Вы находитесь на странице: 1из 22

Manufacturing Update

September 2019
The Mufson Howe Hunter Manufacturing Update is designed to provide
business leaders, investors, and industry professionals an update on
current market trends and important developments within the
manufacturing sector of the economy. This monthly report contains
information on select companies in various subsectors within
manufacturing emphasizing financial performance, stock performance,
and recent news.

Macro-Economic Trends
Jul-19 Aug-19 Trend
PMI 51.2 49.1 Negative
Total Unemployment 3.7 3.7 Neutral
Primary Mufson Howe Hunter Contacts:
CPI Monthly Change 0.3 0.1 Positive
Michael J. Howe 0.2 0.1 Positive
PPI Monthly Change
Managing Director
215.399.5413 Industrial Production 109.2 109.9 Positive
mhowe@mhhco.com 77.5 77.9 Positive
Capacity Utilization
Michael J. Mufson Manufacturing Production 104.7 105.2 Positive
Managing Director
215.399.5410
Manufacturing Utilization 75.4 75.7 Positive
mmufson@mhhco.com

Joseph M. Manko, Jr.


Managing Director Sector Index Performance
215.399.5402
jmanko@mhhco.com 3-Year 1-Year 3-Month
Aerospace & Defense 63.4% 3.8% 7.1%
Anthony J. Lopez-Ona
Managing Director Components & Materials -10.1% -28.7% -0.9%
215.399.5405 Industrial Equipment 59.3% 9.6% 13.2%
alopezona@mhhco.com
Engineering & Industrial
Brandon K. Eck Services 47.2% 15.2% 7.6%
Managing Director
215.399.5411
NASDAQ 52.7% -1.8% 6.8%
beck@mhhco.com S&P 34.8% 0.9% 6.3%
MHH Sectors/Sub-sectors TABLE OF CONTENTS
Aerospace & Defense Major Economic Indicators ............................................................................................... 1

Sector Index Performance Summary ................................................................................ 2


• Aerospace
• Defense Subsector Trading Multiples & Margins ........................................................................... 3

Components & Materials Aerospace & Defense ....................................................................................................... 5

Components & Materials.................................................................................................. 7


• Electronic Components
• Specialty Materials Industrial Equipment ........................................................................................................ 9
• Vehicle Parts and Supplies
Engineering & Industrial Services ................................................................................... 11
Industrial Equipment
Selected Highlights ......................................................................................................... 13
• Construction Equipment MHH Manufacturing Universe Directory ........................................................................ 19
• Electrical Equipment
• Semiconductor Capital MHH’s coverage of the Manufacturing Sector spans companies in the following four sectors for each of which
Equipment our index has been calculated as follows:

• Measurement, Control and The MMH Aerospace & Defense Index is currently comprised of Airbus Group NV, BAE Systems plc, The Boeing
Testing Devices Company, Embraer SA, General Dynamics Corp., Honeywell International Inc., Huntington Ingalls Industries,
L3Harris Technologies, Lockheed Martin Corp., Northrop Grumman Corp., Raytheon Company, Rolls Royce
Holdings plc, Textron Inc., Thales SA, and United Technologies Corp.
Engineering & Industrial Services
The MMH Components & Materials Index is currently comprised of 3M Company, Akzo Nobel NV, Alps Electric
• Technical Services Ltd., Amphenol Corp., Aptiv plc, Autoliv Inc., AVX Corp., BASF SE, Belden Inc., Bosch Ltd., Celanese Corp.,
• Industrial Distribution Continental AG, Corning Inc., Denso Corp., Delphi Automotive plc, DowDuPont Inc., Encore Wire Corp., Evonik
• Industrial Recycling Industries, Ferro Corp., Johnson Controls Inc., Lear Corp., OMRON Corp., PPG Industries Inc., Solvay SA, Stanley
Electric Co. Ltd., TE Connectivity Ltd., and Vishay Intertechnology.

The MHH Industrial Equipment Index is currently comprised of Ametek Inc., Applied Materials Inc., ASML
Holding NV, Axcelis Technologies Inc., Brooks Automation Inc., Caterpillar Inc., Cohu Inc., Cummins Inc., Danaher
Corp., Deere & Company, Eaton Corp. plc, Emerson Electric Co., Entegris Inc., FARO Technologies Inc., FormFactor
Inc., Hubbell Inc., Hyundai Heavy Industries Co. Ltd, KLA-Tencor Corp., LamResearch Corp., MKS Instruments Inc.,
Nanometrics Inc., Navistar International Corp., Nova Measuring Instruments Ltd., Oshkosh Corp., Powell
Industries, Inc., Regal Beloit Corp., Rockwell Automation Inc., Rudolph Technologies Inc., Schneider Electric SE,
Teradyne Inc., Terex Corp., Tokyo Electron Ltd., Veeco Instruments Inc., and Xcerra Corp.

The MHH Engineering & Industrial Services Index is currently comprised of AECOM Technology Corp., Aurubis
AG, Balfour Beatty plc, Cardno Ltd., Clean Harbors Inc., Commercial Metals Company, Dowa Holdings Co. Ltd.,
Fastenal Company, Fluor Corp., HD Supply Holdings Inc., Jacobs Engineering Group Inc., John Wood Group plc,
KBR Inc., Lawson Products Inc., MRC Global Inc., MSC Industrial Direct Co. Inc., NV5 Global Inc., Primoris Services
Corp., Sims Metal Management Ltd., Tetra Tech Inc., Transcat Inc., Veolia Environnement SA, WW Grainger Inc.,
and WESCO International Inc.

The companies that comprise each Index can change periodically as a result of a variety of reasons, including
mergers, acquisitions, initial public offerings, and other transactions; therefore, comparisons to historical time
periods and historical performance for each Index may not entirely correspond and correlate to the Index’s
current performance. In addition, historical performance is not a guarantee or prediction of future results.

The information and statistical data contained herein have been obtained from sources that Mufson Howe
Hunter believes are reliable, but Mufson Howe Hunter makes no representation or warranty as to the accuracy
or completeness of any such information and data and expressly disclaims any and all liability relating to or
Note: Please refer to Page 19 for the resulting from your use of these materials. The information and data contained herein are current and only as
Universe components. of the date(s) indicated and Mufson Howe Hunter has no intention, obligation, or duty to update these materials
after such date(s). These materials do not constitute an offer to sell or the solicitation of an offer to buy any
securities. Copyright© 2019 Mufson Howe Hunter & Company LLC. All rights reserved. The Manufacturing
Update is produced by Mufson Howe Hunter. Mufson Howe Hunter provides a full range of investment banking
services to manufacturing companies. For more information, visit www.mhhco.com.

2
Major U.S. Economic Indicators

PMI (Purchase Manager Index) Unemployment Rate


A PMI reading above 50 percent (red line below) indicates that the Unemployment rate is traditionally defined as the percentage of the total
manufacturing economy is generally expanding and below 50 percent labor force that is actively looking for gainful employment.
means it is contracting.

ISM Manufacturing PMI Composite Index - United States (Monthly) Unemployment Rate - United States (Monthly)
65 5.00%
4.50%
60
4.00%
3.50%
55
3.00%

50 2.50%
2.00%
45 1.50%
1.00%
40
0.50%

35 0.00%

Source: Institute for Supply Management Source: United States Bureau of Labor

Commentary Commentary
Economic activity in the manufacturing sector contracted in August, In August, the unemployment rate was unchanged at 3.7% and the
while the economy grew for the 124th consecutive month. New number of unemployed persons was little changed at 6.0 million.
Orders, Production, Employment, Raw Materials Inventories, Exports Total nonfarm payroll employment increased by 130,000, driven by
and Imports, Backlog, and Prices all contracted, resulting in a PMI gains in federal government employment spurred by hiring of
decrease of 2.1 percentage points from the July reading of 51.2. Census workers. Manufacturing jobs changed little in August.

