- Email: [email protected]
Sulzer Pumps sales slip as orders post strong gains
MARCH 2004 ISSN 1359-6128 www.worldpumps.com
NEWS
FLOWSERVE ACQUIRES THOMPSONS, KELLY & LEWIS Flowserve Corp has acquired the remaining shares of Thompsons, Kelly & Lewis Pty Ltd (TKL) , the Australian manufacturer and supplier of centrifugal pumps, railway trackwork products and steel castings, in a US$11.3 million cash deal. TKL is headquartered in Castlemaine, Australia and had revenues in 2003 of about US$36 million. Previously, TKL was 75% owned by BTR Engineering (Australia) Ltd, a subsidiary of Invensys plc, and 25% owned by Flowserve. “This acquisition is part of Flowserve’s overall strategy to become the preferred global supplier of flow motion and control products and services,” said Tom Ferguson, president of the Flowserve Pump Division. “It fits the Pump Division’s growth plans by adding products complementary to Flowserve’s existing portfolio, strengthening our product offering in the mining industry and broadening our manufacturing footprint in the Asia Pacific region.” TKL has a network of sales offices and service facilities in Australia and
in New Zealand with additional sales representation in Singapore, East Asia, the Middle East and Africa. Flowserve says that these markets are strategically important for the US pump, valve and seal company to achieve its growth objectives. The addition of TKL pumps will also complement and expand Flowserve’s portfolio of pump products, particularly in the mining and mineral processing markets. TKL’s metallic and nonmetallic slurry and abrasives handling pumps are also used extensively in the food processing, pulp and paper, steel, agriculture and power generation industries. Brand names include Thompsons Kelly & Lewis (TKL), Ingersoll-Dresser Pumps (IDP), Ingersoll-Rand, Worthington, Pacific, Pleuger, Giles & Gaskin, Pegson and Jeumont Schneider. The TKL acquisition also gives Flowserve a modern and extensive manufacturing base and foundry capacity in the Asia Pacific region, as well as the largest pump testing facility in Australia.
For a number of years TKL has been the principal distributor of Flowserve products and spare parts in Australia, New Zealand and the Pacific Islands, covering process and water pumps from IDP, Worthington, IngersollRand, Pleuger, Pacific and Jeumont Schneider. Flowserve said that it was also considering divesting some relatively small, noncore businesses that are not consistent with its growth strategies. The company did not however disclose the businesses being considered. Operating in 56 countries, Flowserve produces engineered and industrial pumps for the process industries, precision mechanical seals, automated and manual quarterturn valves, control valves and valve actuators, and provides a range of related flow management services.
COMMENT Long overdue, the acquisition of Thompsons, Kelly & Lewis gives Flowserve a strategically important Asia Pacific manufacturing and sales base, as well as a strengthened pump product portfolio, particularly in mining and mineral processing. At the same time Thompsons, Kelly & Lewis should benefit from a clearer focus under sole Flowserve ownership. ■
SULZER PUMPS SALES SLIP AS ORDERS POST STRONG GAINS Sulzer Pumps’ currency adjusted sales decreased 2% to SFr870 million in 2003, while orders received rose an impressive 7% to SFr951 million. During 2003 Sulzer Pumps experienced a weak pump market in North America, an acceptable level of pump demand in Europe, and a booming Asian region. Sulzer Pumps’ 2003 operating income before goodwill amortization and special charges related to the division’s recent restructuring climbed to SFr48 million, from SFr38 million in 2002. As a result, Sulzer Pumps increased its return on sales to 5.5%, from 4.1% in 2002. Sulzer Pumps’ farreaching improvement program, which was announced in December 2003 and included the loss of 240 jobs, caused restructuring costs of SFr23 million in 2003 (see Pump Industry Analyst, January 2004). Sulzer chairman Leonardo Vannotti said that under new management, Sulzer Pumps has performed the necessary change in direction. “We are confident that Sulzer Pumps, as the biggest division, will fulfill its role underpinning the corporation with solid profits and cash flow,” said Vannotti.
