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Cummins revises 2008 operating results to reflect increased warranty liability
NEWS chemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International Inc. Newpoint Gas, headquartered in College Station, Texas, offers engineering, equipment and services for the treatment and purification of natural gas. The company has more than 20 years of design and operations experience in natural gas. For further information, visit www.uop.com
Kruger forms KrugerForce to help with stimulus assistance
K
ruger Inc has set up KrugerForce, a dedicated task force of process, mechanical and electrical engineers to assist municipalities and the consulting engineering community with an offering of technologies and services that meet the requirements of President Obama’s stimulus package. According to Brian Frewerd, Kruger’s VP of Strategic Planning, “We have been contacted by many customers looking for rapid delivery of engineered solutions to help meet their challenges. Having green technologies and the ability to provide rapid responses are of utmost importance at this time.” KrugerForce will help municipalities and engineers meet “shovel ready” criteria by providing engineering labour to provide customized “cut and paste” designs and drawings into overall plant plans to meet short application deadlines; packaged water and wastewater solutions available on-site in a matter of weeks; and access to design build experts to lead fast-track projects and turn key installations. KrugerForce will also help municipalities and engineers meet the “Green Solutions” criteria with technologies focused on renewable energy, energy recovery and water reuse. Kruger is a Veolia Water Solutions & Technologies company. Veolia Water Solutions & Technologies is the technological subsidiary of Veolia Water. Veolia Water Solutions & Technologies (VWS) includes seven subsidiaries in North America: BIOTHANE, Crown Solutions, HPD, John Meunier, Kruger, NAWater Systems and Whittier Filtration.
March 2009
For further information, visit www.krugerusa.com and www.veoliawater.com
Biorem opens Chinese office
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iorem Inc has set up a representative office in Beijing’s Chaoyang District in China. “Our Biorem Beijing office will liaise with our representative network within the country to offer biological air pollution control systems that will compete with the older, inefficient and energy intensive technologies currently being used.” said Peter Bruijns, President and CEO. Biorem has five projects under construction in China. Four of these projects were secured in 2008. Biorem has also formalized sales representative contracts with 11 organizations across China. Biorem says that the addition of the China office complements its internal growth strategy and supports the corporate mission to become the world’s leading clean technology air pollution control company.
For further information, visit www.biorem.biz
Cummins revises 2008 operating results to reflect increased warranty liability
C
ummins Inc has revised its fourth quarter and full year 2008 operating results to reflect a higher warranty liability than previously reported. As a result, Cummins’ earnings before interest and taxes (EBIT) for the fourth quarter decreased by US$73 million, while net income was reduced by US$46 million, or US$0.23 per share. The change in earnings reflects an US$82 million increase in warranty liability, offset by a US$9 million reduction in variable and incentive compensation as a result of this change. The company’s revised fourth quarter EBIT was US$56 million and net income was US$43 million, or US$0.22 per share. For the full year, the company’s revised EBIT was US$1.22 billion and net income was US$755 million, or US$3.84 per share. The earnings revisions affect the fourth
quarter results of the company’s Engine and Component segments. The warranty liability was revised to reflect a change in estimate in the warranty costs primarily for mid-range engine products launched in 2007. In late February, our analysis of recent warranty payments indicated that a revision to our initial warranty liability estimate is appropriate. The company is aggressively addressing the product issues and has made modifications that have reduced the failure rate of these products. The increase in the warranty liability reflects higher than expected costs associated with these repairs. The company also reaffirmed the financial guidance it gave earlier this month, with sales in 2009 expected to be approximately 20% lower than 2008. EBIT margin is expected to be 6.5% of sales, excluding restructuring costs associated with job actions announced in the first quarter of 2009. For further information, visit www.cummins.com
Seccua partners with Hydranautics
S
eccua GmbH and Nitto Denko/ Hydranautics have signed a co-operative agreement to jointly develop new markets and to expand Hydranautics’ product offering with 4” ultrafiltration modules supplied by Seccua. Under this new Seccua/Hydranautics partnership, Seccua will supply Hydranautics with ultrafiltration modules for the smallscale market segment. “It is a competitive advantage to us to be able to offer our customers now an even more complete range of core products for their water treatment needs,” said Brett Andrews, president and COO of Hydranautics. “The residential, small municipal and light industrial markets with their recurring revenues are an attractive future market segment for us”. “We are looking forward to the cooperation with Hydranautics,” said Michael Hank, founder and CEO of Seccua. “The long-term guarantee of clean drinking water is becoming more and more important, especially since the worldwide consumption of water is increasing steadily and these scarce resources are more and more often contaminated. In Europe, the
