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Boeing Delivers First 777 Aircraft – Analyst Blog

Zacks Market Commentaries — Thu, 19 Nov 2009 14:40:00 +0000

Boeing Co. (BA) delivered its first 777-300ER (Extended Range) airplane to GE Capital Aviation Services and its lease customer Philippine Airlines. It is the first 777 in the fleet of Philippine Airlines. The aircraft was packed with relief supplies for victims of Typhoon Ketsana.

The airline has four more of this aircraft on order with Boeing. In the recently reported third quarter of fiscal 2009, the company booked 96 gross orders. The company finished the quarter with segmental backlog of $254 billion.

The Boeing 777-300ER is among the most efficient airplanes in the 300-to-400 seat segment, which would provide the airlines the flexibility to serve key markets worldwide while offering its passengers the highest levels of comfort and reliability. Additionally, the aircraft brings new twin-engine efficiency to the airline's long-haul fleet.

The aircraft is powered by General Electric GE90-115BLs, the world's largest and most powerful commercial jet engine. It has a cargo capacity of up to 7,120 cubic feet (201.6 cubic meters). The aircraft that was flown to Manila was packed with nearly 18,000 pounds of medical supplies and packaged meals that were obtained by three non-profit agencies, including AmeriCares, Humanitarian International Services Group and Kids Against Hunger.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor.

Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles and advanced information and communication systems. We maintain our market Neutral recommendation on the shares.
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CAEI Posts Q3 Loss – Analyst Blog

Zacks Market Commentaries — Mon, 16 Nov 2009 17:19:15 +0000

China Architectural Engineering Inc. (CAEI) posted a net loss of 16 cents per share for the third quarter, compared to a net profit of 18 cents in the prior-year period. The net loss in the quarter can be attributed to lower contract revenue, adjustment to estimated gross revenue of the Dubai Metro project, and increase in raw material and overhead costs. Full loss provision of the project in Doha, and losses from the discontinued construction works in the closed Shenzhen office also contributed to the earnings disappointment in the quarter.

Quarterly revenues of $25.6 million were down 54% year over year primarily due to the Dubai Metro dispute. The company said that its dispute with the master contractor of the Metro Red Line Project in Dubai, led to an adjustment to estimated gross revenue of the project, and resulted in lower recognized revenue in the quarter from that project. Also, the company's refocus on the domestic market and near completion of major international projects were partly responsible for the year over year decline in revenue.

The first phase of the Dubai Metro was officially opened in early September. Through its subsidiary Techwell Engineering Limited, CAEI had completed a majority of the construction by the end of the second quarter. However, with less than 5% of the contract remaining to be completed, Techwell was removed by the project’s master contractor, who also called for and received payment of $2.1 million in performance bonds and $7.3 million in advance payment bonds that were issued on Techwell's behalf for the project.

The master contractor believes that it had paid in excess of the construction work performed. CAEI believes that it has fulfilled the requirements of the contract and has a reasonable opportunity to collect the amounts due to Techwell from the master contractor. The dispute resolution remains uncertain.

The company noted that demand in China has strengthened while overseas demand remains challenging. CAEI said that it will concentrate its resources in the domestic market for the remainder of 2009 and beyond. Over the next few years, the company expects to benefit from the stimulus package of $586 billion announced by the Chinese government.

Historically, CAEI has been a large recipient of government projects. Given the company’s research and development capabilities and strong relationship with the Chinese government, we believe the company will benefit significantly from the government’s investment in infrastructure.
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Boeing Delivers First Freighter – Analyst Blog

Zacks Market Commentaries — Fri, 13 Nov 2009 22:10:13 +0000

The Boeing Company (BA) towed the first 747-8 Freighter model out of its factory in Everett. The long-awaited freighter is now being put up for test flights.

The 747-8 Freighter is the new high-capacity 747 that will give cargo operators the lowest operating costs and best economics of any freighter airplane while providing enhanced environmental performance. It is 250 feet, 2 inches (76.3 m) long, which is 18 feet and 4 inches (5.6 m) longer than the 747-400 series Freighter. The stretch provides customers with 16% more revenue cargo volume compared to its predecessor. That translates to four additional main-deck pallets and three additional lower-hold pallets.

