BB's Stock Haven

[explorer186]

CIBC cuts view of diversified industrials
Eaton and Parker-Hannifin downgraded
By Padraic Cassidy, MarketWatch
Last Update: 12:31 PM ET Jan. 12, 2006
Disable MW live quotes | E-mail it | Print | Alert | Reprint | ?

NEW YORK (MarketWatch) -- Analysts at CIBC World Markets cut their ratings on two diversified industrial manufacturers Thursday and moved to a dimmer view of the sector, citing slowing economic growth from higher interest rates and energy prices.
<a href="https://www.canada.etrade.com/splash/NEW.shtml"" target="_blank">http://www.marketwatch.com/RealMedia/ads/click_lx.cgi/yahoo.marketwatch.com/commentary/general.asp/3... target="_new"><IMG SRC="http://a.mktw.net/MarketWatch/ETrade_0601_MW_NC_Geo_RMW/etradeBT_300x250_20k.gif" WIDTH="300" HEIGHT="250" BORDER="0"></a>
Free! Sign up here to receive our Personal Finance Daily e-Newsletter!
TRADING CENTER



INFORMATION FOR ATI:
Create an alert for ATI

Add ATI to my portfolio

More cool charts on ATI

Discuss ATI
NEWS FOR ATI
CIBC lowers view of diversified industrials
IBM, Take-Two, Starbucks
Updates, advisories and surprises
More news for ATI

TRACK THESE TOPICS
My Portfolio Alerts
Company: Eaton Corporation Add
Create
Company: Parker-Hannifin Corporation Add
Create
Company: Danaher Corporation Add
Create
Company: Illinois Tool Works Inc. Add
Create
Get breaking news sent directly to your in-box
Create a Portfolio | Create an Alert

Eaton Corp. (ETN:
Eaton Corporation
News, chart, profile, more
Last: 66.46-1.09-1.61%
12:39pm 01/12/2006
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
ETN66.46, -1.09, -1.6%) , which makes fluid power and truck components, and Parker-Hannifin Corp. (PH:
Parker-Hannifin Corporation
News, chart, profile, more
Last: 72.72-0.74-1.01%
12:40pm 01/12/2006
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
PH72.72, -0.74, -1.0%) , a manufacturer of motion control, power and climate control systems, were both lowered to sector underperformer from sector performer. CIBC also cut its sector rating to underweight from market weight.

"Overall, with what we believe will be a slower economic environment as 2006 progresses based on higher interest rates, energy prices and their effects on end-market demand could create a more difficult environment for our industrial universe, particularly for our more cyclical names," the analysts wrote.

CIBC's preference is for Danaher Corp. (DHR:
Danaher Corporation
News, chart, profile, more
Last: 54.91-0.43-0.78%
12:40pm 01/12/2006
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
DHR54.91, -0.43, -0.8%) and Illinois Tool Works Inc. (ITW:
Illinois Tool Works Inc.
News, chart, profile, more
Last: 90.36+0.37+0.41%
12:39pm 01/12/2006
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
ITW90.36, +0.37, +0.4%) , companies the brokerage says have what it refers to as traction control -- an ability to grow sales, margins and earnings in a slower growth environment.

"Other pockets of strength, where we believe better results could last longer into the cycle, include the specialty metals and coal railcar markets, where we continue to favor Allegheny Technologies Inc. (ATI:
allegheny technologies inc com
News, chart, profile, more
Last: 41.17+0.03+0.07%
12:40pm 01/12/2006
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
ATI41.17, +0.03, +0.1%) and FreightCar America Inc. (RAIL:
freightcar amer inc com
News, chart, profile, more
Last: 52.92+1.28+2.48%
12:45pm 01/12/2006
Add to portfolio
Analyst
Create alert
Insider
Discuss
Financials
Sponsored by:
RAIL52.92, +1.28, +2.5%) ."

Eaton's truck segment accounts for about 20% of sales and 33% of overall operating profits, and weaker heavy truck production in North America during the fourth quarter could lower the company's earnings. Production cutbacks could linger into the first quarter of 2006, CIBC said.

The analysts noted that Parker-Hannifin has improved its margins lately, especially in its international businesses. But it said the increase in commercial aerospace business, which produces lower margins, and integration costs associated with $700 million in acquisitions in the first half of Parker-Hannifin's fiscal 2006, could hamper any gains.

Eaton shares fell 1.5% to $66.54 midday, while Parker-Hannifin shares dropped 1% to $72.75.