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• Volvo Doesn’t See Recovery, Europe Will Fall Further
• Haulotte Group | Biljax Go Green
• BellEquipmentSeeks€18Million Loan
• Dynapac Relocates Headquarters
• India To Be Testing Hub For John Deere
ISSUE 09.03
HEARD IN THE DIRTTM
New And Used Equipment Prices Being Watched Closely
Times like this try a man’s soul, but they also try a man’s ability to hold the line on prices. New and used equipment prices always come under pressure in downturns. This downturn is particularly severe and will be a real test of how long manufacturers and dealers will remain disciplined before they break ranks in a scramble for cash.
The abruptness of the swing from new equipment shortages in early 2008 to the evaporation of backlogs by December was breathtaking. During the first half of the year equipment manufacturers were bucking the head winds of material price increases which necessitated raising their retail prices. Increases have averaged 3% to 6% per year for the past several years. In 2007 most companies raised prices twice, once in January and again in July in order to keep up with steel price increases. The larger and more astute companies negotiated long term steel supply agreements to “lock-in” prices and make them more predictable. Since most manufacturers value work-in-process inventories on a last-in-first-out (LIFO) basis, the affect of steel price increases immediately appears on their income statement. Manufacturers are now faced with having high priced steel inventories on their books in a market environment where new equipment prices are under downward pressure.
CONTENTSCOMPANIES' NEWS & RESULTSAGCO And TPS Team For Farming Tech 13AGCO Reduces U.K. Staff 19Atlas Copco Cuts Additional Jobs 6Atlas Copco Acquires Compressor Rental Business 14Atlas Copco Order For Russian Olympic Jobs 24Bell Equipment Seeks €18 Million 19Case Sets Up 'Specials' Unit 23Caterpillar Financial Launches €2.26 Billion Debt 10Caterpillar AccuGrade Updates 11Caterpillar CEO, More Company Layoffs 15Caterpillar Achieves Off-Highway Truck Milestone 17Cummins Record Sales And Profits 7Deere Reports Q1 Earnings of €204 Million 20DEUTZ Bundles Exhaust Gas Technologies 14Doosan Reports Losses In 2008 10Doosan ORBCOMM-Based Telematics 15Dynapac Relocates Headquarters 24Finning 2008 & Q4 Results 20Haulotte Group | Biljax 2009 Go Green 17SAIC-Iveco JV In China 25Old JCB Factory Demolished In U.K. 25JLG New Sales And Service Center In Singapore 25India To Be Testing Hub For John Deere 26Komatsu Layoffs In U.K 4Komatsu Reorganization of Japanese Sales and Service 12Komatsu Invests In Its Peruvian Distributor 12Rio Tinto Testing Autonomous Haulage System 12Konecranes Layoffs In Finland 23Russian Krasnoyarsk Combine Harvester Works 27Liugong Machinery 2008 Earnings 27LS Cable To Enter U.S. Market 18M&M Merges With Punjab Tractors 18Mahindra Tractors Sales Rose By 40% 26MAN Acquires VW Brazil Truck And Bus 23Majority Stake In MAN Ferrostaal Sold To IPIC 27Manitou Expands Telematics To All Europe 6Tellock Named Chairman Of The Manitowoc 18Caterpillar Distributor McCormick To Cut Jobs 19Metso Lay Offs In Finland 12Metso Expands Crusher Capacity In China 16
Navcom Partners With Astrium Services 28New Holland Debuts Hydrogen Powered Tractor 23New Holland Names New Dealer In Country Of Georgia 27Penny And Hinowa To Make Cranes 23New CEO at Putzmeister Concrete Pumps 18Ramirent To Cut Further 150 Jobs 20Ritchie Bros. Auction In Moerdijk 7Ritchie Bros. Large Spain Auction 7Norway Post Chooses Scania 18South Korean Gov To Build Wind Power Generators 13System Lift Revenues Up 23% 6Terex Says Two Units Must Be Fixed Or Sold 9Terex CEO Declines $1.17 Million Bonus 13J&J Miller Back For Ninth Terex Backhoe 13Counterfeit 'Terex' Cranes In China 24Terex Relocates Amid Expansion Plans In Dubai 25Terex To Layoff 95 In U.K. 26Titan First Quarter Dividend 14United Tractors Of Indonesia 8Volvo CE 2008 Sales Up 5% 10Volvo Slow Recovery, Europe To Fall More 15Volvo Plans Record Investment 24Wacker Neuson Sales Up 9China Yuchai Reports 2008 Diesel Engine Unit Sales 28Zoomlion Confident Of U.S. Market Share 14
GENERAL4,000 Buyers Descend On Auction In Ireland 12Calendar of Events 30Cat CEO On Obama Economic Advisory Board 14China Stimulus Package 10Japan's Economy Shrinking 20Equipment Prices 1U.K. To Cut VAT On Home Repairs 17World Of Asphalt And AGG1 2009 16World Of Concrete 2009 5
Ed Rapp, a Caterpillar Group President, summed up the situation very well at a Reuter Manufacturing
Conference in Chicago. He said that “the industry was dealing with ‘a pretty significant hangover effect’ from higher steel and other input costs last year that had wound up in products that wouldn’t leave the factory until later this year.” He went on to say he, “doubted that efforts by rivals like Terex Corporation to generate cash by bringing inventories down would spark a price war in the construction equipment space. It’s apparent to us that most people in our industry have been very aggressive in adjusting production to align with sales,” he said. “I think everyone understands that it’s to nobody’s benefit to have an excess level of inventory.
So I think the industry has been responsible in that regard.” Rapp went on to say that, “If you look at how long it took for some of the material costs to pass through, and the combination of reduced volumes ... I think that everybody is going to be respectful of the fact that there is still a material cost that you have to cover out there, which hopefully will lead to a little more pricing integrity.” But a price war, or the thought of one, is keeping a lot of people awake at night.
Used equipment prices are another barometer of price stability. We attended the recent six day Ritchie Bros.
auction in Kissimmee, Florida, to get a flavor for used equipment pricing. Everyone we spoke with went there with the expectation there would be a blood bath. Prices were expected to drop 50% to 60%, but they didn’t, much to everyone’s surprise. Ritchie announced they sold $181 million in six days compared with $194 million sold last year in five days. The difference implies that prices were down overall by 20% to 25%. There were differences by brand. By our calculation, Caterpillar equipment prices were down 10% to 20% year-over-year and non-Cat equipment was down 20% to 30% year-over-year. There were some scary stories about big drops in articulated truck prices, but everyone expected them to be soft because they are mostly rented to contractors for site development which is one of the weakest construction segments right now. No alarm bells there. A week later in Phoenix, Ritchie held another auction that featured aerial work platforms. There were some alarm bells there. Prices for recent models appear to have been down 30% to 40% from expectations.
Maintaining new equipment price discipline has obvious benefits. Manufacturers are able to pass on their costs and remain profitable. In the past, they have had to provide their dealers with discounts to move inventories that were too high, which of course resulted in the manufacturer becoming unprofitable. If there’s price stability, dealers stand a better chance of making a reasonable profit as well.
High and predictable used equipment prices are almost as important to the health of our industry as stable new equipment prices. Used equipment prices are used to predict residual values for leases
and loans and to value dealer and rental company inventories. Those value assumptions must be tested twice a year. If the assumptions are too high, the company must make an impairment charge that has the result of reducing net worth. Many business loans require companies to maintain a minimum net worth or they will violate their loan covenants. We are starting to hear about a lot of loan covenant violations.
Komatsu Layoffs In U.K., Sales Down 20%, Next Fiscal Year
Komatsu U.K laid off 91 employees of its 554-strong workforce in County Durham, U.K. as orders have declined by as much as 70% in recent months. Peter Howe, managing director at Komatsu UK, said: “Production has been significantly reduced over the past year in light of a “reduction in demand.” Compared to the previous financial year, our sales have dropped by around 70% and we are not expecting any quick recovery. Over the past few months, we have done all we could to prevent the job losses, such as extending the shutdown periods, carrying out training and temporarily moving production employees to non-production activities. However, the severity of the effect of the economic situation is such that we now have no other option than to downsize our production operation. Having to take this kind of action is devastating and it is obviously the last resort.”
“Komatsu Ltd. expects equipment sales to fall 20% in the fiscal year from April 2009 to 2010 as the financial crisis hurts global demand everywhere but China .” the company’s chief executive said. Komatsu, announced €15 billion ($20 billion) in total sales in the year, ending 31 March 2008.
Komatsu indicated that meeting this threshold, next fiscal year will be difficult as global industry demand has fallen 40% on average from year-ago levels since October and is likely to remain weak. Chief Executive Officer Kunio Noji, 62, said recently in an interview in Tokyo, “We’ve already started to see the stimulus spending in China; we expect a bit of growth there next fiscal year, somewhere between zero percent and 10%.”
Komatsu cut its profit forecast for the current fiscal year by 42% in January, saying it expected to earn €829 million ($1.1 billion) in net income on €15 billion ($20 billion) in sales. “We won’t be far from the sales target.” Mr. Noji said, adding that mining machinery sales will peak in the period ending 31 March before falling around 10% next year.
Komatsu, which forecast a fourth-quarter loss, will cut executive pay by approximately 30% in the year through 31 March to help reduce costs. The company may also apply for wage subsidies under a Japanese government aid program. Komatsu plans to cut output at domestic Japanese factories by 65% to 70% from year-ago levels in the three months ending June, compared with an 80% reduction in the current quarter. The company plans to trim inventories to appropriate levels of 14,000 units by the end of June and restore production to levels that match current demand from July. Komatsu will also reduce capital expenditures on new manufacturing facilities to €150 million ($200 million), down from the average of €452 million ($600 million). The company said they have no inventories in emerging-market nations and Japan. It has two months of inventories in the U.S. and four months in Europe. The Tokyo-based Japan Construction Equipment Manufacturers Association.reported that Japan’s construction-machinery shipments dropped 51% to a six-year low in January.
