Archive for July, 2009


Potential mill closures in North America and Europe

Filed Under: Pöyry, Tamfelt by pietrox — Leave a comment
30/07/2009

RISI uncoated woodfree/freesheet study analyzes risk of closure for 100 mills, 200 machines in North America and Europe

BOSTON, MA, July 29, 2009 Press Release – RISI, the leading information provider for the global forest products industry, today announces the official publication of a new study titled: “North American and European Uncoated Woodfree/Freesheet Risk of Closure Study.” This report details data and risk of closure on over 100 mills and 200+ machines, each ranked by major criteria such as cost position, market prospects for the grade, future regional wood supply, corporate significance of the mill, machine age, and machine size. The report is currently available for purchase on the RISI website: http://www.risi.com/ufs.

John Maine, VP – Pulp and Paper at RISI, Inc and Project Team Leader, noted, “The market for uncoated freesheet in North America has been in decline since 1999, falling 5% and 8% for the past two years, and the drop is certain to accelerate in 2009. Although Europe eluded this downtrend until 2008, we expect the demand drop in western Europe to offset the gains in central and eastern Europe, resulting in a decline in total demand for uncoated freesheet in Europe as a whole over the next five years.” He continued, “opportunities to offset these declines through exports will be sparse as South American and Asian producers expand their uncoated freesheet capacity to become self-sufficient and even enter the export market.”

The report identifies a base case and scenarios based on potentially weaker than expected demand and currency fluctuations. “This market has historically operated at a 92% operating rate,” said John. He continued, “In order for the market to return to anywhere near that rate, we predict that significant closures will occur.”An excerpt from the report shows the data more strikingly:

2009 to 2013 (000 tonnes) RISI Scenario I Scenario II Scenario III
Base
Case		 Weak
Demand		 Strong
Euro		 Strong Euro /
Weak Demand
EUROPE
Drop in Domestic Demand -969 -1479 -969 -1479
Erosion/Gain in Net Trade 90 90 -178 -178
New Capacity 1440 1440 1440 1440
Closures Likely -1599 -2109 -1867 -2377
NORTH AMERICA
Drop in Domestic Demand -2026 -2495 -2026 -2495
Erosion/Gain in Net Trade -78 -78 -17 -17
New Capacity 0 0 0 0
Closures Likely -2104 -2573 -2043 -2512

This timely and valuable study details the most likely mills and machines by ranking them on a six criteria methodology, along with a market overview. In addition, the methodology pits small mills producing primarily specialty products against each other rather than trying to compare their cost structures to those of large, commodity mills.

via RISI.

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VW sees slow upswing in commercial vehicles from H2

Filed Under: Componenta, PKC Group by pietrox — Leave a comment
29/07/2009

Volkswagen <VOWG.DE> expects demand for commercial vehicles to gradually improve from the second half of this year until the end of 2010, the commercial vehicle division’s head told Reuters.  “There is a moderate upward movement, but at a low level. I expect that there will be no substantial change next year either,” Stephan Schaller said in the interview published on Wednesday.

The company plans to crank production at its Hanover plant back up to a normal level next month, having cut back output by about a quarter earlier this year to offset slumping demand.

Schaller also said that plans for cooperation with Scania <SCVb.ST> and MAN SE <MANG.DE> were intended to progress slowly, meaning no quick updates could be expected on the matter.

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Jacobs shares fall on weak backlog, lowered '09 view

Filed Under: Pöyry by pietrox — Leave a comment
28/07/2009

Shares of Jacobs Engineering Group Inc <JEC.N> fell 9 percent Tuesday, a day after the construction services company reported lower quarterly profit and backlog, and trimmed the top end of its 2009 earnings forecast range.

Jacobs reported third-quarter backlog of $15.8 billion, down 5 percent sequentially, and removed about $665 million from backlog due to project cancellations and shifting cost risks to customers.

Barclays Capital analyst Andy Kaplowitz said backlog might have troughed in the third quarter, and it could stabilize in the next couple of quarters and rise again toward the end of calendar year 2009 and early 2010.

