- Email: [email protected]
Paper companies see 1996 earnings plummet
Pump Industry Analyst
n Ian European l5 rater
February
pressurised
reactor (EPR), cur-
rlently being developed by F ramatome and Siemens. T ‘lie 14 000 megawatt F ranco-German
reactor type
v.‘as launched in 1995, to P reduce safer nuclear power Slations. ABB CONSORTIA WIN POWER
DEALS
IN BAHRAIN
AND
ARGENTINA
.
.
A consortium led by ABB Power Generation has received a turnkey contract to build a gasfired power and desalination plant at Hidd, Bahrain. Construction of the US$458 million project is to begin immediately. The combined power and desalination plant will have the capacity to produce 280 megawatts of clcctricity and 30 million gallons of desalinated water daily. A consortium including ABB has won an order to build a 775 megawatt combined-cycle power plant in Argentina. The US$235 million order was placed by Central Dock Sud SA, an independent power producer comprising Endesar and Astra. Endesar is aft‘iliated with Endesa, the Spanish electrical utility while Astra is a subsidiary of Repsol of Spain. The plant will be built in Buenos Aires and should come onstream during 1999.
CHINA
TOPS
STEEL
PRODUCTION LEAGUE 4ccording to the Working IParty on Steel of the
United Nations Economic Commission for Europe, estimated world crude steel production reached 750.8 million tonnes for 1996, representing a 0.2 per cent decrease on 1995 levels. China has become the world’s largest steel producer, producing in excess of 100 million tonnes. As a result, China moves ahead of Japan, whose 1996 production was estimated at 98.8 million tonnes. The United States is ranked third, followed by Russia, Germany and South Korea. The Asian countries, excluding Japan, saw strong production growth. India, South Korea and Taiwan saw 1996 output increase 8.5, 6.1, and IO. 1 per cent respectively.
CHEVRON
MANILA
lion. The company had sales of US$5. I billion during 1996 and 1995. George J Harad, Boise Cascade’s chairman of the board and chief executive officer, said the company’s performance reflected unfavourable conditions in the paper business. International Paper reported full-year 1996 net earnings, before special items, of US$434 million, compared with record earnings of US$l.2 billion achieved in 1995. Sales in 1996 were US$20.1 billion compared with US$19.8 billion reported a year ago. Commenting on the results, John T Dillon, chairman and chief executive officer, said that while it was an extremely difficult year for the industry, lnternational Paper’s internal business improvements will yield sustained longterm benefits The Mead Corporation reported full-year net earnings of US$195.3 million on sales of US$4.7 I billion for 1996. This contrasts with earnings of US$350.0 million on sales of US$5. I8 billion for 1995, reflecting substantially lower prices for pulp, paper and container board.
WATER
PRIVATIZATION The winners have been announced in the US$7 billion Manila waterworks privatization
programme
(see Pump Industry Analyst, January 1997). Surprisingly, a consortium consisting of Ayala Corporation, the Philippine’s largest diversified holding company, Bechtel Corp of the US and United Utilities of the UK has won the Manila east contract with a bid offering to supply water at a little more than 25 per cent of the existing price. Their winning bid was half the price offered by the nearest challenger.
BUYS
TWO VLCCS PAPER Chevron Shipping Company is to acquire two newbuild, double hull tankers as part of an ongoing fleet renewal programme. These new very large crude carriers (VLCCs) are to be built by Samsung Heavy Industries Co Ltd, Korea for delivery in late 1998 and early 1999. KVAERNER
LOOKS
TO ASIA Kvaerner, the Norwegian engineering and shipbuilding group, is planning to establish shipbuilding operations in Asia. The group is looking to acquire shipyards in China and India are believed to be unjer consideration as locaLions. It is expected that activity will focus on cruise ships and specialty carriers for oil and gas.
COMPANIES
SEE 1996 EARNINGS PLUMMET Champion International Corporation had 1996 net income of US$141.3 compared with US$77 I .8 million reported for 1995. 1996 sales were US$5880.0 million, down from US$6972.0 million reported a year ago. The results reflect lower pulp and paper prices. For 1997, the company is committed to lowering its costs and reducing capital spending below 1996 levels, regardless of any future changes in pulp and paper prices. Boise Cascade Corporation’s net income for I996 was US$9. I million compared with 1995’s figure of US$35 1.9 mil-
I997
??
.
