europe - Machinery Outlook

Transcription

machinery
VOLUME 10.02
OUTLOOK
EUROPE
®
A Publication of Manfredi & Associates
ISSUE 10.02
INSIDE
•
Volvo To Build Technology
Center In China
•
Atlas Copco Acquires
Compressor Distributor
•
Scania To Supply Engines To
Terex Corporation
•
ZF Seeks Growth With New
Plant In India
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Construction Output Up By
0.5% In EU
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A-Plant Launches New
Insurance Offering
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Sandvik Fourth Quarter & 2009
Results
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JLG To Distribute Directly In
Spain
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Volvo CE 2009 Sales Declined
37%
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Finning Gets Oil Sands Mining
Contract
HEARD IN THE DIRTTM
Terex Divesting Atlas Heavy Construction Equipment
Terex Corporation announced that it will divest the Terex Atlas heavy construction
equipment business unit, which is located in Ganderkesee, Germany, and knuckleboom crane and related components businesses, which have operations in Vechta
and Delmenhorst, Germany. Also included as part of this transaction are the sales
and service business located in Bradford, U.K, and the Terex minority ownership
position in the Atlas Chinese joint venture. Financial terms of the transaction are
not being disclosed; however, the buyer is reported to be a private investor. The
transaction is expected to close in the second quarter of 2010.
Terex management views the Atlas divestiture as a step forward in the strategic
repositioning of Terex. In 2001, Terex acquired the Atlas business with the intention
of having a full-size excavator as part of a globally portfolio of construction
equipment. Terex’s goal was to grow the regionally strong Atlas excavator product
as part of this strategy, but the company said it was not able to achieve the product
cost advantage required for it to be successful. In 2009, Terex’s restructuring
attempts resulted in an operating loss for this business in excess of €45.2 million
($61 million) on sales of approximately €143.7 million ($194 million), with
approximately two-thirds of the loss coming from the construction products.
(continued on page 3)
GENERAL
Copyright © Manfredi & Associates
DISTRIBUTORS
MANUFACTURERS
RENTAL
ISSN 1464-1313
The content of this report represents our interpretation and analysis of inforrmation generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain
material provided by our clients. Individual companies reported on and analyzed by Manfredi & Associates may be clients of this and or other Manfredi & Associates services. This information is not furnished in connection with a sale or offer to sell securities
or in connection with the solicitation of an offer to buy securities.
Manfredi & Associates, 20934 Lakeview Parkway, Mundelein, Illinois 60060, phone (847) 949-9080, fax (847) 949-9910 www.machineryoutlookeurope.com
machinery OUTLOOK EUROPE ®
CONTENTS
MAN To Supply Engines To Brazil
MAN Shows 2009 Profits
Palfinger 2009 Profits Drop 36%
Sandvik Q4 & 2009 Results
Kusile Mining To Assemble Sany In S. Africa
Sany To Invest In Brazil
Sany Buys 3,000 Ton Brake Press
Scania To Supply Engines To Terex
Scanai Sells 1,000 Trucks In U.K.
Speedy Hire Secures Contracts
Speedy Re-Rents €27.9 Million
Speedy Hire interium Report
Tat Hong In China Tower Crane Business
Terex Divests In Atlas Equipment
Terex & Xuamen Contract For 10 RTGs
Titan Tire Price Increase
Volvo Building China Technology Center
Volvo CE 2009 Sales Decline
Volvo Sells 102 Excavators In China
Australian WesTrac Merger
Wirtgen China Helps To Cut Waste
XCMG To Raise Capital
XCMG Philippines Rental Operation
XCMG 2009 Revenues Increase 30.3%
ZF Sees Growth In India Market
COMPANIES' NEWS & RESULTS
A-Plant New Insurance Package
Ainscough Crane Hire Can Service Debt
ArvinMeritor Invests In China
Ashok Leyland - Deere Begin Indian Production
Atlas Copco Acquires Premier Equipment
2009 Revenues Decline Atlas Copco
Dynapac Part of Atlas Copco Sales Org
Bosch Sales Drop 16% In 2009
Caterpillar May Build U.S. Excavator Factory
Caterpillar Forecast 3.4% GDP Global Growth
CJD To Distribute SDLG In Australia
Coal India Buys Equipment
Comer & Poclain Form Hydraulics Company
Dayim Holdings JV With Hertz in Saudi Aribia
500,000 Deutz Engines Made In Ulm
DEUTZ Opens JIS Assembly Center
Escorts Launches Backhoe Loaders In India
Eurovia Buys Tarmac
Ferrexpo A.G. Cat Trucks In Ukraine
FG Wilson ECJ Findings
Finning Gets Oil Sands Contract
Finning €296 Million To Chilean Mine
Hitachi To Use EGR For Interim Tier 4
Hitachi Plant In South Africa
IronPlant Strong 2009; Files IPO
JCB Donates Machines To Haiti & Chile
JCB New Indian Dealer
JCB Forklift Hits Milestone
JCB & Volvo To Jointly Build Skid Steers
JCB Finance 40th Year
JLG Fiscal Q1 Sales Increase
JLG To Distribute Directly In Spain
Kobelco Chinese Factory
Komatsu CEO In Top 20 List
GE & Komatsu Deliver First Trucks To India
Komatsu Fails To Declare Profits
Komatsu Improves U.K. Factory Processes
Komatsu Says Weak Pound Good
Komatsu-Cummins Partnership Milestone
Konecranes Acquires In Denmark & U.K.
Kuwait To Spend €73.9 On Projects
Hubertus Marx Retires From Liebherr Mietpartner
Liebherr Delivers 7,500 Used Cranes
Lonrho Acquires Deere & Komatsu Dealers
Lynch Plant Safety Road Show
MAN & Rheimnetall JV
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GENERAL
Chinese Machinery Firms Look To Leasing
Construction Output Up 0.5% In EU
U.K. Q4 2009 Construction Machinery Industry Declines
U.K. Construction Sector Bleak 2010 Forecast
U.K. Agricultural Tractor Market
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PRODUCT
Caterpillar New Control System In Small Loaders
Issue
5
02/2010
w w w. m a c h i n e r y o u t l o o k e u ro p e . c o m
© Manfredi & Associates, Inc
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COMPANY NEWS
(Continued from front page)
Product lines being divested in the transaction include crawler, wheel and rail excavators, knuckleboom truck loader cranes and Terex Atlas branded material handlers. The transaction also includes
the Terex Atlas U.K. distribution business for truck loader cranes in the U.K. The Atlas business
is reported in the Terex financials in the construction segment, with the exception of the knuckleboom truck loader cranes, which are reported in the Terex Cranes segment.
Terex compact equipment made in Germany, namely mini and midi-excavators and compact wheel
loaders, as well as the Terex Fuchs material handler line, will remain with Terex as part of the
construction business segment. Also not part of the transaction are Terex rigid and articulated trucks,
backhoe-loaders and other products manufactured in the U.K. The approximately 800 employees in
Germany and the U.K. that are employed by the businesses being divested are expected to transfer to
the new company.
Volvo To Build Technology Center In China
Volvo Construction Equipment recently announced plans to build a design and technology center in
China that will concentrate on the development of products and components targeted at the needs
of customers in the so-called BRIC countries (Brazil, Russia, India and China), as well as creating
closer alignment between Volvo’s Shandong Lingong Construction Machinery Co (SDLG) and
Volvo brands. Volvo will invest approximately €30 million ($40 million) in the new center built
in Jinan, the capital city of Shangdong Province. A city of six million is home to a talent pool of
engineers drawn from its universities and engineering focused industries.
A temporary design center is to be established in rented premises in Jinan during the construction
phase, with the new center becoming fully operational in 2012. Recruitment of engineers will begin
during the third quarter of 2010, with 20 people in place by year end, rising to 60 by the end of 2011,
120 engineers expected on staff by the end of 2012, and ultimately reaching its full complement of
180 people during 2013.
Volvo said the investment builds on its strength in product design with the company’s confidence in
the competence of Chinese designers. Additionally, Volvo is looking to create a closer bond between
the Volvo and Lingong organizations, leveraging synergies as well as reinforcing the company’s
strategic commitment to producing products tailored to the needs of customers in the BRIC
countries.
Australian Caterpillar Dealer WesTrac Merger
Pyrmont NSW, Australia-based media investment firm Seven Network Ltd (Seven) says it plans
to merge with WesTrac Holdings Pty Ltd in a transaction that will consolidate the organizations
under one company. WesTrac is the sole authorized Caterpillar dealer in Western Australia, New
South Wales, the Australian Capital Territory and north-western China. The new entity, to be called
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Seven Group Holdings Ltd, will be listed on the Australian Securities Exchange (ASX). Mr. Peter
Gammell will be appointed as the chief executive officer. Mr. Gammell is a director at Seven and
managing director of Kerry Stokes’ Australian Capital Equity Pty Ltd (ACE), which holds 100% of
WesTrac. Mr. Stokes is a western Australian billionaire investor.
Under the proposal, ACE directors will receive 115 million shares in Seven, an equivalent value of
AU$8.70 per share, an approximate 18% premium. Seven said the parties had agreed that WesTrac
has an enterprise value of €1.5 billion ($2 billion), comprising equity value of €740 million ($1
billion) and assumed net debt of €740 million ($1 billion).
ArvinMeritor Invests $10 Million To Expand In China
ArvinMeritor announced the investment of nearly $10 million in Xuzhou Meritor Axles Limited
(XMAL), a 60/40 joint venture partnership between ArvinMeritor and XCMG, located in Xuzhou,
China. This investment is expected to increase XMAL’s overall annual production capacity by more
than 20% and upgrade the plant’s manufacturing technology. The growth in China’s off-highway
market is primarily due to high demand for construction machinery and the government’s recent
$586 billion stimulus package in the country’s infrastructure
India Launch of Backhoe Loaders by Escorts
Escorts Construction Equipment Limited (ECEL), based in Faridabad, India, announced the
launch of its backhoe loader, the DIG MAX 76 hp, 8 ton operating weight backhoe loader with
features designed for the Indian market.
The company also recently introduced to the Indian market telescopic handlers, access platforms,
wheel loaders and motor graders by teaming up with several manufacturers including M/S Manitou
BF, SA Corporation of France and Xiamen Machinery Company Limited (XGMA) of China.
Truck cranes and all-terrain truck cranes were also introduced in India recently by Escorts through
an agreement with China’s Hunan Zoomlion International Trade Corporation Ltd.
ECEL, a subsidiary of Escorts Limited, is an Indian material handling and construction equipment
company. The company began building material handling equipment in 1971 when it introduced
pick-n-carry hydraulic mobile cranes.
Ferrexpo A.G. Supplies Caterpillar Trucks In Ukraine
Baar, Switzerland-based Ferrexpo A.G. announced an order for seven Caterpillar trucks valued at
approximately €11.9 million ($16.1 million) from OJSC Poltava Mining located in Komsomolsk,
Ukraine. The Caterpillar mining trucks arrived in March 2010 and began work at the Yeristovske
iron ore mine located in the region. The specific models were not reported.
