Wall Street Transcript Interview with Eric A. Cohen, COO of Power Solutions International, Inc. (PSIX)
67 WALL STREET, New York - May 24, 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 and Equity Analysts. 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: Power Solutions International, Inc. (PSIX) and many more.
In the following excerpt from the Industrial Equipment, Aerospace and Defense Report, the COO of Power Solutions International, Inc. (PSIX) discusses company strategy and the outlook for this vital industry:
TWST: Do you see any particular trends in terms of the needs of and demand from your clients, and how is that affecting your business today?
Mr. Cohen: We're seeing three strong trends. The first one is pure economics; it's to save money on fuel costs. Right now, for example in the U.S., natural gas or propane is up to 50% less expensive than diesel fuel. Diesel fuel is primarily the backbone of commercial industrial America, so if you switch to an alternative fuel source, you can save up to 50% on your fuel cost, so that's a big driver.
Another one is a big desire from our OEM customers to use an American resource. There's over 100 years of natural gas here in the U.S., and right now the United States spends approximately $1 billion a day importing oil from foreign countries, and that energy policy just doesn't make sense to a lot of our customers. All things being equal, they'd rather be using an American energy source.
The final one is that tier-IV emissions regulations are creating a lot of pain in the marketplace. These tier-IV regulations went into effect in the beginning of 2013, and they require a new type of diesel engine that's considerably larger, up to 30% larger, that runs hotter and that's up to twice as expensive as the former diesel engines. So if you are a vehicle manufacturer here in the U.S., suddenly you have a very expensive engine that you have to put into your vehicle, you have to redesign the vehicle, and the higher temperatures create other problems such as cooling and so on. So there's a lot of pain and extra cost being associated with the new round of tier-IV engines that are needed for U.S. compliance. What that's doing is opening up the opportunity for alternative fuel engines, and we're seeing a large trend of customers looking to alternative fuel engines such as CNG engines to satisfy their needs.
TWST: What recent product innovations or important client contracts would you highlight?
Mr. Cohen: We've just launched a unique product out there in the...
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.
