June 2003
Pump Industry Analyst
NEWS
TEXTRON STREAMLINES ORGANIZATION Textron Inc is consolidating its Industrial Components and Industrial Products segments as part of a continuing effort to accelerate performance improvements, increase operational efficiencies and streamline its structure. Textron’s chief operating officer Steve Loranger will serve as head of the new combined Industrial segment in addition to his other operating responsibilities. “Textron has set aggressive targets to improve its operating performance. By having more of our businesses report directly to me, we are eliminating staff costs while accelerating our communications and decision-making processes,” said Loranger. The new structure eliminates two segment president positions. Edward Orzetti, who previously oversaw Textron’s supply chain and Six Sigma efforts as vice president of enterprise excellence, has been named president of Textron’s Fluid Handling Products and Power Transmission businesses. Textron’s pump interests include David Brown Guinard Pumps, David Brown Union Pumps and Maag Pump Systems.
KSB SEALS DP INDUSTRIES DEAL KSB has taken over the Dutch pump supplier DP Industries BV (see Pump Industry Analyst, May 2003). While the contract was signed at KSB’s headquarters in Frankenthal on 16 May, the acquisition is retroactive to 1 January 2003. DP Industries, with 280 employees, specializes in designing and manufacturing stainless sheet steel pumps. KSB plans to turn the DP
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factory in Alphen a/d Rijn into its competence centre for stainless sheet steel products by 2005.
WEIR GROUP ON TRACK Weir Group says its performance in the first quarter of 2003 has been in line with expectations. The level of orders booked in the first quarter remains at a level similar to the same period last year. Contract success at Weir’s Techna division and the progress recorded by the group’s Minerals division have balanced the lower level of orders experienced by the Clear Liquid and Valves divisions in the second half of last year. While the Services division continues to experience strong rates of enquiry, the level of orders booked was 4% lower than the first quarter of 2002, but ahead of the 2002 annual run rate. “I can also confirm that the strategic initiatives which we have introduced to improve productivity and margins in our Engineering Products and Services businesses are progressing as planned,” said Weir chairman Sir Robert Smith in a statement delivered at the 109th annual general meeting. Traditionally Weir reports stronger operating results in the second half of the year. This pattern is expected to be repeated in 2003.
THOMAS REVISES DOWN Q2 EARNINGS OUTLOOK Thomas Industries Inc is anticipating a US$0.04-0.07 fall in second quarter earnings per share, mainly the result of Thomas’s lighting joint venture with The Genlyte Group Inc. Genlyte is expecting a 10–15% decrease in earnings for the second quarter on a
year ago, due to translation losses of approximately US$1.5 million–2.0 million on US dollar denominated monetary assets in its Canadian divisions. Thomas CEO Timothy Brown said that while global economies remain very soft, particularly in core markets like Germany and Japan, the company still expects sales and operating income increases for the Pump and Compressor business, primarily as a result of the August 2002 acquisition of Rietschle. Thomas’s Pump and Compressor business has also been impacted by foreign currency losses, running at approximately US$350 000 (pre-tax) so far in the second quarter of 2003.
CRANE ACQUIRES ETEX’S PIPE COUPLING AND FITTINGS Crane Ltd has purchased Etex Group SA’s pipe coupling and fittings businesses, including the Victaulic, Viking Johnson, Helden and Wask branded products, for £17.3 million in cash and assumed debt. The transaction includes the purchase of business assets in the UK related to Victaulic, Viking Johnson and Wask brands, and associated shares of GPS Couplings BV (Netherlands). These businesses provide pipe jointing and repair solutions to the water, gas and industrial markets worldwide. The product range includes grooved pipe systems, pipeline couplings and transition fittings and pipeline equipment. Significant customers include water utilities and gas transmission companies, and large European contractors and distributors. In 2002 these businesses had sales of approximately £36 million with 33% of sales coming from outside of the UK.
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