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It was evident that the construction equipment markets have been impacted by the global recession. Overall, based on comments heard during the World of Concrete (WOC) convention, most people have written off the 2009 U.S. construction equipment markets and are hopeful that the economic stimulus package will be rolled out quick enough to start a recovery by 2010. The more optimistic members of the crowd were hopeful that the final quarter of 2009 would provide some sales relief. Interestingly, the company press conferences generally were lead by product managers and a vice president or two but most of the top brass stayed home.
In a conversation with the owner of a local Las Vegas landscaping company he indicated that the market has fallen drastically over the past few years. His landscaping company focuses mainly on “production” landscaping, where they work for large home builders who build “track” homes. At the peak a few years ago, the company employed 480 people now they only have 125 employees. Not long ago they were landscaping approximately 500 new homes in Las Vegas per month and now they are only working on 50 to 75 jobs. Not surprisingly, his equipment needs have dropped from 150 machines to around 40 now.
Show organizers of the WOC 2009 announced there were more than 880,000 square feet of exhibits. Approximately, 65,287 people attended compared with 84,789 people in 2008, a 23% decrease and a 29% decrease from 2007. This show is still a major venue for small and medium-sized equipment as well as all kinds of products related to concrete, of course. It is the only large U.S. show that is held annually. We observed that foot traffic in the hall that held the machinery, work trucks and concrete pumpers was active, however, the halls with products focused on the masonry and home building such as, concrete forms, was a ghost town; reflective of the current residential construction slump.
Major manufacturers noticeable by their absence from the show were Komatsu, New Holland and Kobelco. The empty spaces where they were to have displayed their products were filled with tables and chairs. The absent manufacturers blamed the current economic environment. One or two made official statements and said that they would like to see a consolidation of industry trade shows.
There were a few interesting product launches during WOC. Caterpillar highlighted new editions of its compact track loaders product line. The models 279C, 289C and 299C feature a Caterpillar engineered rubber track with embedded steel bars and cables they claim is more durable, a positive external drive system and a 2- speed transmission as standard. This Caterpillar-designed and built track is a new option available as an alternate to the flexible rubber track produced by Terex/ASV that has appeared on the Caterpillar’s multi-terrain product line since it was introduced. The company also announced updates to its model 904H wheel loader that include a new cab with joystick functions, heater upgrades and improved visibility. Additionally, the company introduced the models TH406 and TH407 telescopic handlers built for them by JLG with improved cabs, stronger booms and operator safety improvements.
SANY, the Chinese company based in the Atlanta, Georgia, area had the largest display that filled up a large portion of an indoor hall. The company exhibited six truck mounted concrete pumps, three large gensets, three hydraulic excavators and a motor grader.
Volvo had a small display with a few pieces of equipment including a hydraulic excavator, wheel
loader and a skid steer. Terex unveiled its 50th anniversary tractor loader backhoe the model TX860B which has a 100 hp (74.8kW) Tier 3-compliant engine; Terex also highlighted its compact model T19-55 telescopic handler. Terex mentioned to us that they signed up four new dealers by the middle of the first day of the show. Wacker Neuson introduced the rebranding effort of its entire line of 250 pieces of equipment. The color scheme has been changed to gray and yellow, a new WN symbol and the Wacker Neuson name.
Atlas Copco Cuts Additional Jobs
Atlas Copco AB said it cut 1,350 jobs and plans to eliminate 3,000 more after new orders tumbled in the fourth quarter. Mining orders fell 36% in the fourth quarter, including cancellations. The company said sales to vehicle makers dropped by double digits. Atlas Copco saw declining demand for its pressurized tools, which are used to drill rock faces in mines and tighten bolts at auto assembly plants. The company expects demand will remain weak in most industries and regions in the near term. A company representative stated that its mining and construction businesses have experienced big cancellation problems.
Fourth quarter profits increased to €262 million ($348 million) from €117.4 million ($155.9 million) a year earlier. The company’s fourth-quarter profits in 2007 were weighed down by €102.8 million ($136.5 million) in financial items, including a write down on the earlier sale of a U.S. construction rental business, RSC. The operating margin narrowed to 16.7% of sales in the quarter from 19.2% a year earlier. That still exceeds the company’s long-term target of 15%. Sales rose 12% to €1.8 billion ($2.4 billion), beating analyst estimates of €1.7 billion ($2.2 billion) and exceeding the company’s long-term target of 8 % growth.
Manitou Expands Telematics To All Europe
Ancenis, France-based Manitou is now offering an integrated machine telematics system throughout Europe, using the Trackunit system developed by M-tec A/S in Denmark. The system combines GSM, GPS and internet technologies to provide equipment location and operating information. M-tec’s Trackunit was adopted by Manitou’s Danish dealer Scantruck in 2005. The dealer now has 1,400 units in use, and M-Tec`s 13,000 units are in service across Europe, with customers including Riwal Denmark. Trackunit gives relevant machine information including operating time and can service information.
One benefit of its system is that the same product, at one price, is available across Europe. Owners can fit the same system regardless of fleet location. Users pay no mobile phone roaming costs.
System Lift Revenues Up 23% In 2008
System Lift AG, the German rental company, announced that revenues rose 23% to €190 million ($252 million) in 2008. Work platforms accounted for €102 million ($135 million) of the revenues, an increase of 24 % compared to 2007. System Lift’s members invested over €36 million ($48 million) in 2008, increasing the number of work platforms to over 6,500. The total workforce grew 5% to 430.
Since the beginning of 2009, three new partners have joined System Lift AG: Mobilift from
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Cologne, Germany, Autokrane Schares from Bocholt, Germany, and Arbeitsbühne Ziegler Lifting from Aschaffenburg, Germany. System Lift now has 60 dealers representing 70 rental locations.
Ritchie Bros. Auction In Moerdijk
Richie Bros. announced that prices were strong when more than 1,400 unique on-site and online bidders from 59 countries participated in Ritchie Bros.’ most recent Moerdijk auction, in the Netherlands. Close to 440 consignors sold more than 3,700 used and unused equipment items in the unreserved public auction which generated gross auction proceeds in excess of €39 million ($50 million).
“We had a lot of people watching our recent auctions in Moerdijk, just to see where prices were; the results of those auctions gave them the confidence to sell with us,” said Ralf Harders, Ritchie Bros. Regional Manager. “Prices have rebounded somewhat since late last year and, in certain cases, are higher than this time last year. A lot of European manufacturers, dealers and rental companies are turning to Ritchie Bros. because they know we can help them reach the widest audience of potential buyers and achieve the best returns on their surplus assets.”
Ritchie Bros. Conducts Largest Spain Auction
Vancouver, British Columbia, Canada-based Ritchie Bros. Auctioneers attracted thousands of on-site and online bidders to the largest Spain auction in the company’s history. Ritchie Bros. sold €33 million ($43 million) of equipment over three days at its Moncofa, Spain, auction site in March 2009. Ritchie Bros. sold more than 2,900 lots including a large selection of cranes, trucks, earthmoving, material handling and rental equipment. Approximately, €20 million ($26 million) worth of equipment was sold to buyers from outside Spain.
“The atmosphere at the auction was fantastic,” said Jeroen Rijk, RitchieBros. Divisional Manager. “There is so much talk about recession in Spain but we didn’t see any evidence of it here last week. We had a record number of bidders at the site and prices were very strong across all categories of equipment and trucks. A lot of equipment is sitting idle or unsold in Spain, but not at Ritchie Bros. People come to our auctions from all over the world because we offer a huge selection of equipment and the certainty that it will all be sold on auction day.”
Cummins 5th Consecutive Year Of Record Sales And Profits
Cummins Inc. reported its fifth consecutive year of record sales and profits. The company reported that sales for the year increased 10% to €10.7 billion ($14.3 billion), from €9.8 billion ($13.0 billion) in 2007. Profits rose 8% to €604 million ($801 million) compared to €557 million ($739 million) the previous year. Profits included a €28 million ($37 million) pre-tax charge to cover the costs associated with job reductions in the fourth quarter that included cutting the workforce by nearly 650 people. Fourth quarter revenues fell 6% to €2.47 billion ($3.29 billion) compared to €2.65 billion ($3.52 billion) during the same period in 2007. Fourth quarter profits dropped to €67 million ($89 million) from €149 million ($198 million). Sales declines in the company’s engine and components segments offset gains in power generation and distribution. The company’s financial performance in the quarter also was negatively affected by lower joint venture income and the impact of a strengthening U.S. dollar. Based on its latest market forecast and the expectation that the
global economy will not improve in 2009, Cummins forecasts sales in 2009 to be approximately 20% lower than 2008. In January, Cummins announced that it reduced its worldwide professional workforce by an additional 800 people and froze pay for most salaried workers. In addition, the company’s officers had their pay reduced by 10% for 2009. By the end of March, the company will have reduced its global workforce by more than 1,400 salaried professionals and more than 1,300 hourly manufacturing plant employees – or about 6% of its total workforce – since the beginning of the fourth quarter 2008.
