- Email: [email protected]
New HQ for Alfa Laval Flow
Pump Industry Analyst
February 1999
FARREL FORECASTS SHARP IMPROVEMENT IN 1998
SCROLL COMPRESSORS FORCE CHARGE AT TECUMSEH
Farrel Corporation of Ansonia, Connecticut, a global supplier of processing equipment and related services to the rubber and plastics industries, expects 1998 net income of US$2.0 million. The earnings estimate compares with net income of US$1.3 million in 1997. Net sales for 1998 are expected to reach almost US$98 million, compared with US$85.4 million in 1997. The 1998 sales total includes a full year of revenue from UK-based Farrel Shaw Ltd, acquired in December 1997 from EIS Group plc, now part of TI Group. Rolf K Liebergesell, chairman and chief executive of Farrel, noted that the earnings improvement of 1998 was achieved despite a US$2.1 miL lion net loss by Fanel Shaw. Farrel expects to recover as much as US$4.6 million from EIS Group under a contractual profit guarantee that was part of the purchase agreement. The money will come to Farrel as a non-taxable reduction in the purchase price. "Actions we have taken since the purchase of Farrel Shaw, along with an improvement in Fanel Shaw's order prospects, causes us to expect a considerable improvement in that operation's operating results in 1999," Liebergesell said. Farrel Shaw's operations will relocate into the Farrel Ltd plant in the first quarter of 1999. Farrel designs and manufactures machinery used to process robber and plastics. The company's products include mixers, extruders, plastic compounders, pelletisers. gear pumps, calenders and mills. Farrel also provides repair, refurbishment and machinery upgrade services.
Tecumseh Products Company will take a nonrecurring charge of US$45 million for the fourth quarter of 1998 to reflect a write down in the assets associated with development and introduction of the company's scroll compressor product line. The US$45 million charge will mean that Tecumseh Products will report a consolidated net loss for the fourth quarter of 1998. The company anticipates that operating results for the fourth quarter and the full year of 1998, excluding the nonrecurring charge, will be higher than the corresponding 1997 periods. During 1998, Tecumseh Products made substantial progress in the development of its scroll compressor product, incorporating several design modifications of earlier scroll concepts. The new product has been tested favorably in the company's laboratories and will soon be offered for sale in limited quantities and configurations.
10
TYCO REPORTS 42% Q1 EPS INCREASE Strong operating results in all segments have contributed to another record quarter at Tyco International Ltd. The diversified manufacturing and service company reported first quarter diluted earnings per share, before extraordinary items, of US$0.61 per share, a 42 per cent increase over last year's US$043 per share. Income before acquisition related charges and extraordinary items rose to US$401.6 million, an increase of 52 per cent
over last year's US$265.0 million. Sales for the quarter rose 28 per cent to US$3.82 billion compared with last year's US$2.99 billion. "Strong organic growth across each of our four business segments and all geographies drove Tyco's record performance in the first quarter," said L Dennis Kozlowski, Tyco's chairman and chief executive officer. "We remain on track to meet our year-end goals of record revenues, earnings and cash flows. Additionally, the acquisition of AMP, which will close in late March, will further strengthen our business mix and immediately add to earnings per share." First quarter earnings at the Tyco Flow Control group increased 30 per cent to US$93.5 million from US$71.9 million last year. Sales were US$652.5 million compared with the prior year's US$550.0 million. Each of the operating units in this segment contributed to higher volume and operating margins during the quarter. Demand for the company's expanding valve product lines continues to grow in the USA, Europe and the Pacific.
£3.3M NORTH SEA ORDER BOOST Weir Pumps and sister company Begemann have won orders worth nearly £3.3 million, to supply the main topside pumping equipment for the Texaco Captain expansion project in the North Sea. They will design and manufacture a package of seawater injection pumpsets and charge pumps, under contracts awarded by Kvaerner Oil & Gas. The equipment, made from Weir's Zeron 25 stainless steel and featuring variable speed drives, is due for delivery this summer. The platform will be installed 90 miles north-east of Aberdeen in summer 2000, with first production later that year.
The Captain reservoir requires downhole pumps to artificially lift well fluids to the surface. The world's first hydraulic submersible pump, developed by Weir Pumps in association with Texaco, was successfully tested in a Captain A producing well last summer.
HAMWORTHY UPGRADES IT INFRASTRUCTURE Hamworthy Pumps and Compressors is investing £360 000 in software to improve the distribution of information across its strategic business units. QAD, a provider of Enterprise Resource Planning (ERP) and extended supply chain management software, will install its MFG/PRO ERP software, allowing Hamworthy to manage the configuration of new product quotations, purchasing, manufacturing, aftersales service and spares support. Based in Poole, Dorset, UK, Hamworthy Pumps and Compressors serves the worldwide marine market.
NEW HQ FOR ALFA LAVAL FLOW Alfa Laval Flow has moved to new headquarters at Somerset House in Redhill, near London's Gatwick Airport. "The new head office is a proof that we now have a real Flow Centre from which we can provide full support worldwide," says Flow president Manuel Saez. Alfa Lavai Flow has recently implemented a new organisation that includes two segment-oriented divisions: Industrial Flow and Sanitary Flow. The new organisation should allow better integration of Flow in the Alfa Laval Group, increased service to customers and improved support to distributors.