Henkel KgaA, Germany has acquired Loctite Corporation, USA. Hoechst Trespaphan GmbH and Thai Petroleum Industry plc are to form a polypropylene film joint venture, building a plant in Thailand, with an initial capacity of 25 000 metric tons per annum.
n Ian European l5 rater
February
pressurised
reactor (EPR), cur-
rlently being developed by F ramatome and Siemens. T ‘lie 14 000 megawatt F ranco-German
reactor type
v.‘as launched in 1995, to P reduce safer nuclear power Slations. ABB CONSORTIA WIN POWER
DEALS
IN BAHRAIN
AND
ARGENTINA
.
.
A consortium led by ABB Power Generation has received a turnkey contract to build a gasfired power and desalination plant at Hidd, Bahrain. Construction of the US$458 million project is to begin immediately. The combined power and desalination plant will have the capacity to produce 280 megawatts of clcctricity and 30 million gallons of desalinated water daily. A consortium including ABB has won an order to build a 775 megawatt combined-cycle power plant in Argentina. The US$235 million order was placed by Central Dock Sud SA, an independent power producer comprising Endesar and Astra. Endesar is aft‘iliated with Endesa, the Spanish electrical utility while Astra is a subsidiary of Repsol of Spain. The plant will be built in Buenos Aires and should come onstream during 1999.
CHINA
TOPS
STEEL
PRODUCTION LEAGUE 4ccording to the Working IParty on Steel of the
United Nations Economic Commission for Europe, estimated world crude steel production reached 750.8 million tonnes for 1996, representing a 0.2 per cent decrease on 1995 levels. China has become the world’s largest steel producer, producing in excess of 100 million tonnes. As a result, China moves ahead of Japan, whose 1996 production was estimated at 98.8 million tonnes. The United States is ranked third, followed by Russia, Germany and South Korea. The Asian countries, excluding Japan, saw strong production growth. India, South Korea and Taiwan saw 1996 output increase 8.5, 6.1, and IO. 1 per cent respectively.
CHEVRON
MANILA
lion. The company had sales of US$5. I billion during 1996 and 1995. George J Harad, Boise Cascade’s chairman of the board and chief executive officer, said the company’s performance reflected unfavourable conditions in the paper business. International Paper reported full-year 1996 net earnings, before special items, of US$434 million, compared with record earnings of US$l.2 billion achieved in 1995. Sales in 1996 were US$20.1 billion compared with US$19.8 billion reported a year ago. Commenting on the results, John T Dillon, chairman and chief executive officer, said that while it was an extremely difficult year for the industry, lnternational Paper’s internal business improvements will yield sustained longterm benefits The Mead Corporation reported full-year net earnings of US$195.3 million on sales of US$4.7 I billion for 1996. This contrasts with earnings of US$350.0 million on sales of US$5. I8 billion for 1995, reflecting substantially lower prices for pulp, paper and container board.
WATER
PRIVATIZATION The winners have been announced in the US$7 billion Manila waterworks privatization
programme
(see Pump Industry Analyst, January 1997). Surprisingly, a consortium consisting of Ayala Corporation, the Philippine’s largest diversified holding company, Bechtel Corp of the US and United Utilities of the UK has won the Manila east contract with a bid offering to supply water at a little more than 25 per cent of the existing price. Their winning bid was half the price offered by the nearest challenger.
BUYS
TWO VLCCS PAPER Chevron Shipping Company is to acquire two newbuild, double hull tankers as part of an ongoing fleet renewal programme. These new very large crude carriers (VLCCs) are to be built by Samsung Heavy Industries Co Ltd, Korea for delivery in late 1998 and early 1999. KVAERNER
LOOKS
TO ASIA Kvaerner, the Norwegian engineering and shipbuilding group, is planning to establish shipbuilding operations in Asia. The group is looking to acquire shipyards in China and India are believed to be unjer consideration as locaLions. It is expected that activity will focus on cruise ships and specialty carriers for oil and gas.
COMPANIES
SEE 1996 EARNINGS PLUMMET Champion International Corporation had 1996 net income of US$141.3 compared with US$77 I .8 million reported for 1995. 1996 sales were US$5880.0 million, down from US$6972.0 million reported a year ago. The results reflect lower pulp and paper prices. For 1997, the company is committed to lowering its costs and reducing capital spending below 1996 levels, regardless of any future changes in pulp and paper prices. Boise Cascade Corporation’s net income for I996 was US$9. I million compared with 1995’s figure of US$35 1.9 mil-
I997
??
.
Henkel KgaA, Germany has acquired Loctite Corporation, USA. Hoechst Trespaphan GmbH and Thai Petroleum Industry plc are to form a polypropylene film joint venture, building a plant in Thailand, with an initial capacity of 25 000 metric tons per annum.