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GRUNDFOS EMBRACES CORPORATE SOCIAL RESPONSIBILITY
WL GORE, YAMADA IN ‘BEST-IN-CLASS’ ALLIANCE WL Gore & Associates Inc and Yamada America Inc have teamed up to deliver a new best in class pump - The Yamada Double-Up Series Pump. This alliance marries Yamada’s air operated diaphragm pump technology with Gore ONE-UP Pump Diaphragms. ONE-UP diaphragms will be part of the Yamada trial pump program with a guarantee that if the pump does not outperform the competition, the customer is not obligated to make the purchase. With this new alliance, Yamada becomes the only original equipment manufacturer installing ONE-UP Pump Diaphragms in new pump equipment.
GRUNDFOS EMBRACES CORPORATE SOCIAL RESPONSIBILITY Based on its mission, vision and company values, Grundfos has established a corporate social responsibility policy which covers the group’s relations with its employees, local community, customers, suppliers and other stakeholders. “Social responsibility is a natural part of this company’s identity and fundamental values. Incorporating Corporate Social Responsibility into our business strategies will become a competitive parameter and it will become prerequisite to the strengthening of our competitive power,” said Niels Due Jensen, Grundfos CEO and group president. In Denmark companies’ social responsibility has traditionally been seen as a responsibility to ensure a flexible
Pump Industry Analyst
work market. Grundfos says the concept of corporate social responsibility goes further than that, covering both social and ethical aspects such as the commitment to the UN’s Declaration on Human Rights and the ILO conventions, which aim at ensuring ethical responsibility and credible behaviour. “As a global company Grundfos must start to see itself within the CSR-framework which Grundfos’s accession to the UN’s Global Compact Initiative reflects. This does not mean that Grundfos will yield its strong traditions for working with the flexible work market. On the contrary, it is a great strength for us that the employment of exposed groups will continue to be a company hallmark both locally and globally,” said Due Jensen.
SPX IN 2-FOR-1 STOCK SPLIT SPX Corp’s board of directors has approved a two-forone stock split of the company’s common stock. The stock split will be effected in the form of a stock dividend and will entitle each stockholder of record at the close of business on 1 October 2002, to receive one share for every outstanding share of common stock held on the record date. The stock dividend will be distributed on 24 October 2002. SPX common stock will begin trading on a split-adjusted basis on 25 October 2002. Meanwhile the SPX board has also authorized a new share repurchase program for up to US$250 million. The repurchase was initiated in conjunction with a new financing agreement led by JP Morgan Securities Inc. The new financing agreement provides the company with improved financial flexibility for acquisitions,
growth investments, and share repurchases. The timing and amount of share repurchases will be subject to market conditions and other factors.
KEY GARDNER DENVER CASTING SUPPLIER DOWNSIZES Gardner Denver’s largest supplier of iron castings, Atchison Casting Corp, is planning to downsize its LaGrange, Missouri foundry, ceasing production and focusing the facility on pattern repair, maintenance and storage. The LaGrange foundry was owned by Gardner Denver up until 1995 when it was sold to Atchison. As part of the sale agreement, Gardner Denver entered into a five-year agreement for the supply of certain cast iron products from the LaGrange foundry. Since the expiration of that agreement in 2000, Gardner Denver has entered into more favourable arrangements for some of these castings from other suppliers, as part of ongoing material cost reduction initiatives. Gardner Denver anticipates a negative impact on the company’s financial performance in the short-term, primarily in the fourth quarter of 2002 and the first quarter of 2003, as alternative supply sources are secured.
MAAG PUMP EXPANDS PORTFOLIO Maag Pump Systems Textron is adding a complete line of pressure transducers and melt temperature sensors to its product range. The new product offering is part of Maag Pump Systems Textron’s long term strategy to serve the plastics market with a complete system for melt handling and filtration.
IN BRIEF • The Hydraulic Institute (HI) has released a new CDROM of its latest pump industry standards, ANSI/ HI Pump Standards, 2002 Release. Two new standards have been added: the American National Standards for Submersible Pump Tests (ANSI/HI 11.6-2001) and the American National Standards for Allowable Nozzle Loads on Centrifugal and Vertical Pumps (ANSI/HI 9.6.2-2001). This new CD replaces HI’s 2000 Edition Pump Standards. It also includes an updated Master Index of all ANSI/HI Pump Standards. This latest CD-ROM, ANSI/HI Pump Standards, 2002 Release, designated by HI product code CD2002, is available for US$1050 in PDF format from HI’s E-store at www.pumps.org. • United Technologies Corp has announced an additional, voluntary contribution of US$253 million of its common stock to the UTC pension fund, as authorized by the board in December 2001. The board had approved a total voluntary contribution of US$500 million, US$247 million of which was added to the fund last year. An independent manager with authority to hold and dispose of the securities has been appointed. The contribution will be made from treasury stock and does not alter the company’s 2002 earnings per share estimate of US$4.40. • Greensboro, NC-headquartered Tencarva Machinery Co has been named a Wilden Pumps distributor in the District of Columbia, Maryland, southern Delaware, northern Virginia and eastern West Virginia. The addition of these territories means the Wilden line is now offered in all Tencarva locations.