Fourth quarter details Engine Segment
Sales of €1.46 billion ($1.94 billion) were 10% lower than the €1.63 billion ($2.16 billion) reported in same period a year ago. Engine shipments declined in nearly all on-highway markets, including heavy-duty truck (9%), medium-duty truck (9%), Chrysler/light-duty auto (34%), recreational vehicle (72%) and construction (30%). The segment’s performance also was negatively affected by higher material costs, currency effects, increased warranty expense and lower income from its joint ventures. Power Generation Segment
Sales increased 6% to €668 million ($887 million) compared to €633 million ($840 million) a year ago. Commercial generator sales improved 14% to €423 million ($562 million), driven by strength in Western Europe and China, more than offsetting a large decline in the company’s consumer generator business as a result of continued weakness in the U.S. Components Segment
Sales decreased 13% to €509 million ($676 million) from €585 million ($777 million) in the fourth quarter 2007. Sales were flat in the company’s exhaust after treatment business, but fell significantly in the other three businesses in the segment: Fuel Systems sales fell 25%, Turbocharger sales fell 18% and Filtration sales decreased 11% as the segment felt the effects of the demand drop in truck and construction equipment markets around much of the world. Distribution Segment
Sales increased 19% to €420 million ($557 million) from €353 million ($468 million) in the fourth quarter of 2007. Excluding the impact of currency, sales grew in all nine of the business’ geographic regions, led by sales of high horsepower engines to industrial markets and power generator equipment. Results from a recently consolidated distributor location in the U.S. also contributed significantly to the sales gain. United Tractors Of Indonesia Expects To Post 46% Market Share For Komatsu
Komatsu distributor PT United Tractors hopes to achieve a 46% share of the Indonesian market for heavy equipment this year. According to management, last year United Tractors sold 4,345 units of
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heavy equipment, or 44.8% of the market. United Tractors predicted total sales of heavy equipment in the country this year would fall to 5,000 units from 10,000 units in 2008. The company revised down its prediction from 6,000 units set earlier as the agribusiness and forestry sectors, which are among the main users of its equipment, remained depressed.
Wacker Neuson Sales Up
Wacker Neuson SE announced 2008 sales of €870 million ($1.2 billion), up 17.3% compared to the €742 million ($984 million) reported for 2007. Pre-tax profit was €100 million ($132 million), down 14.5% on the €117 million ($155 million) recorded in 2007.
While sales in Asia and the services segment developed positively, market trends had a negative impact on sales in Europe and in the U.S., as well as in the light and compact equipment segments. Wacker Neuson affiliate Weidemann GmbH, however, saw sales rise 27% from €84.7 million to €107.5 million ($112 million to $143 million) during fiscal 2008, fuelled by strong demand from the agricultural sector.
Although Wacker Neuson has intensified cost-saving measures, the company indicated they cannot rule out negative quarterly results this year, said Dr.-Ing. Georg Sick, CEO of Wacker Neuson SE. Selling and administrative costs are set to be further reduced in 2009. Outlay in all business segments has been reduced and the investment budget cut by approximately 40%. “It is also necessary to align our human resources at a time like this,” said Sick. “We currently plan to cut capacity by around 20% over the course of the year by extending our flexitime framework, introducing shorttime work at certain plants and letting some staff go.” The company also indicated that activities aimed at launching compact equipment in new countries will be continued.
Outlook According To Wacker Neuson Management
Due to current uncertainties, the group decided not to release forecasts for sales and earnings for fiscal 2009. The company does not expect the construction industry to feel the benefits of various national action policies aimed at stabilizing economies until the end of 2009. However, it does predict that current trends will lead to increasing numbers of infrastructure projects being put on hold worldwide, resulting in high levels of activity when economies pick up again. The company is fully aware that the threatened global downturn in the construction industry may very well run into 2010 and that this, in conjunction with increasing competition, will further impact customer order patterns.
Terex Says Two Units Must Be Fixed Or Sold
Westport, Connecticut-based Terex Corporation said the company’s construction and roadbuilding units were under review for possible divestiture as it focuses on generating cash and positioning itself for life after the current downturn. Speaking at the Reuters Manufacturing Summit in Chicago, Ron DeFeo, Terex’s chairman and chief executive, said, “My job over the next nine months is to fix, merge or sell those two units.” DeFeo also said that Terex, which has already announced 5,000 job cuts, might have to eliminate more jobs.
Doosan Infracore Company posted a third quarter loss of €7.5 million ($10 million) for 2008, compared with a profit of €89.3 million ($118.6 million) a year earlier, it said in a regulatory filing. Sales rose 6.6 % in the quarter to €1.9 billion ($2.5 billion) and operating income gained 8.1 % to €178 million ($236 million). The company is experiencing a decline in sales as demand in China weakens. China accounts for more than 25% of Doosan Infracore’s total sales.
China Stimulus Package To Boost Construction
The Chinese government announced a massive stimulus package at the end of last year which proposes to spend €442 billion ($585 billion) over two years to see its economy through the current downturn which began in August last year. The majority of the stimulus package money will go to construction projects. The stimulus will be fueled in large part by the foreign exchange reserves of the People’s Bank of China which were reported at €1.16 trillion ($1.53 trillion) at the end of 2007.
The largest amount of spending, €199 billion ($263 billion), will be for roads, railways, airports and power grids. In addition, €110 billion ($146 billion) is earmarked for reconstruction work in Sichuan province following last May’s earthquake. Outside of the infrastructure sector, €31 billion ($41 billion) is allocated for the construction of low-cost housing.
A total of €340 billion ($450 billion) will be utilized for the construction industry. Construction output in China last year totaled around €409 billion ($541 billion). China’s manufacturing sector accounts for more than 40% of the nation’s economy.
At the start of 2009 the Ministry of Environmental Protection approved 153 stimulus package projects, with a total value of €52 billion ($69 billion), including 31 transport and water projects worth €15 billion ($20 billion). In the road building sector there are plans to add 85,000 km (52,800 miles) of main roads to China’s network by 2012, while an increased focus on rural roads should see some 270,000 km (168,000 miles) of these renovated and upgraded in the coming years.
Chinese manufacturing already showed signs of possible recovery in January. The government’s purchasing managers’ index, or PMI, rose to 45.3% in January, up from 41.2% in December and a record low of 38.8% in November. A reading above 50 means the manufacturing economy is expanding, while a reading below 50 indicates an overall decline. January’s figure was the sixth consecutive month that the PMI was below 50%.
Caterpillar Financial Launches €2.26 Billion Debt
Caterpillar Financial Services Ltd launched a €2.26 billion ($3 billion) debt offering in a three-part note sale which includes €265 million ($350 million) in three year notes expected to yield 437.5 basis points over U.S. Treasuries. It also includes €1.25 billion ($1.65 billion) in five-year and €756 million ($1 billion) in 10 year notes, both expected to yield 425 basis points over Treasuries. The joint lead managers on the sale are Barclays, Citigroup Global Markets and Goldman Sachs.
Volvo Construction Equipment’s 2008 Sales Increase 5%
Volvo Construction Equipment has reported an increase in revenues of 5% to €5.1 billion ($6.8 billion) with 64,000 units sold in 2008 compared with €4.9 billion ($6.5 billion) reported in 2007.
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Fourth quarter Volvo CE sales were down 29% to €937 million ($1.24 billion) in the period, while the company estimates that the total world market was down by 39%. Volvo CE’s full year operating income fell to €165 million ($219 million) for the year compared with €386 million ($511 million) in 2007.
Volvo CE was affected by the severe downturn in the global market for construction equipment in the fourth quarter. Sharply declining sales, production cutbacks and higher raw material costs all contributed to the loss. Volvo CE has implemented a comprehensive plan to improve efficiency. In order to reduce inventory levels the company, has cut production output in all its factories. The reduction of capacity has led to the termination of 3,400 employees.
Market Overview According to Volvo, the North American market for their products was down 34% in the fourth quarter of 2008, while Europe fell 49%, Asia by 38% and Other International Markets fell by 28%. For the full year 2008, the total world market for Volvo’s range of construction equipment declined by 11%.
Outlook
The outlook for 2009 is uncertain, but is expected to remain weak. The European market is set to decline in the range of 30% to 40%. North America is forecast to decline between 10% to 20%, while the rest of the world is likely to be down 30%.
Caterpillar has released new software that expands the capabilities of the AccuGrade grade control system, the Caterpillar factory integrated, sensor-independent solution for machine control and guidance to Europe, Africa and the Middle East. New configurations are offered for track-type tractors, motor graders and hydraulic excavators. AccuGrade systems continue to support soil compactors and wheel tractor-scrapers.
The new software includes Sky Plot, which allows the machine operator to view GPS and GLONASS satellites when using MS980 or MS990 receivers. The operator also can enable or disable use of the GLONASS satellite constellation from the cab when using the MS990 receivers. The capability can help ensure optimum satellite coverage for fast start-up and accurate operation.
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The new software also enhances diagnostic support information. AccuGrade Office wireless users now can remotely retrieve radio settings, machine measurements, valve calibration tables and machine settings. The capability speeds diagnostic and calibration tasks.
4,000 Buyers Descend On Auction In Ireland
More than 4,000 potential bidders put down a deposit of €1,500 ($2,000) to register and then turned out in person in Kildare, Ireland, in February as €16.9 million ($22.4 million) worth of repossessed construction machinery went up for auction with the auction company Ganly Craigie. Bidders turned out from Africa, Cuba and Iraq, as well as Belgium, Holland and Poland. The event had worldwide appeal because of Ireland’s flagging economic image abroad. The majority of the equipment sold was for export
Metso Lay Offs Of Mining And Construction Division In Finland
Helsinki, Finland-based Metso announced it has laid off twenty-nine blue-collar employees and 83 white-collar employees from the mining and construction technology division in Tampere and Helsinki, Finland. The remaining 1,000 employees are temporarily laid off depending on the workload in each department. These measures are a consequence of the reduction in the company’s orders and reduced operating levels resulting from the global market situation, as well as the need to reorganize specific company operations. Metso employs approximately 1,300 people in its mining and construction technology operations. Metso personnel in Finland total approximately 9,300.