Hubertus Marx Retires From Liebherr Mietpartner
Hubertus Marx, who led the development of Liebherr’s Mietpartner rental business for 12 years,
retired at the end of 2009 after a 47 year career in the industry. Mr. Marx leaves the company after
establishing the rental businesses in Europe, which had revenues of €295 million ($398.5 million)
in 2008 (including dealer partners). For the past three years, Liebherr’s Mietpartner has been jointly
managed by Mr. Marx and Stefan Oremek. Mr. Omerek will continue as managing director.
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Kuwait To Spend €73.9 Billion On Projects By 2014
The government of Kuwait recently adopted an estimated €73.9 billion ($100 billion) plan to develop
large scale construction projects over the next four years. The plan was authorized by the Kuwait
government in parliament and is set to boost the non-oil private sector economy and support the
construction industry. The funding is expected to be used to develop the new Silk City business
center at an estimated cost of €56.9 billion ($77 billion). Silk City is a proposed urban area in Subiya,
Kuwait, an area near Kuwait City. The funds will also be used to upgrade the country’s energy grid,
the construction of a container harbor, and for a railway and metro system.
New Control System For Small Cat Loaders
Recognizing that the operating skill of workers using small loaders on typical jobsites ranges from
the novice to the expert, Caterpillar has developed a new control feature that allows each operator to
run a Cat C-series skid-steer, multi-terrain or compact-Track loader at the operator’s skill level. The
new Hystat Response Control System (HRCS) uses software that permits the loader’s hydrostatic
drive/steer system to be adjusted to one of three response rates—standard, intermediate or maximum.
The HRCS standard setting provides acceleration/deceleration rates that feel smooth and controlled,
as does steering response. In the intermediate setting, the machine will start and stop more quickly,
and steering-response lag is diminished. When operated in the maximum setting, the loader will
accelerate aggressively in forward and will stop abruptly, responding instantaneously to steering
commands. C-Series loaders equipped with the Cat Advanced Machine Information and Control
System (AMICS) option allow the operator to select one of the three response rates from the
monitor in the cab. Non-AMICS equipped machines can be programmed by a dealer.
Volvo CE 2009 Sales Declined 37%
Volvo Construction Equipment’s sales for 2009 were €3.5 billion ($4.7 billion), a drop of 37%
compared to €5.5 billion ($7.4 billion) in 2008. The division reported an operating loss of €391
million ($529 million) in 2009, compared to the previous year’s profit of €177 million ($240 million).
Volvo reported that the global market for construction equipment declined by 39% in 2009 from
2008. Measured in units, sales were 38,783, down 39% from 63,641 units in 2008. In Europe the
total 2009 market was down 50% and North America decreased by 49%. In China the market
increased by 25% while Asia as a whole declined by 9%. Volvo said that with the exception of China
and to some extent Korea, stimulus packages introduced in several countries had no significant
impact on the industry.
Komatsu CEO Ranked Among Top 20 CEOs World Wide
Masahiro Sakane, chairman of Komatsu Ltd., the parent company of Komatsu America
Corporation, was named one of the best-performing CEOs in the world, according to a recent
Harvard Business Review article. CEOs on the list were selected from nearly 2,000 CEOs of large
public companies worldwide, and were ranked based on the performance of their companies over
their entire time in office or, for those still in the job, through September 30, 2009. Mr. Sakane
served as president and CEO of Komatsu Ltd. from June 2001 to June 2007.
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Three measurements were used in determining the success of the CEOs: country-adjusted
total shareholder return, industry-adjusted shareholder return, and the change in equity market
capitalization for the CEO’s entire tenure. The group of CEOs included for consideration came
from companies based in 33 countries and represented 48 nationalities. Mr. Sakane ranked
seventeenth among his world-wide peers and was the top-rated CEO from a Japanese company.
Tat Hong Buys into China Tower Crane Business
Tat Hong Holdings announced that it is paying approximately $15 million for a 53.8% stake in
Guangzhou Hailin Resource Co, a tower crane rental company in southern and south-western
China. Guangzhou Hailin will be held via a new joint venture company, Si Chuan Tat Hong Yuan
Zheng Machinery Construction Company. The other joint venture partners are Yuan Zheng, the
founder and majority shareholder of Guangzhou Hailin, and Singapore-listed Yongmao Holdings,
which is 20% owned by Tat Hong.
Established in 1997, Guangzhou Hailin manages approximately 113 mid-to-large size tower
cranes valued approximately at $13 million. It has offices covering Hainan, Guangdong, Guangxi,
Hubei, Hunan, Yunan and Chongqing. A specialist in the erection of power transmission pylons,
Guangzhou Hailin has benefited from China’s massive stimulus package, which places huge
emphasis on infrastructure and power sector expenditure.
Finning Gets Oil Sands Mining Contract
Finning International Inc. announced recently that its Canadian division received a mining
equipment and product support agreement from Imperial Oil Limited as a mining mobile
equipment supplier for the Kearl oil sands project. The ten-year agreement includes the supply of
Caterpillar equipment, parts, specialized maintenance labor and training to the Alberta, Canadabased company.
Kobelco €94 Million Chinese Factory
Chengdu Kobelco’s new factory in Chengdu, Sichuan Province, China, was officially opened.
Kobelco’s new excavator factory is located in the city’s Longquan District Economic and
Technological Development Zone. It has doubled Kobelco’s excavator production capacity compared
to the previous factory. The facility will have capacity to build 5,000 excavators a year and 2,400
mini excavators. As well as producing more machines, Kobelco also plans to use the new €92 million
($125 million) factory to produce a wider range of machines in China for the Chinese market. The
Chinese-built excavators will include the 20 to 30 ton product ranges and may be expanded to
include larger models in the future.
Anglo American Agrees To Sell Tarmac’s Europe Construction Businesses To Eurovia
London, U.K. headquartered mining firm Anglo American plc announced it will sell its whollyowned subsidiary Tarmac’s construction aggregates businesses in Europe to a subsidiary of the
Vinci Group called Eurovia. Anglo American also said it will sell Tarmac’s Polish concrete products
business to a Central European private equity fund, Innova/4 LP, advised by Innova Capital in
another transaction. Both transactions are subject to regulatory approval and the full proceeds from
both are expected to be approximately €296 million ($400 million).
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Lonrho Acquires John Deere And Komatsu Dealerships
London, U.K.-based African investment company Lonrho recently signed an agreement to acquire
Trak-Auto Lda, the John Deere and Komatsu dealer in Mozambique. Trak-Auto sales are estimated
at €7.3 million ($9.9 million) in 2008 with a gross profit of €1.03 million ($1.4 million).Trak-Auto
sold 104 John Deere units and 13 Komatsu units in 2009. The acquisition price for Trak-Auto is $2
million ($1.5 million) and a further €739,000 ($1.0 million) per year for three years, depending on
performance. The existing management is expected to remain with the business.
Konecranes Expands Its Machine Tool Service Business - Acquisitions In Denmark And The UK
Konecranes recently expanded its machine tool service (MTS) business to Denmark by acquiring the
assets of the company AH Maskinservice A/S. Konecranes also acquired the Scottish company Axis
Machine Tool Engineers Limited, headquartered in East Kilbride. AH Maskinservice A/S has 7
employees and Axis Machine Tool Engineers Limited has 12 employees. The combined annual sales
of the companies in 2009 were approximately €4 million ($5.4 million). The value of the acquisitions
was not disclosed.
AH Maskinservice A/S is located in Horsens, east Jutland, Germany, and specializes in safety
inspections, CE labeling, hydraulic presses and overall machine tool service. Axis Machine Tool
Engineers Limited specializes in maintenance services of machine tools in Scotland and Northern
Ireland. In addition, Axis sells machine tools and auxiliary equipment for machine tools. Konecranes
MTS has offices in Finland, Sweden, Norway, Denmark, Estonia, Ukraine, the U.K. and the U.S.
JCB Donates Equipment To Chilean & Haiti Quake Zones
JCB announced recently that it would donate two 3CX backhoe loaders valued at approximately
€110,900 ($150,000) to help the disaster relief effort in Haiti following the devastating earthquake.
Additionally, JCB donated a C3 backhoe loader complete with attachments and spare parts valued at
approximately €73,900 ($100,000) to help with reconstruction efforts in Concepcion, Chile, which
was hit by the recent 8.8-magnitude quake. An estimated 1.5 million homes were damaged in the
Chilean earthquake and initial estimates put the cost of rebuilding at between €11 billion and €22
billion ($15 billion and $30 billion). JCB – which has a backhoe factory in Brazil – is supplying the
machine through its Santiago, Chile, dealer Derco, which is also making available free-of-charge a
fleet of used machinery for the authorities to use in rebuilding efforts.
JCB Announces Its New Dealer In India
JCB India Ltd, announced the opening of its dealer, Ave Maria Earthmovers, covering the entire
state of Arunachal Pradesh. JCB India Limited, Ballabgarh (Haryana) is a fully owned subsidiary
of JC Bamford Excavators Limited, UK. The company offers twenty one different machines in
seven product types including backhoe loaders, loading shovels, tracked excavators, compactors,
telehandlers, skid steer loaders and pick and carry cranes with a network of 50 dealers and more than
330 outlets.
Fourth Quarter U.K. Construction Machinery Industry Continued Decline
The U.K. construction machinery industry continued to decline during the final quarter of
2009 despite the wider economy returning to growth, according to a survey conducted by the
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Construction Products Association (CPA). Approximately 78% of heavy equipment manufacturers
endured a ninth consecutive quarter of falling output and 75% of these manufacturers anticipate that
sales will not grow significantly during the first quarter of 2010.
Below are highlights from the fourth quarter survey:
•
89% of light equipment product manufacturers reported that they anticipated sales not to
change significantly during the first quarter of 2010.
•
91% of building contractors reported that order books during the fourth quarter of 2009 fell in
the industrial sector.
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75% of light equipment manufacturers and 33% of heavy equipment manufacturers reported
that costs had risen, with the majority citing raw material and energy costs.
•
63% of building contractors reported declining profit margins during the final quarter of 2009,
due to falling prices.
U.K. Construction Industry Facing Another Bleak Year
After an estimated drop of more than 12% in construction output in 2009, the largest fall in a single
year since records began in 1955, the latest construction forecasts from the Construction Products
Association (CPA) predict a further decline of 3% in output during 2010, with the first tentative
signs of recovery not expected until 2011. However when it does come, the recovery will be very
slow with annual growth of less than 1% in each of the three years from 2011-2013.
CPA said that while it is believed that the wider U.K. economy is out of a recession, the construction
industry is going to have to wait for at least another 12 months. Output on office, retail, and other
commercial projects has been particularly hard hit, with the 2009 decline of over 26% expected to
be followed by a further fall of 15% in 2010. At the same time, output on industrial projects, which
has already fallen over 50% from its 2007 peak, is expected to fall still further during the next 12
months.
On the positive side, new home construction, which fell to levels not experienced since the 1920s,
started to recover, with housing starts in 2010 expected to be 15% higher than in 2009, and similar
levels of growth expected in each of the next three years.