Industrial Production and Capacity Utilization Producer Price Index (PPI) and Consumer Price Index
The Production Index (in red below) measures real output and is (CPI)
expressed as a percentage of real output in a base year, currently 2007. The PPI measures the average change over time in prices received (price
The Capacity Index (in green below), which is an estimate of sustainable changes) by producers for domestically produced goods, services and
potential output, is also expressed as a percentage of real output in 2007. construction. The CPI measures changes in the prices paid by urban
consumers for a representative basket of goods and services.
Industrial Production and Capacity Utilization - United States (Monthly) CPI and PPI Index - United States (1-Month Percent Change)
115.0 0.7
110.0 0.6
105.0 0.5
100.0 0.4
95.0 0.3
90.0 0.2
85.0 0.1
80.0 0
75.0 -0.1
70.0 -0.2
-0.3

Total Industrial Production Manufacturing Production


Total Capacity Utilization Manufacturing Utilization CPI All items PPI Total final demand

Source: United States Federal Reserve Source: United States Bureau of Labor

Commentary Commentary
Industrial production rose 0.6% in August. At 109.9% of its 2012 CPI for all items rose 0.1% in August, driven by increases in the
average, total industrial production was 0.4% higher in July than it shelter and medical care indexes which outweighed the decline in
was a year earlier. Therefore, manufacturing production and the energy index. PPI for final demand rose 0.1% in August, as the
capacity utilization rose by 0.5% and 0.3%, respectively, for 0.3% increase for services offset the 0.5% decline for goods related
durables and nondurables. to energy prices.

1
Sector Index Performance

Comparative Sector Index Performance (Last Three Years)


Last Three Years
Daily from August 31, 2016 to August 30, 2019
Price as Percent of Base (August 31, 2016 = 0%)

80%
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19

NASDAQ S&P 500 MHH Aerospace & Defense MHH Components & Materials MHH Industrial Equipment MHH Eng. & Ind. Services

Source: CapitalIQ

Comparative Sector Index Performance (Last Twelve Months)


Last Twelve Months
Daily from August 31, 2018 to August 30, 2019
Price as Percent of Base (August 31, 2018 = 0%)

30%

20%

10%

0%

-10%

-20%

-30%

-40%
Aug-18 Nov-18 Feb-19 May-19 Aug-19

NASDAQ S&P 500 MHH Aerospace & Defense MHH Components & Materials MHH Industrial Equipment MHH Eng. & Ind. Services

Source: CapitalIQ

2
Subsector Trading Multiples & Margins

Comparative Subsector LTM EV/Revenue Comparative Subsector LTM EV/EBTIDA


Last Twelve Months EV/Revenue Last Twelve Months EV/EBITDA
August 31, 2018 to August 30, 2019 August 31, 2018 to August 30, 2019
MEAN MEDIAN MEAN MEDIAN
3.5x 14.0x
13.2x 13.2x 13.0x
3.0x
3.0x 12.0x 11.6x 11.3x
10.9x 11.3x
10.2x
2.5x 10.0x
2.1x
2.0x 8.0x 8.0x 8.2x
2.0x 1.9x 8.0x
6.6x
1.5x 1.3x 1.3x 6.0x
1.2x 1.2x

1.0x 0.8x 4.0x


0.7x 0.6x
0.5x
0.5x 2.0x

0.0x 0.0x

Source: CapitalIQ Source: CapitalIQ

Commentary Commentary
During the last twelve months, our subsector indices had a mean During the last twelve months, our subsector indices had a mean
EV/Revenue of 1.4x and a median of 1.2x. Of the subsectors, EV/EBITDA of 10.5x and a median of 11.1x. Of the subsectors,
Semiconductor Capital Equipment had the high multiple at 3.0x both Aerospace and Defense had the high multiples at 13.2x and
and Technical Services had the low multiple at 0.5x. Vehicle Parts & Supplies had the low multiple at 6.6x.

Comparative Subsector LTM Gross Margin Comparative Subsector LTM EBITDA Margin
Last Twelve Months Gross Margin Last Twelve Months EBITDA Margin
August 31, 2018 to August 30, 2019 August 31, 2018 to August 30, 2019
MEAN MEDIAN MEAN MEDIAN
50.0% 30.0%
45.5% 27.7%
44.4%
45.0%
38.9% 25.0%
40.0%

35.0% 33.7% 19.9%


32.2% 20.0%
17.5%
30.0% 27.4% 16.0%
14.6% 15.0%
25.0% 21.7% 15.0%
12.9%
18.6% 18.6% 11.7%
20.0% 16.9% 10.5% 10.7%
10.0%
15.0% 12.8% 7.9%
10.6% 6.4%
10.0%
5.0%
5.0%

0.0% 0.0%

Source: CapitalIQ Source: CapitalIQ

Commentary Commentary
During the last twelve months, our subsector indices had a mean During the last twelve months, our subsector indices had a mean
Gross Margin of 26.8% and a median of 24.5%. Of the subsectors, EBITDA Margin of 14.2% and a median of 13.7%. Of the
Measurement, Control & Testing Devices had the high margin at subsectors, Semiconductor Capital Equipment had the high margin
45.5% and Technical Services had the low margin at 10.6%. at 27.7% and Technical Services had the low margin at 6.4%.

3
Subsector Trading Multiples & Margins

Index Subsector LTM EV/EBITDA vs. EBITDA Margin


Last Twelve Months EV/EBITDA & EBITDA Margin
August 31, 2018 to August 30, 2019

15.0x

Aerospace Defense
13.0x
Measure. & Test Devices

Industrial Distribution Electrical Equip. Semiconductor Equip.


Median EV/EBITDA = 11.1x
EV/EBITDA

11.0x
Technical Services

Specialty Materials
9.0x
Construction Equip.

Industrial Recycling Electronic Components


7.0x

Vehicle Parts & Supplies


Median EBITDA Margin = 13.7%
5.0x

EBITDA Margin

Source: CapitalIQ

Index Subsector LTM EV/EBITDA vs. Gross Margin


Last Twelve Months EV/EBITDA & Gross Margin
August 31, 2018 to August 30, 2019

15.0x

Aerospace Measure. & Test Devices


13.0x
Defense
Electrical Equip. Semiconductor Equip.
Median EV/EBITDA = 11.1x
EV/EBITDA

11.0x
Technical Services
Industrial Distribution
Specialty Materials
9.0x
Construction Equip.

Industrial Recycling
Electronic Components
7.0x

Vehicle Parts & Supplies


Median Gross Margin = 24.5%
5.0x

Gross Margin

Source: CapitalIQ

4
Aerospace & Defense

Comparative Index Performance


The Mufson Howe Hunter Aerospace & Defense Index(a) increased by 7.1% during the three months ending August 30,
2019.

Last Three Years Last Twelve Months


Daily from August 31, 2016 to August 30, 2019 Daily from August 31, 2018 to August 30, 2019
Price as Percent of Base (August 31, 2016 = 0%) Price as Percent of Base (August 31, 2018 = 0%)

80% 10%
70% 5%
60% 0%
50%
-5%
40%
-10%
30%
-15%
20%
10% -20%

0% -25%
-10% -30%
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Aug-18 Nov-18 Feb-19 May-19 Aug-19

MHH Aerospace & Defense NASDAQ S&P 500 MHH Aerospace & Defense NASDAQ S&P 500

Price Performance 3-Year LTM 3 Month


Mufson Howe Hunter Aerospace & Defense Index(a) 63.4% 3.8% 7.1%
NASDAQ 52.7% -1.8% 6.8%
S&P 500 34.8% 0.9% 6.3%

(a) Market cap weighted index assuming no dividend reinvestment. Mufson Howe Hunter Aerospace & Defense Index is comprised of
all companies listed on the following page.

