The 2020 Mid-Year Economic Update_long

Day: January 22, 2008

Timken Expands Reach in Energy Market

The Timken Company, Canton, OH, has agreed to acquire Boring Specialties Inc., a provider of precision deep-hole oil and gas drilling and extraction products and services. Based in Houston, TX, BSI had 2006 sales of $48 million.
 
The acquisition will extend Timken's presence in the growing energy market by adding BSI's products to its range of alloy steel products for oil and gas customers.
 
BSI primarily serves the oil and gas industry, with products used in the manufacture of down-hole drilling and completion components. Timken steel is used in a number of BSI's products.
 
Timken supplies friction management and power transmission products and services. Timken had sales of $5 billion in 2006, operations in 26 countries and 25,000 ...

Indutrade to Buy Precision Products

Swedish manufacturer Indutrade has agreed to buy UK company Precision Products Ltd, with annual sales of SEK 70 million (US$10.7 million).
 
Precision Products, with a customer base in 48 countries, is a supplier of piston rings to the international marine engine industry as well as products for other industrial applications.
 
Precision Products fits well in to our strategy of acquiring niche companies with a high level of technical expertise and building clusters,"says Johnny Alvarsson, president and CEO of Indutrade. "The company will be included in a cluster together with the spring manufacturers Spinova and Carrab Industri."
 
Precision Products will be part of the Special Products unit, which had net sales of SEK 1,094 million (US$168.4 million). ...

Private Equity Firm Invests in Avtron Manufacturing

Morgenthaler Partners announced the recapitalization of Avtron Manufacturing, Inc., Independence, OH, a multi-business company that designs and manufactures technical products via three operating divisions: Aerospace, Load Banks, and Industrial Automation.
 
As part of the transaction, senior members of the management team, led by CEO Bob Fritz, will be significant equity holders in the company.
 
Avtron's Aerospace Division provides test equipment for electrical, electronic, hydraulic and fuel systems to commercial airlines, maintenance shops, component manufacturers, and military forces on a global basis. The Load Bank Division offers test equipment and complementary products for diesel generator sets in North America and increasingly in Asia. Industrial Automation ...

Sandvik to Acquire S. African Supplier

Sandvik, Stockholm, Sweden, has agreed to acquire South African company Corstor International Ltd.
 
Corstor is a manufacturer of borehole core storage and handling systems for the mining and exploration industries. Corstor also distributes analysis and survey equipment as well as accessories to the mining and exploration industries in Africa.
 
Sales amount to SEK 70 million per year and the company has 100 employees. The head office and the largest production plant is located outside Johannesburg, South Africa. The company also has sales and service offices in Ghana and Tanzania.
 
Sandvik is a global industrial group with advanced products and positions in selected areas -tools for metal cutting, machinery and tools for rock excavation, stainless ...

Schneider Electric 2007 Organic Growth at 13.9%

French-based Schneider Electric saw sales rise 26.1% in 2007 to €17,309 million (US$25,298 million), double the Group's sales in 2003. Organic growth was 13.9%.
 
In the fourth quarter 2007, sales were up 25.2%.
 
In Europe, sales were up 12% for the year, in North America sales were up 13.1%, Asia-Pacific up 16% and the Rest of the World up 23.3%.
 
Operations in North America had sales growth of 14.3% in the fourth quarter. According to Schneider, this reflects the Group's repositioning in certain market segments including data centers, water treatment, hospitals and power supply, the high demand for energy efficiency solutions and the significant volume of project orders in previous quarters.
 
In Europe sales in the fourth quarter were ...

Fastenal Sales Grow 14% in 2007

The Fastenal Company, Winona, MN, reported sales for the year ended Dec. 31, 2007, were up 14% to $2.06 billion. Profit increased from $199 million to $232 million in 2007, up 16.9%.
 
Sales for the quarter ended Dec. 31 were $519.2 million, an increase of 15.7% over the same period last year. Profit was up 23.3%.
 
In 2007, Fastenal opened 161 new sites, compared with 245 new sites in 2006.

More details

Eaton Sales Up 7% to $13B in 2007

Diversified industrial manufacturer Eaton Corp., Cleveland, OH, reported sales for 2007 were up 7% to $13 billion. Profit was $994 million, an increase of 5%.
 
In the fourth quarter, sales were $3.4 billion, 10% above the same period in 2006, and profit was $256 million, an increase of 6%.
 
Sales growth in the fourth quarter included 4% from acquisitions, 4% from higher exchange rates and 2% from organic growth.
 
Looking at 2007 as a whole, we had a very strong year,"said Alexander M. Cutler, Eaton CEO. "Our sales in 2007 grew 7 percent despite the downturn in the NAFTA class 8 truck market, and our operating earnings per share grew 8 percent. … And we concluded the year by announcing two significant acquisitions — Moeller and Phoenixtec ...

Commerce Dept: Duties on Nails for Chinese, UAE Producers

The U.S. Department of Commerce announced its preliminary findings in the antidumping duty investigations on imports of steel nails from China and the United Arab Emirates. Commerce determined that Chinese and UAE producers/exporters will pay from 20.77% to 118.04% and 4.47 percent in duties.
 
Dumping occurs when a foreign company sells a product in the U.S. at less than fair value. Final approval of duties should occur by mid-summer.
 
The merchandise covered by these investigations is steel nails of up to 12 inches. Nails that are subject to these investigations have a variety of finishes, heads, shanks, points, and sizes.
 
Mid Continent Nail Corporation (MO); Davis Wire Corporation (CA); Gerdau Ameristeel Corporation (Atlas Steel &Wire Division) (FL); ...