Other key points in the Construction Products Association forecasts are:
•
Even with the levels of growth for private new home construction in these forecasts, the number
of starts in 2013 will still only be 75% of the number achieved in 2007.
•
There will be a further fall in private housing repair and maintenance in 2010 before the
sector recovers quite strongly in the following three years, as the wider economy strengthens and
unemployment starts to fall.
•
The one area where the forecasts see consistent growth is on infrastructure, driven initially by
investments in rail and road projects, and nuclear programs.
•
With trend growth in construction output every year after 2013, it would take until 2021 to
reach the level of output that the industry experienced in 2007.
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JCB Forklift Hits Milestone With Production Of 7,500th Teletruk
JCB recently produced its 7,500th JCB Teletruk industrial forklift. The JCB Teletruk was launched
to the U.K. market in 1997 and has expanded to include customers in Australia, Brazil, New
Zealand, South Africa and the U.S. The machine, produced at JCB Utility Products in Cheadle,
Staffordshire, U.K., was launched after two years of development work to its telescopic boom, which
enables it to reach forward and place loads, providing additional versatility. The boom design is
mounted on a small chassis with a rear counterweight, allowing the machine to lift large loads of
up to 3.5 tons. The JCB Teletruk has a maximum lift height of 5,150 mm (203 in.) and maximum
forward reach of 3,300 mm (130 in.).
Coal India Buys Equipment To Improve Productivity
State-owned Coal India purchased mining equipment worth €368 million ($497 million) from
Caterpillar and Atlas Copco and others to improve productivity of its Chhattisgarh mines. The
mining equipment was commissioned at the Dipka and Gevra coal mines, which together produce
approximately 60 million tons of coal annually. The coal company has also lowered its annual
production target for 2011 to 2012 to 486 million tons from an earlier target of 520 million tons on
account of delays in securing clearances for its expansion plans.
Sany Licenses South African Manufacturing Firm Kusile
Kusile Mining, based in Witbank, South Africa, entered into an agreement to become the new
assembler and distributor for mining equipment built by Sany International., Kusile has committed
to sell 50 machines and achieve revenues of €96 million ($130 million) between 2010 and 2013.
Sany already holds distribution agreements with the McCarthy Bidvest group for its construction
and road machinery product lines and with Mvelaphanda for reach stacker harbor cranes.
Kusile Mining is a broad based black empowerment company. Kusile will initially supply continuous
miners, road headers and shuttle cars to South African miners and will compete with companies
such as Joy Mining Machinery and Sandvik for the South African coal mining market.
Kusile started its project by building a 5,000 square meter assembly plant outside of Witbank
where initially between 50 to 70 people will be employed and two to six people will be dedicated
to maintenance per machine produced. An additional fifty people will work on the supply chain,
making sure parts arrive in a timely manner from Sany in China. In total between 150 and 200
people will be employed in the next 18 months. Kusile already employs 450 people.
A Sany spokesman said they are confident of breaking into the South African market and expect
to supply 300 to 500 machines per year to South Africa. The main sections of the machines will be
manufactured in China and shipped to South Africa for assembly and distribution. A revenue target
of $100 million is expected to be achieved over the next three years and $200 million within five
years. Sany has a presence in nine countries in Sub-Saharan Africa.
In December in Tripoli, Libya, Sany signed a contract with Serage Construction for the procurement
of heavy road machines. Sany Libya Branch is planning to expand in Libya through networking with
newly emerging businesses in Libya and to use Libya as a marketing base for the whole of North
Africa.
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Speedy Hire Secures New Contracts And Contract Extensions
Merseyside, U.K-based Speedy Hire, the tool and equipment rental company, announced it secured
a contract with British Telecommunications plc (BT) to supply mobile generators to support the
company’s U.K. network of 6,000 telephone exchanges. The agreement is for one year with an option
to extend for an additional year. This is in addition to the recent contract award to Speedy to provide
fuel bowsers (portable fuel tanks) and pumps to BT.
Speedy also announced that an additional contract was been secured with Tube Lines, which is
upgrading three of the busiest lines on the London Underground. Tube Lines signed a two-year
sole supplier agreement with Speedy. Speedy will provide a comprehensive package of tools and
equipment to Tube Lines, including tools, lifting gear, accommodation, communications solutions
and customized training packages.
In addition to these new awards, Speedy announced two contract extensions. ExxonMobil extended
its five-year preferred supplier agreement with Speedy to 2016. The contract is for the provision
of managed services including rental equipment, maintenance and planning to the ExxonMobil
refinery at Fawley, Southampton, U.K.
Also, Speedy has renewed its existing preferred supplier agreement with Osborne, a privately owned
U. K. based construction, civil engineering and property services contractor, for three more years.
The contract will now run until 2013. Speedy will be providing a range of equipment and support
services including power generation, lifting, temporary accommodation and survey equipment.
Speedy said that the contracts will contribute approximately €33.4 million ($45.2 million) to overall
revenues with €10.1 million ($13.6 million) during the first year.
MAN Nutzfahrzeuge And Rheinmetall Form A Joint Company For Wheeled Military Vehicles
MAN Nutzfahrzeuge AG and Rheinmetall AG recently formed a joint company to develop
military wheeled vehicles. The new company, which will be known as Rheinmetall MAN Military
Vehicles GmbH (RMMV), is an important provider of complete solutions in the market for
military wheeled vehicles, covering the entire range of armored and unarmored transportation,
command and role-specific vehicles for international armed forces. Rheinmetall will have a stake of
51% and MAN 49% in the new company, which will be headquartered in Munich, Germany. The
plan is still subject to approval from the competition authorities.
RMMV will first merge the development and sales activities of the two companies in the military
wheeled vehicle sector and take over product and market responsibility. In the second step,
both companies’ production capacities at the plants in Kassel (Rheinmetall) and Vienna (MAN
Nutzfahrzeuge) will be integrated into the joint company by the end of 2011. In the initial phase,
RMMV will have 370 employees; when the second step has been completed, this will increase to
1,300 employees. Annual revenues are expected to exceed €1 billion ($1.4 billion).
Ainscough Crane Hire Can Service Its Debt
Manchester, U.K.-based Ainscough Crane Hire said it can service its approximate €333.1 million
($450.5 million) of debt after its parent company posted losses of €8.7 million ($11.8 million),
according to reports out of the U.K. Financial filings for Bradley Hall Holdings Ltd, which bought
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Ainscough in a €284 million ($384 million) leveraged buyout in 2007, show that the business had
to service €37.4 million ($50.6 million) of interest payments in the year to the end of May 2009, up
from €23.8 million ($32.2 million) for the previous eight month period. The interest payments were
higher than the €33.4 million ($45.2 million) profits reported by Ainscough Crane Hire Ltd, whose
sales fell to €143.2 million ($193.7 million) from €147.8 million ($199.9 million), in the year to May
2009.
An Ainscough spokesperson said that the company is the product of a leveraged buy-out where the
banks want payment; however, they remain capable of servicing the debt with positive cash flow.
Beginning March 2010, Bradley Hall will also have to start repaying loans totaling €5.5 million
($7.5 million), arising from the acquisition of James Jack Lifting Services in 2008.
Ainscough invested approximately €31.2 million ($42.2 million) in new cranes during 2008/2009,
while €13.3 million ($27.1 million) worth of 50 ton and smaller cranes had been sold because of a
drop in demand. Crane rental accounts for 25% of Ainscough’s revenues.
Titan Tire To Implement Price Increase
Titan Tire Corporation, a subsidiary of Titan International, Inc., announced it will implement
a price increase on Titan branded OTR (off-the-road), farm and construction tires and Titan
manufactured Goodyear branded farm tires, effective March 1, 2010. Titan said the increase of up
to 6% was needed to offset rising raw material, energy and transportation costs. Titan also said that
certain tire prices may rise in excess of 6% due to realignment and positioning of the product. The
company also reported that additional price increases may occur in the future.
Atlas Copco Acquires Compressor Distributor In Louisiana, USA
Stockholm, Sweden-based Atlas Copco’s subsidiary Atlas Copco Compressors LLC, USA,
purchased the compressor division of Premier Equipment Corporation, Inc. Premier Equipment
has been an Atlas Copco compressor distributor for many years, serving the state of Louisiana. The
compressor division of Premier Equipment Corporation, Inc. will be incorporated into the Southern
Region of Atlas Copco Compressors in the U.S. and the non-compressor side, selling mainly pumps
and process equipment, will continue as Premier Equipment Corporation, Inc.
Premier Equipment, based in Baton Rouge, Louisiana, has a strong customer base. Business in the
area is driven largely by chemical and petrochemical refining, off shore oil services, ship building
(workboats), general industry, and engineering services for the oil and gas sector. Twelve employees
will join Atlas Copco from Premier Equipment as a result of the acquisition. Financial terms were
not disclosed.
Scania To Supply Engines To Terex Corporation
Scania and Terex have signed a long-term agreement beginning in 2011, which involves Scania
supplying engines for some vehicles and other heavy equipment manufactured by Terex. In addition
to meeting the new emission standards, the Scania engines will help Terex choose the engine
technology that is optimal for a particular product application. Throughout 2010, Terex will continue
working with its distribution network and customers to prepare for the transition to the new
emission standards. The transition for affected Terex products will start in 2011 for Stage IIIB and
Tier 4i emissions standards beginning Europe and North America respectively.
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IronPlanet Reports Record Growth In 2009; Files IPO
IronPlanet, the Pleasanton, California-based online auction site for used construction and
agricultural equipment, continued to gain market share in 2009, with gross equipment sales of €339
million ($458 million), an increase of 34% over 2008. Fourth-quarter gross equipment sales totaled
€92.2 million ($124 million), up 29% over the same period of 2009. In 2009, IronPlanet conducted a
record 79 auctions in North America, Europe and Australia, an increase of approximately 40% over
2008. Through IronPlanet’s marketplace, approximately 30,000 items were sold, up approximately
65% over 2008. In order to better serve global equipment consigners, IronPlanet continued to
expand its global sales force, reaching 111 sales personnel at year end, an increase of 37% over 2008,
including new appointments in the Americas, Australia/Southeast Asia, and Europe.
IronPlanet reached a historic milestone in 2009, surpassing more than half a million users registered
to IronPlanet’s marketplace, and averaging approximately 9,000 new user registrations a month
during the same year. With this expanding global used equipment buyer base, auctions in the U.S.
generated significant international participation with approximately 55% of items sold receiving
international bids and 25% of the items sold to buyers outside of the U.S.
IronPlanet, Inc. also announced that it filed a registration statement with the Securities and
Exchange Commission (SEC) for a proposed initial public offering of its common stock. IronPlanet
is backed by Silicon Valley venture firms Accel Partners of Palo Alto and Kleiner Perkins Caufield
& Byers in Menlo Park, California as well as Caterpillar Inc., Komatsu Ltd. and Volvo. IronPlanet
intends to use the proceeds for general corporate purposes and the shares in the offering will be
offered by IronPlanet and certain selling stockholders. The company will seek to have its shares
listed on the Nasdaq Global Market, under the symbol IRON. The number of shares to be offered
and the price range for the offering were not announced.