Please see Page 13 for sector news

Highlighted M&A Transaction – Aerospace and Defense

Target Acquirer Value*

ND

Communications & Power Industries LLC entered into an agreement to acquire General Dynamics SATCOM Technologies, Inc.
from General Dynamics Mission Systems, Inc. on August 5, 2019. General Dynamics SATCOM Technologies, Inc. designs,
develops, manufactures, and installs satellite and wireless communications products for commercial, government, military,
and scientific applications in the United States and internationally. The transaction is expected to close before the end of
calendar year 2019.

*ND – Not disclosed. Transaction values reported on the basis of enterprise value in USD millions.

5
Aerospace & Defense
Selected Valuation Metrics

($ in USD millions, except per share data) Market & Capitalization LTM Performance(3) Valuation Margins
Equity Enterprise Enterprise Value/ Price/ Gross
Company Ticker Price (1) Value Value (2) Revenue EBITDA (4) EPS Revenue EBITDA EPS Profit EBITDA

Aerospace
The Boeing Company (BA) BA $364.09 $204,877 $215,983 $92,155 $7,317 $5.25 2.34x 29.5x NM 13.6% 7.9%
United Technologies Corporation (UTX) UTX 130.24 111,151 154,753 72,553 12,780 5.74 2.13x 12.1x 22.7x 25.3% 17.6%
Honeywell International Inc. (HON) HON 164.62 118,445 125,563 38,618 8,674 6.31 3.25x 14.5x 26.1x 32.1% 22.5%
Airbus SE (ENXTPA:AIR) ENXTPA:AIR 137.86 107,184 110,816 79,202 7,737 5.07 1.40x 14.3x 27.2x 14.8% 9.8%
Thales S.A. (ENXTPA:HO) ENXTPA:HO 115.65 24,575 21,363 18,881 2,117 4.28 1.13x 10.1x 27.0x 25.7% 11.2%
Rolls-Royce Holdings plc (LSE:RR.) LSE:RR. 9.40 17,985 20,869 20,491 779 -0.05 1.02x 26.8x NM 12.5% 3.8%
Textron Inc. (TXT) TXT 45.00 10,356 13,951 13,286 1,586 2.67 1.05x 8.8x 16.9x 16.9% 11.9%
Embraer S.A. (BOVESPA:EMBR3) BOVESPA:EMBR3 4.34 3,195 2,285 5,206 292 0.08 0.44x 7.8x NM 16.9% 5.6%
Mean $74,721 $83,198 $42,549 $5,160 $3.67 1.60x 15.5x 24.0x 19.7% 11.3%
Median 65,880 66,089 29,555 4,717 4.67 1.27x 13.2x 26.1x 16.9% 10.5%

Defense
Lockheed Martin Corporation (LMT) LMT $384.11 $108,472 $121,988 $57,492 $9,060 $14.55 2.12x 13.5x 26.4x 14.0% 15.8%
Northrop Grumman Corporation (NOC) NOC 367.87 62,243 77,163 32,886 5,306 14.01 2.35x 14.5x 26.3x 21.7% 16.1%
General Dynamics Corporation (GD) GD 191.27 55,116 69,701 38,288 5,380 8.61 1.82x 13.0x 22.2x 17.7% 14.1%
Raytheon Company (RTN) RTN 185.32 51,618 55,864 28,054 4,104 7.73 1.99x 13.6x 24.0x 27.5% 14.6%
L3Harris Technologies, Inc. (LHX) LHX 211.41 47,204 50,222 6,801 1,601 6.10 7.38x NM 34.6x 34.3% 23.5%
BAE Systems plc (BA.) BA. 6.65 21,285 25,497 22,027 2,569 0.38 1.16x 9.9x 17.5x 63.3% 11.7%
Huntington Ingalls Industries, Inc. (HII) HII 209.00 8,639 10,523 8,550 1,065 12.20 1.23x 9.9x 17.1x 19.2% 12.5%
Mean $50,654 $58,708 $27,728 $4,155 $9.08 2.58x 12.4x 24.0x 28.2% 15.5%
Median 51,618 55,864 28,054 4,104 8.61 1.99x 13.2x 24.0x 21.7% 14.6%
NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months (1) As of close August 30, 2019.
‡ = excluded from Mean and Median calculations (2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long
Source: CapitalIQ term debt, short term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash
equivalents.
(3) As of June 30, 2019 excluding TXT (June 29, 2019); LHX (June 28, 2019).
(4) Excludes non-recurring and discontinued operations.

6
Components & Materials

Comparative Index Performance


The Mufson Howe Hunter Components & Materials Index(a) decreased by 0.9% during the three months ending August
30, 2019.

Last Three Years Last Twelve Months


Daily from August 31, 2016 to August 30, 2019 Daily from August 31, 2018 to August 30, 2019
Price as Percent of Base (August 31, 2016 = 0%) Price as Percent of Base (August 31, 2018 = 0%)

70% 10%
60% 5%
50% 0%
40% -5%
30% -10%
20% -15%
10% -20%
0% -25%
-10% -30%
-20% -35%
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Aug-18 Nov-18 Feb-19 May-19 Aug-19

MHH Components & Materials NASDAQ S&P 500 MHH Components & Materials NASDAQ S&P 500

Price Performance 3-Year LTM 3 Month


(a)
Mufson Howe Hunter Components & Materials Index -10.1% -28.7% -0.9%
NASDAQ 52.7% -1.8% 6.8%
S&P 500 34.8% 0.9% 6.3%

(a) Market cap weighted index assuming no dividend reinvestment. Mufson Howe Hunter Components & Materials Index is
comprised of all companies listed on the following page.

Please see Page 14 for sector news

Highlighted M&A Transaction – Components & Materials

Target Acquirer Value*

$116.0
(Advanced Ballistic-Protection business)

Avon Rubber p.l.c. (LSE:AVON) agreed to acquire the advanced ballistic-protection business of 3M for approximately $116
million on August 7, 2019. 3M Company develops, manufactures and markets various products worldwide, and its advanced
ballistic protection business comprises of ballistic helmets, body armor, flat armor and related helmet-attachment products
serving government and law enforcement. The management team of the business, along with approximately 280 employees,
are expected to join Avon Rubber as a result of the sale.

*ND – Not disclosed. Transaction values reported on the basis of enterprise value in USD millions.

7
Components & Materials
Selected Valuation Metrics
(3)
($ in USD millions, except per share data) Market & Capitalization LTM Performance Valuation Margins
Equity Enterprise Enterprise Value/ Price/ Gross
Company Price (1) Value Value (2) Revenue EBITDA (4) EPS Revenue EBITDA EPS Profit EBITDA

Electronic Components
TE Connectivity Ltd (TEL) $91.22 $30,644 $34,170 $13,657 $3,020 $4.13 2.50x 11.3x 22.1x 33.1% 22.1%
Corning Inc. (GLW) 27.85 21,747 30,013 11,795 2,989 1.14 2.54x 10.0x 24.3x 39.0% 25.3%
Amphenol Corp. (APH) 87.54 26,039 29,249 8,328 2,045 3.20 3.51x 14.3x 27.3x 32.2% 24.6%
Omron Corp. (TSE:6645) 49.52 10,170 9,532 7,513 906 1.74 1.27x 10.5x 28.5x 41.7% 12.1%
Alps Electric Ltd (TSE:6770) 17.46 3,599 3,851 7,931 855 0.80 0.49x 4.5x 21.8x 18.4% 10.8%
Belden Inc. (BDC) 45.61 2,073 3,337 2,536 429 3.56 1.32x 7.8x 12.8x 39.5% 16.9%
Vishay Intertechnology (VSH) 15.83 2,287 2,119 2,987 594 1.70 0.71x 3.6x 9.3x 28.2% 19.9%
AVX Corp. (AVX) 13.55 2,291 1,518 1,739 388 1.15 0.87x 3.9x 11.8x 27.3% 22.3%
Encore Wire Corp. (WIRE) 53.99 1,129 944 1,312 117 3.10 0.72x 8.0x 17.4x 14.9% 8.9%

