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Pall expands South American and African holdings
Filtration
November
Industry Analyst
TRION AND MCLEOD RUSSEL END MERGER PLANS IThe merger agreement between Trion Inc and McLeod Russel Holdings plc, signed in August, has been terminated by mutual consent (see Filtration Industry 4nalyst, September 1998). In September, the companies announced that McLeod Russel intended to postpone a scheduled meeting of its shareholders to consider the proposed merger. At the time, McLeod Russel said the meeting would be adjourned in light of new information concerning Trion’s operating results, which were substantially below forecast (see Filtration Industry Analyst, October 1998). Trion’s third quarter results, released after the termination was announced, saw net sales drop 21 per cent to from US$12.3 million US$15.7 million reported a year ago. The fall is due to a steep drop in shipments to the microelectronics market as well as the ongoing problems caused hy the Asian financial crisis. Together, the microelectronics and Asian markets comprise approximately onethird of the company’s business. One-time charges taken, including those related to the terminated merger agreement with McLeod Russel, resulted in a net loss of US$744 000 for the quarter, compared with nel income of US$534 000 a year ago. Net income for the third quarter was hit by the lowel sales volume, as well ar US$873 000 in one-time charges. These charges included transaction costs for the ter. minated merger agreemen] including legal, accounting and investment banking fees. Steven L Schneider, Trier president and chief executivt officer, said the first half o: 1998 was a strong operating
>eriod for Trion. Despite :losely monitoring the micro:lectronics and Asian situa:ions, the drop in these critical markets was quicker and deep:r than anticipated. Trion’s outlook for the fourth quarter remains guarded. While business in the major markets is :xpected to improve over the third quarter, total sales will nontinue to be down as a result of the microelectronics and Asian situations. Schneider said the mutual termination was the result of fundamental differences between the two companies. While Trion believes a business combination with the right partner could have merit, the company has agreed to pursue business opportunities separately from McLeod Russel. Since the termination, Trion’s board of directors has reviewed the strategic alternatives available to the company and has determined not to pursue a sale of the company at this time, pending year-end results. However, the board will consider unsolicited expressions of interest it might receive from third parties.
PALL EXPANDS SOUTH AMERICAN AND AFRICAN HOLDINGS By acquiring the businesses of its distributors, Pall Corporation has established subsidiary operations in South America and Africa. In order to fully develop its market in South America, Pall has established Pall Technologies SA, in Buenos Aires, Argentina. The operations, which include Scientific and Laboratory Services, will serve all Pall markets throughout Central and South America and will act as a base for further expansi.on in Latin America. Pall is also setting up a South African base in Halfway
1998
louse. Pall South Africa dready has a strong presence n the region’s pharmaceutical, ?!od and beverage and indusrial hydraulics markets. The :ompany will focus on south:m Africa’s industrial markets tnd will serve as a foundation br expansion within Africa.
SARTORIUS REPORTSSTRONG IMPROVEMENT :erman separation products :ompany the Sartorius IGroup earned DM20.7 milion in income before taxes luring the first nine months ,f 1998, up from DM12.5 nillion reported for the same period last year. This 66 per cent jump in ncome reflects the restructurng and elimination of lossnaking subsidiaries. For jartorius AG, the parent corloration, income before taxes eemained constant at DM7.3 nillion. The Group reported a 51 per cent increase in its operating result to DM22.2 million [or the first nine months of this year, up from DM 14.7 million. All three divisions contributed :o this improvement. The Group’s operating return on sales was 6.7 per :ent, well above the 6.0 pel zent targeted for the entire year. This is the highest return on sales ever reported in the history of the corporation. Nel sales for the Group rose slightly to DM333.6 million. While the Separation Technology ant Hydrodynamic Bearings Divisions continued their positive business development, the Weighing Technology Div. ision was unable to fully offsel the decline in sales in Asia. Despite economic difficul. ties in Asia, Russia and South America, Sartorius expects tc achieve moderate sales growth for fiscal 1998, with continuer improvement in profitability. Sartorius headquartered, ir Goettingen, Germany, employ! more than 2000 people.
02207
Printed
by Professional
Book
Supplies,
Oxon,
UK.