A company executive said on a conference call that about $300 million of backlog in the third quarter was hit by a project cancellation in the upstream market and there might be more cancellations going forward in that segment. “I am not going to rule out a cancellation (in the fourth quarter) but I expect the overall oil and gas markets to be slightly firmer, meaning slightly lower chance of cancellations,” said analyst Kaplowitz, who has an “equal weight” rating on the stock.

The Pasadena, California-based company, which caters to industrial, commercial, and government clients, said although the oil sands business appears to have “reenergized,” it would like its exposure to that market to be smaller. About 55 percent of the company’s revenue comes from the oil market.

“While our public sector markets – led by national government programs – remain good, our growth there was insufficient to offset declines in our private sector markets,” CEO Craig Martin said.

Jefferies & Co analyst Michael Dudas said though Jacobs’ public sector would get a boost in 2010 through stimulus spending, it would be the energy and oil markets that would drive a recovery in earnings and orders.

Dudas said the company’s new outlook reflects backlog issues, and he sees an upside to its backlog in 2010. Jacobs, which ended the quarter with $1 billion in cash, said it would capitalize on acquisitions over the next few quarters. Jacobs also said it was expanding aggressively in India and the Middle East and that it was looking to bring its domestic and international exposure to about 50 percent each, from a current ratio of 60 percent to 40 percent.

On Monday, Jacobs posted a profit of 76 cents a share, in line with Wall Street estimates, but saw revenue fall 7 percent during the quarter. For 2009, the company trimmed the top end of its earnings range by 15 cents to $3.35 a share. It had previously forecast an earnings range of $3.10 to $3.50 a share.

Barclays’ Kaplowitz said investor sentiment was negative as the company has lowered its outlook for the second time and on concerns about its exposure to U.S. refining market.

Shares of company fell $3.13 to $40.26 Tuesday afternoon on the New York Stock Exchange. They touched a low of $39.63 earlier.

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Paccar reports drop in net, cuts industry outlook

Filed Under: Componenta, PKC Group by pietrox — Leave a comment
28/07/2009

* Q2 loss 1 ct/share ex-items; Wall St view EPS 4 cts
* Sales down 55 percent at $1.85 billion
* Says challenging market conditions continuing
* Shares fall as much as 12 percent

CHICAGO, July 28 (Reuters) – Paccar Inc <PCAR.O> said on Tuesday that quarterly earnings plunged more than 90 percent as a weak freight market walloped demand for its trucks and forced it to idle some plants.
The company warned that challenging market conditions were continuing, especially in Europe, where it lowered its forecast for 2009 industrywide truck demand and provided an initial glimpse at 2010 that shows sales plunging to levels last seen in 1992.The news sent its shares down as much as 12 percent.

JPMorgan analyst Ann Duignan called the truck market outlook “sobering.” Paccar, which makes vehicles under the Peterbilt, Kenworth and DAF brands, reported second-quarter profit of $26.5 million, or 7 cents a share, down from $313.5 million, or 86 cents a share, a year earlier.

Excluding a one-time gain, Paccar reported an operating loss of 1 cent a share. Analysts on average had expected the Bellevue, Washington-based company to report operating earnings of 4 cents per share, according to Reuters Estimates. Sales fell 55 percent to $1.85 billion.

Paccar forecast industrywide retail sales of the biggest on-highway trucks in the U.S. and Canada at 100,000 to 110,000 vehicles in 2009, “reflecting continued economic weakness, specifically in lower housing starts and auto production.”

NO ‘PREBUY’

Truckmakers had hoped 2009 would be a good one for demand, thanks to tough U.S. clean air rules that take effect in 2010. The regulations, which require more efficient — and more expensive engines — were expected to prompt fleet owners to stock up on cheaper trucks now. But the recession and credit crunch have effectively killed those hopes. During a conference call to discuss Paccar’s earnings, Mark Pigott, the company’s chief executive, said: “It’s going to be challenging certainly through the end of this year.”

