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Metso Minerals regroups
September 2003
NEWS
Pump Industry Analyst
MIXED INTERIM RESULTS FROM KSB
REBRAND FOR HOLDEN AND BROOKE, PULLEN
SULZER PUMPS SEES STRONG EBITA GROWTH
Germany’s KSB Group saw revenues fall by 5.7% to 516.6 million in the first six months of this year while order intake rose just 0.6%. The group’s German operations, KSB AG, reported a 7.5% decrease in revenues, while the Asia Pacific region and the Americas also showed revenue declines. However the European sales and service companies posted positive revenue gains as did KSB SAS in France. In terms of order intake, KSB AG achieved an 11.2% gain in order volume boosted by a number of large power plant orders. While Europe and Asia Pacific reported good growth in order intake levels, KSB’s American operations saw a marked decline in orders, which was mainly currency-related. Given the lower sales revenues, KSB Group made an interim loss before income tax of 6.9 million in the six months to 30 June 2003. This compares with a 3.0 million interim loss before income tax last year. KSB Group employee numbers remained almost unchanged at 11 946 at the mid-year point. The number of KSB employees in Europe was up by 202, reflecting the expansion of service activities, the acquisition of the valves factory in Lünen and the first consolidation of KSB Finland OY. Eighty six jobs were lost in the Americas and 101 in the Asia Pacific Region through personnel adjustments. The May 2003 acquisition of the Dutch pump supplier DP Industries BV is not reflected in these half-year numbers (see Pump Industry Analyst, May 2003 and June 2003).
Howard Anderson is consolidating its two large commercial building services brands, Pullen and Holden and Brooke into one new brand, Holden Brooke Pullen. Baric Pumps will continue to grow as a brand in the light commercial sector of the building services market and remains a key element of parent company Howard Anderson’s building services growth strategy. Pullen Pumps, currently based at Beddington Lane in Croydon, UK, will move to a new dedicated Holden Brooke Pullen sales, engineering and service operation based in Redhill from 1 September 2003. The new Redhill site will form the hub for the company’s planned growth in after sales service provision.
Mid-year numbers for Sulzer Pumps show a substantial improvement in operating income before goodwill amortization (EBITA) in the first six months of 2003 to SFr20 million, up from SFr15 million a year ago. This increase in EBITA reflects more critical order selection and cost-effective execution for the pump unit. Interim order intake, at SFr505 million, was 4% down on 2002. Adjusted for currency effects, however, order volume gained 7%. While sales declined 10% to SFr411 million, adjusted they increased by 1%. Sulzer Pumps’ business activity in the oil and gas segment developed very positively from January to June, while the power generation industry remained low worldwide. Looking ahead, Sulzer Pumps expects full year sales to be down on 2002 levels due to currency effects - but the division is forecasting an improved EBITA for 2003. For Sulzer Corp, group sales reached SFr866 million in the first six months of 2003, down 8% on last year, mainly reflecting currency effects. Adjusted, there was organic growth of 1%. Order intake, at SFr1001 million declined nominally by 4%, but increased by 5% after adjustment. Sulzer Corp’s first-half net income, at SFr25 million, was well down on 2002’s mid-year profit of SFr42 million, which included the gain from the Sulzer Burckhardt divestiture and a larger contribution from real estate operations. While the second half of the year remains challenging, Sulzer Corp expects that operating income for the four core divisions will be higher than last year, but that net income will remain lower.
16
METSO MINERALS REGROUPS Metso Minerals is reorganizing its operations to improve profitability and flexibility, bringing the business closer to customers. From 15 September 2003, the new organization will have six business lines: Crushing and Screening; Minerals Processing; Wear Protection and Conveying; Compaction and Paving; Recycling and Drilling. Minerals Processing, which includes Metso Horizontal Slurry Pumps, will be headed up by Andrew Benko. Metso hopes the move will clarify the roles and responsibilities between the business lines and the sales regions. Metso Minerals’ management board will consist of president Bertel Langenskiöld, chief financial officer Juha Seppälä as well as the presidents of all the business lines.
Editor Roisin Reidy Elsevier Advanced Technology PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.com. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Science Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.