Boeing to date has secured 105 orders for the 747-8 series aircrafts, 78 of which are orders for the freighter variant. The rest orders are for the passenger variant. The 747-8 Freighter series will boost the commercial aircraft segment of Boeing. In the recently reported third quarter of fiscal 2009, the company booked 96 gross orders. The company finished the quarter with segmental backlog of $254 billion.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles and advanced information and communication systems. We maintain our market Neutral recommendation on the shares.
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Juhl Wind, Inc. (JUHL.OB) Secures 20-Year $46 Million Community Wind Farm Contract

QualityStocks — Wed, 04 Nov 2009 17:36:06 +0000

Juhl Wind Inc., an established leader in community-based wind power development and management, specializing on wind farm projects throughout the United States and Canada, recently announced that the company has secured a 20-year, 19.8 MW power purchase agreement between Adams Wind Generations, LLC and Xcel Energy. Located in Meeker County in West Central Minnesota, the [...]

Building cycle navigating a slow turn

Prieur du Plessis — Sat, 24 Oct 2009 07:24:13 +0000

By Cees Bruggemans, Chief Economist FNB It can be very unsettling when hitting an air sack, and only natural to assume things won’t quickly return to normal as trouble has a way of coming in multiples. The South African building industry certainly has reason to be suspicious of any early suggestions of recovery, given the exuberant times [...]

Moody’s Downgrades Boeing – Analyst Blog

Zacks Market Commentaries — Thu, 15 Oct 2009 19:54:00 +0000

Moody’s Investor Services (MCO) has downgraded Boeing Co.’s (BA) rating outlook to "negative" from "stable". The major reason for the downgrade was the delay in the airplane maker's new 787 series, besides other setbacks that had hurt its financial flexibility.

Pitted against Airbus’s A319 aircraft, Boeing’s 787 series is plagued by delays. The inaugural test flight at the end of fiscal 2009 is more than two years behind the original delivery schedule. The company has already deferred the inaugural delivery of the 787 series aircraft five times.

Boeing has witnessed falling orders in the recent times for its commercial planes on account of tepid demand for air travel and cargo services. Already, a slew of commercial airlines have cancelled or deferred their fleet additions. Boeing has cut costs and announced reduction in its workforce along with scaling back production of some aircrafts. Moody's estimates a 20% production cut would affect Boeing's operating profit by around $1 billion per year. Boeing has nearly doubled its corporate debt this year due to the acquisition of 787-related businesses, the payout under guaranty and the ramp-up of inventory levels.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems.

We maintain our market Neutral recommendation on the shares.

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Humana Creates New Health Benefit – Analyst Blog

Zacks Market Commentaries — Mon, 12 Oct 2009 15:15:00 +0000

Recently, Humana Military Healthcare Services, a wholly owned subsidiary of Humana Inc. (HUM), announced the availability of an additional benefit for the beneficiaries of the TRICARE program (a medical program under the Department of Defense) in the South Region.

Humana Military Healthcare Services offers health insurance coverage under the TRICARE program to the dependents of active duty military personnel and retired military personnel coupled with their dependents. Humana Military has been a contractor of the Department of Defense for the administration of the TRICARE program since Jul 1, 1996.

The new benefit provides the families of soldiers enrolled in the TRICARE program access to a Chronic Obstructive Pulmonary Disease (COPD) Management Program. They will be able to call a dedicated registered nurse and receive education and coaching on how to deal with this lung disease which blocks airflow thereby resulting in breathing difficulties.

Humana started offering this new program from Oct 1, 2009. Beneficiaries of the new program will undergo coaching sessions on cessation of smoking, avoidance of secondhand smoke, self management, exercise, proper use of oxygen, adherence to proper medication and understanding the purpose behind it.

Furthermore, they will also have access to information regarding the symptoms of infection, when to call their physician or seek emergency treatment, and resources for stress management. Humana’s subsidiary also provides disease-management services for heart failure, asthma and diabetes.

