November 2002
ALFA LAVAL
FOCUSES ON
FUTURE
GROWTH
Alfa Laval is actively contin-
uing efforts to create a more
efficient organization and to
further increase profitability
and growth.
Speaking at the company’s
recent Capital Market Day in
Lund, Sweden, CEO and pres-
ident Sigge Haraldsson
described the group’s internal
efforts to create a more effi-
cient organization.
Alfa Laval’s “Beyond
Expectations” project is
designed to reduce costs by
SKr800 million–SKr1000 mil-
lion. To date the project has
achieved savings of SKr650
million–SKr700 million.
The company has identi-
fied a number of different steps
for future growth. Alfa Laval
says it wants to protect and use
the potential of its existing
products; to develop products
and the marketing organization
with customer needs in mind;
and to put more effort into the
profitable aftermarket, which
now represents 26% of the
group’s total revenues.
Alfa Laval is also working
on developing new market
concepts and adding new core
products such as the acquisi-
tion of Danish membrane filter
manufacturer DSS (see Pump
Industry Analyst, October
2002).
TIMKEN BUYS
TORRINGTON
FROM
INGERSOLL-RAND
The Timken Co has reached
an agreement with Ingersoll-
Rand Co Ltd to acquire its
Torrington subsidiary, a
leading worldwide producer
of needle roller, heavy-duty
roller and ball bearings and
motion control components
and assemblies, in an
US$840 million cash and
stock deal.
When the deal is complet-
ed, Timken will be the world’s
third largest bearing company
with approximately US$3.6
billion in annual revenues,
global leadership positions in
the needle and tapered roller
bearing and alloy steel ind-
ustries, and operations on six
continents.
The strategic acquisition of
Torrington, which had 2001
sales of US$1.1 billion, signif-
icantly broadens Timken’s
existing portfolio of automo-
tive and industrial bearings-
based products and service
solutions and expands the
global size and scope of
Timken’s business.
JOHN CRANE
BENEFITS FROM
REDUCED COSTS
Smiths Group’s Sealing
Solutions division has report-
ed interim turnover of £822
million and operating profit
of £100 million.
While sales in the Sealing
Solutions division declined by
8% in the first six months of
2002, the improvements in
productivity achieved during
the year restricted the decline
in profits to 4%.
Following a number of dis-
posals, including the marine
seals business to Finland’s
Wartsila in April, Sealing
Solutions is now focused on
John Crane mechanical seals
and the polymer seals business.
For John Crane, moving
elements of production to
Mexico and the Czech
Republic has significantly
reduced the cost base, and ear-
lier investments in supply
chain management and lean
enterprise initiatives appear to
be paying off.
The aftermarket, including
the Performance Plus total care
package, has been relatively
firm. Despite the general
industrial slowdown, aftermar-
ket sales remained steady year-
on-year and profitability
improved sharply.
The Polymer Seals busi-
ness experienced a more diffi-
cult year. The depressed
European capital equipment
market, particularly hydraulic
plant and machinery, caused
sales to fall. As in John Crane,
moving production to lower
cost countries and the out-
sourcing of components are
part of the process of margin
improvement.
SKELLMAX
CONFIRMS
STRONG YEAR
New Zealand’s Skellmax
Industries Ltd says it has
achieved a strong perform-
ance from all group activities
in the 30 June 2002 year.
“Our results on a full 12
months basis demonstrate that
Skellmax is soundly based and
trading well,” said chairman
Keith Smith. “The strengths of
our two core businesses,
Skellerup and Flomax during
the period, are fully reflected
in the strong performance.”
Earnings before interest
and tax for the 12 months
ended 30 June 2002 were
NZ$19.21 million, an increase
of approximately NZ$3 mil-
lion on the pro-forma result of
the combined businesses for
the year ended 30 June 2001.
Managing director Donald
Stewart said Flomax had
enjoyed an excellent year. The
Flomax dairy division is look-
ing to consolidate its position
as a world leader in the manu-
facture of dairy vacuum pumps
while the company believes
that its Flomax Industrial divi-
sion is well positioned, in its
core US market, as the leading
manufacturer/distributor of
rotary vane vacuum pumps for
installation on liquid waste
removal trucks.
Skellmax Industries suc-
cessfully listed on the New
Zealand Stock Exchange on 19
June 2002, issuing 100 millon
shares to approximately 7000
shareholders (see Pump
Industry Analyst, July 2002).
Pump Industry Analyst
IN BRIEF
• Mono Pumps has reduced
the lead times on its range
of pumps, Munchers,
screens and packaged sys-
tems by more than 50%.
The Mono range of pro-
gressing cavity pumps can
now be delivered with a lead
time of between one and
four weeks, which Mono
claims is among the quick-
est in the industry. Simon
Lambert, European logistics
manager at Mono Pumps,
said the company had exam-
ined and made significant
changes to its manufactur-
NEWS/DIVIDENDS
ing processes as part of a
pro-active drive to provide
faster turnaround and added
value to customers.
• For a limited time A-C
Pump and Goulds Pumps
are both offering savings of
up to 50% on most sizes of
Trash Hog solids handling,
self-priming centrifugal
pumps. These pumps are
designed to handle raw
sewage, sludge and debris-
laden wastewater.
• China Steel Corp estimates
that the two ABB ACS 1000
medium-voltage drives that
power the water supply
plant at its steel mill in
Taiwan will save 2.93 mil-
lion kWh and 65 000 tons of
water per year - an annual
saving of more than
US$170 000. The drives
were installed as part of a
programme to upgrade
process quality and reduce
energy and water costs.
• Corac Group plc’s down-
hole gas compression proj-
ect, which is a joint devel-
opment with Weir Pumps,
has completed its first phase
to the satisfaction of Shell.
• GIW has implemented a
new minimum order policy.
There is now a US$50 ship-
ping and handling fee on
all orders with a value of
less than US$100. This
charge will apply to non-
blanket orders.
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