Filtration Industry Analyst
3
Kruger forms KrugerForce to help with stimulus assistance
K
ruger Inc has set up KrugerForce, a dedicated task force of process, mechanical and electrical engineers to assist municipalities and the consulting engineering community with an offering of technologies and services that meet the requirements of President Obama’s stimulus package. According to Brian Frewerd, Kruger’s VP of Strategic Planning, “We have been contacted by many customers looking for rapid delivery of engineered solutions to help meet their challenges. Having green technologies and the ability to provide rapid responses are of utmost importance at this time.” KrugerForce will help municipalities and engineers meet “shovel ready” criteria by providing engineering labour to provide customized “cut and paste” designs and drawings into overall plant plans to meet short application deadlines; packaged water and wastewater solutions available on-site in a matter of weeks; and access to design build experts to lead fast-track projects and turn key installations. KrugerForce will also help municipalities and engineers meet the “Green Solutions” criteria with technologies focused on renewable energy, energy recovery and water reuse. Kruger is a Veolia Water Solutions & Technologies company. Veolia Water Solutions & Technologies is the technological subsidiary of Veolia Water. Veolia Water Solutions & Technologies (VWS) includes seven subsidiaries in North America: BIOTHANE, Crown Solutions, HPD, John Meunier, Kruger, NAWater Systems and Whittier Filtration.
March 2009
For further information, visit www.krugerusa.com and www.veoliawater.com
Biorem opens Chinese office
B
iorem Inc has set up a representative office in Beijing’s Chaoyang District in China. “Our Biorem Beijing office will liaise with our representative network within the country to offer biological air pollution control systems that will compete with the older, inefficient and energy intensive technologies currently being used.” said Peter Bruijns, President and CEO. Biorem has five projects under construction in China. Four of these projects were secured in 2008. Biorem has also formalized sales representative contracts with 11 organizations across China. Biorem says that the addition of the China office complements its internal growth strategy and supports the corporate mission to become the world’s leading clean technology air pollution control company.
For further information, visit www.biorem.biz
Cummins revises 2008 operating results to reflect increased warranty liability
C
ummins Inc has revised its fourth quarter and full year 2008 operating results to reflect a higher warranty liability than previously reported. As a result, Cummins’ earnings before interest and taxes (EBIT) for the fourth quarter decreased by US$73 million, while net income was reduced by US$46 million, or US$0.23 per share. The change in earnings reflects an US$82 million increase in warranty liability, offset by a US$9 million reduction in variable and incentive compensation as a result of this change. The company’s revised fourth quarter EBIT was US$56 million and net income was US$43 million, or US$0.22 per share. For the full year, the company’s revised EBIT was US$1.22 billion and net income was US$755 million, or US$3.84 per share. The earnings revisions affect the fourth
quarter results of the company’s Engine and Component segments. The warranty liability was revised to reflect a change in estimate in the warranty costs primarily for mid-range engine products launched in 2007. In late February, our analysis of recent warranty payments indicated that a revision to our initial warranty liability estimate is appropriate. The company is aggressively addressing the product issues and has made modifications that have reduced the failure rate of these products. The increase in the warranty liability reflects higher than expected costs associated with these repairs. The company also reaffirmed the financial guidance it gave earlier this month, with sales in 2009 expected to be approximately 20% lower than 2008. EBIT margin is expected to be 6.5% of sales, excluding restructuring costs associated with job actions announced in the first quarter of 2009. For further information, visit www.cummins.com
Seccua partners with Hydranautics
S
eccua GmbH and Nitto Denko/ Hydranautics have signed a co-operative agreement to jointly develop new markets and to expand Hydranautics’ product offering with 4” ultrafiltration modules supplied by Seccua. Under this new Seccua/Hydranautics partnership, Seccua will supply Hydranautics with ultrafiltration modules for the smallscale market segment. “It is a competitive advantage to us to be able to offer our customers now an even more complete range of core products for their water treatment needs,” said Brett Andrews, president and COO of Hydranautics. “The residential, small municipal and light industrial markets with their recurring revenues are an attractive future market segment for us”. “We are looking forward to the cooperation with Hydranautics,” said Michael Hank, founder and CEO of Seccua. “The long-term guarantee of clean drinking water is becoming more and more important, especially since the worldwide consumption of water is increasing steadily and these scarce resources are more and more often contaminated. In Europe, the
Filtration Industry Analyst
3