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Pentair to sell Valves & Controls unit to Emerson
4
Business news
WORLD PUMPS
November 2016
Grundfos posts improved half-year profits Grundfos’s earnings before interest and tax (EBIT) for the first six months of 2016 increased by 29% on 2015, from DKK637 million to DKK824 million. Half-year 2016 turnover however slipped 2.5% to almost DKK11.6 billion. “Targeted efforts in bringing down production and material costs and improving prices and product mix have improved our margins significantly, and we have maintained our high focus on the fixed costs. We are thus satisfied with the development in the earnings during the first six months. But we need to re-create growth in sales, and this will be a long haul in a difficult market,” said Grundfos group president Mads Nipper.
The Danish pump company has seen growth return in China as well as in other Asian markets including India. Most of Latin America showed positive signs in the first half of 2016, while OEM sales to large boiler manufacturers delivered solid growth. Sales were down in the US market following a very strong performance in 2015. The Russian market remains challenging for Grundfos, while sales in Europe are at a similar level to last year. Sales also declined in the Middle East where the market was affected by the fall in oil prices. Grundfos says that accelerated efforts within technical innovation, digital solutions and services will pave the way for renewed growth.
“We are continuing the execution of our 2020 strategy, where Grundfos will become an even stronger supplier of systems and knowledge to our customers,” said Nipper. “We will in the coming period focus even more on digitalization, service and new technological innovation, which will further strengthen our leading position in the market. This is a major change for Grundfos, but also a unique opportunity to play an even bigger role in solving the world’s challenges around water and climate change.” www.grundfos.com
Grundfos CEO Mads Nipper.
Pentair to sell Valves & Controls unit to Emerson Pentair plc has reached an agreement to sell its Valves & Controls business to Emerson in a US$3.15 billion deal. Pentair acquired the Valves & Controls business in 2012 through an all-stock merger with the Flow
Control business of Tyco International Ltd.
segments, all of which we believe have attractive growth characteristics.”
Randall Hogan, Pentair chairman and CEO, said: “We expect this transaction to provide Pentair the ability to advance our strategy, drive growth, and focus resources on three
When the transaction closes, Pentair’s business will consist of three segments: Water Quality Systems, Flow & Filtration Solutions, and Technical Solutions.
“We remain narrowly diversified, which allows us to prioritise investments and affords us opportunities to grow organically and use our strengthened balance sheet as opportunities arise,” said Hogan. www.pentair.com
Flowserve CEO Mark Blinn to retire Flowserve Corp’s Mark Blinn is planning to retire as president, chief executive officer and a member of the board of directors. Blinn, who joined Flowserve in 2004 and was named CEO in 2009, will continue to serve as president and CEO until a successor is appointed. “After 12 years at Flowserve and seven as CEO, and as the company begins its next phase of
www.worldpumps.com
growth and development, the board and I believe that now is the right time to initiate this planned transition of leadership responsibilities,” said Blinn. “Over the last year and a half, we have focused on restructuring our business, optimizing our manufacturing footprint and realigning our workforce to position the company for growth and value creation through the current market cycle and beyond. While there is more work to be done, I
know that Flowserve has the right plan and the right team in place to achieve its objectives. I am committed and look forward to continuing to lead Flowserve for the next several months.” The Flowserve board has initiated a search to identify a successor to Blinn. “The board and Mark have been discussing succession planning for some time, and we are confident
that the orderly search process we are now undertaking will ensure a smooth transition for Flowserve and all of our stakeholders. As we look forward, we intend to identify a leader who will build on Flowserve’s strong operating platform, creating enhanced value for shareholders, partners, employees, and the company’s other stakeholders,” said William Rusnack, chairman of the Flowserve board. www.flowserve.com
Business news
WORLD PUMPS
November 2016
Grundfos posts improved half-year profits Grundfos’s earnings before interest and tax (EBIT) for the first six months of 2016 increased by 29% on 2015, from DKK637 million to DKK824 million. Half-year 2016 turnover however slipped 2.5% to almost DKK11.6 billion. “Targeted efforts in bringing down production and material costs and improving prices and product mix have improved our margins significantly, and we have maintained our high focus on the fixed costs. We are thus satisfied with the development in the earnings during the first six months. But we need to re-create growth in sales, and this will be a long haul in a difficult market,” said Grundfos group president Mads Nipper.
The Danish pump company has seen growth return in China as well as in other Asian markets including India. Most of Latin America showed positive signs in the first half of 2016, while OEM sales to large boiler manufacturers delivered solid growth. Sales were down in the US market following a very strong performance in 2015. The Russian market remains challenging for Grundfos, while sales in Europe are at a similar level to last year. Sales also declined in the Middle East where the market was affected by the fall in oil prices. Grundfos says that accelerated efforts within technical innovation, digital solutions and services will pave the way for renewed growth.
“We are continuing the execution of our 2020 strategy, where Grundfos will become an even stronger supplier of systems and knowledge to our customers,” said Nipper. “We will in the coming period focus even more on digitalization, service and new technological innovation, which will further strengthen our leading position in the market. This is a major change for Grundfos, but also a unique opportunity to play an even bigger role in solving the world’s challenges around water and climate change.” www.grundfos.com
Grundfos CEO Mads Nipper.
Pentair to sell Valves & Controls unit to Emerson Pentair plc has reached an agreement to sell its Valves & Controls business to Emerson in a US$3.15 billion deal. Pentair acquired the Valves & Controls business in 2012 through an all-stock merger with the Flow
Control business of Tyco International Ltd.
segments, all of which we believe have attractive growth characteristics.”
Randall Hogan, Pentair chairman and CEO, said: “We expect this transaction to provide Pentair the ability to advance our strategy, drive growth, and focus resources on three
When the transaction closes, Pentair’s business will consist of three segments: Water Quality Systems, Flow & Filtration Solutions, and Technical Solutions.
“We remain narrowly diversified, which allows us to prioritise investments and affords us opportunities to grow organically and use our strengthened balance sheet as opportunities arise,” said Hogan. www.pentair.com
Flowserve CEO Mark Blinn to retire Flowserve Corp’s Mark Blinn is planning to retire as president, chief executive officer and a member of the board of directors. Blinn, who joined Flowserve in 2004 and was named CEO in 2009, will continue to serve as president and CEO until a successor is appointed. “After 12 years at Flowserve and seven as CEO, and as the company begins its next phase of
www.worldpumps.com
growth and development, the board and I believe that now is the right time to initiate this planned transition of leadership responsibilities,” said Blinn. “Over the last year and a half, we have focused on restructuring our business, optimizing our manufacturing footprint and realigning our workforce to position the company for growth and value creation through the current market cycle and beyond. While there is more work to be done, I
know that Flowserve has the right plan and the right team in place to achieve its objectives. I am committed and look forward to continuing to lead Flowserve for the next several months.” The Flowserve board has initiated a search to identify a successor to Blinn. “The board and Mark have been discussing succession planning for some time, and we are confident
that the orderly search process we are now undertaking will ensure a smooth transition for Flowserve and all of our stakeholders. As we look forward, we intend to identify a leader who will build on Flowserve’s strong operating platform, creating enhanced value for shareholders, partners, employees, and the company’s other stakeholders,” said William Rusnack, chairman of the Flowserve board. www.flowserve.com