Looking forward to next year, Paccar predicted sales in the United States and Canada would improve slightly and be in the range of 110,000 to 140,000 vehicles.

Industry retail sales in the region peaked at 322,500 units in 2006, ahead of clean-air rules that took effect in 2007 and triggered the sort of “prebuy” truckmakers were counting on this year.

The company cut its estimate for industrywide heavy truck sales in Europe to between 170,000 and 180,000 vehicles, down from its April forecast of 180,000 to 220,000. And next year, it said they could fall again, to as low as 150,000 units. Pigott said Paccar remains committed to pricing discipline.

But he acknowledged that industrywide prices had fallen over the past two years and that the $8,000 to $10,000 premium most analysts expect will be added to truck prices as a result of the new 2010 regulations would come on top of this year’s lower price levels, not the higher ones that prevailed earlier this decade.

Paccar shares were down $3.72 or 10.5 percent at $31.57 in early afternoon trading after falling as low as $30.97.

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Albany International Announces Closure of Portland, Tennessee, Facility

Filed Under: Tamfelt by pietrox — Leave a comment
27/07/2009

Albany International Corp. (NYSE: AIN) announced today that it will discontinue operations at its forming fabric manufacturing facility in Portland, Tennessee. The plant closing is the result of the continuing consolidation of customers in the U.S. and Canada, accelerated by the economic recession, and the need to balance the Company`s paper machine clothing (PMC) manufacturing capacity in North America with anticipated paper mill demand. Similar steps have been taken by the Company over the last few years in both Europe and North America, as the
global paper and paperboard industry continues to shift capacity from traditional paper markets to new emerging markets.

This planned action is a business necessity, driven by existing and expected market conditions, and in no way reflects on the performance of the 156 affectedemployees, who will be offered severance and outplacement assistance.

Transition of forming fabric manufacturing from the Portland area to other facilities in North America will begin at once and will be supervised by technical and manufacturing personnel to ensure continuity of customer supply.

The transition is expected to be completed by June 2010. The Company expects that, with this action, its PMC manufacturing capacity in the Americas will be, for the foreseeable future, as follows: forming production
for the Americas will be centered in Perth, Ontario, Canada; Menasha and Kaukauna, Wisconsin; and Indaial, Brazil; press production will be centered in St. Stephen, South Carolina; Cowansville, Québec, Canada; Indaial, Brazil; and
Cuautitlán, Mexico, and dryer production in Cuautitlán.

Albany International is a global advanced textiles and materials processing company. Its core business is the world`s leading producer of custom-designed fabrics and belts essential to the production of paper and paperboard. Albany`s
family of emerging businesses extends its advanced textiles and materials capabilities into a variety of other industries, most notably aerospace composites, nonwovens, building products, and high-performance industrial doors.
Albany International Corp. (NYSE: AIN) announced today that it will discontinue operations at its forming fabric manufacturing facility in Portland, Tennessee.
The plant closing is the result of the continuing consolidation of customers in the U.S. and Canada, accelerated by the economic recession, and the need to balance the Company`s paper machine clothing (PMC) manufacturing capacity in
North America with anticipated paper mill demand. Similar steps have been taken by the Company over the last few years in both Europe and North America, as the global paper and paperboard industry continues to shift capacity from
traditional paper markets to new emerging markets.

This planned action is a business necessity, driven by existing and expected market conditions, and in no way reflects on the performance of the 156 affected employees, who will be offered severance and outplacement assistance.

Transition of forming fabric manufacturing from the Portland area to other facilities in North America will begin at once and will be supervised by technical and manufacturing personnel to ensure continuity of customer supply.
The transition is expected to be completed by June 2010.

The Company expects that, with this action, its PMC manufacturing capacity in the Americas will be, for the foreseeable future, as follows: forming production for the Americas will be centered in Perth, Ontario, Canada; Menasha and
Kaukauna, Wisconsin; and Indaial, Brazil; press production will be centered in St. Stephen, South Carolina; Cowansville, Québec, Canada; Indaial, Brazil; and Cuautitlán, Mexico, and dryer production in Cuautitlán.

