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Armstrong Holden Brooke Pullen adopts global brand
October 2006
Pump Industry Analyst
NEWS
Continued from page 13 “Third quarter 2006 Pool & Spa business sales are projected to be flat with 2005 levels and approximately US$20 million lower than mid-year expectations. This adjustment reflects the effect of the housing slow-down on spa and bath markets and on new pool starts, and the resulting channel inventory adjustments due to reduced pool equipment demands,” said Randall Hogan, Pentair chairman and CEO. “Fourth quarter 2006 pool equipment sales are projected to be lower than previous expectations and below 2005 levels,” Hogan added. Fourth quarter 2005 pool equipment sales were especially strong due to the success of its early buy program, an incentive program to level-load production during the traditionally slowest time of the year. “Given the inventory draw-down we are now experiencing, as well as continued softness in key pool equipment markets, particularly Florida and Southern California, sales from the fourth quarter 2006 early buy program are now projected to be below our previous expectations and US$30 –US$60 million lower than the fourth quarter 2005,” Hogan said. “While we continue to monitor conditions closely, we believe this inventory drawdown will be essentially complete by the end of the fourth quarter and, thereafter, we should track more closely to the market,” he added. Pentair also said it does not currently expect that economic conditions during the fourth quarter will worsen to the point that the company’s commercial, industrial and municipal markets will be affected. Hogan stated: “We believe the expected inventory draw-downs are
16
short-term, and that the pool equipment business remains attractive long-term. However, given current conditions, we are repositioning the pool business for improved performance in this uncertain environment and redoubling our efforts to reduce costs and accelerate growth in all of our Water businesses.” The company also announced a number of actions in response to current market conditions. “First, we are streamlining the leadership structure at the corporate and business segment levels. This new structure will more effectively deploy leadership, create greater efficiencies and generate savings,” Hogan said (see News, page 1). “Second, we are driving for margin improvements in the Water businesses through the aggressive deployment of lean enterprise disciplines, and by sourcing and manufacturing in low cost countries.” Pentair is also incurring a one-time charge of approximately US$17 million for severance costs in the Water Group and Corporate, and to increase reserves for accounts receivable, inventory and warranty in the Pool & Spa business. The company expects to generate US$35 million of profit improvements in 2007.
LINDE TO DIVEST BOC EDWARDS’ EQUIPMENT BUSINESSES Following the acquisition of the BOC Group, The Linde Group intends to review strategic options for the divestment of BOC Edwards’ equipment businesses. Linde will retain the bulk and electronic gases elements of BOC Edwards and integrate them into its organisation. The total revenues of the
equipment businesses were approximately 800 million for the financial year ended September 2005. “The BOC Edwards equipment businesses have strong positions in their chosen markets, are successful businesses in their own right and will, we believe, prosper whatever their future ownership structure,” said Professor Wolfgang Reitzle, chairman of the Linde executive board.
ARMSTRONG HOLDEN BROOKE PULLEN ADOPTS GLOBAL BRAND SA Armstrong Ltd’s UK based company, Armstrong Holden Brooke Pullen, will now operate under the united brand name of Armstrong. As a part of this change the UK operations will begin manufacturing product using the Armstrong red, to enable the Manchester and Birmingham facilities to supply product in 50Hz markets worldwide. The transition will take place over the next few months and will involve converting all literature, business cards, web sites and other forms of customer communication to show the Armstrong brand name. The legal name for the UK company will remain Armstrong Holden Brooke Pullen Ltd. Facilities in Manchester will be unaffected by the outward branding of the company. The facility in Birmingham will remain Armstrong Integrated Systems Ltd and will be unaffected by the brand change. Legacy brands Holden and Brooke, Pullen Pumps and Baric Pumps will continue to be supported under the Armstrong brand and spares and service support for legacy products will continue to be provided by Armstrong and approved distribution partners.
Editor Roisin Reidy Elsevier Limited PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.com. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.com), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.
