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SKF completes Willy Vogel acquisition
SKF COMPLETES WILLY VOGEL ACQUISITION Willy Vogel AG is now part of SKF, the Swedish bearing group, following a SKr650 million payment to the private equity firm Hannover Finanz Group, which has owned the German group since 1988 (see Pump Industry Analyst, May 2004). SKF has also taken over Vogel’s net debts of approximately SKr60 million. Vogel, which has annual sales of about SKr1000 million and 940 employees, specializes in lubrication systems. The company’s Spandau Pumps division manufactures liquid pumps for a range of industrial and process engineering applications. Through this acquisition SKF has established a new engineering platform - lubrication systems - to add to the company’s bearings, seals, linear motion products/ mechatronics and reliability systems. Lubrication systems will be part of SKF’s Industrial Division and will operate as a separate business unit.
OEM OPPORTUNITIES FOR PUMP SUPPLIERS Suppliers of air and water pollution control equipment and suppliers of power plant generating systems will purchase more than US$112 billion of products and services annually for the next five years. The McIlvaine Co, publisher of The OEM Networking Directory, says it has analyzed the needs of 10 000 companies engaged in supplying goods and services for air pollution control, water pollution control, liquid filtration and separation, water treatment, power plant combustion and steam
Pump Industry Analyst
generating systems, and contamination control systems. According to McIlvaine, most suppliers do not even physically manufacture the core product or element in the systems they sell. Pumps, valves, controls instrumentation, mechanical contracting, and other products and services are therefore sub-contracted. As a result, the most important market for many product and service suppliers is the OEM and not the end user. While most system suppliers are purchasing all the components from other sources, McIlvaine says that there is a move by some systems suppliers to integrate vertically. General Electric (GE), for example, has purchased suppliers of both air and water treatment equipment which are needed for GE power generation systems. Siemens has followed a similar path with its recent purchase of USFilter. ITT Industries, however has taken a different route. As a supplier of pumps and valves, it has expanded vertically upward with the acquisition of companies supplying water pollution control systems. For more information on The OEM Networking Directory visit www.mcilvainecompany.com.
METSO OUTLINES MANAGEMENT AGENDA FOR 2004–2005 Metso Corp is aimimg for 6% operating profit and 12% return on capital employed in 2005. The Finnish company outlined its management agenda for 2004–2005 at Metso’s Capital Markets Day for analysts and investors, which was held in Helsinki at the end of June. Metso Minerals, which includes Svedala Pumps, is targeting a 7% increase in operating profit next year.
Financial Calendar
August 2004 KSB Interim Report January–June 2004 GEA Half Year Report 2004 3 August 2004 Pfeiffer Vacuum Half Year Results 2004 5 August 2004 Wisconsin Energy Q2 2004 Results 6 August 2004 Andritz Q2 2004 Results 10 August 2004 Cardo Interim Report January–June 2004 13 August 2004 GEA Annual General Shareholders’ Meeting 16 August 2004 Alfa Laval Second Quarter Report 20 August 2004 Johnson Pump Second Quarter Results 25 August 2004 Sulzer Semi-Annual Closing 2004 Weir Interim Announcement 31 August 2004 Layne Christensen Earnings Announcement September 2004 Wood Group Interim Results 7 September 2004 Alfa Laval Capital Markets Day 22 October 2004 Alfa Laval Third Quarter Report 25 October 2004 Sulzer Order Intake 9 Months 2004 28 October 2004 Metso Interim Review for January–September 2004 2 November 2004 Cardo Interim Report January–September 2004 Pfeiffer Vacuum Nine Months Results 2004
IN BRIEF • Flowserve is to distribute Inpro/Seal bearing isolators to select aftermarket accounts of the Flowserve Flow Solutions Division. Andy Beall, Flowserve Flow Solutions’ president, said that the decision to move forward with Inpro/Seal is in line with the company's commitment to execute on its end-user strategy. • KSB’s PumpExpert - a device for pump monitoring, diagnosis and transfer of relevant information - has won this year’s Useware prize. Useware is a conference of the VDI/VDE association for measuring and automation technology for experts from industry and the sciences. The Useware prize is awarded to innovative and user-oriented technical developments. • Stuart Turner Ltd is expanding production capacity at its Henley-onThames, UK pump manufacturing facility with the installation of another machining centre, bringing the total number of computer controlled machining centres to five. The company has also increased its factory production headcount by more than 10% to meet demand. “We have enjoyed a sustained period of growth in recent months and the indications are that demand will continue to be buoyant for the forseeable future,” said Stuart Turner managing director Adrian Mettam. • Glasgow, UK-headquartered Weir Engineering Services has secured The National Safety Award from the British Safety Council, for the first time. Only companies with below average accident rates are eligible to receive the award.
