Ahead Of The Bell: Industrial Companies

HARTFORD, Conn. (AP) — Industrial and automotive companies can expect only slight relief from the recession in U.S. markets while the European economy continues to worsen, an analyst said as he cut profit estimates Friday for four manufacturers.

Analyst Jeffrey D. Hammond of KeyBanc Capital Markets said in a note to investors that demand in Europe "seems to have further retrenched" following a tough first quarter, while early signs in the United States and Asia indicate some stabilizing, though at low levels.

Hammond cut his 2009 profit estimate for pump and compressor manufacturer Gardner Denver Inc. to $2.30 per share from $2.35 per share and he reduced his 2010 estimate to $2.05 per share from $2.30 per share.

Analysts surveyed by Thomson Reuters expect the Quincy, Ill., company to earn $2.34 per share this year and $2.62 for 2010.

He said Gardner Denver faces a weak outlook for domestic natural-gas production affecting the petroleum-pump business and is affected by deterioration in European industrial demand.

Hammond cut his 2009 estimate for Actuant Corp., a manufacturer of motion-control systems and hydraulic and electrical tools and supplies, to 80 cents per share from 90 cents per share and reduced his 2010 estimate to 95 cents per share from $1.10.