- Email: [email protected]
Pentair authorises share repurchase plan
January 1990
Pump Industry Analyst
HI COMMITS TO TOTAL LIFE CYCLE COSTS "In most cases it costs more to operate a pump for one year than it does to buy the original pump," observes Robert Asdal, executive director of the Hydraulic Institute (HI), the largest association of pump producers in North America. To address this issue, HI has formed a committee to specifically locus on energy efficiency and the life cycle cost of pump systems. The new Total Life Cycle Cost Committee's goal is to write a user guide book and to provide other resources to help pump purchasers, specifiers, manufacturers and distributors realise maximum savings for the full life of their pumps, beyond the initial cost of the pump. Asdal says to accurately determine pump cost, the life cycle of the pump must be considered. "An average 20 per cent reduction in operating costs can pay for the cost of a pump in a little over a year's time, depending on the pump's annual operating hours. That is why basing a purchase on initial cost alone can be veu~ short-sighted." The H1 already offers an hour-long video-based educa.tion programme on energy reduction in pumps and pumping systems, developed in conjunction with the US Department of Energy. The new committee, led by Gunnar Hovstadius, director of technology at ITT Fluid Technology Corp, consists of highlevel representatives from more than 12 pump manufacturers, as well as representatives from the US Department of Energy. The committee plans to work closely with Europump, and its correspond-
ing working group ENERSAVE, to develop a user guide for the lifecycle cost approach. Both the HI and Europump recently met at the HI's offices in Parsippany, New Jersey. In addition, the US Department of Energy is considering finding a software programme that would assist users in calculating total lifecycle cost for purchase decisions. In announcing the Total Life Cycle Cost Committee's launch, HI has asked for input from individuals in various industry sectors who have experience of purchasing or using pumps with a total life cycle approach. Case studies by various end-user markets, will then be added to the guide. Feedback from the field will help the committee's efforts by enabling it to present the life cycle cost to specifiers, manufacturers, distributors, owners and users of pumps, by defining methods of calculating life cycle cost (LCC), including design, procurement, installation, operation, maintenance, repair, decommissioning and disposal of pumping systems and by developing tools which enable the LCC of alternative pump systems to be compared on a consistent basis in order to reduce the total cost of ownership. If you are interested in providing information regarding your experience with the Total Life Cycle Cost approach, please contact John H Doolin, HI Technical Affairs Manager, Hydraulic Institute, 9 Sylvan Way, Parsippany, NJ 07054, USA. Tel: +1 973 267 7772 Fax: +1 973 267 9055
INGERSOLL-RAND CHANGES REPORTING SEGMENTS Ingersoll-Rand Company has reconfigured its financial reporting segments to more accurately reflect the company's dramatically changed business portfolio. Financial reporting using the new segments will start with the release of 1998 fourth-quarter and full-year earnings, scheduled for the end of January. "Our company has changed significantly over the past five years, becoming more diversified to the point where no single market represents more than 13 per cent of overall company sales," said James E Pen-ella, chairman, president and chief executive officer. "The new reporting segments provide greater clarity about the types of businesses that IngersollRand now comprises." The four new segments are Specialty Vehicles; Air & Temperature Control; Hardware & Tools; and Engineered Products, which includes bearings and components, and pumps used in industrial, commercial and municipal applications. These new segments replace three segments comprising Standard Machinery, Engineered Equipment and Bearings, Locks and Tools. With the change, the company will restate its segment results for 1996, 1997 and 1998. Ingersoll-Rand also confirmed that it remains on target to achieve fourth-quarter and full-year 1998 earnings in line with analyst consensus. "We have previously stated an estimate for 1998 full-year earnings of US$3.05 per share, and we remain comfortable with that number," Perrella said. He added that business in the fourth quarter had been good in most major markets, and that the company expected total operating margins to increase on last year. Free cash
flow after dividends remains strong, and is expected to exceed US$500 million for the full-year 1998. "For 1999, we anticipate moderate growth in North America and Europe and continued reduction in costs through productivity improvement and strategic-sourcing initiatives. As a result, we foresee 1999 EPS growth in the 12-15 per cent range," said Perrella.
PENTAIR AUTHORISES SHARE REPURCHASE PLAN Pentair's board of directors has authorised the repurchase on an annual basis of up to 400 000 shares of Pentair common stock. Purchases will be made periodically in the open market by block purchases or private transactions. The share repurchase is intended to offset the dilution caused by stock issuances under employee stock compensation plans. As of 30 September 1998, Pentair had 38 402 505 shares of common stock outstanding. Pentair pump brands include Myers, Fairbanks Morse, Aurora, and Hydromatic.
TELETRAK COMPLETES AES MERGER Greenwich, Connecticutbased Helm Capital Group Inc's subsidiary, Teletrak Advanced Technology Systems Inc has merged with Advanced Environmental Systems Inc (AES) of Webster, Massachusetts. Under the transaction, AES became a wholly-owned subsidiary of Teletrak, which has now changed its name to Teletrak Environmental Systems Inc. AES specialises in the manufacture, distribution and licensing of industrial mucking pumps and related equipment.
