AIXTRON AGAachen, Germany (NASDAQ (GM): AIXG)

Developing Nations Drive Machinery Growth - Future growth in the global industrial machinery sector will be driven largely by demand from developing regions, according to a Global Industry Analysts report. The report suggests that while factors such as increased agricultural mechanization and rising construction activities will drive new machinery demand in developing markets, demand in mature markets such as the US, Japan, and Western Europe will stem primarily from replacement products and parts.

Industrial Machinery Exports Rise - US machinery exports increased nearly 12 percent in the first seven months of 2008 compared to a year earlier. Exports to Canada, the US' largest trading partner, increased the most: almost 15 percent. Demand for US machinery also increased in several European markets including Belgium, 19.1 percent; France 16.7 percent; the UK, 8.3 percent; the Netherlands, 8.2 percent; and Germany, 4.6 percent. Of the top 15 markets for US machinery, demand dropped only in Taiwan and South Korea.

Industrial Machinery Prices Remain Stable - US producer prices for industrial machinery increased only 2.3 percent in August 2008 compared to August 2007. However, while machinery prices remain mostly flat, machinery raw material costs have risen more substantially. Producer prices for cold rolled steel strips and sheets increased 11.6 percent in August 2008 compared to August 2007. On average, industrial machinery producer prices have increased less than 2 percent per year for the last decade.