Environmental Industry Investment Analysis April 19, 2000 by Andrew Paterson (topgato@aol.com) An online presentation of the analysis of stock prices, mergers & acquisitions, industry trend and business opportunities in the U.S. environmental industry.   Click Here to Start Download PowerPoint Presentation Table of Contents The Business Context for Technology Deployment: Venture Model is Dead; Long live Project Finance Trends in Business Climate for Enviro-tech in 1990s Key Differences: Engineering vs. Finance Venture Capital fueled by 1990s Stock Market boom But, Enviro-Tech attracts very little venture capital Inconsistent funding plagues EM-OST budget Project Finance, NOT Venture Capital Project Drivers change Investment Orientation DOE now largest customer in Remediation Market DOE Contractor Base Shifted to E&CProject Firms, as Major Manufacturers withdrew in 1980s Business Context: Contractor Readiness Threatened; _ Problems / Possible Consequences & Vulnerabilities Quotes from Contractors: Minimal Profit Or Reward For Risk on DOE Jobs Profits still elusive for Enviro-Engineering Firms Large E&C Firms also show lower profits in 1999 Private Contractors show meager profits also Hazardous Waste firms have lived up to their name Waste Management restructuring fails again Safety Kleen falls apart after acquiring Rollins Laidlaw continues to sink as waste volumes decline Philip Services struggling out of bankruptcy DOE Contractors Suffer Stock Collapses in 1997-99 FLUOR plummets amid restructuring 1997-99 Jacobs Engineering up in e98; back down in 1999 Foster Wheeler loses 90% of its value 1997-99 McDermott (B&W) suffers huge drop of 75% Stone & Webster slides after Asia financial collapse MK subsides by half in 1998-99 URS builds on acquisitions, but loses value in 1999 IT Group rises and falls with buyouts ICF hovers near bankruptcy; changes name to KSR Duratek bottoming out as profits and sales move up ATG doubles revenues on acquisitions Roy F Weston maintains sales, but without profits Tetratech recovers on higher profits in 2000 E&C Firms can pursue higher profit commercial jobs Nuclear D&D Projects Emerging after 2010: Separate site-specific projects, not a gmarketh per se Duke Energy keeps lead position in power sector, nukes GE brings good things to life...and its shareholders Enron zooms ahead as model of diversified success TRW holding value, while competitors sink Thermo Electron suffers profit slippage Raytheon dives as DOD contract delays harm profits Lockheed-Martin suffers mission failures; stock crashes Conclusion: ROI tied to Profitable Scopes of Work Path Forward for OST Investment: gWork on Specs; BUY IT; Focus on boosting Profitsh TOP TEN Environmental E-Commerceh Ideas   [Main] [Profile] [Publications] [Services] [Data] [News] [Perspective] [Surveys] [Links] [Free Sample] [Contact] ~~~~~~~~ Copyright ©2000 Environmental Business International, Inc. (San Diego, CA) Phone: (619)295-7685, Fax: (619)295-5743 All rights reserved. This website, or any part, may not be duplicated, stored in a retrieval system or transmitted in any form without prior written permission of the publisher. Unauthorized use of this information is illegal. Disclaimer: Although EBI has made every effort to be accurate errors may appear and are unintentional.