending on softer power generation markets, but it should allow them to offset well-documented and expected increases in their input costs as well as weaker pricing. So the incremental benefit from this, while expected to get them back to near or slightly higher than their profitability levels achieved in 2011, is, relatively speaking, likely to be fairly nominal.

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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.