Profits fall for UK pump industry A report, entitled ‘The Pumps

Industry’ published by The

Prospect Shop, finds that many

UK companies operating in the

pumps industry have experi-

enced a disappointing financial

period between 1997 . 2000.

Despite a marginal decrease in

total sales by 1.2%, profits have

fallen by 21.6%. Margins have

consequently suffered with

declining profitability and in

addition to this, efficiency levels

have deteriorated. On a brighter

note, debt levels for the industry

have improved - forming a

steady grounding for the future of

the pumps industry.

The report analyses and com-

pares the financial performance

of 127 UK companies operating

in the pumps. Covering the last

full three accounting years,

(1997/1998 to 1999/2000) the

report provides individual

company and sub-sector (seal

manufacturers Csr distributors,

pump manufacturers, pump distributors, companies with

interests in pumps) analysis, as

well as performance averages for

the industry as a whole.

Key findings are:

*The total debt to net worth

figure over the three-year

period under review has

improved for the industry as a

whole, from 55.6% in 1997198

to 43.1% in the final year,

1999/2000.

*Average pay per employee for

the industry as a whole has

increased by 7.9% from

218,784 in 1997198 to g20,264

in the final year. Companies

with some of the highest pay

per employee results include

Liquid Metering Instruments 3.0 21.9 -1 Milton Roy (UK) 1.9 20.4 -15 Sulzer Process Pumps UK 2.2 16.2 -12 Hallite Seals International 9.6 16.2 -a International Seal (UK) 2.3 16.2 -3

-Average debtor days out-

standing has deteriorated

slightly from 72 days to 76

days during the three-year

period under review.

approximately SEK 2.5 billion

and is a business area in the

Cardo group and manufacturers

pumps, mixers and aerators for Blackmer Mouvex 3.4 15.8 -14 Hi-Tech Machinery 1.8 15.7 67

water and wastewater appli-

Deep Sea Seals 20.6 15.4 15 cations, industry and the building

TISPP UK 56.3 15.4 2 Stuart Turner 12.5 15.3 7

services sector. The company is

Overall Industry Average 5.7 0 also involved in the production

(Source: Business Ratio Report , The Pumps Indutrry) of measurement instruments for

the pulp and paper industry.

Orders

Despite the industry as a whole

suffering from a declining pre-tax

profit margin, some companies

fared better than others.

Calder Ltd and Genevac Ltd

at 536,000 and 533,017

respectively.

l Compound sales growth for the

1997-2000 period stands at 0%.

Companies showing best sales

growth performance for the

period include Ceetak Hold-

ings Ltd (365%), Genevac Ltd

(92%) and Tokheim (UK) Ltd

(72%).

*Average pre-tax profit margin

for the industry as a whole is

5.7% in 1999/00, having fallen

from 7.1% at the beginning of

the financial period under

review, 1997198.

*Average profit per pound of pay

for the industry has dropped

from SO.35 in 1997198 to CO.27

in the final year. Sulzer Process

Pumps (UK) Ltd and Liquid

Metering Instruments Ltd are

two companies with high

results for the industry in

1999/2000 at &1.79 and cl.57

respectively.

Pump slump at Cardo Faced with declining profits in

the pump sector, Cardo Pump has

embarked on a course of staff

reductions and the closure of

some regional offices. Cardo

Pump is part of the Cardo group

and a major European manu-

facturer of pumps, mixers and

aerators for water and wastewater

apphcations, industry, and the

building services sector and well-

known under its brand names

ABS, Pumpex and Lorentzen &

Wettre - plans to adapt to the

market situation.

“Cardo Pump is hoping to

achieve an operating margin of

10-l 1% for the business area

within a two-year period.” says

Cardo’s president and CEO

Kjell Svensson. The cost of the

measures is expected to amount

to approximately SEK 45 million

and will be charged to earnings

for the third quarter of 200 1. The

measures are expected to improve

earnings by approximately SEK

30 million and to take full effect

as of 2003.

Cardo Pump has a turnover of

New Business The expansion of Tantalum

production by Sons of Gwalia at

its Greenbushes and Wodgina

facilities to meet growing world

demand has resulted in contracts

for 100 slurry pumps from

Warman International. Gwalia

is to spend an estimated $100

million on upgrades to the two

plants which are in the north and

south of Western Australia over

the next three years.

Tantalum is used in pharma-

ceuticals as well as for the

toughening of exotic steels such

as those used in high quality

cutlery and surgical instruments

for medical and dental products.

The Warman pumps are rubber-

lined and range from small l/1.5-

BAH models through to 14/12-

FFAH and 450STL.

FCX Ubel & Ventil has achieved

a multi-million Euro order for

flow control solutions and pro-

ducts for Lyondell’s new $1 billion

petrochemical plant. The Lyon- Frankenthal-based KSB Fluid

dell PO-11 project is petro- Systems GMbH received a DM

chemical facility designed to 50 million order for the supply

produce 285,000 tonnes per of a pumping station and complete

year of propylene oxide (PO) electromechanical equipment for

and 640,000 tonnes per year of a new pipeline of about 140 km in

styrene monomer (SM), utilising Saudi Arabia. Four three-stage

Lydondell’s proprietary PO/SM pumps with a drive rating of 2750

technology. In partnership with kW each will be pumping about

sister company FCX, Prometal 180,000 m3 of desalinated sea-

FCx Ubel & Ventil will supply water per day from AL Khobar to

globe, grate and check valves. the oasis Al Hofuf.

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