Komatsu Announced Reorganization of Japanese Sales and Service Structure
Komatsu Ltd. decided in September 2008 on a reorganization designed to further reinforce its sales and service capabilities for construction equipment in Japan. As a main part of this reorganization, Komatsu Tokyo Ltd. and 11 other consolidated sales and service subsidiaries and Komatsu All Parts Support Ltd. merged, effective April 1, 2009. Komatsu Tokyo, which has been renamed Komatsu Construction Equipment Sales and Service Japan Ltd., will succeed Komatsu’s sales and service business for construction equipment sales in Japan.
Komatsu Invests In Its Peruvian Distributor
Komatsu America Corporation has taken a 40% equity stake in Mitsui Maquinarias Peru S.A. (MMP), the Komatsu distributor in Peru and a wholly-owned subsidiary of Mitsui, the Japanese trading company. MMP will change its name to Komatsu Mitsui Maquinarias Peru S.A.
Rio Tinto Testing Komatsu’s Autonomous Haulage System In Australia
Komatsu Ltd. announced that the FrontRunner Autonomous Haulage System, supplied to Rio Tinto’s West Angelas mine of East Pilbara Operation in Western Australia, is being tested. This FrontRunner system consists of the range of Komatsu’s largest mining products: 5 model 930E-4AT autonomous haul trucks equipped with AC electric drive systems, one model PC5500 hydraulic mining shovel, one model D475A mining dozer, one model WD900 wheel dozer and one model GD825 motor grader. West Angelas mine is the second FrontRunner site. Komatsu has already supplied the first automomous fleet to a CODELCO copper mine in Chile.
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The autonomous trucks navigate in the complex mining environment without drivers, hauling 290 metric ton payloads of overburden and ore. It is hoped that autonomous vehicles will revolutionize mine productivity, especially at mine locations where it there is a shortage of manpower, especially in isolated locations and in severe environments such as at high altitudes or underground. Rio Tinto is paying close attention to the performance of the West Angelas mine and plans to install the same system at its other mines if the system operates as planned.
Komatsu Consolidates Its Chinese Construction and Mining Equipment Operations
Komatsu Ltd. has recently acquired approximately 6.8 million square feet (632,000 square meters) of land in Changzhou where Komatsu (Changzhou) Construction Machinery Corporation (KCCM), a major production base of the Komatsu Group, is located. Komatsu is going to relocate the entire operation of KCCM to the new site and build a new plant and KC Techno Center there.
AGCO And TPS Team For Farming Tech
Duluth, Georgia-based AGCO announced a strategic partnership between AGCO and Topcon Positioning Systems. The partnership will provide machine control, machine management and precision farming technology products and services to the agricultural machinery market. The companies hope that the products will reach the market faster by combining AGCO’s equipment, customer base and agricultural industry knowledge with research and development from TPS.
Terex CEO Defeo Declines $1.17 Million Bonus
Terex Corporation CEO Ron DeFeo has declined an annual bonus of approximately €880,000 ($1.17 million), since the maker of construction and mining equipment has been cutting jobs, the company said in an SEC regulatory filing. “Mr. DeFeo believed that he should lead by example and share some of the economic burden and voluntarily declined receipt of his bonus,” Terex said in its filing. Other Terex executives received bonuses ranging from €108,000 to €500,000 ($143,000 to $664,000).
J&J Miller Back For Ninth Terex Backhoe
Somerset, U.K.-based equipment rental company, J&J Miller, has purchased its ninth Terex 860SX backhoe loader from Terex dealer Kellands, citing its power, versatility and stability as main purchase influencers. The Terex loader will work mainly for small builders, landscaping, creating driveways and performing many other tasks for farmers. Terex has seven backhoe models, ranging from the 820SX (70 kW or 93 hp) through to the 980 Elite machine (74.5 kW or 99.9 hp).
South Korean Government To Help Build Wind Power Generators
South Korea’s government will place orders to build ten new wind power generators to help reduce the country’s reliance on imported energy. The 2-to-3 megawatt generators will be built on land owned by three state-run thermal power plants by 2010, according to the Ministry of Knowledge Economy.
A consortium led by Doosan Heavy Industry & Construction Co. and Hyundai Heavy Industries Co. will be responsible for designing and building the locally developed power plants. Currently there are 146 wind power generators operating in Korea
Atlas Copco Completes Acquisition Of Compressor Rental Business From Aggreko
Stockholm, Sweden-based Atlas Copco finalized the acquisition of Aggreko plc’s European oil-free air compressor rental business. The acquired business had revenues in 2008 of approximately €10 million ($7.5 million) and had 21 employees. The acquired business has been integrated into Atlas Copco’s specialty rental division. The buyers of the fleet assets are various Atlas Copco companies in Europe.
Titan International, Inc. Announces First Quarter Cash Dividend
Quincy, Illinois-based Titan International, Inc. has approved a quarterly cash dividend of $.005 (one half cent) per common share for the first quarter of 2009. The cash dividend is payable April 15, 2009, to stockholders of record on March 31, 2009. Titan International, Inc., a holding company, owns subsidiaries that supply wheels, tires and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications.
DEUTZ Bundles Exhaust Gas Technologies
Köln-Porz, Germany-based engine manufacturer DEUTZ AG, in the future will be bundling its exhaust gas technology expertise in its exhaust after-treatment (EAT) product line. In order to comply with the future, far more stringent U.S. Tier 4 interim/final regulations and EU Level IV, the technology spectrum is currently being extended to include additional exhaust gas after-treatment components such as catalysts, particle filters regeneration burners and urea injection SCR systems, as well as electronic controls. In order to make the integrated engine/exhaust gas concepts as cost-effective as possible, the solutions for Tier 4 interim and EU III B have been developed in such a way that they can serve as the basis for the U.S. limits Tier 4 final and EU IV, which are set to come into force in 2014.
Caterpillar CEO Named To Obama Economic Advisory Board
U.S. President Barack Obama has created the Economic Recovery Advisory Board, a panel of top advisers led by former Federal Reserve chairman Paul Volcker. Jim Owens, the chairman and chief executive officer of Caterpillar, will serve on the board. We believe Owens’ first recommendation may be to drop the “Buy American” clause from the stimulus package. Owens and the company have been outspoken free-trade advocates. The company has issued numerous “white-papers” over the years on this topic.
Zoomlion Confident Of U.S. Market Share
Despite the uncertainties and difficulties facing the U.S. construction industry, Mr. Jimmy Pan, manager of international trade for Zoomlion’s Concrete Machinery division, believes the company’s recent entry into the global market will enable it to gain U.S. market share in these difficult economic conditions.
“We’re a big company in China, but a new company globally. I believe that we can utilize our knowledge of the Chinese market to succeed in the U.S. in these difficult circumstances,” said Mr. Pan at the World of Concrete show in Las Vegas, US.
“Thanks to our association with CIFA U.S., we’ve been able to ‘Americanize’ our equipment in a
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relatively short time,” said Mr. Pan. “We’ve made big strides in our paint and surface finish and the 40 foot truck mounted boom on show for the first time in the U.S. at World of Concrete was sold to Dudley Concrete Pumping.
“Our plan is to make the most of 2009 to establish solid foundations in the U.S. because I believe the strongest organizations will benefit the most when market volume returns,” said Mr. Pan.
“There will be no fanfare associated with our entry into the U.S. market. We are going to do things step-by-step from our Milwaukee, Wisconsin, office and the Zoomlion Group office in Los Angeles, California. We are shaping our strategy for the U.S., Canadian and South American markets and I am confident that we can take market share and secure a bright future in the U.S.,” Mr. Pan said.
Doosan Infracore America Selects ORBCOMM-Based Telematics
Doosan Infracore America reported that ORBCOMM Inc. , a global satellite data communications company focused on two-way Machine-to-Machine (M2M) communications, and MobileNet, Inc. a global solutions provider specializing in heavy equipment telematics applications, have selected MobileNet’s TrakPak application as the GPS system to be included as standard equipment on new qualifying Doosan DX Series Excavators and DL Series Wheel Loaders. MobileNet’s TrakPak application is an onboard vehicle monitoring and communications system that helps heavy equipment users improve operational efficiency by remotely monitoring machine usage. The system tracks and communicates key productivity and performance information, which can be accessed through an online web site, providing a detailed examination of individual machine’s operation. The system uses ORBCOMM’s global low Earth orbit (LEO) satellite constellation for communications, relaying critical positioning and operational data from the machine to the MobileNet back office application.
Volvo Doesn’t See Recovery, Europe Will Fall Further
Volvo AB’s on-highway truck group said it doesn’t anticipate demand will recover in the first half of 2009 and predicted the European market will slide as much as 44% this year as cancellations increase. Industry sales in Europe this year will drop to between 180,000 and 220,000 vehicles from 318,700 in 2008. Volvo’s shares surged as much as 17% after Volvo said it will pay a dividend and deepen cost cuts as it prepares for lower demand.
Volvo’s fourth quarter truck orders dropped 82%, as cancellations in Europe exceeded bookings. Volvo has announced plans to cut 15,900 permanent and short-term positions.
