- Email: [email protected]
KMT expands with waterjet acquisition
IN BRIEF/DIVIDENDS/NEWS
Pump Industry Analyst
April 2006
IN BRIEF
DIVIDENDS
• Hitachi and China’s Wuxi Pump Manufacturing Co Ltd are to form Hitachi Pump Manufacture (Wuxi) Co Ltd, a Chinese joint venture company for the production and sale of large industrial pumps. • KSB AG is planning to host its 10th Waste Water Forum on 22–23 September 2006 at the company’s Halle production site. During the two-day Forum, Prof Dr Ing Dieter-H Hellmann from Kaiserslautern University, and Bernd Kothe, KSB’s surge pressure specialist, will lecture on pumping station design, surge pressure, transport of solids-laden fluids, control of centrifugal and positive displacement pumps and monitoring systems. For further information contact Manuela Kaiser on +49 345 4826 4762 or [email protected]. • Atlas Copco is exploring a divestment of its construction equipment rental operations. “The Rental Service business is growing and performing extremely well,” says Gunnar Brock, president and CEO, Atlas Copco Group. “The operating environment and the business characteristics, however, are very different from Atlas Copco’s industrial equipment operations and the possibilities to capture and develop synergies are limited.” In 2005, the business area had revenues of SKr11 604 million, operating profit of SKr2 666 million and 5100 employees. • Strobl Beschichtungstechnik GmbH, with headquarters in Biberach, Germany, has joined the Putzmeister group of companies. For over 20 years, Strobl has specialised in small delivery pumps, plant configurations and tool washing systems for painters and plasterers.
• At a meeting on 18 April 2006, the Kirloskar Brothers Ltd board of directors recommended payment of a final dividend at Rs2 on equity shares of Rs2 each (100%) for the financial year ended 31 March 2006. • Directors of Pentair Inc have declared a regular quarterly cash dividend of US$0.14 per share payable on 12 May 2006, to shareholders of record at the close of business on 28 April 2006. • Idex Corp’s board of directors has approved a 25% increase in the company’s regular quarterly cash dividend to a rate of US$0.15 per common share. The next dividend will be paid on 28 April 2006, to shareholders of record as of 14 April 2006. This dividend represents the company’s 46th consecutive regular quarterly cash dividend payment. • Robbins & Myers Inc’s board of directors has approved the regular quarterly dividend payment of US$0.055 per share for the second quarter of financial year 2006. Shareholders of record as of 12 April 2006 will receive payment on 3 May 2006. • At their meeting on 5 April 2006, Met-Pro Corp directors declared a quarterly dividend of US$0.0625 per share payable on 7 June 2006 to shareholders of record at the close of business on 26 May 2006. This dividend represents a 7.5% increase over the same period last year and follows a four-for-three stock split, which was paid on 15 November 2005. This is the 31st consecutive year that Met-Pro has paid either a cash or stock dividend.
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PENTAIR ADDS KRYSTIL KLEAR TO FILTRATION BUSINESS Pentair has acquired the assets of Krystil Klear, a privately held company, to complement existing businesses in its Water Group. Krystil Klear expands Pentair’s industrial filtration product offering to include a broad range of steel and stainless steel housing and filtration solutions. Pentair’s filtration business serves the residential, municipal, commercial and industrial markets with filtration housings, cartridge elements, tanks, valves and other filtration system components. “The bolt-on acquisition of Krystil Klear enhances our presence in the industrial liquid filtration markets, increases our product portfolio and expands our industrial distribution footprint,” said Michael Schrock, president and chief operating officer of Filtration and Technical Products. “With this acquisition, we further strengthen Pentair’s filtration position in a broad array of industrial end markets; including paper, food, chemical and pharmaceutical. Pentair’s existing filtration cartridges, coupled with Krystil Klear’s strength in steel and stainless steel industrial housings, provides an expanded line of liquid filtration products for our customers.” Krystil Klear is headquartered in Winamac, Indiana and employs approximately 60 people. In 2005, the company recorded sales of approximately US$8 million.