ZF Seeks Growth With New Plant In India
German based ZF Group announced it is focusing on the Indian market with its driveline and
transmission products, the company recently opened an assembly plant in the industrial center
of Pune. At full capacity it will produce approximately 10,000 construction vehicle axles and
transmissions for backhoe loaders annually. A second ZF assembly plant in Pune, currently being
constructed, will begin assembling truck transmissions in the summer of 2010.
ZF Group has been operating in India for nearly three decades. For the most part, joint ventures
have been established with local partners in which ZF has held a minority stake or has issued
licenses to Indian partner companies. ZF Group currently has a 29% stake in Sona Somic
Lemförder Ltd., which produces car chassis components in Delhi, Uttaranchal and Chennai; a 26%
stake in ZF Steering Gear (India) Ltd., which manufactures commercial vehicle steering systems
in Pune; and a 50% stake in ZF Electronics TVS (India) Private Ltd., which produces electronic
components in Madurai.
Over the past three years, ZF has established ZF Lenksysteme India Private Ltd. headquartered
in Pune, three service locations of ZF Services GmbH (in Raipur, Bangalore and Pune), and ZF
India Private Ltd., also in Pune. The assembly facilities of the ZF off- road driveline technology and
axle systems division (with approximately 2,400 sq m (25,800 sq ft) of production space) and those
of the commercial vehicle, special driveline technology division (with approximately 5,000 sq m
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of (54,000 sq ft) of production space) have been or are currently being developed. Furthermore, an
Indian office has been established for the entire ZF Friedrichshafen Group.
FG Wilson Customs Declarations ECJ Findings
The European Court has issued its judgment in the case of Belfast, Ireland-based FG Wilson, a
wholly-owned subsidiary of Caterpillar, concerning incorrect customs declarations. The case was
referred to the European Court of Justice (ECJ) by a U.K. Tribunal. The ECJ found in favor of FG
Wilson in a case concerning the impact of using an incorrect customs procedure code (CPC) on
customs declarations when goods are being exported from the European Union. FG Wilson had
been authorized by HM Revenue & Customs (HMRC) to use a special customs procedure which
allowed the company to import duty free parts used in the manufacture of machinery ultimately
destined for export outside the EU.
However, FG Wilson had used an incorrect customs procedure code when re-exporting the goods.
As a consequence of the error, HMRC contended that FG Wilson had failed to comply with certain
requirements of the customs procedure, arguing that a customs debt arose on importation of the
parts resulting in a duty. The ECJ held that although the errors could give rise to a customs debt,
those charges may be repaid or remitted by amending the declarations, assuming that HMRC are
satisfied that the parts were ultimately exported from the EU.
Giles Salmond, a director in the tax dispute resolution group at Deloitte, who advised FG Wilson in
the litigation, said, “This is a fair and just result for FG Wilson/Caterpillar and the many other U.K.
manufacturers who found themselves unexpectedly liable to additional VAT and customs duty and
are likely to be entitled to a refund.” Total demands issued for duty and VAT against about 400 U.K.
manufacturers amounted to in excess of €111.4 million ($150.7 million).
Comer and Poclain Form New Hydraulics Company
Comer Industries Spa and Poclain Hydraulics have completed the spin-off and purchase of the
Fluid Power Division. The newly incorporated company is named Poclain Hydraulics Industriale Srl.
The majority of its share capital will be held by Poclain Hydraulics SA, which will also take the full
management control of the operations.
Poclain Hydraulics Industriale Srl will be headquartered in the existing location in Gaggio di Piano,
Modena, Italy, and employ a total of 91 people including engineering, manufacturing and related
functions.
The distribution of its range of axial piston pumps and motors will be managed by the worldwide
PH Revenues and Distribution organization. Comer Industries will maintain a minority share
position with a planned exit in the years to come, and will also maintain collaboration with PH
Industriale for the supply of axial piston motors incorporated into the range of its transmissions.
The spin-off and joint venture of this business was driven by Comer Industries’ decision to focus on
and expand its core business of mechanical transmissions and mechatronic solutions for industrial
machines and wind turbines, while giving the opportunity to its former Fluid Power Division to
expand through the expertise and organization of Poclain Hydraulics, which is a specialized and
leading company in the hydraulic sector.
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The company said this acquisition is an opportunity for the French Group Poclain Hydraulics to
expand its hydraulic system portfolio. The company can now offer a new range of small axial pumps
and motors that target working functions for mobile machines for the construction, agriculture and
handling markets.
XCMG Plans Share Placement To Raise Additional Capital
XCMG Construction Machinery Co Ltd, China’s largest construction machinery maker, will raise
€540.5 million ($730 million) through a private placement of shares to finance new projects and
obtain advanced technology, according to a statement the company filed with the Shenzhen Stock
Exchange. The company said it will issue 50 million to 165 million shares in the private placement to
10 unnamed investors.
Funds raised will be used to develop nine projects, including research and development and main
engine, component and information systems. The Shenzhen-listed company said the nine projects
will add nearly $340 million in profits each year after completion.
Ashok Leyland-John Deere Begin India Production
Ashok Leyland and John Deere have decided to begin the production of construction equipment
in India by January 2011. The 50:50 joint venture between the Hinduja Group, an Ashok Leyland
company, and Deere had earlier decided to begin rolling out products such as backhoe loaders,
compact loaders, four-wheel-drive loaders and skid steers by early 2010. The start date has now
been pushed back to 2011.No explanation has been given for the delay. However, when started, the
range of products to be built by the JV will be expanded to include Deere’s full line of construction
equipment. The products will be exported to both Ashok Leyland and John Deere markets. The
facility is being set up with an initial investment of approximately €49 million ($66 million) and
will roll out the products by year end. The products manufactured would be tailor-made for local
applications. The company is setting up a facility near Gummidipoondi and has started testing
products in the market.
The company expects the venture to have first year revenues of between €49 million to €65 million
($66 million and $88 million). It will leverage the manufacturing strength, engineering skills and
distribution networks of John Deere and ashok Leyland. It will adopt a co-branding strategy using
the names of both the partners.
Hitachi Excavators To Use EGR To Meet Interim Tier 4
Hitachi announced its excavators will feature engines with cooled exhaust gas recirculation (EGR)
and exhaust filters consisting of a diesel oxidation catalyst/diesel particulate filter to meet the 2011
Interim Tier 4 (IT4)/Stage III B emissions regulations mandated by the EPA in the U.S. and EU for
diesel engines 174 hp to 750 hp.
Hitachi’s approach to meeting IT4 regulations is an evolution of the current clean-burning and fuelefficient Tier 3/Stage III A Isuzu engine platform currently used in Hitachi excavators. The Isuzu
cooled EGR engine platform for IT4 compliance is less complex to maintain compared to SCR
(selective catalytic reduction) systems. Unlike SCR, the IT4 solution doesn’t require liquid urea to
achieve the necessary emissions reduction. Many Hitachi excavators featuring Isuzu engines with
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Tier 3/Stage III A cooled EGR technology are running today, and the Interim Tier 4/Stage III
B units will be a natural next step for Hitachi dealers to sell and support. Hitachi excavator range
currently using Isuzu engines include the models ZX75US-3 through the ZX850LC-3.
Construction Output Up By 0.5% In EU
The construction sector, seasonally adjusted output increased by 0.5% in both the euro area (EA16)
and the EU27 in December 2009, compared with November 2009. In November, output fell by
0.8% and 0.4%, respectively. Compared with December 2008, the construction output in December
2009 dropped by 3.1% in the euro area and by 3.3% in the EU27. Compared with 2008, the average
construction output index in 2009 decreased by 8.0% in the euro area and by 8.2% in the EU27
reported Eurostat, the statistical office of the European Union.
Monthly comparison
Among the member states for which data are available for December 2009, construction output fell
in eleven and rose only in Romania by 6.9% and Spain by 6.2%. The largest decreases were recorded
in Slovakia, down 11.3%; Slovenia, down by 8.1%; and Bulgaria, off by 7.9%.
Building construction increased by 0.9% in the euro area and by 0.6% in the EU27, after declining
1.0% and 0.4%, respectively, in November. Civil engineering decreased by 2.2% in the euro area and
by 0.5% in the EU27, after rising 0.9% and 0.4%, respectively, in the previous month.
Annual comparison
Among the member states for which data is available, construction output fell in ten, but rose in
Spain by 7.5%, Poland by 2.5% and the Czech Republic by 2.3% for December 2009. The largest
decreases were registered in Bulgaria, down 33.3%, Slovakia down 19.7% and Slovenia down 18.8%.
Building construction fell by 4.0% in the euro area and by 4.9% in the EU27, after declines of 8.9%
and 8.6%, respectively, in November 2009. Civil engineering increased by 1.4% in the euro area and
by 5.0% in the EU27, after increases of 0.9% and 2.8%, respectively, in October 2009.
500,000 DEUTZ Engines Made In Ulm, Germany
The 500,000th DEUTZ engine recently rolled off the production line at the Ulm-Donautal
industrial estate in Ulm, Germany. The DEUTZ plant in Ulm-Donautal became operational in
1967. Production commenced with the air-cooled V-engine FL312. Only a year later this was joined
by the FL413 engine series, which remains a successful model to this day. The water-cooled 1015
engine series was first made in Ulm in 1993.
Production of the 912/913/914 air-cooled engine moved from Cologne to Ulm in late 2006 and
today the facility continues to produce air-cooled and water-cooled engines with a power output
of up to 500 kW (0.5 MW) for use in applications such as stationary equipment, construction
equipment, commercial vehicles and rail vehicles.
Bosch Sales Down Approximately 16% In 2009
Stuttgart, Germany- based Robert Bosch GmbH said that the global recession has had a strong
impact on the company. The company reported that sales for 2009 amounted to approximately €38
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billion ($51.4 billion), 16% below 2008 levels of €45 billion ($60.9 billion). As a result, the company
closed the year with a loss of between 3% and 4% of sales. The company said the goal in 2010 is to
break even.
Demand dropped in most major vehicle markets in 2009 and is reflected in the development of the
automotive technology business division. At €21.7 billion ($29.2 billion), sales were down 18% over
2008. However, there has been a noticeable improvement since the middle of 2009. In 2010, Bosch
intends to take advantage of global vehicle market trends to increase automotive technology sales by
at least 10%. To reach the pre-recession levels of 2007, this business sector must grow by a solid 30%.
The company aims to achieve this target by 2012.
Bosch’s industrial technology business sector is above all feeling the burden of the continuingly
difficult situation in mechanical engineering. Sales dropped by 24% to approximately €5.1 billion
($6.9 billion) in 2009. In 2010, the industrial technology business is expected to see a slow recovery.
Bosch also sees growth opportunities in its consumer goods and building technology business sector,
which has not been as severely affected by the global economic downturn. In fiscal 2009, sales stood
at €11.3 billion ($15.3 billion), 5% below 2008 levels.