Caterpillar CEO Sees More Company Layoffs
Caterpillar Inc., CEO Jim Owens said recently after a town hall meeting with U.S. President Barak Obama that the company will probably have to lay off more staff before it starts thinking about rehiring any of the more than 22,000 employees it already plans to cut, even with the stimulus plan that was recently passed. Owens speculated that the stimulus plan will likely will not have an effect on the economy until late this year or early 2010. “The reality is we’ll probably have to have more layoffs before we can start hiring again,” Owens said without elaborating on timing or specific numbers. Owens contradicted Obama’s assertion that Caterpillar would rehire some of the
laid-off workers if Congress approved the stimulus bill. The severity and swiftness of the recession, Owens said, makes adding jobs back quickly unrealistic. “We literally (went from) a three-year order backlog coming into November to now having order cancellations to the point where we cannot run at capacity,” he said.
Obama told the roughly 280 Caterpillar employees and local officials who squeezed into a corner of the plant that the nearly €573 billion ($800 billion) stimulus plan would set off a “wave of innovation, activity and construction,” including electricity generating wind-turbine fields, upgraded schools and new and better roads and bridges. “Think about all the work out there to be done, and Caterpillar will be selling the equipment that does the work,” Obama said.
Owens told reporters that the president’s plan is too light on infrastructure spending. Only about 20% of it would be devoted to the kind of infrastructure work that would benefit Caterpillar, he said. The country will need more government spending on the economy, Owens said.
Metso Celebrates Expanded Crusher Manufacturing Capacity In China
Helsinki, Finland-based Metso is celebrating the inauguration of an expansion to its crusher factory in Tianjin, China, and the tenth anniversary of its mining and construction technology division manufacturing activities in China. The value of the expansion investment implemented in 2008 was €5 million ($6.6 million) and was comprised of a new workshop and warehouse, as well as an upgrade of the factory building and production equipment.
Metso began manufacturing crushers in Tianjin in a rented factory in 1999 and moved to the now-expanded, wholly-owned plant in 2002. Increasing the factory’s total floor space to more than 7,500 square meters (81,000 sq feet), the expansion will double production capacity at the Tianjin plant. The manufacturing portfolio will be extended to include several new small crusher models and the factory will also start producing screens and feeders, allowing Metso’s other manufacturing units to focus on larger and tailor-made crusher models. The new plant layout made possible by the expansion is also expected to increase manufacturing efficiency.
In addition to the Chinese and Asian markets, the Tianjin factory serves Metso’s mining and construction customers on a global basis. The expansion makes this facility the main manufacturing unit in Metso’s construction business line. The Tianjin factory currently employs approximately 100 people.
World Of Asphalt And AGG1 2009 Draw Crowds Despite Tough Economic Times
The 2009 World of Asphalt Show & Conference and AGG1 Aggregates Forum & Expo held in Orlando, Florida, in March was hailed as an overwhelming success by the organizers. More than 5,800 attendees with 400 exhibitors were spanning 85,900 square feet (8.000 square meters) of exhibit space at the shows to exhibit their latest technology and products. More specifically, the World of Asphalt part of the show had a record number of exhibitors – 246 taking 58,700 square feet (5,500 square meters) of exhibit space. The inaugural AGG1 show showcased 154 exhibitors taking 27,200 square feet (2,500 square meters) of exhibit space.
Attendees came from more than 60 countries, including all major world regions. Official delegations came from China, India, Mongolia and Russia. Nearly 70% of attendees reportedly had key management roles in their companies.
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EU Gives U.K. Government Approval To Cut VAT On Home Repairs
European Finance Ministers voted to allow EU Member States to charge the value added tax (VAT) at a rate of 5% on home maintenance and repairs marking a victory for the ‘Cut the VAT’ coalition, which has been campaigning to get the U.K. government to cut VAT for all maintenance and repair work. The news has been welcomed by organizations connected to the construction and property sectors as a way of helping their members survive the recession. It is estimated that eight construction firms are closing each day in the U.K. according to PricewaterhouseCoopers, and the Royal Institution of Chartered Surveyors (RICS) predicts that 300,000 construction jobs will be lost during the course of the recession. The news will also be welcomed by the record 4.5 million people on council house (public housing) waiting lists.
Haulotte Group | Biljax 2009 Go Green Committee
Haulotte Group | BilJax has released its first Go Green Committee progress report of 2009 and is pleased to announce a continued reduction in the amount of waste generated by the company’s Archbold, Ohio, manufacturing facility and offices. Since the Go Green Committee’s inception in mid-2008, waste has been reduced by 50% or more compared to the previous year. The company recycled more than 11% more material in 2008 than in 2007 and overall it is making more environmentally-friendly decisions.
Caterpillar Achieves Off-Highway Truck Milestone
Caterpillar recently produced its 50,000th rigid-frame off-highway truck—a milestone achieved at the Decatur, Illinois, plant where these trucks have been produced since 1963. Number 50,000 is a 777F, a 100-ton-capacity (91-metric-ton-capacity) truck that is used primarily in heavy construction, quarry and aggregates, as well as mining applications.
“Today, our off-highway trucks move more than 50% of the rock in the quarry and aggregates industry,” said Bill Springer, vice president of quarry and specialty industries division. “Cat trucks have worked on projects from the largest hydroelectric power plant in the world at Three Gorges Dam in China to the construction of the Eastside Reservoir in California, which provides another water source to Los Angeles. Caterpillar is proud of its association with the many global projects that have brought progress through improving infrastructure. Reaching the 50,000-truck milestone shows the Caterpillar commitment to being a part of growth and development around the world.”
Caterpillar started its nearly 50-year history of off-highway truck manufacturing with the 769 model, which had a payload of 35 tons (31.8 metric tons) and was powered by a 400-hp (298-kW) Cat engine. That single model offering has expanded to 10 models currently and the Cat power and truck capacity has expanded beyond that tenfold increase. The biggest of the range is the 797F, which will be commercially available later this year. The 797F has 400 tons capacity (363 metric tons capacity), and is equipped with the model C175 engine that produces 4,000 hp (2983 kW).
The original 769 model is represented in the current line by the 770, which has a target payload of 40 tons (36.5 metric tons) and 476 net hp (355 kW). The 50-ton-capacity (46-metric-ton-capacity) 772 model joins the 770 in featuring a center-mounted cab for enhanced visibility and ride comfort. The 773F and 775F have 60- and 70-ton capacities (55- and 64-metric-ton capacities), respectively.
All 10 models of Caterpillar off-highway trucks are produced at the Decatur, Illinois, facility—one of Caterpillar’s largest plants. The facility covers nearly 350 acres and includes 25 buildings.
LS Cable To Enter U.S. Market With Its Own Tractor Brand
South Korean conglomerate LS Cable is directly entering the American market with its own tractor brand and has already started signing up dealers on a limited basis. Until now, LS’ presence in America was solely as a supplier, providing compact and utility tractors to companies such as Montana and McCormick. In late November, LS Cable lost its bid to acquire the defunct Farmtrac North America based in Tarboro, North Carolina. McCormick, which is owned by Italy-based Landini, is importing its small European-built tractors.
Tellock Named Chairman Of The Manitowoc Company
The Board of Directors of The Manitowoc Company, Inc. has elected Glen E. Tellock as chairman. Tellock will continue to serve as president and chief executive officer of the company. He succeeds Terry D. Growcock, who retired as Manitowoc’s chairman on December 31, 2008. Tellock, 47, joined the company in 1991 as director of accounting. After serving as corporate controller and then as vice president of finance and treasurer, he was named senior vice president and chief financial officer in 1999. Tellock also served in dual roles as senior vice president of The Manitowoc Company and president of Manitowoc Crane Group from 2002 until he was named president and chief executive officer of the corporation in 2007. Tellock has been a member of Manitowoc’s board since 2007.
M&M Merges With Punjab Tractors
Mahindra & Mahindra (M&M) announced that Punjab Tractors has merged with it effective February 16, 2009. Mahindra & Mahindra is a well diversified company having its presence in the auto sector, auto components, farm equipment, infrastructure development, telecom and software and trade and financial services. It is a leading name in the general purpose utility vehicles market in India. Purchasing a controlling stake in Punjab Tractors will help M&M increase its share in the domestic farm equipment market to 40% from more than 30%. Punjab Tractors is primarily a farm tractor manufacturer, but also held stakes in the automobile manufacturing sector. Punjab recently sold its 14% stake in Swaraj Mazda to Sumitomo.
New CEO at Putzmeister Concrete Pumps
Putzmeister Concrete Pumps has appointed Dr. Ralf von Baer as its new chief executive officer.
Dr. von Baer will oversee sales and marketing at PCP while maintaining his CEO responsibilities for Putzmeister Holding GmbH.
Norway Post Chooses Scania As Main Supplier
Södertälje, Sweden-based Scania and Norway Post (Posten Norge AS) have signed an agreement under which Scania will supply all trucks with a gross weight exceeding 15 tons for three years, with the possibility of a one-year renewal. The agreement also includes repair and maintenance contracts. Deliveries will total approximately 200 trucks per year. Delivery will begin late in the first half of 2009 and mainly include two- and three-axle box body and container trucks, as well as three-axle
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tractor units. The trucks will be equipped with Scania’s 9- or 13-litre engines, which will meet the coming EU emission standards (Euro 5) without exhaust aftertreatment, thanks to exhaust gas recirculation (EGR) technology.
The deal is one of Scania’s largest single deliveries of trucks in the Nordic countries. For Norsk Scania AS, Scania’s Norwegian distributor, 200 vehicles are equivalent to more than 10% of the company’s annual truck sales. During 2008, Scania strengthened its position in the Norwegian heavy truck market. More than 1,700 Scania truck registrations took place, which is equivalent to a market share of more than 37%.
