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Hamworthy confident on 2007 results
IN BRIEF/DIVIDENDS/NEWS
Pump Industry Analyst
April 2007
IN BRIEF
DIVIDENDS
• ABS Group has started deploying its new ABS Central Configuration Tool (ACCT) in the USA. Roll outs throughout the rest of the world will continue throughout the year. Intelliquip’s Intelligent Front-EndSM technology will power ABS Central Configuration Tool to provide streamlined selection, configuration, pricing, drawing generation, quotation generation and quotation management for ABS diverse product lines. ACCT will consolidate a number of ABS manual and disparate sales tools into a powerful web-based system that will incorporate the majority of ABS product and application knowledge in a robust selector and configurator allowing proposals to be developed quicker and more accurately by internal salesmen, distributors, agents, and OEMs. “We have been able to leverage Intelliquip’s technology and domain experience in quickly making ACCT a reality. We look forward to expanding the product lines within ACCT and to rapidly broadening the deployment beyond the initial USA roll out,” said Peter Aru, president and CEO of ABS Group. • AF Wilfley has introduced a material surcharge to cover the rapidly rising costs of metal alloys. The surcharge will be identified as a separate line item on order acknowledgements. • Godwin Pumps has won a 2007 Forbes Enterprise Award in the “Business Services” category. “Being recognized by Forbes magazine is a great honor. More than that, though, it’s a tribute to the hard work of our 600 employees around the world,” said president John Michael Paz.
• Idex Corp has increased its quarterly cash dividend by 20% and announced a 3-for-2 stock split. An US$0.18 regular cash dividend per common share (or US$0.12 per postsplit share) is payable on 30 April 2007, to shareholders of record as of 16 April 2007. This dividend represents the company’s 50th consecutive regular quarterly cash dividend payment. The 3-for-2 stock split of Idex common shares, which will be effected in the form of a 50% stock dividend, will result in one additional share of Idex common stock for every two shares owned as of the record date. The new shares are payable on 21 May 2007, to shareholders of record on 7 May 2007. This is the fourth split of the company’s common stock since its initial public offering in 1989. • Weir is proposing a final dividend of 10.75p (2005: 9.65p) making a total payment for 2006 of 14.5p (2005: 13.2p). Subject to shareholder approval, the final dividend will be paid on 1 June 2007 to shareholders on the register at the close of business on 4 May 2007. • At the company’s 100th AGM, Andritz AG shareholders agreed to a dividend payment of 3.00 per share for the 2006 business year. This is a 50% increase on 2005. The dividend will be paid on 6 April 2007. The AGM also agreed to a 1:4 share split on 3 May 2007. • A dividend of SFr23 per Sulzer share will be paid on 12 April 2007, up from SFr14 last year. • Robbins & Myers Inc’s board of directors has approved its regular quarterly cash dividend payment of US$0.065 per share. The dividend is payable on 4 May 2007 to shareholders of record as of 9 April 2007.
12
SMITHS GROUP EXTENDS ENERGY ACTIVITIES
HAMWORTHY CONFIDENT ON 2007 RESULTS
Smiths Group, the parent company of sealing specialist John Crane, has acquired CDI Energy Services (CDI) of Tyler, Texas for US$37.0 million in cash. CDI is provides sales and service for pumping equipment that aids production from oil and gas wells, a technology known as “artificial lift”. The company has also developed well monitoring and performance improvement services which increase productivity and longevity of customers’ wells. CDI was founded in 1892 as part of the Axelson Co and was acquired by the current private shareholders in 1999. CDI will extend the Smiths Group’s participation in the oil and gas industries, and will report through John Crane, which is part of Smiths’ Specialty Engineering division. John Crane designs and manufactures mechanical seals and associated products for the oil and gas, chemical, pharmaceutical, pulp and paper and mining sectors. “This acquisition marks a broadening of our technology in the energy sector. John Crane has a peerless product range, currently focused on seals and associated products, with a truly global service and support footprint. CDI brings new products to our offering and adds important new capability to our fast-growing remote energy asset management services,” said Keith ButlerWheelhouse, chief executive of Smiths Group. Global Energy Products, a sister business also acquired in the deal, supplies CDI with globally sourced pumps, rods and other related equipment critical to the business.
Hamworthy plc’s results for the year ended 31 March 2007 are expected to be in line with market expectations. The company’s order book at 28 February 2007 stood at £254 million for delivery over three years, up from £234 million a year earlier. Hamworthy’s pump systems business has recently won orders from three Chinese shipyards worth approximately £7 million (see Orders, page 11). “The PRS (pump room systems) orders in China continue the trend of strong growth of this product including on VLCCs where Hamworthy received its first ever orders less than a year ago. With this background and a positive outlook across all our principal product sectors we can look forward to the future with confidence,” said Kelvyn Derrick, Hamworthy chief executive. The group will announce its preliminary results on 29 May 2007 (see Financial Calendar, page 10).
