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Flowserve reports on record results and continuing merger activity
ISSN 1350-4789
May 1998
Number.
Flowserve reports on record results and continuing merger activity Flowserve has announced strong financial results for 1997, which outperform the consensus of analysts' expectations. The results include record sales, bookings and operaring earnings before special items. The srrength of the results is particularly significant, as they were complered at the same time that the company was launching a number of ambitious merger integration activiries. Flowserve reported combined operating earnings of U5$82.1 million in 1997, compared with U5$74.1 million in 1996. 5a1es for rhe year were a record U5$1.15 billion, an increase of 5% over combined sales of U5$1.1 0 billion in 1996. This was achieved despire an adverse currency translation effecr, which reduced sales
by U5$46 million. Bookings for the year increased by 3%, to a record U5$1.17 billion for 1997. U5$26.9 million was spenr on research, engineering and development in 1997, a 10% increase on the U5$24.5 million spent the previous year. The company also provided updated information on its merger integration program. A number of additional initiatives have been added, increasing total investment to approximately U5$92 million. The program includes capital investments of about U5$22 million. Flowserve believes that the merger integration program can produce benefits of U5$45 to U5$55 million, in annual operating income at the end of three years. These benefits will be
11 Group bids for remaining Japan Marine shares TI Group has made a public offer for the remaInIng shares in Japan Marine Technologies. TI Group currently owns 50.14% of the shares in Japan Marine Technologies (JMT), which it acquired from US manufacturing company Dover Corporation, in 1991. ]MT is a leading manufacturer and supplier of specialised seals and bearings to the shipbuilding industry and other industrial applications. The acquisition of the majority stake in 1991 gave TI Group a major manufacturing presence in the Japanese marine seals industry, and access to a higher proportion of the world's shipbuilding industry, around 70% of which is based in Japan and Korea. An increased shareholding will enable TI Group to accelerate the growth of its marine
division, by providing a stronger foothold in the Far East. JMT has a close working relationship with TI Group's marine division and Lips, the marine propulsion system in which TI Group recenrly acquired a 30% stake (see Sealing Technology, January 1998). TI Group is offering ¥580 (£2.62) per share, and assuming full acceptance, the maximum consideration payable will be ¥2.8 billion (£12.8 million). As at 31 December 1997, ]MT had net assets of ¥3.1 billion (£14.0 million), sales of ¥4.1 billion (£18.5 million), and pre-tax profits of ¥398 million (£1.8 million). The offer is subject to relevant regulatory approvals, and to sufficient acceptances being received such that TI Group's interest exceeds 67%, the level of voting control for special resolutions in Japan.
produced from organisational realignments, facilities and business rationalisation, purchasing initiatives and sales synergies. Commenting on the outlook for 1998, Bernard Rethore, chairman and chief executive officer, said, "The synergies created by the merger, the fundamental soundness of our markets, and our recent financial results make us confident about the future." Mr Rethore continued, "The company's excellent performance in 1997 is especially noteworthy because it was completed at the same time we were launching a number of ambitious merger integration activities. These activities are beginning to deliver the tangible benefits made possible by the strategic integration of two high quality companies."
Con t e nt:s Commercial news
1
Static sealing
4
Dynamic sealing
5
Seals research to boost rocket engines into the 21st century
7
Sealing the semiconductor processing industry
10
Patents
12
Webwatch
14
Events calendar
15
Stop press
16
Copyright C 1998 Elsevier Science Ltd. England/98/$19.00 per item. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publishers. (Readers in the USA, please see speCial regulations listed on back cover
May 1998
Number.
Flowserve reports on record results and continuing merger activity Flowserve has announced strong financial results for 1997, which outperform the consensus of analysts' expectations. The results include record sales, bookings and operaring earnings before special items. The srrength of the results is particularly significant, as they were complered at the same time that the company was launching a number of ambitious merger integration activiries. Flowserve reported combined operating earnings of U5$82.1 million in 1997, compared with U5$74.1 million in 1996. 5a1es for rhe year were a record U5$1.15 billion, an increase of 5% over combined sales of U5$1.1 0 billion in 1996. This was achieved despire an adverse currency translation effecr, which reduced sales
by U5$46 million. Bookings for the year increased by 3%, to a record U5$1.17 billion for 1997. U5$26.9 million was spenr on research, engineering and development in 1997, a 10% increase on the U5$24.5 million spent the previous year. The company also provided updated information on its merger integration program. A number of additional initiatives have been added, increasing total investment to approximately U5$92 million. The program includes capital investments of about U5$22 million. Flowserve believes that the merger integration program can produce benefits of U5$45 to U5$55 million, in annual operating income at the end of three years. These benefits will be
11 Group bids for remaining Japan Marine shares TI Group has made a public offer for the remaInIng shares in Japan Marine Technologies. TI Group currently owns 50.14% of the shares in Japan Marine Technologies (JMT), which it acquired from US manufacturing company Dover Corporation, in 1991. ]MT is a leading manufacturer and supplier of specialised seals and bearings to the shipbuilding industry and other industrial applications. The acquisition of the majority stake in 1991 gave TI Group a major manufacturing presence in the Japanese marine seals industry, and access to a higher proportion of the world's shipbuilding industry, around 70% of which is based in Japan and Korea. An increased shareholding will enable TI Group to accelerate the growth of its marine
division, by providing a stronger foothold in the Far East. JMT has a close working relationship with TI Group's marine division and Lips, the marine propulsion system in which TI Group recenrly acquired a 30% stake (see Sealing Technology, January 1998). TI Group is offering ¥580 (£2.62) per share, and assuming full acceptance, the maximum consideration payable will be ¥2.8 billion (£12.8 million). As at 31 December 1997, ]MT had net assets of ¥3.1 billion (£14.0 million), sales of ¥4.1 billion (£18.5 million), and pre-tax profits of ¥398 million (£1.8 million). The offer is subject to relevant regulatory approvals, and to sufficient acceptances being received such that TI Group's interest exceeds 67%, the level of voting control for special resolutions in Japan.
produced from organisational realignments, facilities and business rationalisation, purchasing initiatives and sales synergies. Commenting on the outlook for 1998, Bernard Rethore, chairman and chief executive officer, said, "The synergies created by the merger, the fundamental soundness of our markets, and our recent financial results make us confident about the future." Mr Rethore continued, "The company's excellent performance in 1997 is especially noteworthy because it was completed at the same time we were launching a number of ambitious merger integration activities. These activities are beginning to deliver the tangible benefits made possible by the strategic integration of two high quality companies."
Con t e nt:s Commercial news
1
Static sealing
4
Dynamic sealing
5
Seals research to boost rocket engines into the 21st century
7
Sealing the semiconductor processing industry
10
Patents
12
Webwatch
14
Events calendar
15
Stop press
16
Copyright C 1998 Elsevier Science Ltd. England/98/$19.00 per item. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publishers. (Readers in the USA, please see speCial regulations listed on back cover