AGCO Reduces U.K. Staff
Over 50 layoffs were announced at agricultural machinery manufacturer AGCO located in Warwickshire, U.K., as a result of a slowdown in equipment sales. AGCO indicated it plans to reduce staffing levels by 12% across the U.K. as part of its global measures to remain competitive in the marketplace. AGCO employs over 500 staff at its two U.K. locations, which include its European headquarters in Stoneleigh U.K and its parts operations facility in Leicestershire, U.K. A total of 70 positions were affected – 55 workers risk being made redundant and 15 vacancies will not be filled.
Bell Equipment Seeks €18 Million Loan
South African equipment manufacturer, Bell Equipment is experiencing strain from the global financial crisis and has asked the Industrial Development Corporation (IDC), a government agency for an €18 million ($24 million) loan to inject liquidity into the company. IDC is a self-financed, state-owned national development finance institution that provides funding to businesses. It was established in 1940 to promote economic growth and industrial development in South Africa. Bell will use the proceeds to reduce debt. Bell’s two major shareholders the Bell family and John Deere have also provided assistance. IA Bell & Company, the joint venture company owned by Bell and Deere, has extended a €12 million ($16 million) loan until the end of June 2010 while John Deere will assist by paying in advance for machines and knock-down kits for the U.S. market.
Bell Equipment laid off 800 contract workers and cut production at its plants in Germany and Richards Bay, South Africa amid a severe slump in demand for its machinery. The company is revising its business plan which is now geared to achieving positive cash flow in the current financial year and realizing value on inventory and receivables. Revenues have declined more than 40% during the first few months of 2009 compared to 2008.
Caterpillar Distributor To Cut 100 Jobs
McCormick Macnaughton, the distributor of Caterpillar machinery in Ireland, reported it has suffered an approximate 59% drop in business and plans to lay off 100 employees in an effort to conserve cash. The company said it posted losses of €11 million ($15 million) in 2008 because of the decline in the construction sector. The company asked the Labor Court to adjudicate on a previously agreed 2.5% pay raise for its employees. In its judgment, the court ruled that, due to the company’s “financial position and its deterioration losses”, McCormick Macnaughton should not be forced to honor the employment agreement, because it could not afford it.
McCormick Macnaughton is family owned and is Ireland’s sole distributor of Caterpillar equipment.
Its headquarters is located in the outskirts of Dublin with branches in Lisburn and Cork, as well as sales and services centers in Donegal, Kerry and Limerick.
The court filings also included some financial data for Ballymana Holdings, the main holding company behind McCormick Macnaughton which had sales of €139 million ($184 million) in 2006, the last year for which the company had filed accounts. Pre-tax profits in 2006 reached €7.2 million ($9.6 million), up from €5.2 million ($6.9 million) the previous year.
Ramirent To Cut Further 150 Jobs
Finnish machinery and equipment rental company Ramirent announced it will cut a further 150 jobs after a 26% year-over-year drop in its sales, during the first two months of 2009. The company had earlier announced plans to cut approximately 600 jobs. Additionally, the Ramirent board has rescinded its proposal, to pay a 15-cent dividend.
Japan’s Economy Shrinks At Fastest Rate In 35 Years
According to the Japanese government, Japan’s economy shrank at its fastest rate in 35 years in the fourth quarter and shows no signs of reversing course, due to the collapse in global export demand.
Japan’s gross domestic product shrank 3.3% from the previous quarter, or an annual pace of 12.7%, in the October-December period, the government said. The decline is the steepest slide for Japan since the oil shock in 1974. It is more than triple the 3.8% annualized contraction in the U.S. in the same quarter. Chief Cabinet Secretary Takeo Kawamura called the economic downturn a once-in-a-century calamity.
Deere Reports First-Quarter Earnings of €204 Million
Deere & Company announced a worldwide profit of €155.1 million ($203.9 million) for the first quarter ended January 31, compared with €280.9 million ($369.1 million) for the same period last year. Worldwide revenues decreased 1% to €3.916 billion ($5.146 billion) for the first quarter compared with €3.958 billion ($5.201 billion) a year ago. Sales of the company’s equipment operations were €3.47 billion ($4.56 billion) for the period compared with €3.448 billion ($4.531 billion) last year.
Deere management stated that ongoing higher material costs, the deepening global recession, and volatile foreign exchange rates have put downward pressure on its financial results. Demand for large productive agricultural machinery has held up well due to the sound financial health of the U.S. farm sector.
Finning Announces Fourth Quarter and Annual Results
Finning International Inc. reported record 2008 fourth quarter revenues of slightly less than €991 million (CAN$1.6 billion), an increase of 7.3% over the fourth quarter of 2007, driven by strong demand for customer support services. Finning recorded a loss from continuing operations for the quarter of €66.2 million (CAN$106.8 million) compared with a profit of €43.7 million (CAN$70.5 million) for the same period in 2007. Adjusting for the non-recurring restructuring costs and non-cash goodwill impairment charges, profits from continuing operations would have been €34.7 million (CAN$55.9 million).
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The results were driven primarily by strong customer support services, particularly in the company’s Canadian and South American operations. Revenue growth in Canada and South America was driven primarily by strong demand from mining customers. In the U.K., revenues were down in the fourth quarter of 2008 compared with the same period last year, with reduced new equipment sales and lower rental activity in the Hewden rental business partially offset by higher customer support services revenues experienced at the company’s UK dealership. Strong demand, particularly in South America, from mining customers resulted in increased investments in inventory for committed orders for deliveries in early 2009.
Finning’s global backlog was approximately €929 million (CAN$1.5 billion) at the end of the 2008 fourth quarter, lower than the December 2007 level of €1.05 billion (CAN$1.7 billion) and the September 2008 level of €1.24 billion (CAN$2.0 billion). Backlog and new orders were down in all operations, reflecting the global economic slowdown, and as a result, Finning has reduced and cancelled certain orders with Caterpillar in the fourth quarter of 2008 in order to align its inventory orders with the slower market.
On an annual basis, revenues from continuing operations increased by 5.8% to slightly less than €3.7 billion (CAN$6 billion). Annual revenues were up 9.6% at the company’s Canadian operations, reflecting growth in most lines of business, particularly new equipment sales and customer support services. The results of 2008 were negatively impacted by higher variable operating costs, in part to support the growth in the Alberta oil sands, and costs related to the design of a new information technology system. Profits from continuing operations in 2008 were €60 million (CAN$96 million) compared with €173.6 million (CAN$280.1 million) in 2007. Adjusting for non-recurring items, profits from continuing operations would have been €159.8 million (CAN$257.8 million), 8% lower than 2007 results.
For the year ended December 31, 2008, revenues from the Company’s South American operations were at record levels. Finning South America’s revenues increased 13.3% (12.7% increase in functional currency) over last year, in customer support services, new equipment sales, and rentals.
Annual revenues from the UK Group decreased 9.1% in 2008 compared with last year. The results from Hewden were lower than the prior year, in part due to the significant operational changes experienced in the second half of the year.
The company made a net investment in rental assets of €126.9 million (CAN$204.8 million) in 2008, which was less than half of what was invested in 2007. As a result of softening demand, rental investment moderated in 2008 compared to the very high demand for rental assets in 2007, particularly at the Company’s Canadian and Hewden operations. Important New Business
In December 2008, Finning announced that its South American mining division secured a sale of six 793 mining trucks to Minera Argentina Gold, a subsidiary of Barrick Gold Corporation and operator of the Veladero gold mine in Argentina. Finning also secured a one year extension on its Maintenance and Repair Contract (MARC) with Minera Argentina Gold that covers 28 existing 793 mining trucks and 18 pieces of support equipment. The combined value of these deals is approximately CAN$70 million. The new trucks will be delivered in the first quarter of 2009 and used in the existing operations at the Veladero mine. The Veladero mine is located approximately 320 kilometers northwest of the city of San Juan in Argentina, close to the Chilean border.
The world’s financial crisis and liquidity concerns continued through the fourth quarter of 2008. The resultant expected economic slowdown has occurred and commodity prices have fallen to comparatively low levels. Spending has been curbed by consumers in most parts of the world. Reduced consumer demand, lower availability of credit and reduced access to capital markets will impact some of Finning’s customers who will have less demand for new equipment as a result.
However, governments around the world have responded with stimulus packages that include significant amounts of capital spending directed to infrastructure projects. Much of this construction will require heavy equipment and will provide work for some of Finning’s customers.
A significant portion of Finning’s business is derived from the sale of parts and service for previously sold equipment operating in Finning’s geographic territories. Given the large volumes of new equipment sold in recent years, the demand for parts and service is expected to remain reasonably good. Finning’s large mining and oil sands customers continue to run their equipment at high levels and continue to require significant parts and service from Finning.
Given the current economic uncertainty, management’s confidence in predicting future business levels is lower than in the past. The current outlook is for lower new equipment sales compared with 2008 and for parts and services revenues to grow, but at a more modest rate than the prior year. 2009 results are also expected to generate higher cash flow than 2008 as working capital requirements are reduced, and assuming budgeted levels of equipment sales are achieved. Overall expenditures on equipment additions to Finning’s rental fleets are expected to be meaningfully reduced in 2009; however, demand for rental equipment, as an alternative to purchasing, is increasing among Finning’s customers, especially in Canada.
Finning’s financial condition is strong. The company has committed bank facilities totaling approximately €539 million (CAN$870 million) with various Canadian and U.S. financial institutions. The largest of these facilities €496 million (CAN$800 million) is committed until December 2011. At December 31, 2008, over €186 million (CAN$300 million) was available under these agreements. At January 31, 2009, approximately €143 million (CAN$230 million) was available. Finning expects to generate higher cash flow in 2009 as a result of lower capital spending, lower rental equipment additions, and reduced working capital requirements. Given the expected improved cash flow, the committed credit facilities, and the discretionary nature of some of Finning’s cash outflows, such as rental additions and capital expenditures, as well as the absence of any term debt maturities until late 2011, management believes that Finning has sufficient credit and liquidity to meet operational needs in the foreseeable future.
