QUOTE AND NEWS
The Hindu Business Line  Apr 3  Comment 
GMR Energy Ltd (GEL) and TNB Repair and Maintenance Sdn Bhd (TNB Remaco) will set up a joint venture for operations and maintenance services for power plants in the country. TNB Remaco, a speciali...
newratings.com  Jun 27  Comment 
WASHINGTON (dpa-AFX) - Railcar maker Trinity Industries, Inc. (TRN) has agreed to acquire the assets of Meyer Steel Structures, the utility steel structures division of Thomas & Betts Corp. (TNB), a member of the ABB Group, for about $600 million....
Wall Street Journal  Mar 21  Comment 
Nortek said it has agreed to buy Thomas & Betts Corp.'s heating, ventilation and air conditioning business for about $260 million in cash.
Business Times - Malaysia  Feb 3  Comment 
Some may expect the new tariff hike to hugely benefit Tenaga Nasional Bhd (TNB), but the utility giant said the event should be neutral to its financial performance. This is because the bulk of the 15 per cent tariff jump, effective January 1, is...
Business Times - Malaysia  Jan 30  Comment 
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended the holiday-shortened week 14.80 points, or 0.83 per cent, higher to 1,804.03, fuelled by late funds' buying of Tenaga Nasional Bhd (TNB). Bursa Malaysia was closed in the afternoon session...
Business Times - Malaysia  Jan 24  Comment 
CIMB Research, which maintained its "add" call on the stock, said TNB's first-quarter net profit of RM1.05 billion was in line with its full-year forecast of 23 per cent and consensus' 21 per cent. The research house has set a new target price of...
Business Times - Malaysia  Jan 23  Comment 
Tenaga Nasional Bhd's (TNB) earnings surged by 22.6 per cent to RM1.73 billion in the first quarter ended November 30 2013, from RM1.42 billion in the corresponding quarter the previous year, largely on lower effective tax rate. This is on the...
Business Times - Malaysia  Dec 23  Comment 
KUALA LUMPUR: Utility giant Tenaga Nasional Bhd's (TNB) shares continued to rise today in anticipation of the introduction of a fuel cost-pass-through mechanism to mitigate the rising cost of power generation. At 11.05 am, TNB's share price...
Business Times - Malaysia  Dec 19  Comment 
Energy Commission chief executive officer Datuk Ahmad Fauzi Hasan said although the increase provides some kind of relief for the national utility provider, in essence, it does not cover TNB's yearly expenditure of between RM6 billion and RM7...
Business Times - Malaysia  Dec 11  Comment 
The state-owned corporation hired BNP Paribas SA and CIMB Group Holdings Bhd to manage the offering, said the sources who asked not to be named as the information is private. TNB is seeking to sell the Islamic notes as soon as this month, said one...




 
TOP CONTRIBUTORS

Thomas & Betts (NYSE: TNB) designs and produces components for the electrical products in industrial, construction, utility applications. TNB also produces commercial heating and ventilation units and steel structures for utility transmission. It derives revenue from three business segments: electrical (83.7% of net sales), steel structures (11% of net sales), and heating, ventilation, and air-conditioning products (5.3% of net sales).[1] TNB's earnings are affected by rising commodity prices and its acquisitions for diversification of its product offerings.

Business Growth

In 2010, net sales increased 9.4% to $2.0 billion. Net income increased 36.4% to $137.74 million. This is attributed to TNB's acquisition of three business during the year, allowing it to divest its product offerings and increased demand in TNB's end markets.[2]

Trends and Forces

Increased commodity prices negatively impacts TNB's profitability

The price of energy and commodity raw materials (such as steel, aluminum, copper, zinc, resins, and rubber compounds) has risen in the past few years. For example, due to increased demand and less production, the cost of European hot-rolled steel coil rose 25% in the first quarter of 2010.[3] Meanwhile,the cost of crude oil is projected to increase from $2.78 in 2010 to $3.63 per gallon in 2011 due to increase in demand and inflation.[4] Manmade and natural disasters can also disrupt supply of commodities and increase prices. Because TNB is reliant on commodity supplies for its products, a disruption in the supply and price of commodities can decrease its profitability.[5]

TNB's acquisitions allow the company to diversify and positively affect its bottom line

In FY 2010, TNB's three acquisitions accounted for $98.7 million of sales for the year, or 5.4% of the sales increase out of the total 9.4% increase. By acquiring businesses outside of its usual product line, TNB is able to enhance its product mix and expand its portfolio of leading brands. For example, in October 2010, TNB acquired Cable Management Group, Ltd, a producer of cable protection systems, which allows TNB to vertically integrate along its supply chain and effectively compete in industrial markets.[6] In turn, its acquisitions are able to bring in more business and increase TNB's brand name, leading to increased sales.

Competitors

Utilities

Industrial and Construction

TNB has different product lines and no single business competes directly with TNB in all of its lines. There have also been trends of consolidation within the industry. TNB is not the largest company in its industry and while it has some technological advantages, its competitors' large sizes could lead to lower unit prices and downward pressure on TNB's selling prices for its products.[7]

References

  1. http://investor.tnb.com/phoenix.zhtml?c=111871&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDA5NTAxMjMtMTEtMDE0NTc2L3htbA%3d%3d
  2. http://investor.tnb.com/phoenix.zhtml?c=111871&p=irol-newsArticle&id=1521475
  3. http://www.bloomberg.com/news/2011-05-11/arcelormittal-posts-1q-ebitda-of-2-6-billion-beating-estimates.html
  4. http://www.eia.gov/EMEU/steo/pub/contents.html
  5. http://investor.tnb.com/phoenix.zhtml?c=111871&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDA5NTAxMjMtMTEtMDE0NTc2L3htbA%3d%3d#D78823104
  6. http://investor.tnb.com/phoenix.zhtml?c=111871&p=irol-newsArticle&ID=1485339&highlight=acqui
  7. http://investor.tnb.com/phoenix.zhtml?c=111871&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDA5NTAxMjMtMTEtMDE0NTc2L3htbA%3d%3d
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki