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GEA outlines financial targets to 2020
in brief/news
In Brief • Ebara Corp’s Ebara Industrias Mecanicas e Comercio Ltda (EIMCO) has established a new sales office in Ananindeua City in northern Brazil. This is EIMCO’s third sales office. The company already has offices in Sao Paulo and Racife and is headquartered in Bauru. www.ebara.com.br • Hertz Equipment Rental Corp (HERC) has launched in Panama City, to serve Panama’s construction, industrial and government sectors. HERC Panama is operated by Asesoria Especializada RAL SA, which joined the HERC global franchise network in 2013. HERC Panama provides a wide range of industrial and commercial fleet for rent or sale including pumps. www.hertzequip.com • Italian pump manufacturer Etatron DS has appointed Tomlinson Hall Ltd as UK distributor for its range of dosing pumps for the process industry. Until now, Etatron has concentrated on the water and leisure industries in the UK with automated chemical dosing pumps and metering systems. Colin Simpson, Tomlinson Hall’s business development director, said: “The approach by Etatron was obviously most welcome but also very timely as we had been considering a request from a long-standing client for integrated systems that included chemical dosing pumps.” www.tomlinsonhall.co.uk and www. etatronds.it • National Oilwell Varco Inc’s board of directors has authorised a share repurchase program of up to US$3 billion of the company’s outstanding common stock. Clay Williams, National Oilwell Varco’s chairman, president and CEO, said that the authorization comes after several months of careful consideration and reflects the company’s strong financial condition, and the confidence that they have in their future business outlook. “We are pleased that the continued execution of a solid business model has resulted in strong operating cash flow that enables us to continue to invest in strategic growth opportunities, while simultaneously returning capital to shareholders through both a healthy dividend and a share repurchase program,” said Williams. www.nov.com 12
Pump Industry Analyst
Grundfos increases North American production to meet demand
Investors add pump parts fabricator Waples Manufacturing to portfolio
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S
rundfos has created more than 200 new sales and manufacturing positions in North America to meet growing demand for energy-efficient solutions. The Danish pump company is significantly increasing production of its Hydro MPC BoosterpaQ product line in North America. Based on the Grundfos CR pump range, the compact Hydro MPC is a fully integrated pressure-boosting system. “This surge in regional manufacturing is an example of our deep commitment to the North American market,” said Heins Kart Pedersen, president of Grundfos North America Manufacturing. “It will allow us to respond to customer needs with flexibility, consistency and speed.” Grundfos will stock finished systems for immediate shipment. For further information, visit www.grundfos.com
Danfoss rebrands with emphasis on engineering
D
anfoss has launched a new global brand profile with the tagline ‘Engineering Tomorrow’. “Engineering Tomorrow will link our foundation to the future. The engineering work is at the very heart of Danfoss. Building on this we are ready to shape the future through innovative solutions. The world presents significant growth opportunities and Danfoss is ready to seize them. We have achieved good results and have strong and positive stories to tell. Now we invest in getting this message out,” said Danfoss president and CEO Niels Christiansen. Danfoss’s new branding is in line with the group’s ‘Core & Clear’ strategy, which was introduced in 2010, and is currently focused on accelerating profitable growth. For further information, visit www.danfoss.com
outhlake Equity Group has sold the machining and fabrication company Waples Manufacturing Inc to an investor group led by Banyan Investment Partners. Headquartered in Fort Worth, Texas, Waples Manufacturing is a full-service provider of precision machined solutions for the oil & gas market. Waples Manufacturing makes highly engineered products that are used in a number of severe-duty applications, including hydraulic fracturing pump and tank equipment, cementing, oilfield tooling, plunger lift systems, mining drill rig equipment and aviation communications equipment. Dale Bradley, president of Waples Manufacturing, said: “We look forward to growing the business and continually providing quality service to our customers with the support of Banyan and their group of investors.” Quarton Partners acted as the exclusive financial advisor to Waples Manufacturing in this transaction.
For further information, visit www.waples.com, www.southlakeequity.com, www.banyaninvestors.com and www.quartonpartners.com
GEA outlines financial targets to 2020
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EA Group is looking to deliver 4–6% average annual organic growth in sales to 2020, and operating EBIT margin of 13–16% from 2017 once the full benefits of the recently announced restructuring are realised. “In view of minimum annual savings of E100 million from the forthcoming group restructuring process that are expected to materialize as of 2017, we have set ourselves new ambitious medium-term growth and earnings targets. These objectives underline our focus on GEA’s sustainable value enhancement,” said Jürg Oleas, CEO of GEA Group. The GEA executive board has reaffirmed its intention to use the proceeds from the sale of the Heat Exchangers business to
October 2014
news/dividends undertake acquisitions in the food processing technology sector, and to reduce debt levels. GEA announced in August 2014 that it was planning to axe around 1000 jobs over the next 2–3 years under its “Fit for 2020” project. The company will introduce a new group structure in 2015, with two business areas: Equipment and Solutions. For the third quarter of 2014, GEA’s order intake of E1165 million was level with last year, while sales increased 5% to E1147 million. For further information, visit www.gea.com
Eureka Pumps opens sales office in Kuala Lumpur
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orway’s Eureka Pumps has strengthened its international activities with a new sales office in Kuala Lumpur, Malaysia. The new Eureka Pumps office will serve the South East Asian market. Eureka Pumps recognizes the market potential in the region and sees it as strategically important to have a local presence in South East Asia. The company has already been awarded its first contract in the region, supplying firewater system and seawater lift pumps to the Malaysian Bergading CPP project. For further information, visit www.eureka.no
Weir manufactures locally to serve Australian fracking market
W
eir Oil & Gas has established a manifold trailer manufacturing capability in Australia to serve the country’s growing fracking market.
“Australia is poised to benefit from the fracking revolution that is helping make the United States energy independent, but without local suppliers, costs can be significant as critical equipment needs to be imported,” said Mark Pickles, regional director of Asia Pacific for Weir Oil & Gas. “In-country manufacturing is Weir’s customer-driven solution and a key element of our global strategy.” The first Weir manifold trailer was delivered from the company’s Adelaide headquarters to Condor Energy in August. Weir designed the trailer for rapid connection in the field in order to reduce rig-up and down time on site. Manifold trailers are integrated, selftransportable pipe connection systems. They connect multiple high-pressure pumping units that supply water, other fluids and propping agents to wells undergoing fracking operations. • Meanwhile The Weir Group plc has announced plans to acquire Trio Engineered Products, a Chinese-American manufacturer of crushing and separation equipment for the mining and aggregates markets, for around US$220 million. For further information, visit www.weiroilandgas.com, www.weir.co.uk and www.trioproducts.com
Sulzer seals ASCOM and ProLabNL acquisitions
S
wiss engineering group Sulzer has completed the acquisitions of Advanced Separation Co (ASCOM) BV and ProLabNL BV (see Pump Industry Analyst, September 2014). ASCOM specializes in oil, water and gas separation equipment, while ProLabNL is an independent test company that can simulate real oilfield conditions. Both companies are headquartered in Arnhem, The Netherlands. The acquisitions expand Chemtech’s gasliquid and liquid-liquid separation technologies.
For further information, visit www.ascomseparation. com, www.prolabnl.com and www.sulzer.com
Dividends • GEA Group has decided to increase its target dividend payout ratio from 33% to 40–50%. “Certainly, the planned increase in the dividend payout ratio to between 40% and 50% of our net income will be attractive to our shareholders. Thus, from now on, our shareholders will receive a much higher share of GEA’s profits than ever before,” said GEA Group CEO Jürg Oleas. www.gea.com • IDEX Corp’s next regular quarterly cash dividend of US$0.28 per common share will be paid on 31 October 2014. The dividend represents the company’s 80th consecutive regular quarterly cash dividend payment. www.idexcorp.com • The ITT Corp board of directors has declared a fourth-quarter cash dividend of US$0.11 per share on the company’s outstanding stock. This cash dividend is payable on 31 December 2014, to shareholders of record on 12 December 2014. www.itt.com • Pentair plc will pay a regular quarterly cash dividend of US$0.30 per share on 7 November 2014 to shareholders of record on 24 October 2014. Earlier this year Pentair shareholders approved an ordinary cash dividend of US$1.20 per share in four equal quarterly installments of US$0.30 in each of the third and fourth quarters of 2014 and the first and second quarters of 2015. Pentair paid dividends of US$0.96 per share in 2013. www.pentair.com • GE’s regular US$0.22 per share dividend on the outstanding common stock of the company is payable on 27 October 2014. www.ge.com • Xylem Inc’s fourth quarter US$0.1280 per share dividend will be paid on 3 December 2014 to shareholders of record on 29 October 2014. www.xyleminc.com
A SUBSCRIPTION INCLUDES: • Online access for 5 users • An archive of back issues
8 October 2014
www.pumpindustryanalyst.com
Pump Industry Analyst
13
In Brief • Ebara Corp’s Ebara Industrias Mecanicas e Comercio Ltda (EIMCO) has established a new sales office in Ananindeua City in northern Brazil. This is EIMCO’s third sales office. The company already has offices in Sao Paulo and Racife and is headquartered in Bauru. www.ebara.com.br • Hertz Equipment Rental Corp (HERC) has launched in Panama City, to serve Panama’s construction, industrial and government sectors. HERC Panama is operated by Asesoria Especializada RAL SA, which joined the HERC global franchise network in 2013. HERC Panama provides a wide range of industrial and commercial fleet for rent or sale including pumps. www.hertzequip.com • Italian pump manufacturer Etatron DS has appointed Tomlinson Hall Ltd as UK distributor for its range of dosing pumps for the process industry. Until now, Etatron has concentrated on the water and leisure industries in the UK with automated chemical dosing pumps and metering systems. Colin Simpson, Tomlinson Hall’s business development director, said: “The approach by Etatron was obviously most welcome but also very timely as we had been considering a request from a long-standing client for integrated systems that included chemical dosing pumps.” www.tomlinsonhall.co.uk and www. etatronds.it • National Oilwell Varco Inc’s board of directors has authorised a share repurchase program of up to US$3 billion of the company’s outstanding common stock. Clay Williams, National Oilwell Varco’s chairman, president and CEO, said that the authorization comes after several months of careful consideration and reflects the company’s strong financial condition, and the confidence that they have in their future business outlook. “We are pleased that the continued execution of a solid business model has resulted in strong operating cash flow that enables us to continue to invest in strategic growth opportunities, while simultaneously returning capital to shareholders through both a healthy dividend and a share repurchase program,” said Williams. www.nov.com 12
Pump Industry Analyst
Grundfos increases North American production to meet demand
Investors add pump parts fabricator Waples Manufacturing to portfolio
G
S
rundfos has created more than 200 new sales and manufacturing positions in North America to meet growing demand for energy-efficient solutions. The Danish pump company is significantly increasing production of its Hydro MPC BoosterpaQ product line in North America. Based on the Grundfos CR pump range, the compact Hydro MPC is a fully integrated pressure-boosting system. “This surge in regional manufacturing is an example of our deep commitment to the North American market,” said Heins Kart Pedersen, president of Grundfos North America Manufacturing. “It will allow us to respond to customer needs with flexibility, consistency and speed.” Grundfos will stock finished systems for immediate shipment. For further information, visit www.grundfos.com
Danfoss rebrands with emphasis on engineering
D
anfoss has launched a new global brand profile with the tagline ‘Engineering Tomorrow’. “Engineering Tomorrow will link our foundation to the future. The engineering work is at the very heart of Danfoss. Building on this we are ready to shape the future through innovative solutions. The world presents significant growth opportunities and Danfoss is ready to seize them. We have achieved good results and have strong and positive stories to tell. Now we invest in getting this message out,” said Danfoss president and CEO Niels Christiansen. Danfoss’s new branding is in line with the group’s ‘Core & Clear’ strategy, which was introduced in 2010, and is currently focused on accelerating profitable growth. For further information, visit www.danfoss.com
outhlake Equity Group has sold the machining and fabrication company Waples Manufacturing Inc to an investor group led by Banyan Investment Partners. Headquartered in Fort Worth, Texas, Waples Manufacturing is a full-service provider of precision machined solutions for the oil & gas market. Waples Manufacturing makes highly engineered products that are used in a number of severe-duty applications, including hydraulic fracturing pump and tank equipment, cementing, oilfield tooling, plunger lift systems, mining drill rig equipment and aviation communications equipment. Dale Bradley, president of Waples Manufacturing, said: “We look forward to growing the business and continually providing quality service to our customers with the support of Banyan and their group of investors.” Quarton Partners acted as the exclusive financial advisor to Waples Manufacturing in this transaction.
For further information, visit www.waples.com, www.southlakeequity.com, www.banyaninvestors.com and www.quartonpartners.com
GEA outlines financial targets to 2020
G
EA Group is looking to deliver 4–6% average annual organic growth in sales to 2020, and operating EBIT margin of 13–16% from 2017 once the full benefits of the recently announced restructuring are realised. “In view of minimum annual savings of E100 million from the forthcoming group restructuring process that are expected to materialize as of 2017, we have set ourselves new ambitious medium-term growth and earnings targets. These objectives underline our focus on GEA’s sustainable value enhancement,” said Jürg Oleas, CEO of GEA Group. The GEA executive board has reaffirmed its intention to use the proceeds from the sale of the Heat Exchangers business to
October 2014
news/dividends undertake acquisitions in the food processing technology sector, and to reduce debt levels. GEA announced in August 2014 that it was planning to axe around 1000 jobs over the next 2–3 years under its “Fit for 2020” project. The company will introduce a new group structure in 2015, with two business areas: Equipment and Solutions. For the third quarter of 2014, GEA’s order intake of E1165 million was level with last year, while sales increased 5% to E1147 million. For further information, visit www.gea.com
Eureka Pumps opens sales office in Kuala Lumpur
N
orway’s Eureka Pumps has strengthened its international activities with a new sales office in Kuala Lumpur, Malaysia. The new Eureka Pumps office will serve the South East Asian market. Eureka Pumps recognizes the market potential in the region and sees it as strategically important to have a local presence in South East Asia. The company has already been awarded its first contract in the region, supplying firewater system and seawater lift pumps to the Malaysian Bergading CPP project. For further information, visit www.eureka.no
Weir manufactures locally to serve Australian fracking market
W
eir Oil & Gas has established a manifold trailer manufacturing capability in Australia to serve the country’s growing fracking market.
“Australia is poised to benefit from the fracking revolution that is helping make the United States energy independent, but without local suppliers, costs can be significant as critical equipment needs to be imported,” said Mark Pickles, regional director of Asia Pacific for Weir Oil & Gas. “In-country manufacturing is Weir’s customer-driven solution and a key element of our global strategy.” The first Weir manifold trailer was delivered from the company’s Adelaide headquarters to Condor Energy in August. Weir designed the trailer for rapid connection in the field in order to reduce rig-up and down time on site. Manifold trailers are integrated, selftransportable pipe connection systems. They connect multiple high-pressure pumping units that supply water, other fluids and propping agents to wells undergoing fracking operations. • Meanwhile The Weir Group plc has announced plans to acquire Trio Engineered Products, a Chinese-American manufacturer of crushing and separation equipment for the mining and aggregates markets, for around US$220 million. For further information, visit www.weiroilandgas.com, www.weir.co.uk and www.trioproducts.com
Sulzer seals ASCOM and ProLabNL acquisitions
S
wiss engineering group Sulzer has completed the acquisitions of Advanced Separation Co (ASCOM) BV and ProLabNL BV (see Pump Industry Analyst, September 2014). ASCOM specializes in oil, water and gas separation equipment, while ProLabNL is an independent test company that can simulate real oilfield conditions. Both companies are headquartered in Arnhem, The Netherlands. The acquisitions expand Chemtech’s gasliquid and liquid-liquid separation technologies.
For further information, visit www.ascomseparation. com, www.prolabnl.com and www.sulzer.com
Dividends • GEA Group has decided to increase its target dividend payout ratio from 33% to 40–50%. “Certainly, the planned increase in the dividend payout ratio to between 40% and 50% of our net income will be attractive to our shareholders. Thus, from now on, our shareholders will receive a much higher share of GEA’s profits than ever before,” said GEA Group CEO Jürg Oleas. www.gea.com • IDEX Corp’s next regular quarterly cash dividend of US$0.28 per common share will be paid on 31 October 2014. The dividend represents the company’s 80th consecutive regular quarterly cash dividend payment. www.idexcorp.com • The ITT Corp board of directors has declared a fourth-quarter cash dividend of US$0.11 per share on the company’s outstanding stock. This cash dividend is payable on 31 December 2014, to shareholders of record on 12 December 2014. www.itt.com • Pentair plc will pay a regular quarterly cash dividend of US$0.30 per share on 7 November 2014 to shareholders of record on 24 October 2014. Earlier this year Pentair shareholders approved an ordinary cash dividend of US$1.20 per share in four equal quarterly installments of US$0.30 in each of the third and fourth quarters of 2014 and the first and second quarters of 2015. Pentair paid dividends of US$0.96 per share in 2013. www.pentair.com • GE’s regular US$0.22 per share dividend on the outstanding common stock of the company is payable on 27 October 2014. www.ge.com • Xylem Inc’s fourth quarter US$0.1280 per share dividend will be paid on 3 December 2014 to shareholders of record on 29 October 2014. www.xyleminc.com
A SUBSCRIPTION INCLUDES: • Online access for 5 users • An archive of back issues
8 October 2014
www.pumpindustryanalyst.com
Pump Industry Analyst
13