Humana, which provides health and supplemental benefit plans for employer groups, government benefit programs and individuals in the US, competes with players such as Aetna Inc. (AET), Cigna Corp. (CI) and Unitedhealth Group, Inc. (UNH). Currently, we are Neutral on Humana.
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Boeing to Digest $1 Billion Charge – Analyst Blog

Zacks Market Commentaries — Wed, 07 Oct 2009 22:25:11 +0000

The Boeing Company (BA) yesterday announced that it will record a $1 billion charge in the third quarter of fiscal 2009. The company attributed the charge from a delay in producing a new version of the 747-8 series freighter jet, leading to slow sales and late design changes. The aircraft competes with Airbus' A380 series aircraft.

The goliath of commercial aerospace, Boeing has witnessed falling orders for its commercial planes in the recent times on account of tepid demand for air travel and cargo services. Already, a slew of commercial airlines have cancelled or deferred their fleet additions. Boeing has cut costs, reduced workforce and scaled back production of some aircrafts to cope with the changing market dynamics.

The $1 billion charge includes $640 million for higher estimated production costs consisting of late engineering design changes. This is besides the $360 million stemming from Boeing's decision to hold average production of 1.5 airplanes per month rather than boost it to 2, a result of slow orders.

Boeing currently has 78 orders for the 747-8 freighter and 27 for the passenger version. The company expects the first flight of the 747-8 by early fiscal 2010. First deliveries of the 747-8 freighter are expected in the fourth quarter of 2010, while initial deliveries of the passenger version remain scheduled for the fourth quarter of 2011.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). The company competes with companies such as Northrop Grumman Corporation (NOC), General Dynamics Corporation (GD) and Force Protection Inc. (FRPT).

Boeing designs and produces commercial airplanes (787, 737, 747, 767, 777), defense systems and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles and advanced information and communication systems. We maintain our market Neutral recommendation on the shares.
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CAEI: Infrastructure Project Updates – Analyst Blog

Zacks Market Commentaries — Thu, 24 Sep 2009 15:15:00 +0000

China Architectural Engineering Inc. (CAEI) provided updates on its Nine Dragon and Dubai Metro System projects. The company said that the Nine Dragon Project successfully passed evaluation and assessment by China's national experts, paving the way for new, large projects to commence by the end of this year and the beginning of next year.

Management is confident that a number of large Nine Dragon projects will launch by the end of this year providing CAEI with substantial new revenue sources for the next several years. The company had entered into an agreement with Shanghai Nine Dragon Co. Ltd. In June 2009, to undertake major projects located in the Nine Dragon Resort, Zhejiang , including a seven-star hotel, a marine park and luxurious villas. The projects are expected to be completed within three years.

In addition, the company said that the first phase of the Dubai Metro was officially opened in early September. Through its subsidiary Techwell Engineering Limited, CAEI had completed a majority of the construction by the end of the second quarter. Techwell has generated approximately $92.8 million in revenue since the commencement of construction in 2008.

However, with less than 5% of the contract remaining to be completed, Techwell was removed by the project’s master contractor, who also called for and received payment of $2.1 million in performance bonds and $7.3 million in advance payment bonds that were issued on Techwell's behalf for the project.

The master contractor believes that it had paid in excess of the construction work performed. CAEI believes that it has fulfilled the requirements of the contract and has engaged Hill International, a construction risk and claims management company, to facilitate resolution of this dispute.
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Solar Stocks News – First Solar (Nasdaq: FSLR) to Supply 27 Megawatts of Solar Modules to Juwi for U.S. Utility Installations

Dawn Van Zant — Fri, 18 Sep 2009 13:00:00 +0000

First Solar Inc. (Nasdaq: FSLR) - September 18, 2009 - today announced that it has been selected by Colorado-based developer and EPC contractor juwi solar Inc., a subsidiary of juwi Holding AG, to supply solar modules for two U.S. projects.