11
NEWS/IN BRIEF
October 2002
GRUNDFOS EMBRACES CORPORATE SOCIAL RESPONSIBILITY Based on its mission, vision and company values, Grundfos has established a corporate social responsibility policy which covers the group’s relations with its employees, local community, customers, suppliers and other stakeholders. “Social responsibility is a natural part of this company’s identity and fundamental values. Incorporating Corporate Social Responsibility into our business strategies will become a competitive parameter and it will become prerequisite to the strengthening of our competitive power,” said Niels Due Jensen, Grundfos CEO and group president. In Denmark companies’ social responsibility has traditionally been seen as a responsibility to ensure a flexible
Pump Industry Analyst
work market. Grundfos says the concept of corporate social responsibility goes further than that, covering both social and ethical aspects such as the commitment to the UN’s Declaration on Human Rights and the ILO conventions, which aim at ensuring ethical responsibility and credible behaviour. “As a global company Grundfos must start to see itself within the CSR-framework which Grundfos’s accession to the UN’s Global Compact Initiative reflects. This does not mean that Grundfos will yield its strong traditions for working with the flexible work market. On the contrary, it is a great strength for us that the employment of exposed groups will continue to be a company hallmark both locally and globally,” said Due Jensen.
SPX IN 2-FOR-1 STOCK SPLIT SPX Corp’s board of directors has approved a two-forone stock split of the company’s common stock. The stock split will be effected in the form of a stock dividend and will entitle each stockholder of record at the close of business on 1 October 2002, to receive one share for every outstanding share of common stock held on the record date. The stock dividend will be distributed on 24 October 2002. SPX common stock will begin trading on a split-adjusted basis on 25 October 2002. Meanwhile the SPX board has also authorized a new share repurchase program for up to US$250 million. The repurchase was initiated in conjunction with a new financing agreement led by JP Morgan Securities Inc. The new financing agreement provides the company with improved financial flexibility for acquisitions,
growth investments, and share repurchases. The timing and amount of share repurchases will be subject to market conditions and other factors.
KEY GARDNER DENVER CASTING SUPPLIER DOWNSIZES Gardner Denver’s largest supplier of iron castings, Atchison Casting Corp, is planning to downsize its LaGrange, Missouri foundry, ceasing production and focusing the facility on pattern repair, maintenance and storage. The LaGrange foundry was owned by Gardner Denver up until 1995 when it was sold to Atchison. As part of the sale agreement, Gardner Denver entered into a five-year agreement for the supply of certain cast iron products from the LaGrange foundry. Since the expiration of that agreement in 2000, Gardner Denver has entered into more favourable arrangements for some of these castings from other suppliers, as part of ongoing material cost reduction initiatives. Gardner Denver anticipates a negative impact on the company’s financial performance in the short-term, primarily in the fourth quarter of 2002 and the first quarter of 2003, as alternative supply sources are secured.
MAAG PUMP EXPANDS PORTFOLIO Maag Pump Systems Textron is adding a complete line of pressure transducers and melt temperature sensors to its product range. The new product offering is part of Maag Pump Systems Textron’s long term strategy to serve the plastics market with a complete system for melt handling and filtration.
IN BRIEF • The Hydraulic Institute (HI) has released a new CDROM of its latest pump industry standards, ANSI/ HI Pump Standards, 2002 Release. Two new standards have been added: the American National Standards for Submersible Pump Tests (ANSI/HI 11.6-2001) and the American National Standards for Allowable Nozzle Loads on Centrifugal and Vertical Pumps (ANSI/HI 9.6.2-2001). This new CD replaces HI’s 2000 Edition Pump Standards. It also includes an updated Master Index of all ANSI/HI Pump Standards. This latest CD-ROM, ANSI/HI Pump Standards, 2002 Release, designated by HI product code CD2002, is available for US$1050 in PDF format from HI’s E-store at www.pumps.org. • United Technologies Corp has announced an additional, voluntary contribution of US$253 million of its common stock to the UTC pension fund, as authorized by the board in December 2001. The board had approved a total voluntary contribution of US$500 million, US$247 million of which was added to the fund last year. An independent manager with authority to hold and dispose of the securities has been appointed. The contribution will be made from treasury stock and does not alter the company’s 2002 earnings per share estimate of US$4.40. • Greensboro, NC-headquartered Tencarva Machinery Co has been named a Wilden Pumps distributor in the District of Columbia, Maryland, southern Delaware, northern Virginia and eastern West Virginia. The addition of these territories means the Wilden line is now offered in all Tencarva locations.
11
NEWS/IN BRIEF
October 2002