Outlook According to Bosch Management:
The Bosch Group said it is cautiously optimistic about the development of the global economy.
Even if the current pace of growth does not increase significantly, the company expects global
economic growth for 2010 to be 3%. Globally, this would mean that the 2% decline of 2009 would
be offset. For Germany, Bosch expects growth to be approximately 2%, compared with a 5% decline
in 2009. A growth of 6% is estimated from the emerging markets. However, Bosch also expects to
see a recovery in the North American economy, with growth of 2.5%.
Scania Sells 1,000 Trucks To U.K. Transportation Companies
Scania has received its largest ever order in the U.K from a joint-procurement agreement. The
Stobart Group and A. W. Jenkinson Forest Products have agreed to purchase 1,000 trucks.
Deliveries commenced in March 2010. The trucks are the new Scania R-series model and include
a significant number of Scania G-series vehicles. In the U.K. Scania provides complementary and
ancillary services in support of its products and customers through its 90 service centers. In 2009,
Scania said its market share of the U.K. heavy truck market was 15.7% and its combined bus and
coach market share amounted to 18.2%.
U.K. Agricultural Tractor Market
John Deere has increased its share of the UK agricultural tractor market by nearly 1% to 30.2% in
2008. John Deere has held the top slot for more than 10 years, but the gap between the big three
makers is slowly starting to close, according to the latest numbers reported by the Agricultural
Engineers Association (AEA). Nearly all manufacturers saw an increase in what was a strong 2008
for tractor figures, with 18,564 tractors in total being registered, an increase of nearly 1,500 units
over the 2007 figures.
New Holland, Deere’s closest competitor, saw an increase in sales during 2008 of 530 units and a
return to 2006 market share levels of 18%. Case IH also increased its share from 5.6% to 7%. After
almost catching New Holland in 2007, Massey Ferguson dropped back a little in terms of market
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share from 16.2% to 15.7%, yet its tractor sales increased by 145 units. After seeing an increase in
2007, Claas (formerly Renault) registered 941 units, but dropped market share marginally from 5.4%
to 5.1%.
Just two years after entering the AEA sales listing, Same Deutz-Fahr’s share increased from 4.4%
to 4.7%, leading the Italian manufacturer to overtake AgriArgo brand McCormick, who dropped
from 4.9% to 3.3%. Same Deutz-Fahr owns Same, Lamborghini, Deutz-Fahr and Hurliman brands.
Landini moved off the bottom of the list and above JCB, selling 238 units, 12 more than JCB.After
increasing sales last year, Kubota, who entered the list in 2007, saw a fall in sales from 667 to 605.
Valtra also fell back slightly from 662 to 601 units.
The figures, recorded by the AEA, cover tractor units registered for road use under the U.K.’s
Department for Transport as agricultural tractors. Although almost all tractors sold for farming are
registered, some smaller tractors under 50hp, which are sold in other markets, are not registered.
Palfinger 2009 Revenues Drop 36%
Salzburg, Austria-based truck crane and hydraulic lifting equipment manufacturer Palfinger reported
that 2009 revenues were €505.4 million ($683.8 million), a decline of 36.4% compared to €794.8
million ($1.07 billion) in 2008. After EBIT of €69.1 million ($93.5 million) in 2008, EBIT came
to €5.0 million ($6.8 million) in 2009. EBITDA was positive in 2009, amounting to €16.4 million
($22.2 million). Palfinger’s crane division was hit particularly hard and, not taking into account the
acquisitions, faced a decrease of over 50%. In the hydraulic systems & services segment, Palfinger
made efforts to reduce the high order backlog in the access platform area. In this area, pronounced
declines in revenues were not felt before the second half of 2009. Palfinger said that cost reduction
measures implemented did prevent a loss during 2009 and revenues were below 2005 levels.
A look at the performance of the individual quarters shows that PALFINGER has been able to
optimize costs in the course of the year by means of strict cost savings measures. While revenues hit
a low in the fourth quarter 2009 of €117.5 million ($158.3 million),EBIT improved slightly from
the previous quarter to €1.0 million ($1.3 million) in the fourth quarter of 2009.
Outlook According to Palfinger Management
The outlook for 2010 still remains uncertain and Palfinger said they have made several various
scenarios of future economic development. As an early-cycle company, Palfinger perceived the
downward trend at an early stage and should profit early from an upswing in the economy. Starting
with the second quarter 2009, signs that many relevant markets were bottoming out started to
emerge. Palfinger management expects to gain from various global infrastructure projects. Palfinger’s
outlook for 2010 is cautiously optimistic and estimates revenues will increase 10%. The cost cutting
measures taken are expected to have a positive impact on earnings.
GE And Komatsu Deliver First AC Mining Trucks In India
GE Transportation and Komatsu announced recently the delivery of 17 Komatsu 830E-AC mining
trucks containing GE240AC drive systems to Hindustan Zinc Limited (HZL). The units will be the
first AC mining trucks in India. HZL is currently expanding production at the Rampura Agucha
Mine as demand for zinc continues to rise around the globe. The AC trucks are said to increase
productivity and availability levels while lowering life cycle costs. GE Transportation delivers AC
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and DC electric drive systems for 120-ton to 360-ton mining trucks. More than 4,000 GE electric
drive systems for off-highway vehicles are currently in use in 35 countries.
Speedy Re-Rents €27.9 Million Of Equipment
Merseyside, U.K.-based Speedy Hire said its managed services division has rented approximately
€27.9 million ($37.7 million) of equipment which it re-rents from other rental companies in and
around the U.K. Speedy’s multiple rental partners include aerial platform renter Lavendon, One Call
Hire and Nixon Hire that supply equipment such as powered access, heavy equipment and waste
management equipment. These companies see Speedy renting their equipment as an opportunity to
open up a new customer base for their fleets and provide new revenue streams.
Volvo Sells 102 Crawler Excavators In China
Volvo Construction Equipment’s organization in China recently received orders for 102 crawler
excavators during a single customer event day. Volvo says 102 excavators ranging from EC210 to
EC700, were ordered by retail customers on the day, all of which are scheduled to be delivered
by June 2010. The EC210 model excavators through to the model EC360 are produced at the
company’s Shanghai plant while the larger models will be manufactured in Changwon, Korea.
During 2010, Volvo is planning on having 1,000 customer events and seminars in China.
Hitachi To Set Up Plant In South Africa
Hitachi Construction Machinery Southern Africa (HCSA) plans to invest approximately €7.4
million ($10 million) on a new manufacturing plant in Zambia, South Africa, which is expected to
be opened by June 2010. HCSA said it has supplied more than 400 machines to Lumwana Mines, a
copper mine owned by Equinox Minerals Limited. HCSA stressed the importance of having a local
presence in the region due to the high costs associated with sourcing spare parts from Japan. The
HCSA export subsidiary of Hitachi also covers Angola, Botswana, Ghana, Lesotho, Madagascar,
Malawi, Mozambique, Namibia, Tanzania, Zambia and Zimbabwe.
Komatsu Accused Of Failing To Declare €139 Million
Komatsu Ltd. has been accused by the Tokyo Regional Taxation Bureau of not declaring
approximately €139.0 million ($187.8 million) in taxable profits over a six year period ending March
31, 2009. Under the transfer pricing taxation system, the tax office has looked into how Komatsu
distributed profits to British and Belgian subsidiaries and alleged that it reported profits that did not
accurately reflect its earnings in those countries.
Komatsu claimed it has “properly paid taxes on the profits from internal transactions” in Japan,
Britain and Belgium and is planning to challenge the bureau’s decision. Komatsu also intends to
formally request the Japanese government open negotiations with Britain and Belgium so it can
avoid double taxation and expects to receive tax refunds in those two European countries.
Caterpillar May Build a New U.S. Excavator Factory
Caterpillar Inc. said it will begin a study to search for a new U.S. site to manufacture its hydraulic
excavators. The company may relocate some production from its plant in Japan and Aurora, Illinois.
The company said it could triple its domestic output of construction excavators by consolidating
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production from an existing factory in Akashi, Japan and one Aurora, Illinois. Aurora is where
the company also manufactures large wheel loaders and attachments. Akashi also manufactures
a number of Caterpillar products sold in Japan, the Asia region and for export as well. Shifting
production from Japan will allow the company to increase production there for other products.
We estimate that in the U.S. the company sold between 2,000 and 3,000 excavators in 2008. Tripling
their production to fulfill those sales would boost annual output to 10,000 units or more annually
just to fulfill U.S. sales requirements. Exports could boost that volume to 15,000 to 20,000 units
annually. At that annual volume level, the company would benefit from economies of scale that
would presumably lower its costs. The company recently boosted its production of excavators in
China to 12,000 machines annually. The search is for a site expected to start competitive bidding
among states for the new manufacturing jobs. In addition to the Caterpillar jobs the company’s
suppliers will follow by building warehouses and manufacturing facilities as well.
Caterpillar announced last year it is moving production of motor graders from Illinois to Arkansas,
engines to Texas and some logistics services to North Carolina. According to DowJones News
Service, this is a broader trend by U.S. auto and aerospace sectors that have seen widespread
migration to Southern states where they are offered tax breaks and, in many cases, have access to
non-unionized labor forces.
Caterpillar has reduced its worldwide employment by more than 20,000 jobs. The company could
use the prospect of adding domestic production and jobs as leverage for further concessions from its
union employees.
Komatsu Improving Processes At North-East U.K. Factory
Reports out of the U.K. said that Komatsu saw its peak output of medium-sized crawler and
wheeled excavators in the company’s 2007-08 period of 4,830 machines drop to 1,500 units in the
2008-09 period. The 2009-10 figures are expected to be 1,000. Employee numbers at the site, which
exports 75% to 80% of output, have been cut from 750 to 300. Komatsu employees have been busy
repainting floors to reduce lighting expenses and using ramps, rather than hydraulic lifts, to take
machines off the conveyor belt, which are among recent cost savings plans devised by employees.
JCB And Volvo CE Sign Framework Agreement On Skid Steer & Compact Tracked Loaders
JCB and Volvo Construction Equipment have entered into a framework agreement under which
they will cooperate on the engineering and manufacturing of skid steer loader and compact tracked
loader products for distribution under their respective brands and through their respective global
dealer networks. Volvo is expected to produce a mono arm skid steer at JCB’s Savannah, Georgia,
facility by year end 2010. Volvo will shift its skid steer loader model production over time from its
Pederneiras facility in Brazil to Savannah.
Terex And Xiamen Ocean Gate Sign Contract For 10 RTGs
Terex Noell Cranes announced that it will deliver 10 Noell rubber-tired gantry (RTG) cranes to
Xiamen Ocean Gate Container Terminal Co. Ltd. at the end of 2010. Xiamen Ocean Gate already
has more than 60 Noell RTGs operating at Xiamen Port’s container terminals. .Xiamen Ocean Gate
Container Terminal Co. Ltd. is a joint venture with China Ocean Shipping Company (COSCO).
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COSCO, which has a 70% stake in the joint venture, specializes in global shipping, logistics, and
ship building and repairing.