Finning has taken extensive action to reduce its costs in the face of lower demand for equipment. In response to the current market conditions, Finning incurred restructuring costs globally during the fourth quarter of 2008, resulting in a reduction in headcount of approximately 700 employees. However, its long term strategy is unchanged as it continues to focus on the parts and service business as well as the mining and heavy construction sectors. Finning expects to continue to invest in technical training, and in some locations additional human resources are still required to meet the projected strategic growth. These include Fort McMurray and Edmonton in Alberta, Canada, and some mining branches in Chile.
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MAN Completes Acquisition Of Brazilian Truck And Bus Activities
MAN AG finalized the acquisition of VW Truck & Bus in Brazil, making the company a leader in the Brazilian commercial vehicles market. Together the companies generated joint revenue of approximately €13 billion ($17 billion) in fiscal year 2008. MAN’s Latin American commercial vehicles activities will be integrated into a new company called MAN Latin America. Roberto Cortes will become president of the Brazilian operations.
VW Truck & Bus has been producing trucks and buses in Resende, Brazil, since 1996. The company is Brazil’s largest manufacturer for trucks with a gross vehicle weight of more than five tons. The vehicles are primarily sold in Latin America and South Africa. Approximately 56,000 trucks and buses were supplied in 2008. The company has a comprehensive sales and service network in Brazil and other Latin American countries.
Konecranes Layoffs At Standard Lifting And Service In Finland
Hyvinkaa, Finland-based Konecranes Standard Lifting Oy and Konecranes Service Oy have began negotiations with employee unions regarding layoff of 50 people as the company has seen continued weak demand for lifting equipment and maintenance services. Konecranes Standard Lifting Oy builds lifting equipment for industrial purposes and employs approximately 460 people in Finland, whereas Konecranes Service Oy offers service solutions for cranes, port equipment and machine tools and employs approximately 590 people in Finland.
Konecranes is also stepping up adjustments to its production and service capacity. Additionally, the company has shifted subcontracting back to in-house production. The aim of the measures is to adjust the cost structure and capacity to correspond with the current, weakened market situation and to secure future competitiveness.
Penny And Hinowa To Make Cranes
Derbyshire, U.K.-based crane manufacturer, Penny Hydraulics and Italian tracked undercarriage manufacturer Hinowa have entered into a joint venture to produce a small tracked spider crane. The new HS400/V12 Mini crane combines the Hinowa’s HS400 dumper chassis with Penny Hydraulics’ V12 crane. The unit is battery powered with a maximum lift capacity of 630 kilogram (1,388 pounds) and has a three section 2.9 meter (9.5 feet) telescopic boom.
New Holland Debuts Hydrogen Powered Tractor
New Holland recently unveiled its model NH2 fuel cell tractor, the first fuel cell-powered tractor to be shown by any tractor maker. The NH2 is based on a model T6000 tractor and uses a fuel that generates 106 hp. New Holland stated that the product still needs more development as its hydrogen tank only holds enough fuel to power the tractor for 1.5 to 2 hours.Plans are to have the NH2 out for testing in two years and to production models available by 2013. The company has not indicated what the price tag will be.
Case Sets Up ‘Specials’ Unit
Case Construction Equipment recently began a new special business segment, based in Zeebrugge, Belgium, that will be responsible for all the company’s special attachments for its crawler excavator
range. Case Special Excavators (CSX) will produce long reach, mass excavation, demolition high reach and material handling booms and dipper arms for the full CXB excavator range. CSX’s role will cover total machine integration, producing heavier counterweights, widening track frames and strengthening boom mountings.
CSX will also design and construct elevating cab structures, such as that on the new CX240B MH, to allow the operator an optimized view of the working environment and load handling activities that is especially important in scrap-handling applications. According to the company, three CSX-produced specials were introduced at the Intermat exhibition in Paris, France.
Terex Cranes Finds Counterfeit Cranes In China
Terex Cranes recently identified eight lattice boom crawler cranes as counterfeits of its products in the Henan Province of China and is undertaking legal action in cooperation with Chinese government authorities. The cranes were being sold as used Terex Demag models. At least two other crane manufacturers have reported counterfeiting of their products. Terex believes that these counterfeit cranes pose a safety hazard due to their mix of different design features and unmatched components.
Volvo Plans Record Investment
Volvo Group announced that it will spend at least €2.7 billion ($3.5 billion) mainly on new models, its biggest investment to date this year. “This is the biggest single investment ever decided on by Volvo’s board,” said board president Finn Johnsson. Swedish industry sources said the company would pump at least €1.8 billion ($2.3 billion) into developing new fuel-efficient and hybrid on-highway truck models between 2009 and 2013 and might increase the amount to €2.6 billion ($3.4 billion) if needed. Volvo Group, which in addition to its Volvo Trucks also sells the truck brands Renault, Nissan Diesel, Eischer and Mack, posted a loss of €114 million ($150 million) in the fourth quarter last year.
Atlas Copco Order For Russian Olympic Infrastructure
Stockholm, Sweden-based Atlas Copco received an order to supply drill rigs and related equipment for the building of road and rail tunnels connecting sites at the 2014 Olympic Winter Games in Sochi, Russia. The contract is valued at more than €10 million ($13.4 million). The order, from the Russian construction company Bamtonnelstroy, will be booked in the first quarter and includes tunneling rigs, remote controlled surface drilling rigs, as well as rock drilling tools and equipment for reinforcing the tunnels. Atlas Copco’s equipment will be used in the construction of a new highway and railroad between the Adler resort in the Sochi district and the Rosa Khutor Olympic ski resort.
Dynapac Relocates Headquarters
Atlas Copco Construction and Mining has announced that it will move its U.K. and Ireland road construction division to its headquarters in Hemel Hempstead, U.K. The division known as Dynapac, will move from its current headquarters in Rugby.
The company has also extended its workshop in Portaloise, Republic of Ireland, to support Dynapac
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products. The workshop was originally opened to cover Atlas’s mining and quarrying business, but will now cover paver and planer machines as well.
JLG New Sales And Service Center In Singapore
JLG Industries, Inc., an Oshkosh Corporation company, held a ribbon cutting ceremony recently for a new sales and service facility in Jurong, Singapore. The facility is to become the JLG headquarters for retail sales, warranty, parts distribution, service and other support activities in the Asian market.
This announcement is part of an ongoing initiative to meet the growing demands for access equipment in Asia. In late 2008, JLG broke ground on a manufacturing facility in Tianjin, China, dedicated to producing machines specifically for the Asian market.
Old JCB Factory Demolished In U.K.
JCB Chairman Sir Antony Bamford used a 33 ton JCB JS330XD tracked excavator to begin the process of tearing down the buildings on the site of the former JCB Heavy Products, watched by Uttoxeter U.K. community leaders. The demolition marks the end of a manufacturing era that began 140 years ago at the JCB factory in the center of Uttoxeter. The demolition work will be completed by the middle of 2009 paving the way for the town center site to be redeveloped and enhanced. This facility was replaced with a €44 million ($58 million) investment in a new production facility that opened in December of 2008.
Sir Anthony Bamford said: “Today is the end of an era. My family has been manufacturing on this site for almost 140 years. I remember coming here with my father as a small boy and like many people in the town have fond memories of this factory. Today is the end of an historic chapter but more important is the start of a new and exciting era. JCB Heavy Products, over the years, has become a nuisance to the town as we’ve expanded on this site. I’m excited about the future of this area because what is planned for this site will not only remove that nuisance, but also replace it with something that’ll be hugely beneficial to the area.”
SAIC-Iveco JV Launches Heavy Truck For Chinese Market
The SAIC-Iveco Hongyan Commercial Vehicle Company, a joint venture between Italian commercial vehicle company Iveco and the Shanghai Automotive Industry Corporation, has introduced its Genlyon heavy truck for the Chinese market. The Genlyon truck is the first product launched by the SAIC-Iveco joint venture and incorporates Iveco’s European technology with Chinese product design.
The Genlyon truck is produced in Chongqing at the all-new SAIC-Iveco Hongyan Commercial Vehicle Company (SIH) headquarters and production facility constructed on a green-field site. The truck features the Stralis Active Space cab with internal and external appointments, designed specifically for the Chinese market, including the standard air conditioning and air suspended driver’s seat. Electronic systems are used to manage vehicle safety and operating functions.
Terex Relocates Amid Expansion Plans In Dubai
Terex Equipment Middle East (Teme) has announced expansion plans as well as relocation to a larger facility in the Dubai Investments Park. The new premises is close to the Jebel Ali port and
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consists of 35,000 square feet (3,250 square meters) of office and warehouse space and will hold a selection of equipment and will stock parts to offer a faster local response. The company initially opened an office in Dubai in 2007 to support customers of the Genie product range of aerial work platforms and telehandlers as well as Terex light towers, generators, power buggies, utility trucks and transport trailer.
Terex To Layoff 95 In U.K.
Terex will lay off 95 additional factory jobs at Newhouse Industrial Estate, at its Motherwell, Scotland, factory. This comes after 150 workers were laid off a few months prior. Additionally, the remaining employees on the Newhouse factory floor are facing a month’s lay-off.
“The company is seeking voluntary redundancies first and the redundancies will take effect from the beginning of April. It’s down to a lack of need for the product at the plant. The building trade is very static and there is not so much demand for heavy earthmoving equipment.” stated a spokesperson for Terex “This decision has not been taken lightly but it is due to a downturn in the market.”
