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Metso officially opens Metso Park in India
in brief/news
In Brief • Gabelli & Co Inc’s 20th Annual Pump, Valve & Motor Symposium took place on 25 February 2010 in New York, USA. The research meeting featured presentations by senior management of a number of manufacturers of engineered pumps and valves, industrial instruments & precision motors. Pump companies included Colfax Corp, Crane Co, Graco Inc, Idex Corp, Interpump Group, ITT Corp and Robbins & Myers Inc. www.gabelli.com • Colfax Corp has launched an application-based, educational website tailored for the oil & gas industry. The Global Oil & Gas Center of Excellence site contains articles, case studies, glossaries, photos of installations and fact sheets. “The application focus is what sets this site apart from others,” said Dennis Hanson, vice president of global oil & gas market development for Colfax. “It speaks the language of oil & gas professionals as it addresses the challenges of conveying fluids, which is one of the most common requirements of their work.” www.colfaxcorp.com/oilandgas • ITT Corp is donating five portable water treatment systems to Haiti, providing enough potable water each day for up to 200 000 victims of the January 2010 earthquake. The units were donated by ITT and deployed through Mercy Corps’ large-scale humanitarian aid response. The disaster response is part of a strategic partnership between ITT’s corporate citizenship program, ITT Watermark, and Mercy Corps. www.ittwatermark.com, www.itt.com and www.merycorps.org • Caprari’s Spanish subsidiary, Bombas Caprari SA, is celebrating its 30th anniversary in 2010. www.caprari.com • AxFlow is now the exclusive distributor in Denmark for Italy’s CDR Pompe SpA. CDR pumps are specially designed for pumping chemicals as well as explosive and aggressive fluids. The pumps’ patented magnetic coupling system ensures leak free pumping. AxFlow is also now the official distributor of Nash vacuum pumps and compressors in Sweden. www.axflow.com
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Pump Industry Analyst
DXP Enterprises in talks to buy Quadna
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XP Enterprises Inc has entered into a non-binding letter of intent with Quadna Inc and its controlling stockholder to purchase the company and its subsidiaries for US$28 million. The potential transaction is subject to the parties entering into a definitive purchase agreement. Negotiations are ongoing and a closing is scheduled for 1 April 2010. David Little, DXP Enterprises chairman and CEO said: “We are extremely excited about the potential that acquiring Quadna could bring to our customers, suppliers and shareholders.” Phoenix, Arizona-based Quadna is a supplier of fluid handling systems, including pumps, in the US. The company has nine branches in six states and Mexico and principally serves the mining, oil and gas, municipal, power food and beverage, semiconductor and chemical/pharmaceutical markets. Quadna is a major Goulds distributor, while Goulds is DXP Enterprises’ largest vendor. For further information, visit www.dxpe.com and www.quadna.com
Recent restructuring initiatives delivered £6 million in savings, bringing the total savings to £12 million. The business has also benefited from moving manufacturing to lower-cost countries in Eastern Europe, Asia and Mexico. Overall, the project is on track to deliver annual savings of £25 million. The company says that mechanical seals, seal support systems and couplings product lines have performed in line with expectations, reflecting their late cycle characteristics. The first-fit original equipment sales were down 16%, while sales from aftermarket servicing fell 7%. The aftermarket for oil, gas & petrochemicals saw sales slip 2%, while the aftermarket for other sectors such as general industrial and the chemical and pharmaceutical sector was down by 12%. During the half year, John Crane Production Solutions won a major contract to upgrade and maintain oil wells in Romania which is expected to generate annual revenues of about £14 million (see Pump Industry Analyst, November 2009). With a growing order book, John Crane expects to return to sales growth in the second half of the financial year, although this is unlikely to offset fully the first half declines. For further information, visit www.johncrane.com
Ebara revises 2010 Half year sales and revenue outlook operating profit slip at Ebara Corp is expecting to John Crane report an operating profit of ¥14.0 Japan’s
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n the six months to 30 January 2010, John Crane’s sales were down 15% to £358 million, while headline profit fell 8% to £64 million. Reported sales fell 9% after an £11 million benefit from currency translation and a £12 million contribution from recent acquisitions. The sealing company’s sales decline reflects customers’ substantially reduced investment in OEM equipment. The lower sales also reflect both the late cycle nature of the sealing business and the particularly strong comparator period. John Crane saw lower orders for first-fit original equipment and reduced aftermarket sales, mainly in the general industrial and chemical sectors as manufacturing volumes fell and in the upstream energy sector where a large contract was delayed into the second half.