CURTISS-WRIGHT ACQUIRES ENPRO SYSTEMS Curtiss-Wright Corp has acquired the critical service valve manufacturer Enpro
Systems Ltd for approximately US$17.5 million. Channelview, Texas-based Enpro, which will become part of Curtiss-Wright’s Flow Control segment, designs and manufactures engineered pressure vessels, catalytic cracking process equipment and critical service valves for the petrochemical, refining and utility markets. Enpro also provides engineering services, subcontract manufacturing services, shop repair and field services to support customers’ operations. Curtiss-Wright already designs and manufactures highly engineered valves to meet the severe environment and critical flow control applications required in the oil and gas processing market. “By combining Enpro’s highly complementary product offerings with CurtissWright’s existing products, we are able to enhance our portfolio of solutions available to our customers,” explained Martin Benante, chairman and CEO of Curtiss-Wright. During Curtiss-Wright’s first 12 months of ownership, revenues for Enpro are expected to be approximately US$30 million.
KMT EXPANDS WITH WATERJET ACQUISITION KMT has acquired AquaDyne, a privately-owned, Houston, Texas-based manufacturer of high pressure waterjet systems. Aqua-Dyne’s products are used in surface preparation, industrial cleaning and concrete removal (hydro-demolition). Markets served include shipbuilding, petrochemicals, industrial and construction. “The acquisition of AquaDyne significantly increases our market potential in the waterjet area. By leveraging the strength of KMT Waterjet Systems’ existing organisa-
tion, international experience and distribution channels with Aqua-Dyne’s strong brand, we see considerable growth opportunities worldwide,” said Lars Bergström, president and CEO of KMT. The acquisition gives KMT access to a new growing market segment with significant potential, and will create synergies with KMT Waterjet Systems. “The acquisition of Aqua-Dyne is consistent with KMT Waterjet’s strategy to access new markets, and to expand our customer base and presence in worldwide markets,” said Duane Johnson, president of KMT Waterjet Systems.
NEW SYSTEM EFFICIENCY GUIDE FROM EUROPUMP System Efficiency - A Guide for Energy Efficient Rotodynamic Pumping Systems is the latest publication from Europump, the European pump manufacturers association. The new Europump guide on system efficiency gives clear and authoritative data on how to optimise energy consumption within rotodynamic pumping systems, covering basic plant layout, pipework configuration and restrictions, liquid velocity in pipework, system characteristics and pump selection, and pump/system control. The guide includes a pipe flow energy software CD that clearly identifies the energy savings that can be made. Furthermore the guide’s “Core Statement” offers recommendations on liquid velocities that should be used on suction and delivery pipework. Written and published by Europump, System Efficiency A Guide for Energy Efficient Rotodynamic Pumping Systems will be officially launched at the Joint Annual
Pump Industry Analyst
Meeting of CEIR and Europump in Antalya, Turkey 20–28 May 2006. To order a copy of the guide, contact Europump at [email protected] or visit www.europump.org. The standard price per copy is 99 plus postage. Discounts are available for bulk orders.
ROYAL RECOGNITION FOR JOHN CRANE The Slough, UK-based John Crane Turbomachinery Division has received a 2006 Queen's Award for Enterprise. The Division, which designs and manufactures advanced mechanical sealing solutions for use on turbomachinery equipment, has received the Award in recognition of its success in expanding its business well in excess of the general levels of market growth, and also for its efforts in developing and marketing advanced technologies. Over the period from 2000 to 2005 the John Crane Turbomachinery Division grew its turnover by 92%, with 93% of this growth coming from export sales. The Turbomachinery Division has been particularly successful in directly targeting end-users of its products, as well as penetrating the rapidly expanding Liquefied Natural Gas sector. “We are delighted that our efforts have been recognised in this way,” commented Turbomachinery general manager Dave Hill. “We have worked tremendously hard to get to our current position, but we are also investing heavily in our future and expanding the scope of our turbomachinery capability. The finances involved in today’s oil and gas markets lead our customers to expect first-class products backed by
first-class service and we are well on the way to both meeting and exceeding those expectations.”
