Here's some analysis from Forbes: Market Scan Bobcat Sale Could Prove Lucrative Andrew Farrell, 05.16.07, 6:45 PM ET With the housing market in the doldrums, any business with heavy exposure to homebuilders would seem a tough sell at this time. But a sale of Ingersoll-Rand's construction equipment maker Bobcat could net the company a handsome sum. Robert F. McCarthy, an analyst at Baird, said Wednesday that proceeds from a Bobcat sale could be "surprisingly rich." He estimated Ingersoll-Rand (nyse: IR - news - people )'s sale of Bobcat and other construction-related businesses could net the company $3.2 billion to $3.6 billion after taxes. Ingersoll-Rand said Tuesday that it was exploring strategic alternatives for the businesses (Rest of the Forbes story -- http://www.forbes.com/2007/05/16/in...ity-cx_af_0516markets14.html?partner=yahootix ) The IR press release -- http://www.constructionequipment.com/article/CA6436992.html
This a little off the subject of the sell of Bobcat, but I noticed a new Ingresoll Rand excavator at a dealer for sale. I wonder, are they selling Bobcat's with a paint job, or are they a totally seperate machine?
Bobcat seems to be the b*****d red-headed stepchild that nobody wants. I'd hoped IR would keep them, but maybe the division just isn't returning the profits IR wants, or it isn't fitting in well with the other company products.
IR gets its excavators from the Terex subsidiary, Terex Atlas in Germany. A bit of analysis that includes comments on the IR/Terex product's position in the market place here: http://www.constructionequipment.com/article/CA6307021.html?industryid=23401 Joe, I believe it's the IR press release -- but I may be remembering the Forbes analysis -- that indicates that the company is trying to exit the construction-equipment business altogether. Hope you are well! Larry
Which used to be Schaeff, who used to supply mini-excavators to NH until Terex bought it out. IR markets the 12.5 tonne (Bobcat had some as well as 444s, but they never appeared in the US) and the 7.5 tonne (442) excavators. And CEwriter, it'll be interesting to see what happens. I posted another thread on this earlier, and I'm about to get the popcorn out and watch who comes to bat.
Better get the large with free refills. This show's been going on for a long time, and will probably continue for quite some time. There seems to be too much supply/too many competitors in the compact-equipment arena, and it's going to take a long time for it all to shake out. Just my .02, L
The compact market has gotten saturated and the competetion very, well, competetive. Bobcat I think is on the verge of fighting for its life. Their products are largely very average and although they appear to have to diversify somewhat, it may be a rocky road for a while. I saw some figures on IR and they make much more money outside of equipment sales. I would not be surprised if they drop Bobcat on the market and use the capital to enhance more profitable areas of their company.
Very, very true, in my eyes as well... I actually brought this up to a Bobcat engineer on Friday when I visited the factory. The SSL market is one of the few remaining without massive numbers of duplicate products under different brands. We see some of that with MTL undercarriages between ASV and Cat, and also between Gehl/Mustang/Takeuchi, but for the remainder of the industry, everyone does their own thing. The relationship between Hyundai and Thomas fizzled out (as did the one between Kubota and Thomas), so with the exception of common parts between NH and Case, and a similar situation with Gehl and Mustang, SSL manufacturers really created their own little bubbles. Looks like (albeit sadly) that Bobcat's will be the first to pop, so to speak.