billion and a net income of ¥3.5 billion on net sales of ¥490.0 billion for the year ending 31 March 2010. This compares with the previous outlook, issued in November 2009, of net income of ¥3.5 billion and sales of ¥500.0 million for fiscal 2010. For further information, visit www.ebara.co.jp
Metso officially opens Metso Park in India
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etso has inaugurated its Metso Park facility in Alwar city, Rajasthan, India. The E30 million Metso Park, which is Metso’s biggest single investment in India, includes workshops, offices, engineering,
March 2010
news/dividends logistics and training centres. Metso Park will be completed in phases from 2010 onwards, and when completed will extend to an area of almost 47 acres and will employ up to 700 people. During the first operational phase, Metso Park will manufacture components for mobile crushing and screening plants, vibrating screens and vibrators, slurry pumps and rubber products. “During the past five years we have significantly strengthened our presence in Asia and particularly India and our ability to serve our customers locally. Metso Park is the largest single investment ever made in India by Metso and its Mining and Construction Technology, confirming our confidence in the potential market growth in India and in line with our strategy of growing our presence in emerging markets. The investment will also significantly improve our competitiveness not only in India, but in the whole of Asia Pacific market area. In terms of our image, Metso Park is an integral complement to our supply and manufacturing network,” said Matti Kähkönen, president of Metso’s Mining and Construction Technology.
Plant Engineering & Construction Co Ltd, Hitachi Kiden Kogyo Ltd, Hitachi Industries Co Ltd, and part of Hitachi Ltd’s Industrial Systems Group, to consolidate the companies’ strengths in engineering, manufacturing and construction. Since its launch, Hitachi Plant Technologies has been engaged in the development, design, manufacturing, sales, servicing and construction of social infrastructure systems, industrial systems, air-conditioning systems and energy systems as its main businesses. Hitachi Plant Technologies’ Social Infrastructure & Industrial Machinery Systems division includes pump equipment. Large pumps for water supply, wastewater and power generation are manufactured at Hitachi’s main Tsuchiura Works in Japan and there is a manufacturing joint venture in China – Hitachi Pump Manufacture (Wuxi) Co Ltd. Hitachi Plant Technologies has 6577 employees and generated revenues of ¥395.7 billion in the year to 31 March 2009.
For further information, visit www.metso.com
Sheffield Forgemasters to build 15 000 tonne forging press in UK
Hitachi Ltd to acquire Hitachi Plant Technologies via share exchange
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For further information, visit www.hitachi-pt.com and www.hitachi.com
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heffield Forgemasters International Ltd has secured £140 million in funding, including an £80 million UK Government loan, to install the UK’s first 15 000 tonne forging press to manufacture ultralarge nuclear components. Graham Honeyman, chief executive at Sheffield Forgemasters, said: “The Government loan forms the final piece of a two-year project to finance the installation of a 15 000 tonne forging press which will place the UK at the peak of a global supply chain for civil nuclear manufacturing.”
apan’s Hitachi Plant Technologies Ltd is to become a wholly owned subsidiary of Hitachi Ltd from 1 April 2010, following a share exchange agreement (see Pump Industry Analyst, August 2009). As a result, Hitachi Plant Technologies’ shares will be delisted from the Tokyo and Osaka stock exchanges on 29 March 2010, with a final trading date of 26 March 2010. Hitachi Plant Technologies was established For further information, visit in707 April 2006 through the merger of Hitachi www.sheffieldforgemasters.com Stripsx10:707 Strip ads x10 23/1/09 09:39 Page 9
March 2010
Dividends • The Sulzer board of directors will propose an unchanged dividend of CHF2.80 per share at the company’s annual general meeting of shareholders on 15 April 2010. If approved, the ex-dividend date will be 19 April 2010. www.sulzer.com • Flowserve Corp’s board has authorised a 7.4% increase in the company’s quarterly cash dividend to U$0.29 per share. The board has also declared a cash dividend at the US$0.29 per share rate which is payable on 7 April 2010. “This increase to our quarterly dividend demonstrates our confidence in the company’s performance and continued ability to deliver strong cash flows, as well as our dedication to providing solid returns to our shareholders,” said Mark Blinn, Flowserve president and CEO. www.flowserve.com • Gardner Denver Inc’s board declared a quarterly dividend of US$0.05 per share, payable on 25 March 2010, to stockholders of record on 9 March 2010. www.GardnerDenver.com • At Cardo’s annual general meeting on 7 April 2010 in Malmö, Sweden, the board will recommend a dividend of SEK9.00 per share for the financial year 2009. www.cardo.com • National Oilwell Varco Inc’s regular quarterly cash dividend of US$0.10 per share of common stock was paid on 26 March 2010. www.nov.com • John Wood Group plc has announced a second interim dividend of US$0.069 for 2009, making the full year 2009 dividend US$0.10, up 11% from US$0.09 in 2008. The company says that it expects to continue with a progressive dividend policy and to grow the dividend in 2010. www.woodgroup.com