Albany International is a global advanced textiles and materials processing company. Its core business is the world`s leading producer of custom-designed fabrics and belts essential to the production of paper and paperboard. Albany`s
family of emerging businesses extends its advanced textiles and materials capabilities into a variety of other industries, most notably aerospace composites, nonwovens, building products, and high-performance industrial doors.

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Signs of recovery sought in Europe auto results

Filed Under: Componenta by pietrox — Leave a comment
27/07/2009

European carmakers’ comments on outlook will be closely scrutinised when they report half-year results in the coming days, as investors attempt to look beyond the effects of scrapping schemes for signs of a real recovery. Carmakers may be able to send out a fairly upbeat message on cash, Oddo Securities analysts said in a research note.

Manufacturers, who were caught out at the end of last year and forced to slam the brakes on production, have been closely monitoring their unsold vehicle stocks. But profitability, cash and debt will play second fiddle to comments from executives on their expectations for demand and production for the rest of 2009 and next year.

Investors will be looking for signs that Renault <RENA.PA> and Nissan <7201.T> Chief Executive Carlos Ghosn was being overly pessimistic when he said earlier this month that 2010 would be as difficult as 2009 for the industry, which has been rocked by an unprecedented sales slump. [ID:nLA372224]

“Good numbers will be treated with a degree of scepticism if there isn’t an associated optimistic outlook. And the outlook needs to be optimistic not based on costs but rather on revenues,” Nomura International industry specialist Michael Tyndall said. Tyndall noted that while Italian carmaker Fiat <FIA.MI> — which reported first half results last week — beat forecasts, its shares fell.

“The market is not interested in things that it doesn’t perceive as sustainable. The market thought (about Fiat) ‘good numbers, but we’re not so sure about the rest of the year or next year’. I think the market is looking for sustainability,” Tyndall said.

SCRAPPING BOOST

Half-year results for makers of small cars will reflect the success of scrapping incentive schemes in major European markets, designed to encourage drivers to trade in old cars for new. Premium carmakers’ results — BMW is due to report its first half results on August 4 — will show a clearer picture of real demand.

Carmakers like Renault, PSA Peugeot Citroen and Volkswagen, which are celebrating a sales boost from scrapping schemes, may have to face up to a negative consequence on their profitability, Oddo Securities analysts said in a research note.

“The various government incentive schemes have boosted sales of small cars. This has resulted in a sharp deterioration in groups’ product mix, thus significantly squeezing their profitability.”
Germany’s Daimler <DAIGn.DE> — which includes the premium Mercedes brand, as well as the compact Smart — reports results on Wednesday. Analysts will scrutinise the group’s truck activity closely, after significant losses at Swedish competitors Scania <SCVb.ST> and Volvo <VOLVb.ST> last week. [ID:nLN274307]

Oddo analysts said they expected a positive operating profit for the Mercedes part of the business in the second half, after a gradual recovery beginning in the second quarter.
The analysts had a more pessimistic outlook for Daimler’s truck business, where the fall in volumes accelerated in the second quarter.

When French carmaker PSA Peugeot Citroen <PEUP.PA> reports its results, also on Wednesday, attention will focus on strategy as new CEO Philippe Varin presents his plans. “The CEO’s strategic plan will take priority over the H1 numbers,” said Exane BNP Paribas analysts in a note. “Despite a significant improvement seen in Q2, thanks to the positive effect of the French and German scrappage measures, PSA is likely to report big losses in H1.”

Societe Generale analysts said they expected a group operating loss of 730 million euros at Peugeot Citroen, while Exane BNP Paribas estimated the loss at 760 million. Both warned that Varin could attempt some “kitchen-sinking” — booking significant charges in the first half to allow for a fresh start.

“However, his room for manoeuvre is not total as he must preserve cash and the equity,” Exane BNP Paribas analysts said. Fellow French manufacturer Renault and Germany’s Volkswagen <VOWG.DE> — both of which have benefited from scrapping schemes in their home markets — are set to report results on Thursday. [ID:nLO202303]

Oddo analysts said they expected Renault to post an operating loss of about 670 million euros, with further significant losses from Nissan and Volvo contributions. But cash generation may be cause for optimism.