BrainStorm Cell Therapeutics Inc. (BCLI.OB) Enters into a Strategic Agreement as it Approaches Clinical Trials for ALS

QualityStocks — Tue, 15 Sep 2009 15:09:05 +0000

BrainStorm Cell Therapeutics Inc. has been gaining national recognition as a leading developer of adult stem cell technologies. Today, the company announced a major strategic agreement with Harlan Biotech Israel Ltd. (HBI) in order to complete pre-clinical safety experiments for the company’s innovative therapy for Amyotrophic Lateral Sclerosis (ALS), which is famously known as [...]

Is Boeing’s Rating Secure? – Analyst Blog

Zacks Market Commentaries — Mon, 31 Aug 2009 15:42:42 +0000

Standard & Poor's said on Friday that it is apprehensive about The Boeing Company’s (BA) risk in terms of order cancellations and deferrals for its commercial aircrafts. Pitted against Airbus’s A319 aircraft, Boeing’s 787 series is plagued by delays. The inaugural test flight at the end of fiscal 2009 is more than two years behind the original delivery schedule. The company has already deferred the inaugural delivery of the 787 series aircraft five times.

Standard & Poor's is apprehensive this may force Boeing to scale back production of models 737, 747, 767 and 777 -- virtually everything other than its new 787 series in fiscal 2010. This viewpoint is shared by Fitch Ratings as well. As of now, Standard & Poor's has a Buy rating on Boeing’s shares while Fitch has an "A+" rating.

The goliath of the commercial aerospace, Boeing has witnessed falling orders in the recent times for its commercial planes on account of tepid demand for air travel and cargo services. Already, a slew of commercial airlines have cancelled or deferred their fleet additions.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles and advanced information and communication systems. We maintain our market Neutral recommendation on the shares.
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BrainStorm Cell Therapeutics, Inc. (BCLI.OB) Enters Agreement for Adult Stem Cell Production

QualityStocks — Mon, 31 Aug 2009 13:57:09 +0000

BrainStorm Cell Therapeutics Inc. is a company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. The technology allows for the differentiation of bone marrow-derived stem cells into functional neurons and astrocytes. BrainStorm Cell Therapeutics is currently focusing its technology on two diseases – Parkinson’s and [...]

Boeing Gets Order for 14 Jets – Analyst Blog

Zacks Market Commentaries — Tue, 25 Aug 2009 18:33:31 +0000

Boeing Company (BA) yesterday bagged an order for fourteen 737-700 series aircrafts from Canadian airliner WestJet. This took WestJet’s pending deliveries for 737-700 series aircraft from Boeing to 54.

With this order, Boeing has been able to maintain its position as the sole supplier to WestJet. As of now, WestJet’s fleet consists of an all-Boeing squad of eighty-one 737 aircrafts.

Boeing’s 737-700 aircraft is pitted against Airbus’s A319 aircraft. To date, Boeing has booked more than 5,000 orders from around 120 customers spread around the globe. Of this, more than 2,100 deliveries worth more than $158 billion are pending. Boeing’s focus on 737-700 is evident with its earlier revelation of 2% improvement on fuel consumption by 2011, through a combination of airframe and engine improvements.

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes (787, 737, 747, 767, 777), defense systems, and civil and defense space systems.

It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems. We maintain our market Neutral recommendation on the shares.
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Lockheed Links to Smart Grid – Analyst Blog

Zacks Market Commentaries — Thu, 20 Aug 2009 16:40:19 +0000

Lockheed Martin (LMT) recently joined forces with privately owned Black & Veatch to garner a better slice of utilities modernizing in response to the US Department of Energy’s (DOE) Smart Grid Investment Grant Program.

This $4.5 billion program is part of the DOE's Electricity Delivery and Energy Reliability Recovery Plan to support modernization of the electrical grid. The Lockheed – Black & Veatch partnership is well placed to cater to other DOE funding applications, such as loan guarantees for employing innovative energy efficiency, renewable energy and advanced transmission and distribution.