Pump Industry Analyst
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In Brief • Gabelli & Co Inc’s 20th Annual Pump, Valve & Motor Symposium took place on 25 February 2010 in New York, USA. The research meeting featured presentations by senior management of a number of manufacturers of engineered pumps and valves, industrial instruments & precision motors. Pump companies included Colfax Corp, Crane Co, Graco Inc, Idex Corp, Interpump Group, ITT Corp and Robbins & Myers Inc. www.gabelli.com • Colfax Corp has launched an application-based, educational website tailored for the oil & gas industry. The Global Oil & Gas Center of Excellence site contains articles, case studies, glossaries, photos of installations and fact sheets. “The application focus is what sets this site apart from others,” said Dennis Hanson, vice president of global oil & gas market development for Colfax. “It speaks the language of oil & gas professionals as it addresses the challenges of conveying fluids, which is one of the most common requirements of their work.” www.colfaxcorp.com/oilandgas • ITT Corp is donating five portable water treatment systems to Haiti, providing enough potable water each day for up to 200 000 victims of the January 2010 earthquake. The units were donated by ITT and deployed through Mercy Corps’ large-scale humanitarian aid response. The disaster response is part of a strategic partnership between ITT’s corporate citizenship program, ITT Watermark, and Mercy Corps. www.ittwatermark.com, www.itt.com and www.merycorps.org • Caprari’s Spanish subsidiary, Bombas Caprari SA, is celebrating its 30th anniversary in 2010. www.caprari.com • AxFlow is now the exclusive distributor in Denmark for Italy’s CDR Pompe SpA. CDR pumps are specially designed for pumping chemicals as well as explosive and aggressive fluids. The pumps’ patented magnetic coupling system ensures leak free pumping. AxFlow is also now the official distributor of Nash vacuum pumps and compressors in Sweden. www.axflow.com
12
Pump Industry Analyst
DXP Enterprises in talks to buy Quadna
D
XP Enterprises Inc has entered into a non-binding letter of intent with Quadna Inc and its controlling stockholder to purchase the company and its subsidiaries for US$28 million. The potential transaction is subject to the parties entering into a definitive purchase agreement. Negotiations are ongoing and a closing is scheduled for 1 April 2010. David Little, DXP Enterprises chairman and CEO said: “We are extremely excited about the potential that acquiring Quadna could bring to our customers, suppliers and shareholders.” Phoenix, Arizona-based Quadna is a supplier of fluid handling systems, including pumps, in the US. The company has nine branches in six states and Mexico and principally serves the mining, oil and gas, municipal, power food and beverage, semiconductor and chemical/pharmaceutical markets. Quadna is a major Goulds distributor, while Goulds is DXP Enterprises’ largest vendor. For further information, visit www.dxpe.com and www.quadna.com
Recent restructuring initiatives delivered £6 million in savings, bringing the total savings to £12 million. The business has also benefited from moving manufacturing to lower-cost countries in Eastern Europe, Asia and Mexico. Overall, the project is on track to deliver annual savings of £25 million. The company says that mechanical seals, seal support systems and couplings product lines have performed in line with expectations, reflecting their late cycle characteristics. The first-fit original equipment sales were down 16%, while sales from aftermarket servicing fell 7%. The aftermarket for oil, gas & petrochemicals saw sales slip 2%, while the aftermarket for other sectors such as general industrial and the chemical and pharmaceutical sector was down by 12%. During the half year, John Crane Production Solutions won a major contract to upgrade and maintain oil wells in Romania which is expected to generate annual revenues of about £14 million (see Pump Industry Analyst, November 2009). With a growing order book, John Crane expects to return to sales growth in the second half of the financial year, although this is unlikely to offset fully the first half declines. For further information, visit www.johncrane.com
Ebara revises 2010 Half year sales and revenue outlook operating profit slip at Ebara Corp is expecting to John Crane report an operating profit of ¥14.0 Japan’s
I
n the six months to 30 January 2010, John Crane’s sales were down 15% to £358 million, while headline profit fell 8% to £64 million. Reported sales fell 9% after an £11 million benefit from currency translation and a £12 million contribution from recent acquisitions. The sealing company’s sales decline reflects customers’ substantially reduced investment in OEM equipment. The lower sales also reflect both the late cycle nature of the sealing business and the particularly strong comparator period. John Crane saw lower orders for first-fit original equipment and reduced aftermarket sales, mainly in the general industrial and chemical sectors as manufacturing volumes fell and in the upstream energy sector where a large contract was delayed into the second half.
