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Alstom quits industrial valve business
December 1999
Pump Industry Analyst
ABS SEES SALES AND PROFITS FALL Despite the successful introduction of its new large submersibles, ABS has reported decreases in January-September invoiced sales and operating profits. For the first 9 months of 1999 invoiced sales reached SKr1739 million, down from SKr1786 million last year. Nine month operating profit fell SKr16 million to SKrlSO million. The order intake and deliveries to ABS’ largest market segment, Water and Wastewater, have shown a solid performance again this year. Demand from the paper and pulp industry, however, is lower. Within the Building and Construction sector there has sales of been improved drainage pumps to contractors but reduced demand for sanitary pump and pumping stations. The increase in invoiced sales to the Water and Wastewater and contractor pump markets reflects the broad product range, including submersible and dry installed pumps, mixers and aerators. During the third quarter of 1999, ABS received an order from Estonia for submersible sewage pumps from the recently introduced 800mm size range (see Orders, page 11).
ALSTOM QUITS INDUSTRIAL VALVE BUSINESS Alstom is divesting its share manufacturer in valve Alstom Velan. Canada’s Velan Inc will now take full control of the Lyons, France-based company industrial specialising in valves for nuclear applications and cryogenics. This disposal is part of Alstom’s previously announced strategy to refocus its Industry sector and follows
the sales of ALSTOM Vannes (industrial valves) to Tyco in April 1999 and ALSTOM Automotive and Painting Systems to Dtirr in September 1999.
PCC EXPANDS EUROPEAN BASE Precision Castparts Corp has acquired the assets of Valtaco, a division of privately held Ostaco AG, in a deal valued at approximately US$7 million. Valtaco, headquartered Switzerland, near Zurich, manufactures quarter-turn, three-piece ball valves. The company has three subsidiaries: Interval of Switzerland, Vogeli of Germany and Valtac of the UK. “Valtaco is a small acquisition from which we expect a large contribution to PCC Flow Technologies’ continued successful growth,” says William McCormick, chairman and CEO of PCC. Valtaco is expected to have annual sales of US$lO million, but is expected to provide US$20 million in additional sales for other PCC Flow Technologies’ products over the next three years. McCormick believes that the continued consolidation of the fragmented fluid management industry will result in broader product offerings, more effective distribution for those products around the world, and increased revenues and earnings for PCC. “Consolidation of product lines, sales offices, and distribution channels will be a major focus of PCC Flow Technologies’ growth strategy as we move forward,” states McCormick. PCC has also acquired the assets of Reiss Valves from The Reiss Engineering Company Limited, in a deal valued at approximately US$3 million. Reiss, located in Peterborough, UK, manufactures knife gate valves and currently has approximately 30% of this
market in the UK, serving industries such as pulp and paper, water/wastewater, power, cement manufacturing, and new construction. PCC Flow Technologies plans to expand Reiss’ penetration of the UK market and to introduce Reiss valves to the European and US markets through its growing number of distribution channels.
FTC REQUESTS ADDITIONAL DATA The Federal Trade Commission has asked Wisconsin Energy Cot-p and Wicor Inc for additional information for the Hart-Scott-Rodino filing relating to the proposed merger of the two companies (see Pump Zndustry Analyst, August 1999). Both companies will supply additional information and documentation. The request extends the waiting period under the Hart-Scott-Rodino Act for a period. ending 20 days after the parties have furnished the information. However, the companies do not expect that either the supplying of additional information or the FTC’s review will delay the closing of the merger. Shareholders of both companies, in separate special shareholder meetings, have already voted to approve the proposed merger. More than 98% of the shares represented at the Wisconsin Energy meeting were voted in favour of the merger, while over 94% of the shares represented at the Wicor meeting were voted in favour of the merger. In June 1999, Wisconsin Energy and Wicor announced plans to merge, with Wisconsin Energy acquiring all outstanding Wicor shares for a fixed price of US$31.50 per share. Wicor’s pump interests include Sta-Rite Industries, SHURflo Pump Manufacturing and Hypro.
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Exhibiting companies at the 17th International Pump Users Symposium 6-9 March 2000 are indexed at http://turbolab.tamu.edu. Click on Pump Show, then on Exhibitors, to view companies alphabetically or by category. Browse company descriptions, obtain contact information, or follow the hyperlinks to company websites, where available. Flowserve president and COO Scott Greer is leading a review of the strategies for the company’s future, including Flowserver. He is heading the effort to reevaluate the costs associated with Flowserver for 2000 and beyond so that spending on the initiative is more commensurate with the company’s financial performance. Ebara Technologies’ Components Division has officially opened its newly established direct service centre in Austin, Texas. The full-service facility in Austin is initially offering overhaul capabilities for dry pumps and will be extending its service capabilities to include turbomolecular pumps, cryopumps and scrubbers. Serving the central United States, the service centre will provide advanced customer support and enhanced product service capabilities. Mike McClung, central region service manager for Ebara Technologies, heads the 28 employees based at the facility. Crane Co says that the fourth quarter special charge announced on 13 September 1999 will be increased US$6 million to US$16.7 million pretax. The increase in the special charge is due to the closure of a facility and the writeoff of obsolete assets in the UK operations of the Fluid Handling segment.