November
Industry Analyst
TRION AND MCLEOD RUSSEL END MERGER PLANS IThe merger agreement between Trion Inc and McLeod Russel Holdings plc, signed in August, has been terminated by mutual consent (see Filtration Industry 4nalyst, September 1998). In September, the companies announced that McLeod Russel intended to postpone a scheduled meeting of its shareholders to consider the proposed merger. At the time, McLeod Russel said the meeting would be adjourned in light of new information concerning Trion’s operating results, which were substantially below forecast (see Filtration Industry Analyst, October 1998). Trion’s third quarter results, released after the termination was announced, saw net sales drop 21 per cent to from US$12.3 million US$15.7 million reported a year ago. The fall is due to a steep drop in shipments to the microelectronics market as well as the ongoing problems caused hy the Asian financial crisis. Together, the microelectronics and Asian markets comprise approximately onethird of the company’s business. One-time charges taken, including those related to the terminated merger agreement with McLeod Russel, resulted in a net loss of US$744 000 for the quarter, compared with nel income of US$534 000 a year ago. Net income for the third quarter was hit by the lowel sales volume, as well ar US$873 000 in one-time charges. These charges included transaction costs for the ter. minated merger agreemen] including legal, accounting and investment banking fees. Steven L Schneider, Trier president and chief executivt officer, said the first half o: 1998 was a strong operating
>eriod for Trion. Despite :losely monitoring the micro:lectronics and Asian situa:ions, the drop in these critical markets was quicker and deep:r than anticipated. Trion’s outlook for the fourth quarter remains guarded. While business in the major markets is :xpected to improve over the third quarter, total sales will nontinue to be down as a result of the microelectronics and Asian situations. Schneider said the mutual termination was the result of fundamental differences between the two companies. While Trion believes a business combination with the right partner could have merit, the company has agreed to pursue business opportunities separately from McLeod Russel. Since the termination, Trion’s board of directors has reviewed the strategic alternatives available to the company and has determined not to pursue a sale of the company at this time, pending year-end results. However, the board will consider unsolicited expressions of interest it might receive from third parties.
PALL EXPANDS SOUTH AMERICAN AND AFRICAN HOLDINGS By acquiring the businesses of its distributors, Pall Corporation has established subsidiary operations in South America and Africa. In order to fully develop its market in South America, Pall has established Pall Technologies SA, in Buenos Aires, Argentina. The operations, which include Scientific and Laboratory Services, will serve all Pall markets throughout Central and South America and will act as a base for further expansi.on in Latin America. Pall is also setting up a South African base in Halfway
1998
louse. Pall South Africa dready has a strong presence n the region’s pharmaceutical, ?!od and beverage and indusrial hydraulics markets. The :ompany will focus on south:m Africa’s industrial markets tnd will serve as a foundation br expansion within Africa.
SARTORIUS REPORTSSTRONG IMPROVEMENT :erman separation products :ompany the Sartorius IGroup earned DM20.7 milion in income before taxes luring the first nine months ,f 1998, up from DM12.5 nillion reported for the same period last year. This 66 per cent jump in ncome reflects the restructurng and elimination of lossnaking subsidiaries. For jartorius AG, the parent corloration, income before taxes eemained constant at DM7.3 nillion. The Group reported a 51 per cent increase in its operating result to DM22.2 million [or the first nine months of this year, up from DM 14.7 million. All three divisions contributed :o this improvement. The Group’s operating return on sales was 6.7 per :ent, well above the 6.0 pel zent targeted for the entire year. This is the highest return on sales ever reported in the history of the corporation. Nel sales for the Group rose slightly to DM333.6 million. While the Separation Technology ant Hydrodynamic Bearings Divisions continued their positive business development, the Weighing Technology Div. ision was unable to fully offsel the decline in sales in Asia. Despite economic difficul. ties in Asia, Russia and South America, Sartorius expects tc achieve moderate sales growth for fiscal 1998, with continuer improvement in profitability. Sartorius headquartered, ir Goettingen, Germany, employ! more than 2000 people.
02207
Printed
by Professional
Book
Supplies,
Oxon,
UK.