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PCC warns of weakness in major markets
November
Pump Industry Analyst
450 JOBS GO AT
SULZER PUMPS Sulzer has given more details of its recently-announced restructuring programme, with following discussions representatives employee (see Pump Industry Analyst, October 1999). Within Roteq Sulzer compressors), (pumps and Sulzer Pumps capacities will be adjusted and process optimisation will be introduced. This will involve about 300 job losses in Europe, and 150 in North and South America. Sulzer Pumps employed 3565 people at the end of 1998 and this has remained largely unchanged to date. Sulzer Burckhardt’s compressor business in Switzerland will be concentrated at the Oberwinterthur site by the end of 2000. Cornpany headquarters will be transferred from Basle to Winterthur, including about 140 of the 370 workers in Basle. Overall there will be 1900 job losses worldwide, 880 of which will be in Switzerland, 500 in the rest of Europe and 500 outside of Europe. The redundancies number of involved has not yet been finalised, as some activities may be divested. The expected figure, however, lies between 1300 and 1550 worldwide.
WICOR MAKES FURTHER ACQUISITIONS Wicor has added two more pump companies to its growing manufacturing base. Simcr pump, a division of the Rival Company of Kansas City, Missouri, and Western Dispensing Technologies Inc, of Santa Barbara, California, had combined 1998 revenues of more than us$23 million. Both acquisitions were cash 1 transactions. Simer Pump, a Rival company since 1992, manufactures a line of sump, utility, waterwell
and battery operated pumps that aresold in both domestic and overseas markets. Holmes Products COT acquired Rival in February this year. The divestment of the pump business, which accounted for net sales of approximately US$19 million during the 12 months ended 30 June 1999, is part of Holmes’ ongoing strategy for integrating the Rival acquisition. Simer will strengthen Wicor’s position in the hardware and home centre sales channel, where its Sta-Rite subsidiary is already a strong player. The plan is to integrate Simer’s product line into StaRite’s manufacturing operations in Delavan, Wisconsin. Western Technologies designs and manufactures chemical dispensing systems used in commercial laundry, institutional and janitorial applications. The acquisition gives Wicor access to the attractive metering pump dispense systems market, is a good strategic fit with strategy niche-market Wicor’s Shurflo subsidiary. Since the beginning of
and and the of this
year, Wicor has acquired four manufacturing companies, with combined revenues totalling nearly US$50 million. Omni Corporation, an Indiana filtration company, and Cuma SA, a Mexican pump manufacturer, were acquired in June (see Pump Industry Analyst, July 1999).
ITT INDUSTRIES GROWTH ON TARGET Speaking at the 29th Annual Bank of America Securities Investment Conference in San Francisco, ITT Industries chairman and executive Travis chief Engen said the company is on track to meet its stated growth goals, and will continue to use its cash flow and balance sheet to fund further acquisitions.
1999
“Through some definitive moves to refine our portfolio over the last two years, we now have a powerful combination of higher-return businesses in attractive markets, and a solid cash flow and balance sheet to accelerate our growth,” Engen said. “Some important recent business wins and acquisitions have positioned us to meet our growth goals for 1999 and beyond.” Engen reiterated long-term growth targets for the company: earnings-per-share growth of 14- 16% per year, driven by revenue growth of 8-10% per year and segment operating margin expansion to 12% by 2003. Revenue growth will come through new product development, expansion into new markets, and through acquisitions. Margin expansion will be driven by new products.
PCC WARNS OF WEAKNESS IN MAJOR MARKETS Precision Castparts Corp is facing continued softness in its major end markets, which will affect the company’s second quarter results. “We are experiencing less favourable conditions in three major product lines - structural aircraft engine components, fluid management products for the oil and gas industry, and machine tools - than we had planned at the beginning of our fiscal year,” says William McCormick, chairman and chief executive officer. PCC Flow Technologies, which relies on the energy market for about 40% of its sales, has not yet reaped any of the benefits of the higher oil and gas prices, warns McCormick. Because petrochemical and chemical refining customers are still not spending money on projects, Newman’s Valves, Johnston Pumps, Barber Industries and Penberthy are showing weak results in the second quarter.