India To Be Testing Hub For John Deere
John Deere is making India a hub for testing its components manufactured across the globe. Deere has entered into a memorandum of understanding (MoU) with Pune, India-based Central Institute of Road Transport (CIRT), a vehicle and spare parts testing organization, to test all components manufactured in 30 to 40 countries at CIRT’s modern auto component testing laboratories.
“John Deere has been exporting major portions of its products manufactured at its Pune facility. They also wanted to do component testing in India and asked us to do the same. We have signed an MoU with them for a period of three years to test all components for their entire global operations,” R Balasubramanian, director, Central Institute of Road Transport, Pune, said. “With modern infrastructure and facilities, we offer testing services at much cheaper costs. The cost of testing for components is $10 per hour in other countries while in India it is $1 per hour,” he added.
CIRT’s testing laboratories, which conduct engineering research, have been recognized by the Bureau of Indian Standards and identified by the European Union for certification of automobile components earmarked for export to Europe. A large number of state transport undertakings, vehicle and component manufacturers make use of CIRT’s testing facilities to evaluate the quality of components and spare parts they make and purchase.
John Deere has a state-of-the-art tractor manufacturing plant at Sanaswadi, near Pune, for producing a range of tractors for the domestic market and for export to the U.S., Mexico, Turkey, North and South Africa, and South East Asia.
Mahindra Tractors Sales Rose By 40%
Mahindra Tractors reported a 39.88% rise in its total tractor sales to 9,123 units in February compared with 6,522 units in the same month last year. Domestic sales grew by 47.8% to 8,879 units compared with 6,005 units in the year-ago period. Exports, however, fell by 52.8% to 244 units from 517 units in the corresponding period last year.
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Russian Krasnoyarsk Combine Harvester Works Is The First To Provide Additional Employment Opportunities
Krasnoyarsk Combine Harvester Works, based in Krasnoyarsk, Russia, the production facility of the biggest Russian machine manufacturing holding “Concern “Tractor Plants”, became the first in the country to begin the realization of a Russian governmental program to provide additional employment opportunities within the framework of paid social work. According to the agreement between the plant and Employment Service, 350 workers of Krasnoyarsk Combine Harvester Works will be paid to do social work. The job list includes plain types of repair works of auxiliary equipment, field painting, disassembling of engineering structures, reclaiming of rail tracks. All types of work are made on the territory of the enterprise.
Liugong Machinery 2008 Earnings
China’s construction equipment manufacturer Guangxi Liugong Machinery Co., Ltd. recently announced that its 2008 revenue increased 21.3% from a year earlier to approximately €1 billion ($1.3 billion) while total profit declined 39% to approximately €45 million ($60 million).
The company sold 36,374 machines in 2008, 19.9% more than in 2007. The company exported 4,300 complete machines in 2008, with an export value of approximately €163 million ($216 million). In 2009, the company is forecasting revenues of €1.1 billion ($1.5 billion) and an export value of €188 million ($250 million).
Majority Stake In MAN Ferrostaal Sold To IPIC
The International Petroleum Investment Company (IPIC) a company owned by the government of Abu Dhabi is the new majority owner of MAN Ferrostaal the industrial services arm of truck an bus manufacturer MAN. IPIC acquired 70% of the shares and MAN remains a shareholder maintaining 30%. The price paid for 100% of the shares was approximately €700 million ($929 million). The transaction includes all business activities and subsidiaries of MAN Ferrostaal.
The Chief Executive Officer of MAN AG, Håkan Samuelsson, explained the rationale behind the sale: “With this step, MAN is now concentrating on the manufacturing industries in the field of transport related engineering. This focus improves the conditions for sustainable growth in all our business areas.”
His Excellency Khadem Abdulla Al Qubaisi, Managing Director of IPIC, focused on the growth potential to be leveraged with MAN Ferrostaal: “We intend to award contracts for large industrial projects to MAN Ferrostaal and want to realize potential for growth at home and abroad. At the same time, we intend to open up market potential in the area of future technologies and deeper market access in the countries in which MAN Ferrostaal is active.”
New Holland Names New Dealer In Country Of Georgia
New Holland Agriculture, the manufacturer of agricultural equipment, has appointed the GT Group Ltd. (GT) as its new distributor in the country of Georgia. New Holland Agriculture is one of the first global agricultural companies to enter the Georgian market with local sales and after sales activities.
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GT will be representing New Holland Agriculture with sales and after sales activities, which will be further developed in the coming months. GT’s service facility in Tbilisi, Georgia, will initially provide after sales services to the farmers. In addition, specially equipped service vehicles are ready to guarantee assistance to the farmers throughout the country.
GT Group Ltd., founded in 2005, is a holding company with a wide range of business activities in Georgia, Armenia and Uzbekistan. The company’s core business is in the automotive industry.
China Yuchai Reports 2008 Diesel Engine Unit Sales
China Yuchai International Limited, whose subsidiary, Guangxi Yuchai Machinery Company Limited, is a manufacturer and distributor of diesel engines in China, announced total sales of approximately 372,000 diesel engines for the year ended December 31, 2008. These sales represent the second highest unit sales in GYMCL’s history and resulted in GYMCL retaining its No. 1 ranking in diesel engine unit sales by the China Association of Automobile Manufacturers.
The diesel engine unit sales for 2008 reflect strong demand before the adoption of stricter National engine emission standards on July 1, 2008.
The Chinese government recently announced a stimulus package to boost the Chinese automotive industry as well as focus on rural market development and the nation-wide infrastructure build-out including railway and highway construction. According to recent data from the Chinese government, January 2009 was a landmark month for the Chinese auto industry as China surpassed the United States to become the world’s largest consumer of automotive vehicles. The farming equipment market in China also experienced strong growth as the government accelerated rural subsidies and increased budgets of provincial authorities to help improve agriculture production. As part of the automotive stimulus package, a one-time subsidy totaling €557 million ($732 million) will be provided to farmers for the replacement of high-emission vehicles with more fuel-efficient and environmentally friendly models.
Navcom Technology, Inc. Partners With Astrium Services
NavCom Technology, Inc. a wholly-owned subsidiary of Deere & Company and Astrium Services, have formed a strategic partnership to deliver positioning solutions throughout Europe. Through this new alliance, Astrium Services will become the sole European supplier of NavCom’s GNSS product and positioning solutions, including the StarFire Network, NavCom’s global decimeter-accurate satellite-based augmentation system (GSBAS). The agreement complements Astrium Services` existing Axio-Net Network-RTK services covering Germany, which can provide accuracy to within 2 centimeters (0.78 of an inch) and firmly positions Astrium Services as the leading supplier of precise positioning services in Europe.
Astrium, a wholly-owned subsidiary of the European Aeronautic Defence and Space Company (EADS), is dedicated to providing civil and defense space systems and services. In 2008, Astrium had revenues of €4.3 billion ($5.7 billion) and more than 13,000 employees in France, Germany, the U.K, Spain and the Netherlands. In 2008, EADS generated revenues of €43.3 billion ($57.5 billion) and employed a workforce of more than 118,000.
NavCom Technology Inc. is a John Deere Company and is a provider of GPS products for OEMs,
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VARs and system integrators requiring high performance RTK systems, global decimeter level GPS satellite corrections, geodetic quality GPS receivers, wireless communication products and engineering consulting in the areas of precise positioning, wireless communications and robotics.
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D enm ark D K r 4.783 4.765 4.761 4.722 4.758 5.146 5.501 5.913 5.292 5.834 5.920 5.644 5.691N orway N K r 5.181 5.093 4.996 5.062 5.172 5.306 6.252 6.999 7.009 6.859 7.156 6.735 6.708S weden S E K 6.027 5.954 5.935 5.970 6.037 6.542 7.170 8.106 7.784 8.254 9.175 8.223 8.192S w itzerland S Fr 1.009 1.035 1.038 1.018 1.036 1.106 1.134 1.208 1.058 1.173 1.172 1.149 1.149U K £ 0.500 0.507 0.508 0.501 0.503 0.562 0.575 0.663 0.694 0.685 0.715 0.694 0.685C anada C $ 1.018 1.013 0.992 1.012 1.014 1.061 1.156 1.238 1.220 1.236 1.288 1.264 1.222Japan ¥ 100.1 104.3 103.8 106.1 107.2 108.10 100.97 96.75 90.28 90.9 97.4 98.8 96.5E uro € 0.6 0.638 0.638 0.063 0.638 0.690 0.736 0.793 0.710 0.783 0.794 0.758 0.764S ource: www.yahoo.com /currency
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D enm ark D K r 7.459 7.464 7.460 7.454 7.463 7.456 7.454 7.458 7.452 7.450 7.451 7.449 7.448N orway N K r 8.079 7.979 7.828 7.992 8.112 8.014 8.464 8.815 9.870 8.759 9.006 8.889 8.779S weden S E K 9.399 9.333 9.296 9.424 9.468 9.479 9.716 10.213 10.962 10.540 11.547 10.853 10.721S w itzerland S Fr 1.573 1.621 1.626 1.607 1.625 1.602 1.538 1.522 1.490 1.499 1.475 1.517 1.504U K £ 0.745 0.795 0.796 0.791 0.790 0.815 0.779 0.835 0.977 0.874 0.900 0.916 0.896C anada C $ 1.588 1.588 1.555 1.597 1.590 1.536 1.570 1.560 1.723 1.578 1.621 1.669 1.600Japan ¥ 156.1 163.4 162.5 167.5 168.1 156.8 136.7 122.0 127.1 116.0 122.5 130.3 126.3U .S .A . $ 1.560 1.566 1.567 1.578 1.568 1.450 1.355 1.260 1.408 1.277 1.258 1.320 1.309S ource: www.yahoo.com /currency
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