NEWS
Pump Industry Analyst
MIXED INTERIM RESULTS FROM KSB
REBRAND FOR HOLDEN AND BROOKE, PULLEN
SULZER PUMPS SEES STRONG EBITA GROWTH
Germany’s KSB Group saw revenues fall by 5.7% to 516.6 million in the first six months of this year while order intake rose just 0.6%. The group’s German operations, KSB AG, reported a 7.5% decrease in revenues, while the Asia Pacific region and the Americas also showed revenue declines. However the European sales and service companies posted positive revenue gains as did KSB SAS in France. In terms of order intake, KSB AG achieved an 11.2% gain in order volume boosted by a number of large power plant orders. While Europe and Asia Pacific reported good growth in order intake levels, KSB’s American operations saw a marked decline in orders, which was mainly currency-related. Given the lower sales revenues, KSB Group made an interim loss before income tax of 6.9 million in the six months to 30 June 2003. This compares with a 3.0 million interim loss before income tax last year. KSB Group employee numbers remained almost unchanged at 11 946 at the mid-year point. The number of KSB employees in Europe was up by 202, reflecting the expansion of service activities, the acquisition of the valves factory in Lünen and the first consolidation of KSB Finland OY. Eighty six jobs were lost in the Americas and 101 in the Asia Pacific Region through personnel adjustments. The May 2003 acquisition of the Dutch pump supplier DP Industries BV is not reflected in these half-year numbers (see Pump Industry Analyst, May 2003 and June 2003).
Howard Anderson is consolidating its two large commercial building services brands, Pullen and Holden and Brooke into one new brand, Holden Brooke Pullen. Baric Pumps will continue to grow as a brand in the light commercial sector of the building services market and remains a key element of parent company Howard Anderson’s building services growth strategy. Pullen Pumps, currently based at Beddington Lane in Croydon, UK, will move to a new dedicated Holden Brooke Pullen sales, engineering and service operation based in Redhill from 1 September 2003. The new Redhill site will form the hub for the company’s planned growth in after sales service provision.
Mid-year numbers for Sulzer Pumps show a substantial improvement in operating income before goodwill amortization (EBITA) in the first six months of 2003 to SFr20 million, up from SFr15 million a year ago. This increase in EBITA reflects more critical order selection and cost-effective execution for the pump unit. Interim order intake, at SFr505 million, was 4% down on 2002. Adjusted for currency effects, however, order volume gained 7%. While sales declined 10% to SFr411 million, adjusted they increased by 1%. Sulzer Pumps’ business activity in the oil and gas segment developed very positively from January to June, while the power generation industry remained low worldwide. Looking ahead, Sulzer Pumps expects full year sales to be down on 2002 levels due to currency effects - but the division is forecasting an improved EBITA for 2003. For Sulzer Corp, group sales reached SFr866 million in the first six months of 2003, down 8% on last year, mainly reflecting currency effects. Adjusted, there was organic growth of 1%. Order intake, at SFr1001 million declined nominally by 4%, but increased by 5% after adjustment. Sulzer Corp’s first-half net income, at SFr25 million, was well down on 2002’s mid-year profit of SFr42 million, which included the gain from the Sulzer Burckhardt divestiture and a larger contribution from real estate operations. While the second half of the year remains challenging, Sulzer Corp expects that operating income for the four core divisions will be higher than last year, but that net income will remain lower.
16
METSO MINERALS REGROUPS Metso Minerals is reorganizing its operations to improve profitability and flexibility, bringing the business closer to customers. From 15 September 2003, the new organization will have six business lines: Crushing and Screening; Minerals Processing; Wear Protection and Conveying; Compaction and Paving; Recycling and Drilling. Minerals Processing, which includes Metso Horizontal Slurry Pumps, will be headed up by Andrew Benko. Metso hopes the move will clarify the roles and responsibilities between the business lines and the sales regions. Metso Minerals’ management board will consist of president Bertel Langenskiöld, chief financial officer Juha Seppälä as well as the presidents of all the business lines.
Editor Roisin Reidy Elsevier Advanced Technology PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com Permissions may be sought directly from Elsevier Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.com. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Science Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.