02167 Printed by Maytield Press (Oxford) Limited, UK.
Pump Industry Analyst
450 JOBS GO AT
SULZER PUMPS Sulzer has given more details of its recently-announced restructuring programme, with following discussions representatives employee (see Pump Industry Analyst, October 1999). Within Roteq Sulzer compressors), (pumps and Sulzer Pumps capacities will be adjusted and process optimisation will be introduced. This will involve about 300 job losses in Europe, and 150 in North and South America. Sulzer Pumps employed 3565 people at the end of 1998 and this has remained largely unchanged to date. Sulzer Burckhardt’s compressor business in Switzerland will be concentrated at the Oberwinterthur site by the end of 2000. Cornpany headquarters will be transferred from Basle to Winterthur, including about 140 of the 370 workers in Basle. Overall there will be 1900 job losses worldwide, 880 of which will be in Switzerland, 500 in the rest of Europe and 500 outside of Europe. The redundancies number of involved has not yet been finalised, as some activities may be divested. The expected figure, however, lies between 1300 and 1550 worldwide.
WICOR MAKES FURTHER ACQUISITIONS Wicor has added two more pump companies to its growing manufacturing base. Simcr pump, a division of the Rival Company of Kansas City, Missouri, and Western Dispensing Technologies Inc, of Santa Barbara, California, had combined 1998 revenues of more than us$23 million. Both acquisitions were cash 1 transactions. Simer Pump, a Rival company since 1992, manufactures a line of sump, utility, waterwell
and battery operated pumps that aresold in both domestic and overseas markets. Holmes Products COT acquired Rival in February this year. The divestment of the pump business, which accounted for net sales of approximately US$19 million during the 12 months ended 30 June 1999, is part of Holmes’ ongoing strategy for integrating the Rival acquisition. Simer will strengthen Wicor’s position in the hardware and home centre sales channel, where its Sta-Rite subsidiary is already a strong player. The plan is to integrate Simer’s product line into StaRite’s manufacturing operations in Delavan, Wisconsin. Western Technologies designs and manufactures chemical dispensing systems used in commercial laundry, institutional and janitorial applications. The acquisition gives Wicor access to the attractive metering pump dispense systems market, is a good strategic fit with strategy niche-market Wicor’s Shurflo subsidiary. Since the beginning of
and and the of this
year, Wicor has acquired four manufacturing companies, with combined revenues totalling nearly US$50 million. Omni Corporation, an Indiana filtration company, and Cuma SA, a Mexican pump manufacturer, were acquired in June (see Pump Industry Analyst, July 1999).
ITT INDUSTRIES GROWTH ON TARGET Speaking at the 29th Annual Bank of America Securities Investment Conference in San Francisco, ITT Industries chairman and executive Travis chief Engen said the company is on track to meet its stated growth goals, and will continue to use its cash flow and balance sheet to fund further acquisitions.
1999
“Through some definitive moves to refine our portfolio over the last two years, we now have a powerful combination of higher-return businesses in attractive markets, and a solid cash flow and balance sheet to accelerate our growth,” Engen said. “Some important recent business wins and acquisitions have positioned us to meet our growth goals for 1999 and beyond.” Engen reiterated long-term growth targets for the company: earnings-per-share growth of 14- 16% per year, driven by revenue growth of 8-10% per year and segment operating margin expansion to 12% by 2003. Revenue growth will come through new product development, expansion into new markets, and through acquisitions. Margin expansion will be driven by new products.
PCC WARNS OF WEAKNESS IN MAJOR MARKETS Precision Castparts Corp is facing continued softness in its major end markets, which will affect the company’s second quarter results. “We are experiencing less favourable conditions in three major product lines - structural aircraft engine components, fluid management products for the oil and gas industry, and machine tools - than we had planned at the beginning of our fiscal year,” says William McCormick, chairman and chief executive officer. PCC Flow Technologies, which relies on the energy market for about 40% of its sales, has not yet reaped any of the benefits of the higher oil and gas prices, warns McCormick. Because petrochemical and chemical refining customers are still not spending money on projects, Newman’s Valves, Johnston Pumps, Barber Industries and Penberthy are showing weak results in the second quarter.
02167 Printed by Maytield Press (Oxford) Limited, UK.