“We’re expecting about a billion inflow — if you consider that they (Renault) were among the first to cut production and produced practically no cars in Q4,” said Nomura’s Tyndall. “Working capital is likely to be behind that improvement in free cash flow. The big question mark is as to whether or not that’s sustainable. I think we would argue that it’s not.” The group said it had achieved “significant” positive free cash flow when it reported first half unit sales earlier this month.

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WSP Group H1 adj profit falls, keeps dividend

Filed Under: Pöyry by pietrox — Leave a comment
27/07/2009

WSP Group Plc <WSPG.L>, a British building and environmental consultancy, posted a 23 percent fall in first-half adjusted pretax profit but maintained its interim dividend and said the order book exceeded 1 billion pounds ($1.64 billion) in June.

The group, which offers management, planning and environmental advice, said it was well placed to trade through the current economic environment. The company said it was seeing a high level of bidding activity in the wider Middle East and North Africa region with some significant project wins. “Whilst these remain competitive and can be slow to progress we see our expansion in the region continuing,” the company said in a statement.

“The first half of 2009 has seen a strong performance in our public sector activities with a corresponding deterioration in most markets in the private sector,” it said. Northern Europe continues to perform well and it does not see any immediate change to the difficult private sector in the UK and the U.S., WSP Group said. For the six months ended on June 30, profit before tax and exceptional items was 17.7 million pounds, compared with 23 million pounds a year ago, WSP Group said. Revenue rose 4 percent to 376.9 million pounds.
The company said worldwide staff numbers were around 9,000 compared with over 10,000 at the end of last year due to material reductions in the UK private sector and the Middle East.
WSP Group shares closed at 244.75 pence on Friday on the London Stock Exchange. ($1=.6083 Pound)

WSP Group H1 adj profit falls, keeps dividend – 09:57 27Jul09 -UPDATE 1-
* H1 adj pretax profit 17.7 mln stg vs 23 mln stg
* H1 rev up 4 pct at 376.9 mln stg
* Maintains interim dividend at 5p/shr
* Order book tops 1 bln stg at June-end
* Says well placed to trade through current environment

(Adds details)
July 27 (Reuters) – WSP Group Plc <WSPG.L>, a British building and environmental consultancy, posted a 23 percent fall in first-half adjusted pretax profit but maintained its interim dividend and said the order book exceeded 1 billion pounds ($1.64 billion) in June.
The group, which offers management, planning and environmental advice, said it was well placed to trade through the current economic environment.
The company said it was seeing a high level of bidding activity in the wider Middle East and North Africa region with some significant project wins.
“Whilst these remain competitive and can be slow to progress we see our expansion in the region continuing,” the company said in a statement.
“The first half of 2009 has seen a strong performance in our public sector activities with a corresponding deterioration in most markets in the private sector,” it said.
Northern Europe continues to perform well and it does not see any immediate change to the difficult private sector in the UK and the U.S., WSP Group said.
For the six months ended on June 30, profit before tax and exceptional items was 17.7 million pounds, compared with 23 million pounds a year ago, WSP Group said.
Revenue rose 4 percent to 376.9 million pounds.
The company said worldwide staff numbers were around 9,000 compared with over 10,000 at the end of last year due to material reductions in the UK private sector and the Middle East.
WSP Group shares closed at 244.75 pence on Friday on the London Stock Exchange. ($1=.6083 Pound)

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Outlook brightens for UK commercial property

Filed Under: Sponda by pietrox — Leave a comment
27/07/2009

Confidence is slowly returning to the commercial property market on the back of reports from surveyors that the fall in tenant demand for offices and shops has started to slow.

Demand for commercial property still fell in the second quarter of 2009, according to a report from the Royal Institution of Chartered Surveyors on Monday, but the pace of decline slowed markedly. The net balances for new inquiries from tenants and confidence were the least negative since the downturn began late in 2007.

