Executive Summary
Smiths is a global technology company listed on the London Stock Exchange. A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, energy, medical devices, communications and engineered components markets worldwide. Our products and services make the world safer, healthier and more productive.
Smiths has evolved substantially since its foundation in 1851, today employing around 22,000 people in over 50 countries. Smiths Group has five divisions: Smiths Detection, John Crane, Smiths Medical, Smiths Interconnect and Flex-Tek. It serves a diverse range of global customers including governments and their agencies, petrochemical companies, hospitals, telecommunications companies and manufacturers in a variety of sectors around the world.
Company History
- Smiths Group was founded by Samuel Smith in 1851 as a family clock and watch business, it pioneered both the milometer and the first British speedometer at the beginning of the 20th Century.
- In 1960, the Industrial division was formed, which was mainly concerned with industrial instrumentation.
- In December 2000, it merged with the TI Group to create a new UK leader in high-performance engineering.
- In 2003, Smiths established a fourth division, Detection, dedicated to the fast-changing market for equipment to detect weapons, explosives, contraband or other harmful substances.
- In 2007, General Electric acquired Smith's aerospace subsidiary for US$4.8 billion.
Current Events
Business Model
Most associate SMIN with Aerospace. That of course went in the sale (and cash back to shareholders) to GE. This leaves SMIN focussed on five main areas:
- John Crane
- Detection
- Medical
- Interconnectors
- Flex-Tek
John Crane - John Crane is a world-leading provider of products and services for the major process industries. These include the oil and gas, power generation, chemical, pharmaceutical, pulp and paper, and mining sectors. They recently said at an investor day that they expected zero growth for the division in 09, which implies only a 6% or drop in H2. That is considerably better than many expect and was backed up by management comments that performance is indeed proving more resilient. This is probably due tothe fact that about 66% of cbusiness is aftermarket. Given comments from the IEA, E&P capex is most likely to have bottomed in 2009 and pick up in 2010 (not least helped by the pick up in oil prices). This would coincide with…
