Geordie Kidston, Head of Research
Aggreko is a global supplier of temporary and/or emergency power supply equipment to a wide array of industries. It has significant earnings exposure both to Emerging Markets and commodity driven cycles where we see further attrition and slow down, headed by the ongoing contraction in Chinese demand. I expect commodity orientated projects to continue to suffer and for negative foreign exchange headwinds in many of Aggreko’s end markets. Whilst the company is fully aware of the challenges on hand, and is cutting costs and restructuring to mitigate these headwinds, I perceive that there is a limited amount that this business model can do to escape further slow down. The Group has already had to steer analysts’ guidance downwards and I expect trading to remain difficult.