ITT CREATES RESIDENTIAL & COMMERCIAL WATER BUSINESS ITT Corp has formed ITT Residential & Commercial Water (R&CW), a US$1 billion global business that manufactures and markets water and wastewater products serving the residential and commercial markets. Combining brands such as Lowara, Vogel, Goulds, Bell & Gossett and A-C Fire Pump, ITT R&CW manufactures and markets water and wastewater pumps, valves, heat exchangers, controls, and package solutions for single and multi-family homes, com-
Pump Industry Analyst
April 2007
IN BRIEF
DIVIDENDS
• ABS Group has started deploying its new ABS Central Configuration Tool (ACCT) in the USA. Roll outs throughout the rest of the world will continue throughout the year. Intelliquip’s Intelligent Front-EndSM technology will power ABS Central Configuration Tool to provide streamlined selection, configuration, pricing, drawing generation, quotation generation and quotation management for ABS diverse product lines. ACCT will consolidate a number of ABS manual and disparate sales tools into a powerful web-based system that will incorporate the majority of ABS product and application knowledge in a robust selector and configurator allowing proposals to be developed quicker and more accurately by internal salesmen, distributors, agents, and OEMs. “We have been able to leverage Intelliquip’s technology and domain experience in quickly making ACCT a reality. We look forward to expanding the product lines within ACCT and to rapidly broadening the deployment beyond the initial USA roll out,” said Peter Aru, president and CEO of ABS Group. • AF Wilfley has introduced a material surcharge to cover the rapidly rising costs of metal alloys. The surcharge will be identified as a separate line item on order acknowledgements. • Godwin Pumps has won a 2007 Forbes Enterprise Award in the “Business Services” category. “Being recognized by Forbes magazine is a great honor. More than that, though, it’s a tribute to the hard work of our 600 employees around the world,” said president John Michael Paz.
• Idex Corp has increased its quarterly cash dividend by 20% and announced a 3-for-2 stock split. An US$0.18 regular cash dividend per common share (or US$0.12 per postsplit share) is payable on 30 April 2007, to shareholders of record as of 16 April 2007. This dividend represents the company’s 50th consecutive regular quarterly cash dividend payment. The 3-for-2 stock split of Idex common shares, which will be effected in the form of a 50% stock dividend, will result in one additional share of Idex common stock for every two shares owned as of the record date. The new shares are payable on 21 May 2007, to shareholders of record on 7 May 2007. This is the fourth split of the company’s common stock since its initial public offering in 1989. • Weir is proposing a final dividend of 10.75p (2005: 9.65p) making a total payment for 2006 of 14.5p (2005: 13.2p). Subject to shareholder approval, the final dividend will be paid on 1 June 2007 to shareholders on the register at the close of business on 4 May 2007. • At the company’s 100th AGM, Andritz AG shareholders agreed to a dividend payment of 3.00 per share for the 2006 business year. This is a 50% increase on 2005. The dividend will be paid on 6 April 2007. The AGM also agreed to a 1:4 share split on 3 May 2007. • A dividend of SFr23 per Sulzer share will be paid on 12 April 2007, up from SFr14 last year. • Robbins & Myers Inc’s board of directors has approved its regular quarterly cash dividend payment of US$0.065 per share. The dividend is payable on 4 May 2007 to shareholders of record as of 9 April 2007.
12
SMITHS GROUP EXTENDS ENERGY ACTIVITIES
HAMWORTHY CONFIDENT ON 2007 RESULTS
Smiths Group, the parent company of sealing specialist John Crane, has acquired CDI Energy Services (CDI) of Tyler, Texas for US$37.0 million in cash. CDI is provides sales and service for pumping equipment that aids production from oil and gas wells, a technology known as “artificial lift”. The company has also developed well monitoring and performance improvement services which increase productivity and longevity of customers’ wells. CDI was founded in 1892 as part of the Axelson Co and was acquired by the current private shareholders in 1999. CDI will extend the Smiths Group’s participation in the oil and gas industries, and will report through John Crane, which is part of Smiths’ Specialty Engineering division. John Crane designs and manufactures mechanical seals and associated products for the oil and gas, chemical, pharmaceutical, pulp and paper and mining sectors. “This acquisition marks a broadening of our technology in the energy sector. John Crane has a peerless product range, currently focused on seals and associated products, with a truly global service and support footprint. CDI brings new products to our offering and adds important new capability to our fast-growing remote energy asset management services,” said Keith ButlerWheelhouse, chief executive of Smiths Group. Global Energy Products, a sister business also acquired in the deal, supplies CDI with globally sourced pumps, rods and other related equipment critical to the business.
Hamworthy plc’s results for the year ended 31 March 2007 are expected to be in line with market expectations. The company’s order book at 28 February 2007 stood at £254 million for delivery over three years, up from £234 million a year earlier. Hamworthy’s pump systems business has recently won orders from three Chinese shipyards worth approximately £7 million (see Orders, page 11). “The PRS (pump room systems) orders in China continue the trend of strong growth of this product including on VLCCs where Hamworthy received its first ever orders less than a year ago. With this background and a positive outlook across all our principal product sectors we can look forward to the future with confidence,” said Kelvyn Derrick, Hamworthy chief executive. The group will announce its preliminary results on 29 May 2007 (see Financial Calendar, page 10).
ITT CREATES RESIDENTIAL & COMMERCIAL WATER BUSINESS ITT Corp has formed ITT Residential & Commercial Water (R&CW), a US$1 billion global business that manufactures and markets water and wastewater products serving the residential and commercial markets. Combining brands such as Lowara, Vogel, Goulds, Bell & Gossett and A-C Fire Pump, ITT R&CW manufactures and markets water and wastewater pumps, valves, heat exchangers, controls, and package solutions for single and multi-family homes, com-