Mean $11,109 $12,748 $6,422 $1,260 $2.28 1.55x 8.2x 19.5x 30.5% 18.1%
Median 3,599 3,851 7,513 855 1.74 1.27x 8.0x 21.8x 32.2% 19.9%

Specialty Materials
3MCompany (MMM) $161.72 $93,034 $106,973 $32,131 $7,987 $6.52 3.33x 13.4x 24.8x 48.4% 24.9%
BASF SE (DE:BAS) 66.19 60,794 82,475 71,150 7,634 2.27 1.16x 10.8x 29.1x 27.9% 10.7%
DuPont de Nemours (DD) 67.93 50,641 67,309 85,405 16,160 7.89 0.79x 4.2x 8.6x 25.0% 18.9%
Dow Inc. (DOW) 42.63 31,683 50,216 46,561 7,510 3.12 1.08x 6.7x 13.7x 16.0% 16.1%
PPG Industries, Inc. (PPG) 110.79 26,179 31,505 15,110 2,233 4.56 2.09x 14.1x 24.3x 41.9% 14.8%
Akzo Nobel N.V. (ENXTAM:AKZA) 89.61 18,875 19,569 10,548 1,120 1.85 1.86x 17.5x NM 42.4% 10.6%
Celenese Corp. (CE) 113.37 14,028 17,915 6,739 1,466 6.42 2.66x 12.2x 17.7x 26.9% 21.8%
Evonik Industries AG (DE:EVK) 25.49 11,860 16,387 17,019 2,715 1.93 0.96x 6.0x 13.2x 29.8% 16.0%
Solvay SA (ENXTBR:SOLB) 100.88 10,406 14,962 12,982 2,434 6.74 1.15x 6.1x 15.0x 26.6% 18.7%
Ferro Corporation (FOE) 10.19 835 1,701 1,572 179 0.62 1.08x 9.5x 16.4x 26.8% 11.4%

Mean $31,834 $40,901 $29,922 $4,944 $4.19 1.62x 10.06x 18.08x 31.2% 16.4%
Median 22,527 25,537 16,064 2,575 3.84 1.16x 10.16x 16.45x 27.4% 16.0%

Vehicle Parts and Supplies


Johnson Controls Inc. (JCI) $42.69 $33,969 $38,655 $31,877 $4,761 $2.13 1.21x 8.1x 20.0x 29.7% 14.9%
Denso Corp. (TSE:6902) 41.97 32,522 32,124 49,689 5,538 2.29 0.65x 5.8x 18.4x 15.0% 11.1%
Continental AG (DB:CON) 121.45 24,145 30,984 50,442 4,694 11.38 0.61x 6.6x 10.7x 24.4% 9.3%
Aptiv PLC (APTV) 83.17 21,308 26,112 14,323 2,149 3.21 1.82x 12.2x 25.9x 18.2% 15.0%
Lear Corp. (LEA) 112.26 6,853 8,671 20,002 2,012 12.56 0.43x 4.3x 8.9x 10.7% 10.1%
Autoliv, Inc. (ALV) 68.40 5,967 7,956 8,555 1,067 4.99 0.93x 7.5x 13.7x 18.6% 12.5%
Bosch Ltd. (BSE:500530) 202.16 5,963 5,750 1,698 298 5.67 3.39x 19.3x 35.7x 44.2% 17.5%
Stanley Electric Co. Ltd. (TSE:6923) 24.86 4,049 3,214 3,967 799 1.80 0.81x 4.0x 13.8x 22.9% 20.2%
Delphi Automotive PLC (DLPH) 13.23 1,152 2,779 4,602 592 2.05 0.60x 4.7x 6.5x 16.1% 12.9%
Mean $15,103 $17,361 $20,573 $2,435 $5.12 1.16x 8.1x 17.1x 22.2% 13.7%
Median 6,853 8,671 14,323 2,012 3.21 0.81x 6.6x 13.8x 18.6% 12.9%

NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months (1) As of close August 30, 2019.
‡ = excluded from Mean and Median calculations (2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long
Source: CapitalIQ term debt, short term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents.
(3) As of June 30, 2019 excluding LEA and VSH (June 29, 2019); and TEL (June 28, 2019).
(4) Excludes non-recurring and discontinued operations.

8
Industrial Equipment

Comparative Index Performance


The Mufson Howe Hunter Industrial Equipment Index(a) increased by 13.2% during the three months ending August 30,
2019.

Last Three Years Last Twelve Months


Daily from August 31, 2016 to August 30, 2019 Daily from August 31, 2018 to August 30, 2019
Price as Percent of Base (August 31, 2016 = 0%) Price as Percent of Base (August 31, 2018 = 0%)

70% 15%
60% 10%

50% 5%
0%
40%
-5%
30%
-10%
20%
-15%
10% -20%
0% -25%
-10% -30%
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Aug-18 Nov-18 Feb-19 May-19 Aug-19

MHH Industrial Equipment NASDAQ S&P 500 MHH Industrial Equipment NASDAQ S&P 500

Price Performance 3-Year LTM 3 Month


Mufson Howe Hunter Industrial Equipment Index(a) 59.3% 9.6% 13.2%
NASDAQ 52.7% -1.8% 6.8%
S&P 500 34.8% 0.9% 6.3%

(a) Market cap weighted index assuming no dividend reinvestment. Mufson Howe Hunter Industrial Equipment Index is comprised of
all companies listed on the following page.

Please see Page 15 for sector news

Highlighted M&A Transaction – Industrial Equipment

Target Acquirer Value*

ND ND
(Vapor Recovery business)

Regal Beloit Corporation (NYSE:RBC) announced on August 5, 2019 the divestiture of its Non-Core Vapor Recovery business to
an unknown buyer, which closed July 2, 2019. The Vapor Recovery business was previously part of Regal Beloit Corporation’s
Commercial and Industrial Systems segment.

*ND – Not disclosed. Transaction values reported on the basis of enterprise value in USD millions.

9
Industrial Equipment
Selected Valuation Metrics
(3)
($ in USD millions, except per share data) Market & Capitalization LTM Performance Valuation Margins
Equity Enterprise Enterprise Value/ Price/ Gross
Company Price (1) Value Value (2) Revenue EBITDA (4) EPS Revenue EBITDA EPS Profit EBITDA
Construction Equipment
Caterpillar Inc. (CAT) $119.00 $66,948 $97,477 $55,750 $11,054 $8.64 1.75x 8.8x 13.8x 26.9% 19.8%
Deere & Company (DE) 154.91 48,777 91,362 38,731 6,147 8.32 2.36x 14.9x 18.6x 23.8% 15.9%
Cummins Inc. (CMI) 149.27 23,508 25,363 24,294 3,505 12.37 1.04x 7.2x 12.1x 25.8% 14.4%
Hyundai Heavy Industries Co. Ltd (KOSE:A009540) 91.04 6,438 7,447 12,206 206 (1.83) 0.61x NM NM 4.5% 1.7%
Navistar International Corp. (NAV) 23.00 2,280 6,692 11,788 920 3.50 0.57x 7.3x 6.6x 16.4% 7.8%
Oshkosh Corp. (OSK) 70.27 4,806 5,473 8,243 880 6.29 0.66x 6.2x 11.2x 17.8% 10.7%
Terex Corp. (TEX) 24.83 1,768 2,878 5,199 286 1.19 0.55x 10.1x 20.8x 18.6% 5.5%
Mean $22,075 $33,813 $22,316 $3,286 $5.49 1.08x 9.1x 13.8x 19.1% 10.8%
Median 6,438 7,447 12,206 920 6.29 0.66x 8.0x 12.9x 18.6% 10.7%