Together, the companies complement each other in assisting utilities plan projects and in requesting federal grants from the DOE. Lockheed Martin will provide its expertise in information management, business process reengineering, cyber security expertise, modeling and simulation and demand-response tools. Black & Veatch, a premier US contractor, will chip in with design and construction of telecommunications as well as transmission and distribution infrastructure.

Lockheed Martin is strategically spreading its wings outside the traditional defense-focused arena. The company recently saw a number of its high-value platform programs coming under the axe of the Obama administration, with the F-22 program being most noteworthy. Considering these, we maintain our Neutral recommendation on LMT.

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General Environmental Management, Inc. (GEVI.OB) Expands Facilities

QualityStocks — Wed, 19 Aug 2009 13:18:22 +0000

General Environmental Management Inc., a leading environmental and waste remediation company based in California, recently announced the opening of a new service location in Benicia, California for its Mobile Treatment Services division. GEM Mobile Treatment Services (GEM-MTS) operates a nationwide fleet of transportable treatment units for industrial and petroleum wastewater, contaminated groundwater, and wastewater [...]

PennyOmega.com Stock Report! 8/18/09, ARG, ACCL, NAVI, INFA, RTLX, SCOR, NATI

PennyOmega.com — Tue, 18 Aug 2009 15:06:19 +0000

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DrStockPick.com Stock Report! 8/14/09, SCOR, TAYC, NBY, ACL, LYTS, FSTR

Dr. Stock Pick — Fri, 14 Aug 2009 15:36:44 +0000

DrStockPick.com Stock Report! Friday August 14, 2009 ************************************************************** Taylor Capital Group, Inc. (Nasdaq: TAYC) will be a featured presenter at the Howe Barnes Hoefer & Arnett 14th Annual Community Bank Conference on Tuesday, August 18, 2009 at 3:10 p.m. central time. The conference will be held at The Ritz-Carlton, 160 East Pearson Street, [...]

Chevron’s New Discovery – Analyst Blog

Zacks Market Commentaries — Mon, 10 Aug 2009 18:42:46 +0000

Chevron’s (CVX) affiliate Cabinda Gulf Oil Company Limited (CABGOC) and the latter’s partners have made a successful discovery in Block 0. The 79-3XST1 discovery well is located in the Cabinda coastline in Angola.

Through CABGOC, Chevron has a 39.2% interest in the find. Chevron is the operator of the Block 0 contractor group, which also includes SONANGOL E.P. (41%), Total E&P (10%) and ENI Angola Production B.V. (9.8%).

The 79-3XST1 well was drilled in March 2009 to a vertical depth of 13,000 feet. The well was tested from a single 150 feet perforated interval and flowed at a rate of 11.6 million cubic feet of natural gas and 2,550 barrels of liquid hydrocarbons per day.

Chevron has also made a number of promising discoveries over the last two years in the deepwater Gulf of Mexico (GoM), offshore Australia and West Africa that provide it with an attractive inventory of developmental projects.

Chevron’s current oil and gas development project pipeline is among the best in the industry. The company is projected to add more than 1 million barrels of oil equivalent per day by 2011. Chevron’s major ongoing projects are located in Kazakhstan, West Africa, Australia and the deepwater GoM regions. Most of these projects are expected to come on stream in the next few years.

Our continued favorable view of Chevron shares reflects the company’s attractive inventory of development opportunities and recent exploration successes that put it in an advantageous position relative to its opportunity-poor peers. We believe that the company is capable of generating above peer group average production and reserve growth in the next few years. Therefore, we maintain our Outperform rating.
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General Environmental Management, Inc. (GEVI.OB) is “One to Watch”

QualityStocks — Mon, 20 Jul 2009 18:05:00 +0000

General Environmental Management, Inc. is an integrated environmental service firm. Their business model is to provide field services, remediation, transportation, EHS compliance services, on-site technical services and off-site treatment. This is all managed through the Company’s proprietary enterprise software, GEMWare. Trading on NASDAQ’s OTCBB, General Environmental Management Inc. is part of the Waste Management industry [...]

