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Porvair to sell two companies for £4.75M
Filtration Industry Analyst
NEWS/ECONOMIC REVIEW
Continued from page 13 will be made once the chemicals division has been sold. The functions of mg’s holding company and those of GEA AG will then be merged. At this stage a decision will be made as to whether this will require the group’s head office to be relocated. mg is conducting talks with employee representatives in order to minimize any adverse impact of these headcount reductions at the holding companies.
PORVAIR TO SELL TWO COMPANIES FOR £4.75M Materials science group Porvair plc is to sell two of its companies, Porvair International and Porvair Ceramics, to a management buy-out team. The deal, likely to total £4.75 million, has been approved by shareholders and will be completed as soon as practicable. Porvair CEO Ben Stocks said proceeds from the disposal would be used to reduce the Group’s debt and allow it to concentrate on its remaining holdings, Porvair Filtration Group (PFG) and its fuel cell company Porvair Science. “We are delighted to have delivered on our stated strategy and disposed of our non-core businesses,” he said. “The continuing businesses are trading well and the board is optimistic about the prospects for the Group. Our well-positioned, cash generative specialist filtration businesses and new materials technologies offer an appropriately balanced portfolio to address exciting market opportunities.” Porvair plans to sell the two businesses to a company set up by their respective managing directors, Alistair Tait and Mark Littlewood. The pair are to develop the businesses as private companies, and are expected to retain the majority of the 230 workforce at the
14
December 2003
facilities, both of which are located in Kings Lynn, UK. Porvair Ceramics specializes in moulds and cast systems for the manufacturers of ceramic sanitaryware and tableware, while Porvair International makes hi-tech materials that are used to make clothing waterproof and improve the performance of leather. Excluded from the sale are Porvair International’s 25% shareholding in Sympatex and Permair Leathers Ltd. The latter firm is a small Canadian subsidiary that Porvair plc intends to shut down during the next 12 months. As part of the deal, Porvair is expected to move its corporate headquarters to the USA, where the company’s emerging fuel cell business is based.
FLOTTWEG INTEGRATES VERONESI SEPARATORI German-based separation firm, the Flottweg Group, has integrated the development, design and manufacturing activities of its Italian-based subsidiary Veronesi Separatori into its own operations. The company said the move was designed to centralize all of the Group’s engineering and production resources into one location, namely Vilsbiburg in Germany, to optimize business efficiency. Bologna-based Veronesi, a specialist in the manufacture of vertical disc centrifuges, will remain responsible for sales and service operations. Flottweg produces a range of separation equipment, including solid bowl centrifuge and belt presses. Its products are used in the mining, petrochemical, chemical, pharmaceutical, food and machining industries, as well as in environmental applications. In 2001, it had 360 employees worldwide and achieved a turnover of nearly 60 million.
ECONOMIC REVIEW New orders for US manufactured goods in October 2003 rose US$7.3 billion or 2.2% to US$341.2 billion, according to the US Department of Commerce, Census Bureau. This is the fifth increase in the last six months and follows a 1.4% September rise. Year to date, new orders for 2003 were 3.1% above the same period a year ago. New orders for manufactured durable goods in October grew 3.4% to US$184.9 billion, while new orders for nondurable goods improved by 0.7% to US$156.3 billion. Shipments Shipments increased by 0.7% to US$339.9 billion – also the fifth increase in the last six months – following a 1.8% rise in September. Year-to-date shipments were 2.1% above the same period of 2002. Shipments of manufactured durable goods rose 0.6% to US$183.5 billion. Computers and electronic products shipments were US$36.5 billion, the highest level since April 2001. Semiconductors led the improvement, with shipments in this area growing by US$0.7 billion. Within manufactured nondurable goods, shipments of which increased 0.7% to US$156.3 billion, basic chemicals had the largest rise of 2.1% to US$40.0 billion.
Inventories of manufactured durable goods in October climbed 0.2% to US$262.3 billion, the first rise since December 2002. Transportation equipment, up following four consecutive declines, had the largest improvement at 0.5% to US$67.6 billion.
EXCHANGE RATES AGAINST THE US DOLLAR Date: 9 December 2003 COUNTRY Australia
RATE A$1.36
Austria
0.82
Belgium
0.82
Canada
C$1.31
China
Yn8.28
Denmark
DKr6.10
Finland
0.82
France
0.82
Germany
0.82
India
Rs45.52
Italy
0.82
Japan
¥107.47
Malaysia
Rt3.80
Netherlands
0.82
Norway Philippines
Unfilled orders Unfilled orders, up eight of the past nine months, rose 1.6% to US$499.6 billion. The comparable increase in September was 0.4%. The unfilled ordersto-shipments ratio was 4.04, up from 4.00 in September.
Singapore
Inventories Inventories rose US$0.2 billion to US$438.5 billion, following five consecutive drops. The inventories-to-shipments ratio was 1.29, down from 1.30 in September.