A-Plant Launches New Insurance Package Rental Industry
Warrington, U.K.-based A-Plant announced that it has launched an insurance package that
enables customers to insure rented equipment against loss or damage, for up to £100,000 for any
one incident. A-Plant has partnered with Hire Association Europe (HAE) Insurance Services
to offer A-Guard Insurance, which can be used to cover equipment hired from A-Plant - from a
compressor, dumper and generator to a powered access machine, small tools or accommodation
units. The insurance rate is 15% of the equipment rental rate.
Atlas Copco Revenues Decline 14% In 2009
Stockholm, Sweden-based Atlas Copco announced that orders received in 2009 decreased 21%
to approximately €6.01 billion ($8.23 billion), compared to €7.57 billion ($10.36 billion) in 2008.
Revenues decreased 14% to €6.56 billion ($8.98 billion) compared to €7.63 billion ($10.45 billion)
in 2008, a 22% decline. Operating profits decreased 34% in 2009 to €935 million ($1.29 billion)
compared to €1.42 billion ($1.95 billion) in the same period of 2008. Restructuring costs and other
costs amounted to €58.5 million ($80 million) compared to €30.1 million ($41.3 million) in 2008.
Fourth Quarter 2009
Atlas Copco reported that demand in the fourth quarter of 2009 for some equipment and in most
aftermarket business units improved compared with previous quarters, but it was still on a lower
level than in 2008. Order intake remained at relatively low levels in most markets in Europe. Some
improvement was noted in Germany, in the Nordic countries and in the Eastern European mining
industry. In North America, the overall fourth quarter 2009 demand for industrial equipment and
mining improved slightly, whereas demand for most types of construction equipment remained
weak. Demand for both mining and construction equipment improved in South America.
Order intake at Atlas Copco for mining equipment, including prospecting equipment, improved
compared with previous quarters. The activity level and demand for capital equipment was positively
affected by a certain confidence in the sustainability of prices and demand for metals, primarily
driven by China and other emerging markets. Demand continued to be weak within most parts
of the construction segment. Sequentially, higher order intake was noted for underground drilling
equipment for infrastructure projects. Sales of light construction equipment also improved from
very low levels, mainly as a result of improved demand from distributors and rental companies. Sales
of drilling rigs for surface applications used in quarries and road construction remained at a low
level. Order intake for road construction equipment improved slightly.
JLG Sees First Fiscal Quarter Sales Increase
Oshkosh subsidiary JLG reported that access equipment sales increased 97.6% to approximately
€838.1 million ($728.0 million) for the first quarter which ended December 31, 2009 compared
with the prior year quarter. However, much of the increase was attributed to a €389.9 million
($527.6 million) intercompany transaction of M-ATV related sales to Oshkosh’s defense segment.
Sales to external customers decreased 45.6% to €148.1 million ($200.4 million) for the first quarter
of fiscal 2010 compared with the prior year quarter. External customer sales reflected substantially
20
issue 02 2010
lower global demand for access equipment as a result of recessionary economies and tight credit
markets. Sales of new access equipment declined approximately 60% compared with the prior year
quarter, as the first quarter of fiscal 2009 benefited from shipments from a strong backlog entering
that quarter.
The access equipment segment reported operating income of €9.97 million ($13.5 million), a margin
of 1.9%, for the first quarter of fiscal 2010 compared with an operating loss of €34.7 million ($47.0
million), or 12.8% margin, in the prior year quarter. Operating results benefited from the recognition
of intercompany M-ATV sales at “mid single-digit” margins. Operating results for the access
equipment segment also benefited from a decrease in material costs, lower provisions for credit losses
and restructuring charges and the benefit of cost reductions from prior year initiatives.
JLG says that European and North American markets have stabilized, while it has seen
improvements in activity in Asia, Australia, South America, North Africa, and parts of the Middle
East. Inventory levels continue to decline to the point where the company has recalled additional
employees to produce models that are out of stock and in demand.
Sandvik Fourth Quarter & 2009 Results
Sandviken, Sweden-based mining equipment and tool company Sandvik said that full-year 2009
results were dramatically impacted by the sharp deterioration in the global economy. Demand
declined overall by approximately 30% and significantly more in many areas. Sandvik 2009 sales were
approximately €7.4 billion ($10.0 billion) compared to 2008 revenues of €9.5 billion ($12.9 million),
down 22% in total and 30% at fixed exchange rates for comparable units. There was a marked
deterioration in profits due to lower volumes amounting to a loss of €145 million ($196 million)
compared to a profit of €1.3 billion ($1.8 billion) in 2008. The operating margin was a negative 2%
of invoicing in 2009 compared to a margin of 13.8% in 2008. Sandvik said that the price trend was
positive during 2009. Costs for restructuring and impairment losses amounted to €257 million ($348
million), while higher metal prices had a negative impact on the operating result of €55.5 million
($75.0 million).
Sandvik announced that fourth quarter 2009 showed positive improvements in sales derived from
very low customer inventory levels as a result of an easing of customer destocking. Sandivk said
that order intake from the energy sector, and large parts of the Asian market, remained strong. The
market situation improved slightly in North and South America, Australia and Africa, but remained
weak in Europe.
Sandvik’s sales in the fourth quarter 2009 were approximately €1.9 billion ($2.6 billion) compared
to €2.5 billion ($3.9 billion) reported in 2008, a 25% decline. Profits for 2009 were reported as a
negative €10.6 million ($14.3 million) compared to a profit of €118.4 million ($160.2 million)
during 2008. For Sandvik Tooling, the decline at fixed exchange rates for comparable units was 24%
and the decline for Sandvik Mining and Construction was 30%. The reduction for Sandvik Materials
Technology was 22%, including a negative effect of 4% related to lower metal prices. Cancellations
in the mining sector were marginal during the fourth quarter 2009, compared with €71.8 million
($97.1 million) in the corresponding quarter in 2008.
21
issue 02 2010
Finning To Sell €296 Million Of Equipment In Chile
Vancouver, British Columbia, Canada, headquartered Caterpillar dealer Finning International Inc.
announced recently that its South American division has received a letter of intent from Codelco,
Chile’s state-owned mining company, that includes the supply of 20 Caterpillar 797 mining trucks
and 15 pieces of support equipment, plus a ten-year maintenance and repair contract (MARC).
The approximate value of the transaction, including the maintenance services, is €296 million ($400
million). The letter of intent is subject to final project approval by Codelco’s Board, which is expected
in mid 2010. The equipment will be delivered in the first half of 2011 to Codelco’s Ministro Hales
mine. Located halfway between Chuquicamata and Calama in northern Chile’s Atacama Desert, the
Ministro Hales mine development is a copper sulfide deposit with estimated reserves of 219 million
tons of copper.
Dynapac USA Now Part Of Atlas Copco Sales Organization
Dynapac LLC, the Atlas Copco division, will become fully integrated into the sales organization for
all Atlas Copco construction products sold in to the U.S. market. Atlas Copco said the integration
will allow the company to maximize efficiencies leveraging economies of scale with Dynapac.
Therefore, Atlas Copco and Dynapac customers are expected to have access to more complete
product lines, broader parts inventory and distribution system. Atlas Copco said that through
the integration of Dynapac, the Atlas Copco companies reaffirm its commitment to the U.S.
construction market with construction, drilling, compaction and paving products.
Caterpillar Chairman Forecasts 3.4% GDP Global Growth
Caterpillar Chairman Jim Owens forecast a 3.4% increase in U.S. and global GDP in 2010.. Owens
also warned of risks posed by continuing economic problems in the world’s developed economies.
“The base case calls for relatively sluggish economic recovery in the United States, Europe and
Japan and a pretty robust recovery across most of the high-growth, emerging markets of the world,”
Owens told a National Association for Business Economics conference.
Owens also predicted the growth in emerging markets would have a “huge impact” on driving
commodity prices. “There’s kind of a virtuous circle of higher commodity prices helping other
emerging markets, because most of the commodities in this global economy come from the
emerging market theater,” he said. He highlighted China, India, Southeast Asia, and Latin America,
among others, as key emerging markets.
Owens said that Caterpillar’s “base case scenario” for the economy was “for a pretty solid recovery
over the next three or four years.” “Today, if you look around the world, (there’s) very low
inflation, a lot of idle capacity that can be brought back on line, very low interest rates... and really
unprecedented fiscal stimulus on a global scale,” he said.
Emerging markets had very high infrastructure needs, he said, and mass urbanization, particularly in
China, would give rise to “a huge increase in the middle class, which we think is driving investment
and commodities -- kind of the sweet spot of their investment cycle.” But Owens also said there was
“an uncommonly high risk” of a very sluggish recovery if central banks implement exit strategies too
quickly, resulting in tighter credit; if housing and commercial property prices continue to decline;
and if commodity prices spiral downward.
22
issue 02 2010
Komatsu Chairman Says Weak U.K. Pound A Blessing
Masahiro Sakane, chairman of Komatsu and formerly a strong supporter of euro membership, has
made a reversal on the European single currency, expressing relief that the U.K. chose not to join. The
company’s plant in north-east England will benefit from the pound’s sharp fall against the euro when
demand for its products starts to recover. Komatsu, which manufactures excavators for the European
market at Birtley, Gateshead, has seen its market shrink by two-thirds since the collapse of Lehman
Brothers in 2008. Output at the plant, one of the north east U.K.’s first Japanese investments in
1985, has shrunk from a peak of 4,830 machines in the company’s fiscal 2007-08 to approximately
1,000 in the 2009-10 year. Employment has dropped from 740 to 300. Exports account for 75% of
plant production.
Company’s based outside the U.K. were among the strongest supporters of euro membership when
the issue was hotly debated during Tony Blair’s leadership. Sakane has changed his mind, however,
after seeing the potential benefits to overseas sales of the pound’s decline of about 25% against the
euro in the past three years.
Komatsu U.K. enjoyed rapid growth before 2008, but has suffered from de-stocking by equipment
rental companies and a lack of investment in large scale private construction and public
infrastructure projects. It expects sales to start growing sometime in the company’s 2011-12 fiscal
year. Mr Sakane said, “The weaker sterling is a help, and particularly when the market recovers in the
European area it will be good for us.”
In spite of the fall in the pound against the euro, many inward investors have clung to a long-held
view that they would prefer Britain to join the euro on the grounds that this would remove longterm uncertainty over currency movements.
Sany Heavy To Establish Manufacturing Base In Brazil
Sany Heavy Industry Company announced it has reached an agreement with Brazil’s Sao Paulo
state government to invest €148 million ($200 million) in setting up a manufacturing base there.
At the manufacturing base, the company plans to manufacture excavators, crawler cranes and
other construction machinery products, whose annual sales are expected to reach €370 million
($500 million) in 5 years and €1.48 billion ($2 billion) in 10 years. It will be Sany’s fourth overseas
manufacturing base. Prior to this, Sany has set up factories in Germany, India and the U.S. Local
media reported that the Sao Paulo manufacturing base is a priority for Sany’s overseas expansion.
