Happy Friday!
Below are a few quotes from CEO/executives that came out during this earnings season that we think are helpful to frame themes that have emerged.
Have a great weekend,
Julie
Xylem (XYL)
Industrials, Machinery
Theme: changes in the work place
CFO Mark Rajkowski said “we all recognize in this world that we’ve learned the hard way all of us to be able to do a lot more with less. And that’s all factoring in to our thinking on what the permanent structural changes will be. So more of that to come in our next earnings call.”
“Our teams [are] working through what life looks like after the pandemic, where those meetings have changed, a lot of it is virtual, a lot of it is less people than previously done.”
Xylem (XYL)
Industrials, Machinery
Theme: China returning to pre-pandemic activity
CFO Mark Rajkowski said “you’re now seeing us return to utility activity and quoting bidding activity that returned to pre-COVID levels in China. So that’s an encouraging sign that our teams have seen”.
Sensata (ST)
Industrials, Electrical Equipment
Theme: greater use of individual cars at the expense of public transportation
Paul Chawla, Executive Vice President, Automotive said: “We’re monitoring a potential trend where consumers now post COVID could be using less public transportation and prioritizing again an individual means of transportation.”
Honeywell (HON)
Industrials Conglomerates
Theme: greater use of individual cars at the expense of public transportation
CEO Darius Adamczyk said “this is sort of an educated hypothesis is that I actually think the use of automobiles and personal vehicles is going to go up, not down. I think that there is going to be resistance and by the way, this is something we have seen in China… this is something we’ve seen, where the use of personal vehicles is going up, not down after the reemergence. So, I actually think we’re going to see that and the use of mass transit’s going to reduce”
Julie S. Praline
Director, Equity Analyst
Direct: 617.226.0025
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109