PennyOmega.com Stock Report! 7/17/09, CVA, BEAC, TSRA, SHIP, LF, BOMK

PennyOmega.com — Fri, 17 Jul 2009 21:09:14 +0000

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DuPont Banks on Cost Savings – Analyst Blog

Zacks Market Commentaries — Thu, 16 Jul 2009 18:40:49 +0000

DuPont (DD), the global chemical and life sciences giant, is expected to release second-quarter earnings on July 21, 2009. The company's guidance is for earnings in the range of $1.70 to $2.10 per share, with modest year over year revenue growth in the Agriculture & Nutrition segments.

In the first quarter of 2009, the company had reported EPS of $0.54, down from $1.31 in the year ago quarter. Net sales in the quarter declined 17% to $7.27 billion, driven by a 19% decline in volume. The lower sales volume principally reflected global declines in construction, motor vehicle production, and consumer spending.

DuPont has initiated a number of initiatives to respond to the globa slowdown. In the first quarter of 2009, the company increased its fixed cost reduction goal for the year from $730 million to $1 billion. The company has identified an additional $200 million in cost reduction actions, including scaling down surplus contractor positions and work schedules.

DuPont is expected to unveil further restructuring actions in the second quarter, with targeted pre-tax savings of about $70 million and positive cash flow benefit in 2009. The company aims to reduce 2009 capital expenditures from $1.6 billion to $1.4 billion, 30% below the 2008 expenditure of $2 billion. The company expects its working capital reduction projects to deliver a $1 billion improvement over 2008.

This apart, DuPont plans to downsize 2,000 positions or about 3% of its workforce, which is expected to save more than $70 million by 2009 and $225 million annually by 2010. The company will also rationalize certain assets as part of the restructuring plan by 2010.
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General Environmental Management, Inc. (GEVI.OB) Subsidiary Receives Safety Award

QualityStocks — Tue, 07 Jul 2009 14:26:18 +0000

GEM Mobile Treatment Services, Inc., a division of General Environmental Management, Inc. and a national provider of mobile tank degassing-vapor control and water treatment services, announced today it has received BP’s 2008 Contractor Safety Award. The award recognizes contractors who perform more than 5,000 hours without a single safety incident. “Receiving a safety award in [...]

Lindsay Beats Expectations – Analyst Blog

Zacks Market Commentaries — Thu, 02 Jul 2009 20:17:13 +0000

Lindsay Corporation (LNN) reported fiscal third-quarter earnings of $0.42 per share, beating our expectations of $0.34 per share and market expectations of $0.25 per share. The company has been successful in cutting personnel as well as other operating expenses through its cost-reduction initiatives implemented in the first three quarters of fiscal 2009.

The company posted revenue of $84.6 million for the quarter, compared to $143.6 million in the third quarter of fiscal 2008. Current global economic conditions are adversely impacting the company's businesses. Irrigation equipment revenue declined 45%, and Infrastructure revenue was down 21% year-over-year.

In the Irrigation segment, Lindsay witnessed a 47% drop in domestic sales and 40% drop in international revenue. Management stated that despite an improvement in agricultural commodity prices, farmers have stayed away from purchasing capital goods due to the prevailing uncertain market conditions.

The Infrastructure business is highly dependent on government funding of transportation projects. During the past several months, federal, state and local governments have cut down spending on infrastructure projects, pending the availability of funds. The company stated that it hasn't experienced the impact of the stimulus spend on its top-line to date.

Moreover, the company announced that the Mexico City Movable Barrier project continues to be delayed pending the resolution of issues between the contractor and local government. The project of a total contract value of approximately $19.6 million was originally expected to begin in April 2009.

It was anticipated that the company would realize the majority of the total contract value in the second half of FY09. However, the company is now uncertain about seeing any revenue from this project this year. The uncertainty surrounding the project further underscores the lack of visibility for the company's top-line performance.

Though the difficult macro-economic environment is a concern in the near term, we believe the long-term outlook for Lindsay remains positive due to the need for increased food production driven by the worldwide population growth and the strong need to improve transportation infrastructure.

We maintain our Hold recommendation on LNN.

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