TACO EXPANDS CRANSTON FACILITY Work has started on a major expansion of Taco Inc’s manufacturing and corporate facility on Cranston St, in Cranston, Rhoode Island. Late last year the HVAC equipment manufacturer bought a one-acre lot adjacent to the Taco plant. Taco expects to have the facility in operation by August. Taco’s expansion plans call for the construction of a 63 000 sq ft addition to the existing plant, which will serve as a warehouse for shipping and distribution of Taco products. In doing so, Taco will shift its inventory and some 20 employees from its present leased warehouse and distribution centre on Wellington Ave, also in Cranston, to the Cranston St facility, bringing all Cranston Taco employees under one roof for the first time. “We’re very pleased to get this expansion under way,” said Taco president John White Jr. “Bringing our warehouse and distribution functions inside our main facility makes excellent sense in terms of efficiency and cost savings. We’ve always been hemmed in here at this location, so the adjacent property represented the only opportunity we have had to expand and still remain under one roof.” In business since 1920, Taco is a family-held company employing 500 people in Rhode Island, Massachusetts and Canada. The company manufactures a wide range of pumps, valves, tanks, electronic controls and hydronic system equipment for residential, commercial and industrial applications.
IN BRIEF • Bjørge ASA - parent company of pump manufacturer Eptec - has delivered its best-ever first quarter results. Operating profit came in at NKr297 million, compared with NKr170 million in the same period of 2005. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were NKr16 million versus NKr10 million for the first quarter of last year. The Norwegian group has a total order backlog of NKr2.5 billion, including NKr590 million for delivery in 2006. • Gardner Denver Inc expects diluted earnings per share for the three months ended 31 March 2006 to be US$1.13–1.17, compared with its previous guidance of US$0.65–0.75. The significant improvement in diluted earnings per share for the threemonth period is primarily attributable to increased shipments as a result of higher than expected orders and manufacturing improvements that resulted in increased output. Some additional outsourcing of fluid transfer product manufacturing also contributed to the improvement in revenues and diluted earnings per share. The company was also able to leverage its fixed costs to realise strong flow through profitability on the incremental revenues. • Eighty delegates attended a technical forum in Anerdeen, Scotland run by Sulzer Wood Ltd to promote the recent technical developments in Sulzer’s pumping equipment for oil and gas applications. Delegates were invited from leading oil and contracting companies operating in the North Sea UKCS market.
13
NEWS/IN BRIEF
April 2006
Pump Industry Analyst
April 2006
IN BRIEF
DIVIDENDS
• Hitachi and China’s Wuxi Pump Manufacturing Co Ltd are to form Hitachi Pump Manufacture (Wuxi) Co Ltd, a Chinese joint venture company for the production and sale of large industrial pumps. • KSB AG is planning to host its 10th Waste Water Forum on 22–23 September 2006 at the company’s Halle production site. During the two-day Forum, Prof Dr Ing Dieter-H Hellmann from Kaiserslautern University, and Bernd Kothe, KSB’s surge pressure specialist, will lecture on pumping station design, surge pressure, transport of solids-laden fluids, control of centrifugal and positive displacement pumps and monitoring systems. For further information contact Manuela Kaiser on +49 345 4826 4762 or [email protected]. • Atlas Copco is exploring a divestment of its construction equipment rental operations. “The Rental Service business is growing and performing extremely well,” says Gunnar Brock, president and CEO, Atlas Copco Group. “The operating environment and the business characteristics, however, are very different from Atlas Copco’s industrial equipment operations and the possibilities to capture and develop synergies are limited.” In 2005, the business area had revenues of SKr11 604 million, operating profit of SKr2 666 million and 5100 employees. • Strobl Beschichtungstechnik GmbH, with headquarters in Biberach, Germany, has joined the Putzmeister group of companies. For over 20 years, Strobl has specialised in small delivery pumps, plant configurations and tool washing systems for painters and plasterers.