billion and a net income of ¥3.5 billion on net sales of ¥490.0 billion for the year ending 31 March 2010. This compares with the previous outlook, issued in November 2009, of net income of ¥3.5 billion and sales of ¥500.0 million for fiscal 2010. For further information, visit www.ebara.co.jp
Metso officially opens Metso Park in India
M
etso has inaugurated its Metso Park facility in Alwar city, Rajasthan, India. The E30 million Metso Park, which is Metso’s biggest single investment in India, includes workshops, offices, engineering,
March 2010
news/dividends logistics and training centres. Metso Park will be completed in phases from 2010 onwards, and when completed will extend to an area of almost 47 acres and will employ up to 700 people. During the first operational phase, Metso Park will manufacture components for mobile crushing and screening plants, vibrating screens and vibrators, slurry pumps and rubber products. “During the past five years we have significantly strengthened our presence in Asia and particularly India and our ability to serve our customers locally. Metso Park is the largest single investment ever made in India by Metso and its Mining and Construction Technology, confirming our confidence in the potential market growth in India and in line with our strategy of growing our presence in emerging markets. The investment will also significantly improve our competitiveness not only in India, but in the whole of Asia Pacific market area. In terms of our image, Metso Park is an integral complement to our supply and manufacturing network,” said Matti Kähkönen, president of Metso’s Mining and Construction Technology.
Plant Engineering & Construction Co Ltd, Hitachi Kiden Kogyo Ltd, Hitachi Industries Co Ltd, and part of Hitachi Ltd’s Industrial Systems Group, to consolidate the companies’ strengths in engineering, manufacturing and construction. Since its launch, Hitachi Plant Technologies has been engaged in the development, design, manufacturing, sales, servicing and construction of social infrastructure systems, industrial systems, air-conditioning systems and energy systems as its main businesses. Hitachi Plant Technologies’ Social Infrastructure & Industrial Machinery Systems division includes pump equipment. Large pumps for water supply, wastewater and power generation are manufactured at Hitachi’s main Tsuchiura Works in Japan and there is a manufacturing joint venture in China – Hitachi Pump Manufacture (Wuxi) Co Ltd. Hitachi Plant Technologies has 6577 employees and generated revenues of ¥395.7 billion in the year to 31 March 2009.
For further information, visit www.metso.com
Sheffield Forgemasters to build 15 000 tonne forging press in UK
Hitachi Ltd to acquire Hitachi Plant Technologies via share exchange
J
For further information, visit www.hitachi-pt.com and www.hitachi.com
S
heffield Forgemasters International Ltd has secured £140 million in funding, including an £80 million UK Government loan, to install the UK’s first 15 000 tonne forging press to manufacture ultralarge nuclear components. Graham Honeyman, chief executive at Sheffield Forgemasters, said: “The Government loan forms the final piece of a two-year project to finance the installation of a 15 000 tonne forging press which will place the UK at the peak of a global supply chain for civil nuclear manufacturing.”
apan’s Hitachi Plant Technologies Ltd is to become a wholly owned subsidiary of Hitachi Ltd from 1 April 2010, following a share exchange agreement (see Pump Industry Analyst, August 2009). As a result, Hitachi Plant Technologies’ shares will be delisted from the Tokyo and Osaka stock exchanges on 29 March 2010, with a final trading date of 26 March 2010. Hitachi Plant Technologies was established For further information, visit in707 April 2006 through the merger of Hitachi www.sheffieldforgemasters.com Stripsx10:707 Strip ads x10 23/1/09 09:39 Page 9
March 2010
Dividends • The Sulzer board of directors will propose an unchanged dividend of CHF2.80 per share at the company’s annual general meeting of shareholders on 15 April 2010. If approved, the ex-dividend date will be 19 April 2010. www.sulzer.com • Flowserve Corp’s board has authorised a 7.4% increase in the company’s quarterly cash dividend to U$0.29 per share. The board has also declared a cash dividend at the US$0.29 per share rate which is payable on 7 April 2010. “This increase to our quarterly dividend demonstrates our confidence in the company’s performance and continued ability to deliver strong cash flows, as well as our dedication to providing solid returns to our shareholders,” said Mark Blinn, Flowserve president and CEO. www.flowserve.com • Gardner Denver Inc’s board declared a quarterly dividend of US$0.05 per share, payable on 25 March 2010, to stockholders of record on 9 March 2010. www.GardnerDenver.com • At Cardo’s annual general meeting on 7 April 2010 in Malmö, Sweden, the board will recommend a dividend of SEK9.00 per share for the financial year 2009. www.cardo.com • National Oilwell Varco Inc’s regular quarterly cash dividend of US$0.10 per share of common stock was paid on 26 March 2010. www.nov.com • John Wood Group plc has announced a second interim dividend of US$0.069 for 2009, making the full year 2009 dividend US$0.10, up 11% from US$0.09 in 2008. The company says that it expects to continue with a progressive dividend policy and to grow the dividend in 2010. www.woodgroup.com
Pump Industry Analyst
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