Pump Industry Analyst
ABS SEES SALES AND PROFITS FALL Despite the successful introduction of its new large submersibles, ABS has reported decreases in January-September invoiced sales and operating profits. For the first 9 months of 1999 invoiced sales reached SKr1739 million, down from SKr1786 million last year. Nine month operating profit fell SKr16 million to SKrlSO million. The order intake and deliveries to ABS’ largest market segment, Water and Wastewater, have shown a solid performance again this year. Demand from the paper and pulp industry, however, is lower. Within the Building and Construction sector there has sales of been improved drainage pumps to contractors but reduced demand for sanitary pump and pumping stations. The increase in invoiced sales to the Water and Wastewater and contractor pump markets reflects the broad product range, including submersible and dry installed pumps, mixers and aerators. During the third quarter of 1999, ABS received an order from Estonia for submersible sewage pumps from the recently introduced 800mm size range (see Orders, page 11).
ALSTOM QUITS INDUSTRIAL VALVE BUSINESS Alstom is divesting its share manufacturer in valve Alstom Velan. Canada’s Velan Inc will now take full control of the Lyons, France-based company industrial specialising in valves for nuclear applications and cryogenics. This disposal is part of Alstom’s previously announced strategy to refocus its Industry sector and follows
the sales of ALSTOM Vannes (industrial valves) to Tyco in April 1999 and ALSTOM Automotive and Painting Systems to Dtirr in September 1999.
PCC EXPANDS EUROPEAN BASE Precision Castparts Corp has acquired the assets of Valtaco, a division of privately held Ostaco AG, in a deal valued at approximately US$7 million. Valtaco, headquartered Switzerland, near Zurich, manufactures quarter-turn, three-piece ball valves. The company has three subsidiaries: Interval of Switzerland, Vogeli of Germany and Valtac of the UK. “Valtaco is a small acquisition from which we expect a large contribution to PCC Flow Technologies’ continued successful growth,” says William McCormick, chairman and CEO of PCC. Valtaco is expected to have annual sales of US$lO million, but is expected to provide US$20 million in additional sales for other PCC Flow Technologies’ products over the next three years. McCormick believes that the continued consolidation of the fragmented fluid management industry will result in broader product offerings, more effective distribution for those products around the world, and increased revenues and earnings for PCC. “Consolidation of product lines, sales offices, and distribution channels will be a major focus of PCC Flow Technologies’ growth strategy as we move forward,” states McCormick. PCC has also acquired the assets of Reiss Valves from The Reiss Engineering Company Limited, in a deal valued at approximately US$3 million. Reiss, located in Peterborough, UK, manufactures knife gate valves and currently has approximately 30% of this
market in the UK, serving industries such as pulp and paper, water/wastewater, power, cement manufacturing, and new construction. PCC Flow Technologies plans to expand Reiss’ penetration of the UK market and to introduce Reiss valves to the European and US markets through its growing number of distribution channels.
FTC REQUESTS ADDITIONAL DATA The Federal Trade Commission has asked Wisconsin Energy Cot-p and Wicor Inc for additional information for the Hart-Scott-Rodino filing relating to the proposed merger of the two companies (see Pump Zndustry Analyst, August 1999). Both companies will supply additional information and documentation. The request extends the waiting period under the Hart-Scott-Rodino Act for a period. ending 20 days after the parties have furnished the information. However, the companies do not expect that either the supplying of additional information or the FTC’s review will delay the closing of the merger. Shareholders of both companies, in separate special shareholder meetings, have already voted to approve the proposed merger. More than 98% of the shares represented at the Wisconsin Energy meeting were voted in favour of the merger, while over 94% of the shares represented at the Wicor meeting were voted in favour of the merger. In June 1999, Wisconsin Energy and Wicor announced plans to merge, with Wisconsin Energy acquiring all outstanding Wicor shares for a fixed price of US$31.50 per share. Wicor’s pump interests include Sta-Rite Industries, SHURflo Pump Manufacturing and Hypro.
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Exhibiting companies at the 17th International Pump Users Symposium 6-9 March 2000 are indexed at http://turbolab.tamu.edu. Click on Pump Show, then on Exhibitors, to view companies alphabetically or by category. Browse company descriptions, obtain contact information, or follow the hyperlinks to company websites, where available. Flowserve president and COO Scott Greer is leading a review of the strategies for the company’s future, including Flowserver. He is heading the effort to reevaluate the costs associated with Flowserver for 2000 and beyond so that spending on the initiative is more commensurate with the company’s financial performance. Ebara Technologies’ Components Division has officially opened its newly established direct service centre in Austin, Texas. The full-service facility in Austin is initially offering overhaul capabilities for dry pumps and will be extending its service capabilities to include turbomolecular pumps, cryopumps and scrubbers. Serving the central United States, the service centre will provide advanced customer support and enhanced product service capabilities. Mike McClung, central region service manager for Ebara Technologies, heads the 28 employees based at the facility. Crane Co says that the fourth quarter special charge announced on 13 September 1999 will be increased US$6 million to US$16.7 million pretax. The increase in the special charge is due to the closure of a facility and the writeoff of obsolete assets in the UK operations of the Fluid Handling segment.