Pump Industry Analyst
NEWS
Continued from page 13 “Third quarter 2006 Pool & Spa business sales are projected to be flat with 2005 levels and approximately US$20 million lower than mid-year expectations. This adjustment reflects the effect of the housing slow-down on spa and bath markets and on new pool starts, and the resulting channel inventory adjustments due to reduced pool equipment demands,” said Randall Hogan, Pentair chairman and CEO. “Fourth quarter 2006 pool equipment sales are projected to be lower than previous expectations and below 2005 levels,” Hogan added. Fourth quarter 2005 pool equipment sales were especially strong due to the success of its early buy program, an incentive program to level-load production during the traditionally slowest time of the year. “Given the inventory draw-down we are now experiencing, as well as continued softness in key pool equipment markets, particularly Florida and Southern California, sales from the fourth quarter 2006 early buy program are now projected to be below our previous expectations and US$30 –US$60 million lower than the fourth quarter 2005,” Hogan said. “While we continue to monitor conditions closely, we believe this inventory drawdown will be essentially complete by the end of the fourth quarter and, thereafter, we should track more closely to the market,” he added. Pentair also said it does not currently expect that economic conditions during the fourth quarter will worsen to the point that the company’s commercial, industrial and municipal markets will be affected. Hogan stated: “We believe the expected inventory draw-downs are
16
short-term, and that the pool equipment business remains attractive long-term. However, given current conditions, we are repositioning the pool business for improved performance in this uncertain environment and redoubling our efforts to reduce costs and accelerate growth in all of our Water businesses.” The company also announced a number of actions in response to current market conditions. “First, we are streamlining the leadership structure at the corporate and business segment levels. This new structure will more effectively deploy leadership, create greater efficiencies and generate savings,” Hogan said (see News, page 1). “Second, we are driving for margin improvements in the Water businesses through the aggressive deployment of lean enterprise disciplines, and by sourcing and manufacturing in low cost countries.” Pentair is also incurring a one-time charge of approximately US$17 million for severance costs in the Water Group and Corporate, and to increase reserves for accounts receivable, inventory and warranty in the Pool & Spa business. The company expects to generate US$35 million of profit improvements in 2007.
LINDE TO DIVEST BOC EDWARDS’ EQUIPMENT BUSINESSES Following the acquisition of the BOC Group, The Linde Group intends to review strategic options for the divestment of BOC Edwards’ equipment businesses. Linde will retain the bulk and electronic gases elements of BOC Edwards and integrate them into its organisation. The total revenues of the
equipment businesses were approximately 800 million for the financial year ended September 2005. “The BOC Edwards equipment businesses have strong positions in their chosen markets, are successful businesses in their own right and will, we believe, prosper whatever their future ownership structure,” said Professor Wolfgang Reitzle, chairman of the Linde executive board.
ARMSTRONG HOLDEN BROOKE PULLEN ADOPTS GLOBAL BRAND SA Armstrong Ltd’s UK based company, Armstrong Holden Brooke Pullen, will now operate under the united brand name of Armstrong. As a part of this change the UK operations will begin manufacturing product using the Armstrong red, to enable the Manchester and Birmingham facilities to supply product in 50Hz markets worldwide. The transition will take place over the next few months and will involve converting all literature, business cards, web sites and other forms of customer communication to show the Armstrong brand name. The legal name for the UK company will remain Armstrong Holden Brooke Pullen Ltd. Facilities in Manchester will be unaffected by the outward branding of the company. The facility in Birmingham will remain Armstrong Integrated Systems Ltd and will be unaffected by the brand change. Legacy brands Holden and Brooke, Pullen Pumps and Baric Pumps will continue to be supported under the Armstrong brand and spares and service support for legacy products will continue to be provided by Armstrong and approved distribution partners.
Editor Roisin Reidy Elsevier Limited PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.com. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.com), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.