Electrical Equipment
Schneider Electric SE (ENXTPA:SU) $83.77 $45,780 $55,455 $30,274 $5,156 $4.39 1.83x 10.8x 19.1x 39.2% 17.0%
Eaton Corporation plc (ETN) 80.72 33,902 41,709 21,709 3,920 4.08 1.92x 10.6x 19.8x 33.0% 18.1%
Emerson Electric Co. (EMR) 59.59 36,654 41,313 18,289 3,715 2.81 2.26x 11.1x 21.2x 42.5% 20.3%
Ametek Inc. (AME) 85.93 19,622 21,710 5,041 1,364 2.79 4.31x 15.9x 30.8x 34.4% 27.1%
Rockwell Automation Inc. (ROK) 152.79 17,878 19,205 6,694 1,507 6.72 2.87x 12.7x 22.7x 43.3% 22.5%
Hubbell Inc. (HUBB) 131.14 7,135 8,813 4,608 727 5.62 1.91x 12.1x 23.3x 29.3% 15.8%
Regal Beloit Corporation (RBC) 70.90 2,973 4,017 3,535 517 4.50 1.14x 7.8x 15.7x 27.0% 14.6%
Powell Industries, Inc. (POWL) 36.32 420 343 504 20 0.41 0.68x 17.5x NM 16.4% 3.9%

Mean $20,546 $24,071 $11,332 $2,116 $3.92 2.11x 12.3x 21.8x 33.1% 17.4%
Median 18,750 20,457 5,868 1,436 4.24 1.92x 11.6x 21.2x 33.7% 17.5%

Semiconductor Capital Equipment


ASML Holding NV (ASML) $222.45 $93,644 $94,521 $12,193 $3,198 $4.15 7.75x ‡ 29.6x ‡ NM 44.4% 26.2%
Applied Materials, Inc. (AMAT) 48.02 44,359 46,110 15,161 4,073 2.32 3.04x 11.3x 20.7x 44.3% 26.9%
Lam Research Corp. (LRCX) 210.51 30,426 29,489 9,654 2,774 9.56 3.05x 10.6x 22.0x 45.1% 28.7%
Tokyo Electron Ltd (TSE:8035) 178.93 28,469 25,260 11,125 2,843 10.26 2.27x 8.9x 17.4x 41.2% 25.6%
KLA-Tencor Corp. (KLAC) 147.90 23,554 25,257 4,569 1,621 5.17 5.53x 15.6x 28.6x 59.1% 35.5%
Teradyne Inc. (TER) 52.97 9,002 8,558 2,145 611 1.66 3.99x 14.0x 32.0x 58.5% 28.5%
Veeco Instruments Inc. (VECO) 9.26 453 512 423 NM (0.77) 1.21x NA ‡ NM 36.1% NM

Mean $32,844 $32,815 $7,896 $2,520 $4.62 3.18x 12.1x 24.1x 47.0% 28.6%
Median 28,469 25,260 9,654 2,808 4.15 3.05x 11.3x 22.0x 44.4% 27.7%

Measurement, Control, and Testing Devices


Danaher Corporation (DHR) $142.09 $101,931 $109,381 $20,253 $4,851 $3.02 5.40x 22.5x NM 55.6% 24.0%
Xcerra Corporation (XCRA) 33.22 26,535 38,477 31,933 4,081 1.72 1.20x 9.4x 19.3x 32.5% 12.8%
Entegris, Inc. (ENTG) 42.83 5,789 6,255 1,570 423 1.09 3.98x 14.8x 39.1x 45.5% 26.9%
MKS Instruments, Inc. (MKSI) 78.29 4,266 4,820 1,885 445 3.73 2.56x 10.8x 21.0x 45.5% 23.6%
Brooks Automation, Inc. (BRKS) 33.33 2,344 2,731 741 95 0.19 3.68x 28.7x NM 40.3% 12.8%
FormFactor, Inc. (FORM) 17.09 1,285 1,192 546 83 0.31 2.18x 14.3x NM 39.8% 15.2%
Cohu, Inc. (COHU) 11.92 490 732 555 37 (0.48) 1.32x 20.0x NM 42.1% 6.6%
FARO Technologies, Inc. (FARO) 49.24 854 728 400 18 (0.09) 1.82x NM NM 56.1% 4.4%
Nova Measuring Instruments Ltd. (NVMI) 27.70 775 626 234 56 1.08 2.67x 11.2x 25.6x 56.7% 23.8%
Nanometrics Incorporated (NANO) 27.29 678 543 288 43 0.83 1.88x 12.7x 33.0x 54.0% 14.8%
Rudolph Technologies, Inc. (RTEC) 21.99 684 519 246 40 0.72 2.11x 13.0x 30.5x 52.1% 16.2%
Axcelis Technologies, Inc. (ACLS) 15.31 495 414 367 35 0.51 1.13x 11.7x 30.3x 41.6% 9.6%
Mean $12,177 $13,868 $4,918 $850 $1.05 2.50x 15.4x 28.4x 46.8% 15.9%
Median 1,069 962 550 70 0.77 2.15x 13.0x 30.3x 45.5% 15.0%

NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months (1) As of close August 30, 2019.
‡ = excluded from Mean and Median calculations (2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long term
Source: CapitalIQ debt, short term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents.
(3) As of June 30, 2019 excluding NAV (July 31, 2019); AMAT and DE (July 28, 2019); COHU, ENTG, FORM, NANO and RBC
(June 29, 2019); and DHR (June 28, 2019).
(4) Excludes non-recurring and discontinued operations.

10
Engineering & Industrial
Selected HighlightsServices
Comparative Index Performance
The Mufson Howe Hunter Engineering & Industrial Services Index(a) increased by 7.6% during the three months ending
August 30, 2019.

Last Three Years Last Twelve Months


Daily from August 31, 2016 to August 30, 2019 Daily from August 31, 2018 to August 30, 2019
Price as Percent of Base (August 31, 2016 = 0%) Price as Percent of Base (August 31, 2018 = 0%)

70% 25%
20%
60%
15%
50% 10%
40% 5%
0%
30%
-5%
20% -10%
10% -15%
-20%
0%
-25%
-10% -30%
Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Aug-18 Nov-18 Feb-19 May-19 Aug-19

MHH Eng. & Ind. Services NASDAQ S&P 500 MHH Eng. & Ind. Services NASDAQ S&P 500

Price Performance 3-Year LTM 3 Month


(a)
Mufson Howe Hunter Engineering & Industrial Services Index 47.2% 15.2% 7.6%
NASDAQ 52.7% -1.8% 6.8%
S&P 500 34.8% 0.9% 6.3%

(a) Market cap weighted index assuming no dividend reinvestment. Mufson Howe Hunter Industrial Equipment Index is comprised of
all companies listed on the following page.

Please see Page 17 for sector news

Highlighted M&A Transaction – Engineering & Industrial Services

Target Acquirer Value*

$303.8
(Nuclear business)

Jacobs Engineering Group Inc. (NYSE:JEC) entered into an agreement to acquire John Wood Group's Nuclear business from
John Wood Group PLC (LSE:WG) for an enterprise value of $303.8 million (£250 million) on August 20, 2019. John Wood
Group PLC, together with its subsidiaries, provides project, engineering and technical services in energy, industry and built
environment worldwide. Its Nuclear business comprises nuclear technology and engineering services. The Nuclear business
employees will become part of the Jacobs Engineering Group Inc. team.

*ND – Not disclosed. Transaction values reported on the basis of enterprise value in USD millions.