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NEWS/CALENDAR/IN BRIEF
August 2004
OEM OPPORTUNITIES FOR PUMP SUPPLIERS Suppliers of air and water pollution control equipment and suppliers of power plant generating systems will purchase more than US$112 billion of products and services annually for the next five years. The McIlvaine Co, publisher of The OEM Networking Directory, says it has analyzed the needs of 10 000 companies engaged in supplying goods and services for air pollution control, water pollution control, liquid filtration and separation, water treatment, power plant combustion and steam
Pump Industry Analyst
generating systems, and contamination control systems. According to McIlvaine, most suppliers do not even physically manufacture the core product or element in the systems they sell. Pumps, valves, controls instrumentation, mechanical contracting, and other products and services are therefore sub-contracted. As a result, the most important market for many product and service suppliers is the OEM and not the end user. While most system suppliers are purchasing all the components from other sources, McIlvaine says that there is a move by some systems suppliers to integrate vertically. General Electric (GE), for example, has purchased suppliers of both air and water treatment equipment which are needed for GE power generation systems. Siemens has followed a similar path with its recent purchase of USFilter. ITT Industries, however has taken a different route. As a supplier of pumps and valves, it has expanded vertically upward with the acquisition of companies supplying water pollution control systems. For more information on The OEM Networking Directory visit www.mcilvainecompany.com.
METSO OUTLINES MANAGEMENT AGENDA FOR 2004–2005 Metso Corp is aimimg for 6% operating profit and 12% return on capital employed in 2005. The Finnish company outlined its management agenda for 2004–2005 at Metso’s Capital Markets Day for analysts and investors, which was held in Helsinki at the end of June. Metso Minerals, which includes Svedala Pumps, is targeting a 7% increase in operating profit next year.
Financial Calendar
August 2004 KSB Interim Report January–June 2004 GEA Half Year Report 2004 3 August 2004 Pfeiffer Vacuum Half Year Results 2004 5 August 2004 Wisconsin Energy Q2 2004 Results 6 August 2004 Andritz Q2 2004 Results 10 August 2004 Cardo Interim Report January–June 2004 13 August 2004 GEA Annual General Shareholders’ Meeting 16 August 2004 Alfa Laval Second Quarter Report 20 August 2004 Johnson Pump Second Quarter Results 25 August 2004 Sulzer Semi-Annual Closing 2004 Weir Interim Announcement 31 August 2004 Layne Christensen Earnings Announcement September 2004 Wood Group Interim Results 7 September 2004 Alfa Laval Capital Markets Day 22 October 2004 Alfa Laval Third Quarter Report 25 October 2004 Sulzer Order Intake 9 Months 2004 28 October 2004 Metso Interim Review for January–September 2004 2 November 2004 Cardo Interim Report January–September 2004 Pfeiffer Vacuum Nine Months Results 2004
IN BRIEF • Flowserve is to distribute Inpro/Seal bearing isolators to select aftermarket accounts of the Flowserve Flow Solutions Division. Andy Beall, Flowserve Flow Solutions’ president, said that the decision to move forward with Inpro/Seal is in line with the company's commitment to execute on its end-user strategy. • KSB’s PumpExpert - a device for pump monitoring, diagnosis and transfer of relevant information - has won this year’s Useware prize. Useware is a conference of the VDI/VDE association for measuring and automation technology for experts from industry and the sciences. The Useware prize is awarded to innovative and user-oriented technical developments. • Stuart Turner Ltd is expanding production capacity at its Henley-onThames, UK pump manufacturing facility with the installation of another machining centre, bringing the total number of computer controlled machining centres to five. The company has also increased its factory production headcount by more than 10% to meet demand. “We have enjoyed a sustained period of growth in recent months and the indications are that demand will continue to be buoyant for the forseeable future,” said Stuart Turner managing director Adrian Mettam. • Glasgow, UK-headquartered Weir Engineering Services has secured The National Safety Award from the British Safety Council, for the first time. Only companies with below average accident rates are eligible to receive the award.
13
NEWS/CALENDAR/IN BRIEF
August 2004