Sany will start construction of the R&D and manufacturing base in Sao Paulo state after the final
cooperation agreement is signed. Governmental approval is required.
Dayim Holdings JV With Hertz In Saudi Arabia
Dayim Holdings, a Saudi Arabian investment firm, announced it has entered into a joint venture
with Hertz Equipment Rental Corporation (HERC) to set up an equipment rental business in Saudi
Arabia. The new joint venture entity will rent equipment and tools to construction and industrial
markets throughout the country. Dayim’s Executive Chairman is HRH Prince Khalid bin Bandar
bin Sultan. The company was established in 2006 as a vehicle for investment and partnerships
in Saudi Arabia. It operates and manages its companies in sectors with high market growth
potential using a combination of joint ventures, investment and strategic partnerships with global
23
issue 02 2010
organizations. It is present in a number of sectors including construction, oil and gas, security, IT
and telecommunications.
JLG To Distribute Directly In Spain
JLG has announced recently it will handle the distribution of all of its products in the Spanish
market directly. Up to this point, JLG has sold its products in Spain through distributors, with
Madrid-based APSA handling its aerial lift products to all but the largest rental companies. The
company’s own operation, JLG Iberica, located in Barcelona, will now take over all sales of access
equipment, telehandlers, parts, financing, training and service. JLG said that the distributor model
for the Spanish market was no longer sustainable and a single channel to market would be an
appropriate solution.
CJD Equipment Is Exclusive Reseller For SDLG In Australia
The Chinese manufacturer of earthmoving equipment, Shandong Lingong Machinery Company
(SDLG), has formally appointed CJD Equipment as the exclusive distributor for SDLG products
in Australia and Papua New Guinea. CJD Equipment is also the Australian distributor for Volvo
Construction Equipment, who is the majority owner of Shandong Lingong Machinery Company.
SDLG products will be marketed in Australia through a division of CJD Equipment trading as
SDLG Australia. CJD Equipment will sell the SDLG machines through 22 dealer locations in
Australia.
Komatsu-Cummins Partnership Produces 500,000th Engine At Oyama
The Komatsu-Cummins Engine Company (KCEC) in Japan recently produced the 500,000th
engine from the Oyama jointventure operation. The joint venture company has also announced
that the Oyama engine plant will produce the next generation of Tier 4 low-emissions engines for
parent companies Komatsu Ltd. and Cummins Inc. The introduction of the Tier 4 Interim engines
at KCEC from 2010 onward will mean that the plant will be ready to power the next generation of
low-emissions, more fuel-efficient construction equipment. Additionally, the flexible manufacturing
system enables the KCEC facility to build engines to specific Komatsu and Cummins configurations
derived from common base engine platforms.
The 3.3-liter, 4.5-liter and 6.7-liter displacement engines currently produced at the Oyama plant
will move forward with technology to meet Tier 4 Interim regulations, as they are phased in by
power band and effective date in Japan, North America and Europe. The current 8.3-liter engine
produced at Oyama will be available for Tier 4 as a 9-liter version, offering a higher power output.
MAN Diesel To Supply Engines And Accessories For Six Power Plants In Brazil
MAN Diesel, the Augsburg,Germany-based manufacturer of large-bore diesel engines, is expanding
its power plants business. Grupo Bertin - a large international conglomerate from Brazil - awarded
MAN Diesel a contract to supply the electro-mechanical equipment for six diesel power plants.
These components include 120 large-bore diesel engines and generators, which together will form
the heart of six plants. The order volume for MAN Diesel is approximately €300 million ($406
million). Grupo Bertin is also the largest truck customer of MAN Latin America, MAN Group’s
South American division for commercial vehicles.
24
issue 02 2010
MAN Diesel will supply GenSets, comprising large-bore 18V32/40diesel engines, complete with
associated generators, along with other power plant components. All in all, the six diesel power plants
will generate more than 1,000 MW of electricity. The power plants will be built close to the city of
Salvador in the state of Bahia, and be operational by 2011.
Liebherr Delivers 7,500th Used Crane
Liebherr-Werk Ehingen GmbH recently delivered its 7,500th overhauled used crane to Stahlbau
Lang, a construction company based in the town of Eimeldingen in southern Germany. Stahlbau
Lang took delivery of the five-year-old Liebherr LTM 1030/2 mobile crane directly at the production
plant in Ehingen. Stahlbau Lang is replacing an older LT 1030 mobile crane with the LTM 1030/2
unit. The LTM 1030/2, with its high lifting capacity and height under hook of approximately 40
meters (131 feet), is ideally suited for the assembly work carried out at Lang Stahlbau. As well as
general steel construction Stahlbau Lang, with a workforce of 30 people, also undertakes turnkey
building construction, including roof, facade, windows and doors. At the Ehingen production plant,
Liebherr offers complete crane overhauls. In addition, Liebherr operates repair centers in Oberhausen
and at Alt Bork near Berlin, as well as other countries.
Lynch Plant Hire Takes Its Safety Message On The Road
Stanmore, Middlesex, U.K.-based equipment rental company L. Lynch Plant Hire recently switched
to the new generation dual pin excavator attachment hitches. The company is holding a series of
‘Quick Hitch Safety Road Shows’ to highlight its new hitches and to address safe working practices.
The company is investing approximately €1.6 million ($2.1 million) in replacing the fully automatic
hitches on its 500 excavators with Auto-Loc 3 dual pin capture quick hitches manufactured by
Ireland-based Hill Engineering, through Hill’s new-for-old exchange promotion. Hill is also
supporting Lynch in the road shows to explain how the technology in its fully automatic Auto-Loc
3 model works, by not only doing away with the need to manually insert a locking pin, as with semiautomatic hitches, but also providing fully independent locking.
In a bid to improve site safety, a number of major contractors have already banned all non dual pin
capture hitches. This exceeds the agreement between the Health & Safety Executive (HSE) and the
main European quick hitch manufacturers, which means that new semi-automatic hitches will no
longer be supplied to the U.K. market.
DEUTZ Opens JIS Assembly Center
The Cologne-based engine maker Deutz AG is investing €2.5 million ($3.4 million) in a new justin-sequence ( JIS) engine assembly center at its Cologne-Porz facility. The 12,000 sq m (129,000
sq ft) building will enable Deutz to respond to increasing product diversity in the wake of the new
emissions legislation, by optimizing its assembly processes and materials management.
In the new JIS center, a wide range of individual components are picked just-in-time in the correct
sequence and in many cases they are pre-assembled before delivery to the assembly line. Suppliers
send components to the sequencing center on the day they are required, which permanently reduces
the stocks of materials on site. The variable components for managing materials within the JIS
assembly center are available at more than 30 workstations in the form of sequence boxes.
The gradual switch to delivering via the JIS center was started in mid-2009 and production
25
issue 02 2010
management systems have already been switched to end-to-end sequencing in which different
orders are lined up for production. In the future, only basic components that are used for all engine
variants will be stored at the workstations on the assembly line; other parts will be supplied just in
sequence to minimize the amount of walking required. The new just-in-sequence center will employ
50 people in two shifts. The employees previously worked in assembly. In their new role, they will
sequentially supply up to 50 individual engine assembly workstations.
Wirtgen China To Cut Onsite Demolition Waste
The Germany-based Wirtgen Group is to introduce onsite-recycling technology developed by
its Kleemann GmbH subsidiary into China at Bauma China in Shanghai in November 2010.
Kleemann GmbH recycling plants take demolition waste, demolished concrete and spoil, and
convert it into aggregate for the construction industry. By recycling demolition waste onsite, the
process can reduce the amount of energy and emissions required in hauling material away from a
demolition site. The core of the process is a Kleemann impact crusher which is fed with demolition
material that has been screened for size with large particles (more than 60 mm grain size (2.36 in.))
being fed into the crusher while smaller particles are put aside for further processing. The crushed
aggregate is then separated at 20 mm, 40 mm and 100 mm sizes, and is then washed.
MAN 2009 Shows Profits Amid Difficult Year
Munich, Germany-based truck manufacturer the MAN Group recently reported that revenues for
2009 were €12.0 billion compared to €14.9 billion in 2008, a decline of 20%. In the commercial
vehicles business, revenues dropped at MAN Nutzfahrzeuge by 40% to €6.4 billion ($8.6 billion)
compared to €10.6 billion ($14.3 billion) in 2008, which was partly offset by MAN Latin America.
The Brazilian subsidiary was consolidated, following the acquisition of VW Truck & Bus, in March
2009, and generated revenues of €1.4 billion ($1.9 billion) for the period from April to December.
MAN Diesel’s performance was stabilized by its power plant and after-sales business. MAN Diesel
recorded total revenues of €2.4 billion ($3.2 billion) compared to €2.5 billion ($3.4 billion) in 2008.
MAN Turbo lifted revenues by 4% to €1.4 billion ($1.9 billion) compared to €1.3 billion ($1.8
billion) in 2008.
MAN reported that profits were €504 million ($680 million) in 2009, down from €1.7 billion ($2.3
billion) in 2008. After nonrecurring items, MAN recorded a loss of €258 million ($348 million)
compared to a profit of €1.25 billion ($1.69 billion) in 2008. MAN Nutzfahrzeuge recorded
negative profitability of 1.4%, while MAN Latin America generated 10.1%. MAN Diesel achieved
return on sales of 14.2%.
MAN said revenues in Germany declined by 26% year over year to €2.7 billion ($3.6 billion).
Approximately 80% of German revenue was accounted for by MAN Nutzfahrzeuge, which
generates 34% of its revenue in Germany. Domestic German revenue accounted for 8% of the
revenue generated by MAN Diesel and for 17% of the revenue generated by MAN Turbo. Revenues
outside of Germany decreased by 17% in 2009 to €9.3 billion ($12.6 billion). The proportion of total
revenue generated abroad was 77% in 2009 compared with 75% in the previous year. Revenues in
the European markets fell by 33% in 2009 to €7.4 billion ($9.9 billion), while the proportion of total
revenue generated in Europe amounted to 62%. MAN’s Asian business recorded a 26% decline in
revenues to €2.0 billion ($2.7 billion), accounting for 16% of total revenues. The share attributable to
26
issue 02 2010
the Americas rose to 16% due to the acquisition of MAN Latin America at the beginning of 2009.
Order intake fell in all divisions due to the economic recession. The MAN Group recorded incoming
orders of €9.9 billion ($13.4 billion) in 2009, a decline of 30% on the previous year €14.0 billion
($18.9 billion), back to 2004 levels. Order intake was down by 43% at MAN Nutzfahrzeuge. MAN
Diesel also recorded a drop in incoming orders of 39% in 2009, while MAN Turbo saw orders
decrease by 27%. Major orders received by the MAN Group more than halved to €0.8 billion ($1.1
billion) due to economic factors compared to €1.8 billion ($2.4 billion) for the previous year.
Outlook According to MAN Management:
The economic crisis will continue to have considerable after effects on the commercial vehicles
market in 2010. This will lead to a slow recovery in production and unit sales of trucks and buses. The
cost-cutting and efficiency-enhancement programs initiated by MAN in 2008 are having a positive
effect and will be continued in 2010. Capital expenditures in 2010 will remain at the low level of
fiscal 2009. The international growth strategy initiated by MAN Nutzfahrzeuge in recent years has
brought the company several record years in succession. MAN will continue to pursue this strategy.