After a two-year slump in capital values, there are expectations that property prices will come under pressure from the fall in rents caused by the shortage of new occupiers.

Tenant demand for offices and shops in the UK has been hard hit by the economic downturn, with few businesses looking to expand or take on new lease liabilities.

The slower decline in tenant demand during the last quarter points towards a mild improvement in the lettings market, particularly in the office sector where the net balance actually turned positive for the first time since the third quarter of 2007.

Even so, Oliver Gilmartin, RICS senior economist, played down hopes for a sustained recovery.

“While tenant demand in some areas improved modestly … the positive move was from extremely low levels,” Mr Gilmartin said.

“It is still unclear whether current activity reflects ongoing rationalisation of space or fresh tenant demand. Furthermore, the rental downturn remains in its infancy with strong levels of surveyor inducements pointing to a challenging lettings market,” he added.

In total, 13 per cent more surveyors reported a fall than a rise in tenant demand compared with 40 per cent in the first quarter. But, in the office sector, 1 per cent more surveyors reported a rise than a fall in tenant demand, a marked change from the negative reading of 37 per cent in the first quarter.

via FT.com / Companies / Property – Outlook brightens for UK commercial property.

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Heinäkuu ollut poikkeuksellisen sateinen

Filed Under: Olvi by pietrox — Leave a comment
14/07/2009

Ilmatieteen laitoksen mukaan maan etelä- ja itäosissa on satanut tähän mennessä paikoin yhtä paljon kuin tyypillisesti koko heinäkuussa pitkän ajan keskiarvoja tarkasteltaessa.

Koko kesänä eniten on satanut Suomen itäosissa. Suurin sademäärä on kirjattu Ilomantsissa, 113 millimetriä.

Helsingissä oli tiistaihin mennessä ripotellut sateita 64 millimetriä. Heinäkuun alkupuolisko on siten ollut pääkaupungissa toiseksi sateisin vuodesta 1961 alkaen tarkasteltuna. Sateisempaa oli vain vuonna 1996, jolloin samassa ajassa vettä kertyi 111 millimetriä.

Keskimääräisiin arvoihin verrattuna kuivinta on tähän mennessä ollut maan länsiosissa sekä Länsi- ja Pohjois-Lapissa. Kesällä sateet ovat pääosin kuuroluonteisia, ja siten sademäärissä voi esiintyä suuriakin paikallisia vaihteluita.

Ilmatieteen laitoksen ennusteen mukaan lähipäivinä sade- ja ukkoskuurojen riski on suuri ainoastaan Oulun läänissä ja Etelä-Lapissa. Muualla Suomessa on odotettavissa poutaisempaa säätä

via Heinäkuu ollut poikkeuksellisen sateinen | Uutiset | Iltalehti.fi.

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Glaston receives order in China for EUR 3.5 million

Filed Under: Glaston by pietrox — Leave a comment
02/07/2009

Glaston has recently secured an order in China worth EUR 3.5 million for its Tamglass safety glass production lines. The products will be delivered by the end of this year from Glaston’s factory in Tianjin, China. The order includes CHF horizontal continuous furnaces and ProE CCS dual convection furnaces, both equipped with Tamglass leading technology in glass tempering. All machines in order are under production in Glaston Tianjin with latest technology and local assembly. “As a milestone of our order intake 2009, the order from a leading Chinese glass processor operating in the glass and solar industry echoes Glaston’s successful strategy in China, i.e. technology transfer and localization,” states Frank Zhang, Glaston’s General Manager in China and North Asia. “To integrate global technology with local reach is more critical in current economic situation. Our target is to provide customers with leading edge technology, reliable quality, accountable service and acceptable price ”. Together with other big orders received from China earlier this year, it manifests that Glaston’s strategies match well its expectation of China market. “We will continue to fully leverage global recourses to drive on our China strategies. With increasing product portfolio and stronger local engineering team, we will be more confident in and capable of offering more value added products and services,” Frank Zhang added.

via Glaston receives order in China for EUR 3.5 million.

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