11
Selected
Engineering Highlights
& Industrial Services
Selected Valuation Metrics
(3)
($ in USD millions, except per share data) Market & Capitalization LTM Performance Valuation Margins
Equity Enterprise Enterprise Value/ Price/ Gross
Company Price (1) Value Value (2) Revenue EBITDA (4) EPS Revenue EBITDA EPS Profit EBITDA
Technical Services
Jacobs Engineering Group Inc. (JEC) $88.86 $12,040 $12,338 $16,742 $1,066 $3.17 0.74x 11.6x 28.0x 18.4% 6.4%
AECOM (ACM) 35.48 5,596 8,810 20,364 856 1.50 0.43x 10.3x 23.7x 3.7% 4.2%
John Wood Group PLC (LSE:WG.) 4.59 3,079 5,393 9,886 545 0.23 0.55x 9.9x 19.7x 12.2% 5.5%
Tetra Tech, Inc. (TTEK ) 81.12 4,433 4,668 2,315 241 2.20 2.02x 19.4x 36.8x 17.4% 10.4%
KBR, Inc. (KBR) 25.52 3,612 4,501 5,370 383 1.13 0.84x 11.8x 22.5x 9.1% 7.1%
Fluor Corporation (FLR) 17.67 2,473 2,678 17,746 -124 (1.75) 0.15x NM NM NM NM
Balfour Beatty plc (LSE:BBY) 2.63 1,797 2,031 8,655 186 0.11 0.23x 10.9x 23.0x 5.7% 2.1%
Primoris Services Corporation (PRIM) 19.54 996 1,546 3,238 237 1.41 0.48x 6.5x 13.8x 10.6% 7.3%
NV5 Global, Inc. (NVEE) 61.73 788 837 465 61 1.90 1.80x 13.8x 32.5x 47.5% 13.1%
Cardno Limited (ASX:CDD) 0.64 285 348 925 38 0.02 0.38x 9.1x 34.0x 7.4% 4.1%
Mean $3,510 $4,315 $8,571 $349 $0.99 0.76x 11.5x 26.0x 14.7% 6.7%
Median 2,776 3,590 7,013 239 1.27 0.51x 10.9x 23.7x 10.6% 6.4%

Industrial Distribution
Fastenal Company (FAST) $30.62 $17,558 $18,120 $5,189 $1,175 $1.11 3.49x 15.4x 27.6x 47.6% 22.6%
W.W. Grainger, Inc. (GWW) 273.65 14,933 17,223 11,286 1,645 14.05 1.53x 10.5x 19.5x 38.6% 14.6%
HD Supply Holdings, Inc. (HDS) 38.91 6,647 9,191 6,175 827 2.23 1.49x 11.1x 17.4x 39.2% 13.4%
MSC Industrial Direct Co., Inc. (MSM) 67.62 3,733 4,230 3,359 527 4.99 1.26x 8.0x 13.5x 42.8% 15.7%
WESCO International, Inc. (WCC) 45.08 1,915 3,519 8,190 410 3.95 0.43x 8.6x 11.4x 19.3% 5.0%
MRC Global Inc. (MRC) 12.57 1,045 2,304 4,034 202 0.70 0.57x 11.4x 17.8x 17.1% 5.0%
Lawson Products, Inc. (LAWS) 36.45 328 344 362 16 0.67 0.95x 21.2x NM 53.6% 4.5%
Transcat, Inc. (TRNS) 23.23 170 199 167 17 0.76 1.20x 12.0x 30.7x 24.2% 9.9%

Mean $5,791 $6,891 $4,845 $602 $3.56 1.36x 12.3x 19.7x 35.3% 11.3%
Median 2,824 3,875 4,612 469 1.67 1.23x 11.3x 17.8x 38.9% 11.7%

Industrial Recycling
Veolia Environnement S.A. (ENXTPA:VIE) $23.92 $13,236 $28,183 $30,322 $3,077 $0.76 0.93x 9.2x 31.6x 16.1% 10.1%
Clean Harbors, Inc. (CLH) 73.55 4,109 5,617 3,351 501 1.31 1.68x 11.2x NM 30.3% 14.9%
Dowa Holdings Co., Ltd. (TSE:5714) 32.01 1,895 3,110 4,212 354 2.25 0.74x 8.8x 14.2x 12.3% 8.4%
Commercial Metals Company (CMC) 15.67 1,848 3,090 5,594 409 1.31 0.55x 7.5x 12.0x 13.3% 7.3%
Aurubis AG (DE:NDA) 44.32 1,993 2,236 11,904 306 2.26 0.19x 7.3x 19.6x 7.9% 2.6%
Sims Metal Management Limited (ASX:SGM) 7.74 1,568 1,325 4,664 196 0.42 0.28x 6.8x 18.5x 11.7% 4.2%

Mean $4,108 $7,260 $10,008 $807 $1.38 0.73x 8.5x 19.2x 15.3% 7.9%
Median 1,944 3,100 5,129 382 1.31 0.65x 8.2x 18.5x 12.8% 7.9%

NA = Not Available; NM = Not Meaningful; LTM = Latest Twelve Months (1) As of close August 30, 2019.
‡ = excluded from Mean and Median calculations (2) Enterprise value is defined as equity value plus net debt, preferred stock and minority interests. Net Debt includes long
Source: CapitalIQ term debt, short term debt, post-retirement benefits and unfunded pensions, if applicable, less cash and cash equivalents.
(3) As of June 30, 2019 excluding HDS (August 4, 2019); NVEE and TRNS (June 29, 2019); BBY and JEC (June 28,
2019); MSM (June 1, 2019); and CMC (May 31, 2019).
(4) Excludes non-recurring and discontinued operations.

12
Selected Highlights

Selected News – Aerospace & Defense

Embraer S.A. (NYSE:ERJ) reported second quarter net income of $6.8 million for fiscal year 2019 as compared to
($125.9) million for the prior year period. Earnings per share were $0.01 versus ($0.17) for the prior year period.
Revenues for the quarter increased to $598.1 million from $317.5 million for the same period in fiscal year 2018.

BAE Systems plc (LSE:BA) announced the appointment of Brad Greve as Group Finance Director as a member of the
Board of Directors.

General Dynamics Corporation (NYSE:GD) announced the election of James N. Mattis to the Board of Directors.

Huntington Ingalls Industries, Inc. (NYSE:HII) reported second quarter net income of $128.0 million for fiscal year
2019 as compared to $239.0 million for the prior year period. Earnings per share were $3.07 versus $5.40 for the
prior year period. Revenues for the quarter increased to $2,188.0 million from $2,020.0 million for the same period
in fiscal year 2018.

Rolls-Royce Holdings plc (LSE:RR) reported second quarter net income of ($577.6) million for fiscal year 2019 as
compared to ($629.4) million for the prior year period. Earnings per share were ($0.31) versus ($0.34) for the prior
year period. Revenues for the quarter increased to $5,008.7 million from $4,939.6 million for the same period in
fiscal year 2018.

13
Selected Highlights

Selected News – Components & Materials

Bosch Limited (BSE:500530) announced the appointment of Bernhard Straub as Chairman of its Board of Directors.

Bosch Limited (BSE:500530) reported first quarter net income of $40.6 million for fiscal year 2020 as compared to
$46.6 million for the prior year period. Earnings per share were $1.38 versus $1.48 for the prior year period.
Revenues for the quarter increase to $403.2 million from $396.1 million for the same period in fiscal year 2019.

Continental Aktiengesellschaft (DB:CON) reported second quarter net income of $551.7 million for fiscal year 2019
as compared to $959.2 million for the prior year period. Earnings per share were $2.75 versus $4.80 for the prior
year period. Revenues for the quarter decrease to $12,817.5 million from $13,270.1 million for the same period in
fiscal year 2018.

Delphi Technologies PLC (NYSE:DLPH) reported second quarter net income of $27.0 million for fiscal year 2019 as
compared to $86.0 million for the prior year period. Earnings per share were $0.31 versus $0.97 for the prior year
period. Revenues for the quarter decrease to $1,121.0 million from $1,232.0 million for the same period in fiscal
year 2018.

DuPont de Nemours, Inc. (NYSE:DD) reported second quarter net income of ($571.0) million for fiscal year 2019 as
compared to $1,769.0 million for the prior year period. Earnings per share were ($0.76) versus $2.27 for the prior
year period. Revenues for the quarter decrease to $5,468.0 million from $5,857.0 million for the same period in
fiscal year 2018.