In the medium term, the need for transportation in the BRIC countries in particular will increase
significantly and the expansion of infrastructure will be driven forward. As a result, the company
expects demand for trucks and buses to grow in these countries.
JCB Finance Celebrates 40th Year
JCB Finance Ltd., based near the JCB headquarters at Rocester in Staffordshire, U.K., is celebrating
its 40th year in 2010. Initially formed as JCB Credit Ltd. in February 1970 as an in-house part of J
C Bamford Excavators, the company’s first year in business achieved revenues of approximately €1.0
million ($1.4 million). August 1998 saw JCB Credit Ltd. become JCB Finance Ltd., a result of JCB
desiring to replicate its UK finance arm’s success under one common brand worldwide. In December
2007, the lending balance for the company had grown to €567 million ($763 million) JCB reportedly
finances 90% of JCB equipment in addition to financing other brands of machinery.
Sany Buys A 3,000 Ton Brake Press
LVD-HD has been awarded a contract from Sany Group Company, Changsha, Hunan, Province,
China, to manufacture a custom 3,000 ton press brake for the production of mobile cranes.
LVD-HD is the newly established joint venture company of LVD Company n.v. and Hubei Tri-Ring
Metalforming Equipment Co., (HD), Hubei Province, China. LVD will perform engineering and
design work and provide components for the custom machine. HD will manufacture the frame and
handle assembly. Installation of the machine is planned for November 2010. LVD is one of a few
press brake manufacturers specializing in custom press brake design and construction.
XCMG Philippines Rental Operation Started By Alphaland
Alphaland Heavy Equipment Corp, based in Manila, The Philippines, opened its first equipment
rental operation in a partnership with XCMG of China. The company is set to receive its first
shipment of equipment from China. The firm will start operations with 100 pieces of equipment that
will be sold or rented to property developers in the country. In addition, the company expects to rent
equipment to local government agencies that are rebuilding roads damaged by a recent tropical storm
27
issue 02 2010
that destroyed a lot of roads and bridges. The company is also expecting to rent to the mining sector
that is benefiting from a recovery in demand for minerals.
Speedy Hire Plc Interim Report
Speedy Hire Plc, the U.K.- based tool and equipment company, recently released its interim
management report for the period from 1 October, 2009 to 15 February, 2010. Speedy hire reported
that it is encouraged, that in the third quarter (October-December, 2009) sales increasingly
stabilized compared to earlier quarters and early fourth quarter ( January-March, 2010). In January
2010 revenues were 24% below the January 2009 levels due to the adverse weather conditions across
the U.K. which significantly disrupted construction activity in early January.
Net debt at the end of January 2010 was reduced to approximately €157 million ($212 million)
compared to €276 million ($373 million) at the beginning of the financial year. This is despite fiscal
year 09/10 capital expenditures totaling approximately €8.9 million ($12 million) having been
invested to date in the new Middle East operations.
Outlook According to Speedy Hire Management:
Overall activity appears to be stabilizing and Speedy is looking forward with cautious optimism.
While short term visibility remains challenging, assuming the pattern of the recovery seen since the
Christmas/New Year shutdown is maintained, the company said that results for the fiscal year 2010
will be in line with its expectations
Chinese Machinery Firms Eye Leasing
China’s machinery makers are developing financial leasing as a strategy to increase equipment sales
and expand their presence in overseas markets. Zoomlion Heavy Industry Science & Technology
Development Co. is using equipment leasing as a method to expand its presence in the European
market and increase sales. The company joined the European Rental Association recently in a bid
to enter Europe’s financial leasing market. It also set up financial leasing firms in 2009 in Australia,
Russia, Italy and the U.S, as part of efforts to increase sales in these regions. Zoomlion Heavy
Industry expects revenues generated from financial leasing services to have exceeded €542 million
($733 million), representing a reported 20% of its entire sales in 2009. Zoomlion estimates that its
financing services will account for 60% to 70% of sales over the next two to three years.
China’s XCMG Posts Soaring Business Revenues In 2009
Jiangsu- based XCMG Construction Machinery Co., Ltd, the Chinese construction machinery
manufacturer, reported recently its business revenues in 2009 increased 30.3% to approximately €2.2
billion ($3 billion). In its annual report for 2009 to the Shenzhen Stock Exchange, the company said
its 2009 profits reached €190.8 million ($254.9 million), a 16.4% increase year over year.
28
issue 02 2010
EXCHANGE RATE CHART
Currencies against the US dollar
The following table gives the ex c hange rates , agains t the US dollar at the date of public ation.
Divide currency by the rate in the table to obtain US dollars.
2nd
Mar
2009
1s t
A pril
2009
28
A pril
2009
3rd
June
2009
10th
July
2009
3rd
A ug
2009
1s t
Sept
2009
12th
Oc t
2009
2nd
Nov
2009
10th
Dec
2009
18th
Jan
2010
23rd
Feb
2010
5th
A pril
2010
DKr 5.920
5.644
5.691
5.267
5.349
5.166
5.241
5.033
5.050
5.058
5.173
5.508
5.526
Norw ay
NKr 7.156
6.735
6.708
6.355
6.532
6.019
6.099
5.636
5.780
5.618
5.659
5.955
5.950
Sw eden
SEK 9.175
8.223
8.192
7.714
7.920
7.098
7.280
6.971
7.081
7.097
7.035
7.264
7.183
Sw itz erland
SFr 1.172
1.149
1.149
1.073
1.088
1.059
1.068
1.525
1.024
1.028
1.025
1.084
1.063
£ 0.715
0.694
0.685
0.613
0.618
0.590
0.620
0.635
0.609
0.616
0.613
0.648
0.655
C$ 1.288
1.264
1.222
1.104
1.165
1.067
1.104
1.034
1.077
1.053
1.025
1.056
1.003
Denmark
UK
Canada
Japan
¥
97.4
98.8
96.5
96.0
92.2
95.2
93.0
89.8
90.5
88.3
90.8
90.2
94.4
Euro
€ 0.794
0.758
0.764
0.707
0.718
0.694
0.704
0.676
0.674
0.680
0.695
0.740
0.742
Sourc e: f inanc e.y ahoo.c om/c urrenc y
EXCHANGE RATE CHART
Currencies against the Euro
The following table gives the ex c hange rates , agains t the E uro at the date of public ation.
Divide currency by the rate in the table to obtain Euros.
2nd
Mar
2009
1s t
A pril
2009
28
A pril
2009
3rd
June
2009
10th
July
2009
3rd
A ug
2009
1s t
Sept
2009
12th
Oc t
2009
2nd
Nov
2009
10th
Dec
2009
18th
Jan
2010
23rd
Feb
2010
5th
A pril
2010
DKr 7.451
7.449
7.448
7.448
7.446
7.444
7.443
7.445
7.440
7.443
7.442
7.444
7.447
Norw ay
NKr 9.006
8.889
8.779
8.986
9.092
8.674
8.661
8.337
8.514
8.480
8.141
8.047
8.019
Sw eden
SEK 11.547 10.853 10.721 10.908 11.024 10.229 10.339 10.311 10.432 10.444 10.120
9.916
9.681
Sw itz erland
SFr 1.475
1.517
1.504
1.518
1.514
1.526
1.516
1.517
1.509
1.513
1.475
1.464
1.432
£ 0.900
0.916
0.896
0.867
0.861
0.850
0.880
0.936
0.901
0.907
0.882
0.876
0.883
C$ 1.621
1.669
1.600
1.561
1.622
1.538
1.569
1.530
1.594
1.549
1.475
1.427
1.352
Japan
¥ 122.5
130.3
126.3
135.7
128.4
137.3
132.1
132.9
133.1
129.9
130.7
121.9
127.2
U.S.A .
$ 1.258
1.320
1.309
1.414
1.392
1.441
1.420
1.479
1.473
1.472
1.439
1.351
1.348
Denmark
UK
Canada
Sourc e: f inanc e.y ahoo.c om/c urrenc y
29
issue 02 2010
NEW PRODUCTS
Detailed specifications for the following new model introductions can be easily accessed instantly at
www.spec-checkeurope.com.
Way Industries - Locust L453
Brand and- 216B
Model
Caterpillar
Series 2, 232B Series 2, 236B Series 2,
242B
Series
2,257B
Neuson: 901s, 901spSeries 2
Avant
- 313S,
320S,
Hyundai:
H S L314S,
650-7,
H S L 320S+
850-7
Doosan - 430 Plus, 450 Plus, 460 Plus
Neuson: 28Z 3
Massey
Ferguson
- MF
Cams Libra:
C Z 37,
C Z 89410,
42, C Z MF
55 89410L
MZ
Imer 9V
- MZ-2706
Ihimer:
X
Skid Steer Loader
Product Category
Skid Steer Loader:
Mini Excavator:
Telescopic Handler :
Fiori AL:
Terex
- TC250
25
Dressta: 530 H
Wacker:
L AS
30, W L 36, W L 37, W L 48, W L 50, W L 55, W L57
Terex
- TLW80
Hyundai:
H
L
Foredil - 23.12730-7A , H L 730X T D -7A , H L730T M -7A , H L 740-7A , H L 740X T D -7A ,
H L 740T M -7A , H L 757-7A , H L 757X T D -7A , H L 757T M -7A
Wheel
Loader: :
Mini
Excavator
Wheel Loader :
Articulated Dump Truck :
Wheeled Excavator:
Rigid dump truck :
Crawler Excavator:
Mobile Compaction :
Compaction Roller:
Case - 327 B, 330 B, 335 B, 340 B
Case: W X 125 S eries 2
Hyundai:
-7A , R 200W -7A
Astra - RD R28140W
C, RD 32 C
Hitachi: E X 1900-6 (B E ), E X 1900-6, E X 2500-6, E X 3600-6
Caterpillar - CB 534 D (2 amplitudes), CB 534 D (5 amplitudes), CB 534 DXW
(2 amplitudes), CB 534 DXW (5 amplitudes)
Caterpillar: C B 34, C B 34 E W , C C 34
Dressta - RD 165 C Extra
Dressta: T D 25 M E xtra
Caterpillar - 120 M VHP, 120 M VHP Plus, 140 M VHP Plus,
160 M VHP, 160 M VHP Plus
Grader:
Dozer:
MACHINERY OUTLOOK EUROPE CLASSIFIED ADS
Machinery Outlook Europe’s classified ad section is the most cost effective way
to reach thousands of key equipment industry executives for:
Situation Wanted
Finding Employees
Selling and Buying a Business or Service
RATES: only $90 per vertical inch
or $365 half page (4.5 inches) save 10%
or $650 full page (9 inches) save 20%
30
issue 02 2010
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and mail, e-mail or fax your subscription today. Fax number (847) 949-9910.
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31
issue 02 2010
CALENDAR OF EVENTS

europe - Machinery Outlook

Transcription

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