February 1999
FARREL FORECASTS SHARP IMPROVEMENT IN 1998
SCROLL COMPRESSORS FORCE CHARGE AT TECUMSEH
Farrel Corporation of Ansonia, Connecticut, a global supplier of processing equipment and related services to the rubber and plastics industries, expects 1998 net income of US$2.0 million. The earnings estimate compares with net income of US$1.3 million in 1997. Net sales for 1998 are expected to reach almost US$98 million, compared with US$85.4 million in 1997. The 1998 sales total includes a full year of revenue from UK-based Farrel Shaw Ltd, acquired in December 1997 from EIS Group plc, now part of TI Group. Rolf K Liebergesell, chairman and chief executive of Farrel, noted that the earnings improvement of 1998 was achieved despite a US$2.1 miL lion net loss by Fanel Shaw. Farrel expects to recover as much as US$4.6 million from EIS Group under a contractual profit guarantee that was part of the purchase agreement. The money will come to Farrel as a non-taxable reduction in the purchase price. "Actions we have taken since the purchase of Farrel Shaw, along with an improvement in Fanel Shaw's order prospects, causes us to expect a considerable improvement in that operation's operating results in 1999," Liebergesell said. Farrel Shaw's operations will relocate into the Farrel Ltd plant in the first quarter of 1999. Farrel designs and manufactures machinery used to process robber and plastics. The company's products include mixers, extruders, plastic compounders, pelletisers. gear pumps, calenders and mills. Farrel also provides repair, refurbishment and machinery upgrade services.
Tecumseh Products Company will take a nonrecurring charge of US$45 million for the fourth quarter of 1998 to reflect a write down in the assets associated with development and introduction of the company's scroll compressor product line. The US$45 million charge will mean that Tecumseh Products will report a consolidated net loss for the fourth quarter of 1998. The company anticipates that operating results for the fourth quarter and the full year of 1998, excluding the nonrecurring charge, will be higher than the corresponding 1997 periods. During 1998, Tecumseh Products made substantial progress in the development of its scroll compressor product, incorporating several design modifications of earlier scroll concepts. The new product has been tested favorably in the company's laboratories and will soon be offered for sale in limited quantities and configurations.
10
TYCO REPORTS 42% Q1 EPS INCREASE Strong operating results in all segments have contributed to another record quarter at Tyco International Ltd. The diversified manufacturing and service company reported first quarter diluted earnings per share, before extraordinary items, of US$0.61 per share, a 42 per cent increase over last year's US$043 per share. Income before acquisition related charges and extraordinary items rose to US$401.6 million, an increase of 52 per cent
over last year's US$265.0 million. Sales for the quarter rose 28 per cent to US$3.82 billion compared with last year's US$2.99 billion. "Strong organic growth across each of our four business segments and all geographies drove Tyco's record performance in the first quarter," said L Dennis Kozlowski, Tyco's chairman and chief executive officer. "We remain on track to meet our year-end goals of record revenues, earnings and cash flows. Additionally, the acquisition of AMP, which will close in late March, will further strengthen our business mix and immediately add to earnings per share." First quarter earnings at the Tyco Flow Control group increased 30 per cent to US$93.5 million from US$71.9 million last year. Sales were US$652.5 million compared with the prior year's US$550.0 million. Each of the operating units in this segment contributed to higher volume and operating margins during the quarter. Demand for the company's expanding valve product lines continues to grow in the USA, Europe and the Pacific.
£3.3M NORTH SEA ORDER BOOST Weir Pumps and sister company Begemann have won orders worth nearly £3.3 million, to supply the main topside pumping equipment for the Texaco Captain expansion project in the North Sea. They will design and manufacture a package of seawater injection pumpsets and charge pumps, under contracts awarded by Kvaerner Oil & Gas. The equipment, made from Weir's Zeron 25 stainless steel and featuring variable speed drives, is due for delivery this summer. The platform will be installed 90 miles north-east of Aberdeen in summer 2000, with first production later that year.
The Captain reservoir requires downhole pumps to artificially lift well fluids to the surface. The world's first hydraulic submersible pump, developed by Weir Pumps in association with Texaco, was successfully tested in a Captain A producing well last summer.
HAMWORTHY UPGRADES IT INFRASTRUCTURE Hamworthy Pumps and Compressors is investing £360 000 in software to improve the distribution of information across its strategic business units. QAD, a provider of Enterprise Resource Planning (ERP) and extended supply chain management software, will install its MFG/PRO ERP software, allowing Hamworthy to manage the configuration of new product quotations, purchasing, manufacturing, aftersales service and spares support. Based in Poole, Dorset, UK, Hamworthy Pumps and Compressors serves the worldwide marine market.
NEW HQ FOR ALFA LAVAL FLOW Alfa Laval Flow has moved to new headquarters at Somerset House in Redhill, near London's Gatwick Airport. "The new head office is a proof that we now have a real Flow Centre from which we can provide full support worldwide," says Flow president Manuel Saez. Alfa Lavai Flow has recently implemented a new organisation that includes two segment-oriented divisions: Industrial Flow and Sanitary Flow. The new organisation should allow better integration of Flow in the Alfa Laval Group, increased service to customers and improved support to distributors.