Pentair - Anyone understand how their Technical Products group does 20% margins?

[LongHaul]

This one baffles me.  I would think enclosures would be more commoditized and have much lower margins.

The margins suggest this is a differentiated product that is critical to customers.

Any help appreciated especially from someone who is familiar with their product. 

 

 

Technical Products Group (32% of total sales)[10]

Pentair's Technical Products Group designs and manufactures enclosures that house and protect sensitive electronics and thermal management products. Products include metallic and composite enclosures, cabinets, cases, subracks, backplanes, heat exchangers, and blowers.[11] The Technical Products Group sells it products for applications in industrial machinery, data communications, networking, telecommunications, automotive, medical, security, defense, and general electronics. The

 

Technical Products Group distributes its products through electrical and data contractors, electrical and electronic components distributors, and original equipment manufacturers. The Technical Products Group generated 2009 revenues of $229 million, an increase of 9% over the year-ago period. The increase in sales was caused by strong sales in the industrial, infrastructure, and general electronics markets.

 

The Technical Products Group encompasses the following brands: Hoffman, Schroff, McLean Cooling Technology, Calmark, Birtcher, Aspen Motion Technologies, and Taunus.[7]

 

Breakdown of Technology Products market and geographic distribution.

 

Breakdown of Technology Products market and geographic distribution.[7]