Tags: Cooper | infrastructure | boom | CBE

Cooper Industries a Bet on Infrastructure Boom

By    |   Friday, 18 Nov 2011 01:00 PM

Manufacturer Cooper Industries (CBE) has positioned its product line to provide attractive levels of growth in the current global environment.

The company's lines of specialty products are necessary for infrastructure growth and renewal construction, so investors could bet on a boom via this share.

Cooper Industries manufactures and sells electrical components on a global basis. The company has manufacturing facilities in 21 countries. However, 60 percent of revenues currently come from U.S. sales.

Product lines include electrical and electronic fuses, explosion-proof electronic equipment, lighting fixtures and power systems. The company's two business units are energy & safety solutions and the electrical products group. Revenues are evenly split between the two groups.

For the third quarter of 2011 revenues for Cooper Industries were up 12 percent compared to a year earlier, resulting in earnings from continuing operations of 98 cents per share, up 15 percent from 85 cents.

For the full year the earnings estimate is $3.81 per share, compared to $3.20 earned in 2010. If Cooper Industries hits the earnings number — and it should with one quarter to go — the EPS will be a record for the company.

Unique global markets

Cooper Industries provides products for global industries which should generate growth in almost any economic environment. These sectors include electricity production and grid upgrades, conservation and energy efficiency, global infrastructure, and safety and mass notification.

The third quarter earnings report noted sales growth for industrial and utility products was strong, while sales into commercial and residential sectors was flat. International sales is another growth area, with non-U.S. revenues increasing to 40 percent of sales from 27 percent in 2003.

The analysts at Longbow Securities and Oppenheimer recently reiterated their buy and outperform ratings, respectively. In contrast, Citigroup analysts downgraded several industrial stocks, including Cooper Industries, to a neutral from a previous buy.

The company next reports on Jan. 26.

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Manufacturer Cooper Industries (CBE) has positioned its product line to provide attractive levels of growth in the current global environment. The company's lines of specialty products are necessary for infrastructure growth and renewal construction, so investors could...
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2011-00-18
Friday, 18 Nov 2011 01:00 PM
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