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Pump Industry Analyst
HI COMMITS TO TOTAL LIFE CYCLE COSTS "In most cases it costs more to operate a pump for one year than it does to buy the original pump," observes Robert Asdal, executive director of the Hydraulic Institute (HI), the largest association of pump producers in North America. To address this issue, HI has formed a committee to specifically locus on energy efficiency and the life cycle cost of pump systems. The new Total Life Cycle Cost Committee's goal is to write a user guide book and to provide other resources to help pump purchasers, specifiers, manufacturers and distributors realise maximum savings for the full life of their pumps, beyond the initial cost of the pump. Asdal says to accurately determine pump cost, the life cycle of the pump must be considered. "An average 20 per cent reduction in operating costs can pay for the cost of a pump in a little over a year's time, depending on the pump's annual operating hours. That is why basing a purchase on initial cost alone can be veu~ short-sighted." The H1 already offers an hour-long video-based educa.tion programme on energy reduction in pumps and pumping systems, developed in conjunction with the US Department of Energy. The new committee, led by Gunnar Hovstadius, director of technology at ITT Fluid Technology Corp, consists of highlevel representatives from more than 12 pump manufacturers, as well as representatives from the US Department of Energy. The committee plans to work closely with Europump, and its correspond-
ing working group ENERSAVE, to develop a user guide for the lifecycle cost approach. Both the HI and Europump recently met at the HI's offices in Parsippany, New Jersey. In addition, the US Department of Energy is considering finding a software programme that would assist users in calculating total lifecycle cost for purchase decisions. In announcing the Total Life Cycle Cost Committee's launch, HI has asked for input from individuals in various industry sectors who have experience of purchasing or using pumps with a total life cycle approach. Case studies by various end-user markets, will then be added to the guide. Feedback from the field will help the committee's efforts by enabling it to present the life cycle cost to specifiers, manufacturers, distributors, owners and users of pumps, by defining methods of calculating life cycle cost (LCC), including design, procurement, installation, operation, maintenance, repair, decommissioning and disposal of pumping systems and by developing tools which enable the LCC of alternative pump systems to be compared on a consistent basis in order to reduce the total cost of ownership. If you are interested in providing information regarding your experience with the Total Life Cycle Cost approach, please contact John H Doolin, HI Technical Affairs Manager, Hydraulic Institute, 9 Sylvan Way, Parsippany, NJ 07054, USA. Tel: +1 973 267 7772 Fax: +1 973 267 9055
INGERSOLL-RAND CHANGES REPORTING SEGMENTS Ingersoll-Rand Company has reconfigured its financial reporting segments to more accurately reflect the company's dramatically changed business portfolio. Financial reporting using the new segments will start with the release of 1998 fourth-quarter and full-year earnings, scheduled for the end of January. "Our company has changed significantly over the past five years, becoming more diversified to the point where no single market represents more than 13 per cent of overall company sales," said James E Pen-ella, chairman, president and chief executive officer. "The new reporting segments provide greater clarity about the types of businesses that IngersollRand now comprises." The four new segments are Specialty Vehicles; Air & Temperature Control; Hardware & Tools; and Engineered Products, which includes bearings and components, and pumps used in industrial, commercial and municipal applications. These new segments replace three segments comprising Standard Machinery, Engineered Equipment and Bearings, Locks and Tools. With the change, the company will restate its segment results for 1996, 1997 and 1998. Ingersoll-Rand also confirmed that it remains on target to achieve fourth-quarter and full-year 1998 earnings in line with analyst consensus. "We have previously stated an estimate for 1998 full-year earnings of US$3.05 per share, and we remain comfortable with that number," Perrella said. He added that business in the fourth quarter had been good in most major markets, and that the company expected total operating margins to increase on last year. Free cash
flow after dividends remains strong, and is expected to exceed US$500 million for the full-year 1998. "For 1999, we anticipate moderate growth in North America and Europe and continued reduction in costs through productivity improvement and strategic-sourcing initiatives. As a result, we foresee 1999 EPS growth in the 12-15 per cent range," said Perrella.
PENTAIR AUTHORISES SHARE REPURCHASE PLAN Pentair's board of directors has authorised the repurchase on an annual basis of up to 400 000 shares of Pentair common stock. Purchases will be made periodically in the open market by block purchases or private transactions. The share repurchase is intended to offset the dilution caused by stock issuances under employee stock compensation plans. As of 30 September 1998, Pentair had 38 402 505 shares of common stock outstanding. Pentair pump brands include Myers, Fairbanks Morse, Aurora, and Hydromatic.
TELETRAK COMPLETES AES MERGER Greenwich, Connecticutbased Helm Capital Group Inc's subsidiary, Teletrak Advanced Technology Systems Inc has merged with Advanced Environmental Systems Inc (AES) of Webster, Massachusetts. Under the transaction, AES became a wholly-owned subsidiary of Teletrak, which has now changed its name to Teletrak Environmental Systems Inc. AES specialises in the manufacture, distribution and licensing of industrial mucking pumps and related equipment.
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