• At a meeting on 18 April 2006, the Kirloskar Brothers Ltd board of directors recommended payment of a final dividend at Rs2 on equity shares of Rs2 each (100%) for the financial year ended 31 March 2006. • Directors of Pentair Inc have declared a regular quarterly cash dividend of US$0.14 per share payable on 12 May 2006, to shareholders of record at the close of business on 28 April 2006. • Idex Corp’s board of directors has approved a 25% increase in the company’s regular quarterly cash dividend to a rate of US$0.15 per common share. The next dividend will be paid on 28 April 2006, to shareholders of record as of 14 April 2006. This dividend represents the company’s 46th consecutive regular quarterly cash dividend payment. • Robbins & Myers Inc’s board of directors has approved the regular quarterly dividend payment of US$0.055 per share for the second quarter of financial year 2006. Shareholders of record as of 12 April 2006 will receive payment on 3 May 2006. • At their meeting on 5 April 2006, Met-Pro Corp directors declared a quarterly dividend of US$0.0625 per share payable on 7 June 2006 to shareholders of record at the close of business on 26 May 2006. This dividend represents a 7.5% increase over the same period last year and follows a four-for-three stock split, which was paid on 15 November 2005. This is the 31st consecutive year that Met-Pro has paid either a cash or stock dividend.
12
PENTAIR ADDS KRYSTIL KLEAR TO FILTRATION BUSINESS Pentair has acquired the assets of Krystil Klear, a privately held company, to complement existing businesses in its Water Group. Krystil Klear expands Pentair’s industrial filtration product offering to include a broad range of steel and stainless steel housing and filtration solutions. Pentair’s filtration business serves the residential, municipal, commercial and industrial markets with filtration housings, cartridge elements, tanks, valves and other filtration system components. “The bolt-on acquisition of Krystil Klear enhances our presence in the industrial liquid filtration markets, increases our product portfolio and expands our industrial distribution footprint,” said Michael Schrock, president and chief operating officer of Filtration and Technical Products. “With this acquisition, we further strengthen Pentair’s filtration position in a broad array of industrial end markets; including paper, food, chemical and pharmaceutical. Pentair’s existing filtration cartridges, coupled with Krystil Klear’s strength in steel and stainless steel industrial housings, provides an expanded line of liquid filtration products for our customers.” Krystil Klear is headquartered in Winamac, Indiana and employs approximately 60 people. In 2005, the company recorded sales of approximately US$8 million.
CURTISS-WRIGHT ACQUIRES ENPRO SYSTEMS Curtiss-Wright Corp has acquired the critical service valve manufacturer Enpro
Systems Ltd for approximately US$17.5 million. Channelview, Texas-based Enpro, which will become part of Curtiss-Wright’s Flow Control segment, designs and manufactures engineered pressure vessels, catalytic cracking process equipment and critical service valves for the petrochemical, refining and utility markets. Enpro also provides engineering services, subcontract manufacturing services, shop repair and field services to support customers’ operations. Curtiss-Wright already designs and manufactures highly engineered valves to meet the severe environment and critical flow control applications required in the oil and gas processing market. “By combining Enpro’s highly complementary product offerings with CurtissWright’s existing products, we are able to enhance our portfolio of solutions available to our customers,” explained Martin Benante, chairman and CEO of Curtiss-Wright. During Curtiss-Wright’s first 12 months of ownership, revenues for Enpro are expected to be approximately US$30 million.
KMT EXPANDS WITH WATERJET ACQUISITION KMT has acquired AquaDyne, a privately-owned, Houston, Texas-based manufacturer of high pressure waterjet systems. Aqua-Dyne’s products are used in surface preparation, industrial cleaning and concrete removal (hydro-demolition). Markets served include shipbuilding, petrochemicals, industrial and construction. “The acquisition of AquaDyne significantly increases our market potential in the waterjet area. By leveraging the strength of KMT Waterjet Systems’ existing organisa-
tion, international experience and distribution channels with Aqua-Dyne’s strong brand, we see considerable growth opportunities worldwide,” said Lars Bergström, president and CEO of KMT. The acquisition gives KMT access to a new growing market segment with significant potential, and will create synergies with KMT Waterjet Systems. “The acquisition of Aqua-Dyne is consistent with KMT Waterjet’s strategy to access new markets, and to expand our customer base and presence in worldwide markets,” said Duane Johnson, president of KMT Waterjet Systems.