Evonik Industries AG (DE:EVK) reported second quarter net income of $259.4 million for fiscal year 2019 as
compared to $360.5 million for the prior year period. Earnings per share were $0.56 versus $0.77 for the prior year
period. Revenues for the quarter decrease to $3,761.9 million from $3,982.0 million for the same period in fiscal
year 2018.

Note: All per share results are reported on a fully-diluted basis.

14
Selected Highlights

Selected News – Industrial Equipment

Applied Materials, Inc. (NasdaqGS:AMAT) announced the appointment of Yvonne McGill to the Board of Directors.

Applied Materials, Inc. (NasdaqGS:AMAT) reported third quarter net income of $571.0 million for fiscal year 2019
as compared to $1,016.0 million for the prior year period. Earnings per share were $0.61 versus $1.01 for the prior
year period. Revenues for the quarter decreased to $3,562.0 million from $4,162.0 million for the same period in
fiscal year 2018.

Axcelis Technologies, Inc. (NasdaqGS:ACLS) announced the appointment of Jorge Titinger to the Board of Directors.

Axcelis Technologies, Inc. (NasdaqGS:ACLS) reported second quarter net income of $0.6 million for fiscal year 2019
as compared to $14.7 million for the prior year period. Earnings per share were $0.02 versus $0.43 for the prior year
period. Revenues for the quarter decreased to $74.3 million from $119.3 million for the same period in fiscal year
2018.

Brooks Automation, Inc. (NasdaqGS:BRKS) reported third quarter net income of $7.3 million for fiscal year 2019 as
compared to $22.7 million for the prior year period. Earnings per share were $0.10 versus $0.32 for the prior year
period. Revenues for the quarter increased to $203.9 million from $172.4 million for the same period in fiscal year
2018.

Cohu, Inc. (NasdaqGS:COHU) reported second quarter net income of ($19.3) million for fiscal year 2019 as
compared to $11.6 million for the prior year period. Earnings per share were ($0.47) versus $0.39 for the prior year
period. Revenues for the quarter increased to $150.0 million from $99.8 million for the same period in fiscal year
2018.

Cummins Inc. (NYSE:CMI) announced the appointment of Tony Satterthwaite as President and COO.

Deere & Company (NYSE:DE) announced the appointment of John C. May to the position of CEO and to the Board of
Directors.

Deere & Company (NYSE:DE) reported third quarter net income of $899.0 million for fiscal year 2019 as compared
to $910.0 million for the prior year period. Earnings per share were $2.81 versus $2.78 for the prior year period.
Revenues for the quarter decreased to $10,035.0 million from $10,308.0 million for the same period in fiscal year
2018.

Emerson Electric Co. (NYSE:EMR) reported third quarter net income of $604.0 million for fiscal year 2019 as
compared to $712.0 million for the prior year period. Earnings per share were $0.97 versus $1.12 for the prior year
period. Revenues for the quarter increased to $4,684.0 million from $4,456.0 million for the same period in fiscal
year 2018.

KLA Corporation (NasdaqGS:KLAC) reported net income of $1,175.6 million for fiscal year 2019 as compared to
$802.3 million for the prior year. Earnings per share were $7.49 versus $5.10 for the prior year. Revenues for the
year increased to $4,568.9 million from $4,036.7 million for fiscal year 2018.

15
Selected Highlights

Selected News – Industrial Equipment (cont’d)

Lam Research Corporation (NasdaqGS:LRCX) announced the appointment of Abhijit Y. Talwalkar to the position of
Chairman of the Board of Directors.

Nova Measuring Instruments Ltd. (NasdaqGS:NVMI) reported second quarter net income of $6.5 million for fiscal
year 2019 as compared to $11.8 million for the prior year period. Earnings per share were $0.23 versus $0.41 for the
prior year period. Revenues for the quarter decreased to $51.1 million from $61.9 million for the same period in
fiscal year 2018.

Oshkosh Corporation (NYSE:OSK) reported third quarter net income of $191.9 million for fiscal year 2019 as
compared to $153.4 million for the prior year period. Earnings per share were $2.72 versus $2.05 for the prior year
period. Revenues for the quarter increased to $2,392.7 million from $2,175.8 million for the same period in fiscal
year 2018.

Powell Industries, Inc. (NasdaqGS:POWL) reported third quarter net income of $5.1 million for fiscal year 2019 as
compared to $0.3 million for the prior year period. Earnings per share were $0.44 versus $0.03 for the prior year
period. Revenues for the quarter increased to $135.6 million from $122.1 million for the same period in fiscal year
2018.

Regal Beloit Corporation (NYSE:RBC) reported second quarter net income of $66.6 million for fiscal year 2019 as
compared to $65.9 million for the prior year period. Earnings per share were $1.55 versus $1.50 for the prior year
period. Revenues for the quarter decreased to $873.7 million from $959.7 million for the same period in fiscal year
2018.

Veeco Instruments Inc. (NasdaqGS:VECO) reported second quarter net income of ($15.6) million for fiscal year 2019
as compared to ($237.6) million for the prior year period. Earnings per share were ($0.33) versus ($5.02) for the
prior year period. Revenues for the quarter decreased to $97.8 million from $157.8 million for the same period in
fiscal year 2018.

Note: All per share results are reported on a fully-diluted basis.

16
Selected Highlights

Selected News – Engineering & Industrial Services

AECOM (NYSE:ACM) reported third quarter net income of $83.7 million for fiscal year 2019 as compared to $60.9
million for the prior year period. Earnings per share were $0.52 versus $0.37 for the prior year period. Revenues for
the quarter decreased to $4,980.2 million from $5,147.9 million for the same period in fiscal year 2018.

Aurubis AG (XTRA:NDA) reported third quarter net income of ($0.6) million for fiscal year 2019 as compared to
$105.5 million for the prior year period. Earnings per share were ($0.01) versus $2.37 for the prior year period.
Revenues for the quarter increased to $3,102.1 million from $3,069.7 million for the same period in fiscal year 2018.

Dowa Holdings Co., Ltd. (TSE:5714) reported first quarter net income of $45.0 million for fiscal year 2020 as
compared to $54.3 million for the prior year period. Earnings per share were $0.76 versus $0.92 for the prior year
period. Revenues for the quarter increased to $1,078.4 million from $1,038.9 million for the same period in fiscal
year 2019.

Fluor Corporation (NYSE:FLR) reported second quarter net income of ($554.8) million for fiscal year 2019 as
compared to $114.8 million for the prior year period. Earnings per share were ($3.96) versus $0.81 for the prior year
period. Revenues for the quarter decreased to $4,094.4 million from $4,883.8 million for the same period in fiscal
year 2018.

Jacobs Engineering Group Inc. (NYSE:JEC) reported third quarter net income of $524.4 million for fiscal year 2019 as
compared to $150.2 million for the prior year period. Earnings per share were $3.83 versus $1.05 for the prior year
period. Revenues for the quarter increased to $3,169.6 million from $2,933.6 million for the same period in fiscal
year 2018.

John Wood Group PLC (LSE:WG) reported second quarter net income of $6.9 million for fiscal year 2019 as
compared to ($26.6) million for the prior year period. Earnings per share were $0.01 versus ($0.04) for the prior year
period. Revenues for the quarter decreased to $2,394.1 million from $2,458.2 million for the same period in fiscal
year 2018.

MRC Global Inc. (NYSE:MRC) reported second quarter net income of $24.0 million for fiscal year 2019 as compared
to $22.0 million for the prior year period. Earnings per share were $0.21 versus $0.17 for the prior year period.
Revenues for the quarter decreased to $984.0 million from $1,082.0 million for the same period in fiscal year 2018.

Primoris Services Corporation (NasdaqGS:PRIM) announced the appointment of Tom McCormick to the Board of
Directors.

Primoris Services Corporation (NasdaqGS:PRIM) reported second quarter net income of $17.8 million for fiscal year
2019 as compared to $11.7 million for the prior year period. Earnings per share were $0.35 versus $0.23 for the prior
year period. Revenues for the quarter increased to $789.9 million from $648.8 million for the same period in fiscal
year 2018.