CONTENTS CALENDAR 10 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 12 ECONOMIC REVIEW 14 IN BRIEF 11,12,13 MARKET PROSPECTS 2–4 MARKET REPORT 11 NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15 ISSN 1359-6128/04 © 2004 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
NEWS
FLOWSERVE ACQUIRES THOMPSONS, KELLY & LEWIS Flowserve Corp has acquired the remaining shares of Thompsons, Kelly & Lewis Pty Ltd (TKL) , the Australian manufacturer and supplier of centrifugal pumps, railway trackwork products and steel castings, in a US$11.3 million cash deal. TKL is headquartered in Castlemaine, Australia and had revenues in 2003 of about US$36 million. Previously, TKL was 75% owned by BTR Engineering (Australia) Ltd, a subsidiary of Invensys plc, and 25% owned by Flowserve. “This acquisition is part of Flowserve’s overall strategy to become the preferred global supplier of flow motion and control products and services,” said Tom Ferguson, president of the Flowserve Pump Division. “It fits the Pump Division’s growth plans by adding products complementary to Flowserve’s existing portfolio, strengthening our product offering in the mining industry and broadening our manufacturing footprint in the Asia Pacific region.” TKL has a network of sales offices and service facilities in Australia and
in New Zealand with additional sales representation in Singapore, East Asia, the Middle East and Africa. Flowserve says that these markets are strategically important for the US pump, valve and seal company to achieve its growth objectives. The addition of TKL pumps will also complement and expand Flowserve’s portfolio of pump products, particularly in the mining and mineral processing markets. TKL’s metallic and nonmetallic slurry and abrasives handling pumps are also used extensively in the food processing, pulp and paper, steel, agriculture and power generation industries. Brand names include Thompsons Kelly & Lewis (TKL), Ingersoll-Dresser Pumps (IDP), Ingersoll-Rand, Worthington, Pacific, Pleuger, Giles & Gaskin, Pegson and Jeumont Schneider. The TKL acquisition also gives Flowserve a modern and extensive manufacturing base and foundry capacity in the Asia Pacific region, as well as the largest pump testing facility in Australia.
For a number of years TKL has been the principal distributor of Flowserve products and spare parts in Australia, New Zealand and the Pacific Islands, covering process and water pumps from IDP, Worthington, IngersollRand, Pleuger, Pacific and Jeumont Schneider. Flowserve said that it was also considering divesting some relatively small, noncore businesses that are not consistent with its growth strategies. The company did not however disclose the businesses being considered. Operating in 56 countries, Flowserve produces engineered and industrial pumps for the process industries, precision mechanical seals, automated and manual quarterturn valves, control valves and valve actuators, and provides a range of related flow management services.
COMMENT Long overdue, the acquisition of Thompsons, Kelly & Lewis gives Flowserve a strategically important Asia Pacific manufacturing and sales base, as well as a strengthened pump product portfolio, particularly in mining and mineral processing. At the same time Thompsons, Kelly & Lewis should benefit from a clearer focus under sole Flowserve ownership. ■
SULZER PUMPS SALES SLIP AS ORDERS POST STRONG GAINS Sulzer Pumps’ currency adjusted sales decreased 2% to SFr870 million in 2003, while orders received rose an impressive 7% to SFr951 million. During 2003 Sulzer Pumps experienced a weak pump market in North America, an acceptable level of pump demand in Europe, and a booming Asian region. Sulzer Pumps’ 2003 operating income before goodwill amortization and special charges related to the division’s recent restructuring climbed to SFr48 million, from SFr38 million in 2002. As a result, Sulzer Pumps increased its return on sales to 5.5%, from 4.1% in 2002. Sulzer Pumps’ farreaching improvement program, which was announced in December 2003 and included the loss of 240 jobs, caused restructuring costs of SFr23 million in 2003 (see Pump Industry Analyst, January 2004). Sulzer chairman Leonardo Vannotti said that under new management, Sulzer Pumps has performed the necessary change in direction. “We are confident that Sulzer Pumps, as the biggest division, will fulfill its role underpinning the corporation with solid profits and cash flow,” said Vannotti.
CONTENTS CALENDAR 10 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 12 ECONOMIC REVIEW 14 IN BRIEF 11,12,13 MARKET PROSPECTS 2–4 MARKET REPORT 11 NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15 ISSN 1359-6128/04 © 2004 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.