NEW SYSTEM EFFICIENCY GUIDE FROM EUROPUMP System Efficiency - A Guide for Energy Efficient Rotodynamic Pumping Systems is the latest publication from Europump, the European pump manufacturers association. The new Europump guide on system efficiency gives clear and authoritative data on how to optimise energy consumption within rotodynamic pumping systems, covering basic plant layout, pipework configuration and restrictions, liquid velocity in pipework, system characteristics and pump selection, and pump/system control. The guide includes a pipe flow energy software CD that clearly identifies the energy savings that can be made. Furthermore the guide’s “Core Statement” offers recommendations on liquid velocities that should be used on suction and delivery pipework. Written and published by Europump, System Efficiency A Guide for Energy Efficient Rotodynamic Pumping Systems will be officially launched at the Joint Annual
Pump Industry Analyst
Meeting of CEIR and Europump in Antalya, Turkey 20–28 May 2006. To order a copy of the guide, contact Europump at [email protected] or visit www.europump.org. The standard price per copy is 99 plus postage. Discounts are available for bulk orders.
ROYAL RECOGNITION FOR JOHN CRANE The Slough, UK-based John Crane Turbomachinery Division has received a 2006 Queen's Award for Enterprise. The Division, which designs and manufactures advanced mechanical sealing solutions for use on turbomachinery equipment, has received the Award in recognition of its success in expanding its business well in excess of the general levels of market growth, and also for its efforts in developing and marketing advanced technologies. Over the period from 2000 to 2005 the John Crane Turbomachinery Division grew its turnover by 92%, with 93% of this growth coming from export sales. The Turbomachinery Division has been particularly successful in directly targeting end-users of its products, as well as penetrating the rapidly expanding Liquefied Natural Gas sector. “We are delighted that our efforts have been recognised in this way,” commented Turbomachinery general manager Dave Hill. “We have worked tremendously hard to get to our current position, but we are also investing heavily in our future and expanding the scope of our turbomachinery capability. The finances involved in today’s oil and gas markets lead our customers to expect first-class products backed by
first-class service and we are well on the way to both meeting and exceeding those expectations.”
TACO EXPANDS CRANSTON FACILITY Work has started on a major expansion of Taco Inc’s manufacturing and corporate facility on Cranston St, in Cranston, Rhoode Island. Late last year the HVAC equipment manufacturer bought a one-acre lot adjacent to the Taco plant. Taco expects to have the facility in operation by August. Taco’s expansion plans call for the construction of a 63 000 sq ft addition to the existing plant, which will serve as a warehouse for shipping and distribution of Taco products. In doing so, Taco will shift its inventory and some 20 employees from its present leased warehouse and distribution centre on Wellington Ave, also in Cranston, to the Cranston St facility, bringing all Cranston Taco employees under one roof for the first time. “We’re very pleased to get this expansion under way,” said Taco president John White Jr. “Bringing our warehouse and distribution functions inside our main facility makes excellent sense in terms of efficiency and cost savings. We’ve always been hemmed in here at this location, so the adjacent property represented the only opportunity we have had to expand and still remain under one roof.” In business since 1920, Taco is a family-held company employing 500 people in Rhode Island, Massachusetts and Canada. The company manufactures a wide range of pumps, valves, tanks, electronic controls and hydronic system equipment for residential, commercial and industrial applications.
IN BRIEF • Bjørge ASA - parent company of pump manufacturer Eptec - has delivered its best-ever first quarter results. Operating profit came in at NKr297 million, compared with NKr170 million in the same period of 2005. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were NKr16 million versus NKr10 million for the first quarter of last year. The Norwegian group has a total order backlog of NKr2.5 billion, including NKr590 million for delivery in 2006. • Gardner Denver Inc expects diluted earnings per share for the three months ended 31 March 2006 to be US$1.13–1.17, compared with its previous guidance of US$0.65–0.75. The significant improvement in diluted earnings per share for the threemonth period is primarily attributable to increased shipments as a result of higher than expected orders and manufacturing improvements that resulted in increased output. Some additional outsourcing of fluid transfer product manufacturing also contributed to the improvement in revenues and diluted earnings per share. The company was also able to leverage its fixed costs to realise strong flow through profitability on the incremental revenues. • Eighty delegates attended a technical forum in Anerdeen, Scotland run by Sulzer Wood Ltd to promote the recent technical developments in Sulzer’s pumping equipment for oil and gas applications. Delegates were invited from leading oil and contracting companies operating in the North Sea UKCS market.
13
NEWS/IN BRIEF
April 2006