South Africa
NKr6.66 Peso55.32 S$1.71 R6.42
South Korea Won1185.50 Spain
0.82
Sweden
SKr7.32
Switzerland
SFr1.27
Taiwan
T$33.99
Thailand
Bt39.78
UK USA
£0.57 US$1.00
NEWS/ECONOMIC REVIEW
Continued from page 13 will be made once the chemicals division has been sold. The functions of mg’s holding company and those of GEA AG will then be merged. At this stage a decision will be made as to whether this will require the group’s head office to be relocated. mg is conducting talks with employee representatives in order to minimize any adverse impact of these headcount reductions at the holding companies.
PORVAIR TO SELL TWO COMPANIES FOR £4.75M Materials science group Porvair plc is to sell two of its companies, Porvair International and Porvair Ceramics, to a management buy-out team. The deal, likely to total £4.75 million, has been approved by shareholders and will be completed as soon as practicable. Porvair CEO Ben Stocks said proceeds from the disposal would be used to reduce the Group’s debt and allow it to concentrate on its remaining holdings, Porvair Filtration Group (PFG) and its fuel cell company Porvair Science. “We are delighted to have delivered on our stated strategy and disposed of our non-core businesses,” he said. “The continuing businesses are trading well and the board is optimistic about the prospects for the Group. Our well-positioned, cash generative specialist filtration businesses and new materials technologies offer an appropriately balanced portfolio to address exciting market opportunities.” Porvair plans to sell the two businesses to a company set up by their respective managing directors, Alistair Tait and Mark Littlewood. The pair are to develop the businesses as private companies, and are expected to retain the majority of the 230 workforce at the
14
December 2003
facilities, both of which are located in Kings Lynn, UK. Porvair Ceramics specializes in moulds and cast systems for the manufacturers of ceramic sanitaryware and tableware, while Porvair International makes hi-tech materials that are used to make clothing waterproof and improve the performance of leather. Excluded from the sale are Porvair International’s 25% shareholding in Sympatex and Permair Leathers Ltd. The latter firm is a small Canadian subsidiary that Porvair plc intends to shut down during the next 12 months. As part of the deal, Porvair is expected to move its corporate headquarters to the USA, where the company’s emerging fuel cell business is based.
FLOTTWEG INTEGRATES VERONESI SEPARATORI German-based separation firm, the Flottweg Group, has integrated the development, design and manufacturing activities of its Italian-based subsidiary Veronesi Separatori into its own operations. The company said the move was designed to centralize all of the Group’s engineering and production resources into one location, namely Vilsbiburg in Germany, to optimize business efficiency. Bologna-based Veronesi, a specialist in the manufacture of vertical disc centrifuges, will remain responsible for sales and service operations. Flottweg produces a range of separation equipment, including solid bowl centrifuge and belt presses. Its products are used in the mining, petrochemical, chemical, pharmaceutical, food and machining industries, as well as in environmental applications. In 2001, it had 360 employees worldwide and achieved a turnover of nearly 60 million.
ECONOMIC REVIEW New orders for US manufactured goods in October 2003 rose US$7.3 billion or 2.2% to US$341.2 billion, according to the US Department of Commerce, Census Bureau. This is the fifth increase in the last six months and follows a 1.4% September rise. Year to date, new orders for 2003 were 3.1% above the same period a year ago. New orders for manufactured durable goods in October grew 3.4% to US$184.9 billion, while new orders for nondurable goods improved by 0.7% to US$156.3 billion. Shipments Shipments increased by 0.7% to US$339.9 billion – also the fifth increase in the last six months – following a 1.8% rise in September. Year-to-date shipments were 2.1% above the same period of 2002. Shipments of manufactured durable goods rose 0.6% to US$183.5 billion. Computers and electronic products shipments were US$36.5 billion, the highest level since April 2001. Semiconductors led the improvement, with shipments in this area growing by US$0.7 billion. Within manufactured nondurable goods, shipments of which increased 0.7% to US$156.3 billion, basic chemicals had the largest rise of 2.1% to US$40.0 billion.
Inventories of manufactured durable goods in October climbed 0.2% to US$262.3 billion, the first rise since December 2002. Transportation equipment, up following four consecutive declines, had the largest improvement at 0.5% to US$67.6 billion.
EXCHANGE RATES AGAINST THE US DOLLAR Date: 9 December 2003 COUNTRY Australia
RATE A$1.36
Austria
0.82
Belgium
0.82
Canada
C$1.31
China
Yn8.28
Denmark
DKr6.10
Finland
0.82
France
0.82
Germany
0.82
India
Rs45.52
Italy
0.82
Japan
¥107.47
Malaysia
Rt3.80
Netherlands
0.82
Norway Philippines
Unfilled orders Unfilled orders, up eight of the past nine months, rose 1.6% to US$499.6 billion. The comparable increase in September was 0.4%. The unfilled ordersto-shipments ratio was 4.04, up from 4.00 in September.
Singapore
Inventories Inventories rose US$0.2 billion to US$438.5 billion, following five consecutive drops. The inventories-to-shipments ratio was 1.29, down from 1.30 in September.
South Africa
NKr6.66 Peso55.32 S$1.71 R6.42
South Korea Won1185.50 Spain
0.82
Sweden
SKr7.32
Switzerland
SFr1.27
Taiwan
T$33.99
Thailand
Bt39.78
UK USA
£0.57 US$1.00