Gamble of the week Profit with this UK exporter – MoneyWeek

Revenuesfromemergingeconomiesaregrowingbyover20%peryearandnowaccountfor25%ofthegroup。

GrowthisbeingdrivenbydomesticdemandandthemigrationofWesterncustomersastheytransferproductiontolow-costcountries。

CEOMarkRobertshawsayshistargetistoboostmarginsfrom12。

9%tothe“mid-teens”by2013andnudgeupreturnoncapitalemployedto35%。

Withenergyandcommoditycostsdropping,hittingthattargetmayonlyrequireabitmoregrowth。

MorganCrucible(LSE:MGCR)

InthefourmonthstoApril,Robertshawsoundedconfidentdespitesalesbeingmarginallybehind2011–robustceramicvolumesintheaerospacesectorwereoffsetbyslowergrowthintheChineseautomotive,windandsolarbusinesses。

Robertshawplanstodevelopproductsthatcanbedifferentiatedfromthecompetitionandcommandhighermargins。

Nextheplanstoincreasethefirm’sexposuretothefastest-expandingregions。

ThereshouldbeaboostfromUSaerospacetooasproductiongearsupforthenextgenerationofcommercialaircraft–Morgandesignsproductsusedinturbineblades。

TheCityisforecasting2012salesandEPSof£1。

1bnand30prespectively,witha10pdividend(3。

5%yield)。

IratethestockontentimesEBITA。

Adjustingfor£215mofnetdebtanda£135mpensiondeficitgeneratesanintrinsicworthof400ppershare。

Shortterm,salescouldbehitbythecrisisinEurope,aChinesehard-landingandcurrencyfluctuations。

NeverthelessRobertshawandtheChairmanrecentlysnappedup65,000shares。

Interimsareouton24July。

Rating:BUYat272p(marketcapitalisation£760m)?

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