Sims Metal Management Limited (ASX:SGM) reported net income of $107.0 million for fiscal year 2019 as
compared to $150.5 million for the prior year. Earnings per share were $0.52 versus $0.73 for the prior year.
Revenues for the year decreased to $4,664.1 million from $4,778.1 million for fiscal year 2018.

17
Selected Highlights
Selected News – Engineering & Industrial Services (cont’d)

WESCO International, Inc. (NYSE:WCC) reported second quarter net income of $63.5 million for fiscal year 2019 as compared to
$57.9 million for the prior year period. Earnings per share were $1.45 versus $1.22 for the prior year period. Revenues for the
quarter increased to $2,150.1 million from $2,104.0 million for the same period in fiscal year 2018.

Note: All per share results are reported on a fully-diluted basis.

18
Selected Highlights
MHH Manufacturing Universe Directory
Company Sector Company Sector
3M Company Components & Materials Huntington Ingalls Industries, Inc. Aerospace & Defense
AECOM Eng. & Ind. Services Jacobs Engineering Group Inc. Eng. & Ind. Services
Airbus Group SE Aerospace & Defense John Wood Group plc Eng. & Ind. Services
Akzo Nobel N.V. Components & Materials Johnson Controls Inc. Components & Materials
Alps Electric Co. Ltd. Components & Materials KBR, Inc. Eng. & Ind. Services
AMETEK, Inc. Industrial Equipment KLA-Tencor Corporation Industrial Equipment
Amphenol Corporation Components & Materials Korea Shipbuilding Co. Ltd. Industrial Equipment
Applied Materials, Inc. Industrial Equipment L3Harris Technologies Aerospace & Defense
Aptiv PLC Components & Materials Lam Research Corporation Industrial Equipment
ASML Holding N.V. Industrial Equipment Lawson Products, Inc. Eng. & Ind. Services
Aurubis AG Eng. & Ind. Services Lear Corp. Components & Materials
Autoliv, Inc. Components & Materials Lockheed Martin Corporation Aerospace & Defense
AVX Corp. Components & Materials MKS Instruments, Inc. Industrial Equipment
Axcelis Technologies, Inc. Industrial Equipment MRC Global Inc. Eng. & Ind. Services
BAE Systems plc Aerospace & Defense MSC Industrial Direct Co., Inc. Eng. & Ind. Services
Balfour Beatty plc Eng. & Ind. Services Nanometrics Incorporated Industrial Equipment
BASF SE Components & Materials Navistar International Corporation Industrial Equipment
Belden Inc. Components & Materials Northrop Grumman Corporation Aerospace & Defense
Bosch Ltd Components & Materials Nova Measuring Instruments Ltd. Industrial Equipment
Brooks Automation, Inc. Industrial Equipment NV5 Global, Inc. Eng. & Ind. Services
Cardno Ltd. Eng. & Ind. Services OMRON Corporation Components & Materials
Caterpillar Inc. Industrial Equipment Oshkosh Corporation Industrial Equipment
Celanese Corporation Components & Materials Powell Industries, Inc. Industrial Equipment
Clean Harbors, Inc. Eng. & Ind. Services PPG Industries, Inc. Components & Materials
Cohu, Inc. Industrial Equipment Primoris Services Corporation Eng. & Ind. Services
Commercial Metals Company Eng. & Ind. Services Raytheon Company Aerospace & Defense
Continental Aktiengesellschaft Components & Materials Regal Beloit Corporation Industrial Equipment
Corning Inc. Components & Materials Rockwell Automation Inc. Industrial Equipment
Cummins Inc. Industrial Equipment Rockwell Automation Inc. Industrial Equipment
Danaher Corporation Industrial Equipment Rolls Royce Holdings plc Aerospace & Defense
Deere & Company Industrial Equipment Rudolph Technologies, Inc. Industrial Equipment
Delphi Automotive PLC Components & Materials Schneider Electric S.E. Industrial Equipment
DENSO Corporation Components & Materials Sims Metal Management Limited Eng. & Ind. Services
Dowa Holdings Co., Ltd. Eng. & Ind. Services Solvay SA Components & Materials
Dow Inc. Components & Materials Stanley Electric Co. Ltd. Components & Materials
DuPont de Nemours, Inc. Components & Materials TE Connectivity Ltd. Components & Materials
Eaton Corporation plc Industrial Equipment Teradyne, Inc. Industrial Equipment
Embraer S.A. Aerospace & Defense Terex Corporation Industrial Equipment
Emerson Electric Co. Industrial Equipment Tetra Tech, Inc. Eng. & Ind. Services
Encore Wire Corp. Components & Materials Textron Inc. Aerospace & Defense
Entegris, Inc. Industrial Equipment Thales SA Aerospace & Defense
Evonik Industries AG Components & Materials The Boeing Company Aerospace & Defense
FARO Technologies, Inc. Industrial Equipment Tokyo Electron Limited Industrial Equipment
Fastenal Company Eng. & Ind. Services Transcat, Inc. Eng. & Ind. Services
Ferro Corporation Components & Materials United Technologies Corporation Aerospace & Defense
Fluor Corporation Eng. & Ind. Services Veeco Instruments Inc. Industrial Equipment
FormFactor, Inc. Industrial Equipment Veolia Environnement S.A. Eng. & Ind. Services
General Dynamics Corporation Aerospace & Defense Vishay Intertechnology Inc. Components & Materials
HD Supply Holdings, Inc. Eng. & Ind. Services W.W. Grainger, Inc. Eng. & Ind. Services
Honeywell International Inc. Aerospace & Defense WESCO International, Inc. Eng. & Ind. Services
Hubbell Incorporated Industrial Equipment Xcerra Corporation Industrial Equipment

19
Mufson Howe Hunter & Company LLC is an independent investment bank for middle-market companies. We
focus on selling businesses, buy-outs, acquisitions, and raising capital. Unique to the middle market, our senior
bankers have extensive corporate finance experience and deep knowledge of the capital markets.

Mergers & Acquisitions


• Advise buyers and sellers (public and private companies)
• Sale of businesses, strategic acquisitions, management buy-outs, and industry build-ups

Raise Capital
• Equity (control and non-control)
• Mezzanine financing
• Senior and junior debt
• Typically raise capital from banks, finance companies, private investment funds, and private
equity groups

Financial Advisory Services


• Analysis of business strategies and options
• Fairness opinions
• Valuations

The Mufson Howe Hunter Manufacturing Update Indices


The companies that comprise each Index periodically change as a result of mergers, acquisitions, initial public offerings and other
transactions; therefore, comparisons to historical time periods and historical performance for each Index may not entirely correspond and
correlate to the Index’s current performance. Historical performance is not a guarantee or prediction of future results. The information and
statistical data contained herein have been obtained from sources that Mufson Howe Hunter believes are reliable, but Mufson Howe Hunter
makes no representation or warranty as to the accuracy or completeness of any such information and data and expressly disclaims any and
all liability relating to or resulting from your use of these materials. The information and data contained herein are current only as of the
date(s) indicated and Mufson Howe Hunter has no intention, obligation or duty to update these materials after such date(s). These materials
do not constitute an offer to sell or the solicitation of an offer to buy any securities.

Copyright © September 2019 Mufson Howe Hunter & Company LLC. All rights reserved. The Manufacturing Updated is produced monthly by
Mufson Howe Hunter. Mufson Howe Hunter provides a full range of investment banking services to Manufacturing & Environmental
companies. For more information, visit www.mhhco.com.

Broker dealer services provided by our wholly-owned subsidiary, Mufson Howe Hunter & Partners LLC, a member of FINRA and SIPC

1717 Arch Street, 39th Floor · Philadelphia, PA 19103 · www.mhhco.com

20

Похожие интересы