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This is issue #105 - 01 May 2003
of the weekly newsletter for industry
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FINNING BUYS LEX HARVEY |
BEDWORTH, United Kingdom
International Inc, through its subsidiary Finning UK,
has bought Lex Harvey Ltd, one of the United Kingdoms
largest materials handling companies, for USD220 million
The acquisition, which is
expected to be finalised on May 31, includes the
business and the majority of assets of Lex Harvey and
Lex Birchwood, a Toyota dealer recently acquired by Lex
The Lex Harvey companies, which provide
materials handling rental and fleet management
solutions, had pre-tax losses of USD6.9 million (GBP4.3
million) in 2002. The value of assets included in the
transaction was USD154.7 million (GBP97.3 million), as
at December 31, 2002.
With the addition of the
Lex Harvey assets, Finnings UK materials handling
business now has 16,000 machines, more than 1,300
employees and 2002 pro-forma revenues of USD340 million
Finning UK managing director
Steve Mallett said the acquisition was a big step
towards Finning Internationals goal of achieving 30
percent of each of its world markets.
forces with Lex Harvey, the materials handling division
will increase its market position significantly, he
said. The long-term nature of Lex Harveys rental and
service contracts will provide greater stability and
predictability to revenues.
In a move Mr Mallet
admitted was bold, Lex Harvey would be integrated into
Finning, and the name, which is a strong brand in the UK
market, would disappear over the next two
Mr Mallett said Lex Harveys parent
company, the Royal Automobile Club plc (RAC), had
shifted its focus away from materials handling, and Lex
Harvey had too high a cost structure and had
Unfortunately there will be some job
losses, consistent with whenever two companies join, but
it is too early to say how many or in what areas these
will come from, he said.
Andy Harrison, RAC
chief executive, said the sale was a way of realising
value from under-performing assets.
continue to concentrate on our growth opportunities in
consumer and business services, based on our strong
brands and unique capabilities, he said.
Mallet said Finning would conduct due diligence on Lex
Harvey over the next 90 days before starting integration
of the two companies.
- Finning UK website -
NACCO: MODEST SHIPMENT INCREASES
MAYFIELD HEIGHTS, United
Nacco Material Handling Groups wholesale unit
expects a modest increase in overall forklift shipments
this year after a marked increase in the first
NMHG Wholesale shipped 17,452 units
during the quarter ended March 31, compared to 14,971 in
last years first quarter. Pre-war purchasing
conservatism impacted bookings, the company said in a
statement. The worldwide order backlog was 17,300
The wholesale unit recorded a profit of
USD4.7 million on sales of USD382.6 million, compared to
USD5.6 million on sales of USD327.7 million for the
first quarter of 2002.
While market prospects
are unusually uncertain, lift truck markets in the
Americas are anticipated to improve in the second half
of 2003, while markets in Europe and the Asia-Pacific
region are expected to remain relatively flat, the
NMHG Wholesale expects results in
2003 will be affected by ongoing costs for a product
development program that is expected to mature in
2004-2006 and additional costs related to the Lenoir,
North Carolina, [USA] and Irvine, Scotland,
manufacturing restructuring program announced in
NMHGs retail operations improved in
the quarter, primarily in Asia-Pacific, but needed to
include wind-down costs related to sold dealerships, the
Consequently, NMHG Retail posted a
loss of USD1.4 million on sales of USD36.4 million for
the quarter, compared to last years USD1.3 million loss
on USD44.1 million in sales. The January sale of NMHGs
only wholly-owned US dealer was the primary cause for
the decline in revenue.
NMHG Retail expects to
continue to improve the performance of its wholly-owned
dealerships in 2003 as part of its program to reach at
least break-even results, the company said.
- NMHG website -
CASCADE, ITAB JOIN FORCES
Corporation has joined forces with Swedish clamp
manufacturer ITAB, the developer of the Smart Clamp
system for paper roll handling. The value of the deal
has not been released.
Cascade Europe paper
industry manager Tommy Abrahamsson said merging the
companies product lines cemented Cascades position as
the premier supplier to the European paper
"With this new combination, Cascade
will offer paper producers and transporters the widest,
most versatile range of damage reduction technology and
solutions in the industry," he said.
Abrahamsson, an expert in damage reduction solutions for
the paper industry, was chosen by Cascade to merge the
companies attachment products and
ITAB's Smart Clamp, developed for
the European paper industry, uses an on-board computer
to gauge hydraulic pressure in the hoist and clamping
cylinders and compute the roll weight.
hydraulic pressure is then adjusted, and the system
automatically tilts the mast to vertical when lifting or
lowering to eliminate the risk of roll damage.
- Cascade Europe
JLG MAINTAINS EARNINGS OUTLOOK
McCONNELLSBURG, United States
Industries chairman Bill Lasky has reaffirmed that
company sales for financial year 2003, ending July 31,
will be consistent with the forecasted USD770
While it continues to appear that we
are at the bottom of the cycle, forward visibility
remains very difficult, he said. Although the
contraction of non-residential construction, one of our
leading indicators, appears to have bottomed out in
2002, it still remains sluggish in 2003, with a rebound
anticipated in 2004.
In February, JLG, which
manufactures mobile aerial work platforms, telehandlers
and telescopic hydraulic excavators, forecast a modest
profit improvement for 2003.
Meanwhile, JLG will
seek to raise up to USD125 million through a private
sale of senior notes to institutional buyers. Success of
the offering was contingent on market conditions, the
The publicly-traded firm would use
the net proceeds of the sale to repay outstanding debt
under its existing USD250 million revolving credit
facility, and for general corporate purposes.
- JLG website -
BT WEATHERS THE STORM FOR Q1
BT Industries has
posted a net profit of SEK100 million (USD12.2 million)
on sales of SEK2.92 billion (USD354.9 million) for the
first quarter down slightly from the SEK102 million
(USD12.4 million) on SEK2.93 billion (USD358.6 million)
posted last year.
BT, in its report for the
quarter ended March 31, said the world market for
combustion counterbalance forklifts had lifted slightly
during the first quarter, but the electric forklift
market, where BT was mainly active, remained
Previous signs of a slight recovery
in North America dissipated during the first quarter,
(but) demand for warehouse trucks rose slightly in
Europe and the rest of the world, BTs report
BT was affected by the declining value of
the US dollar, and the world market was affected by war
in Iraq, said chief executive Per Zaunders.
cautious optimism in the second half of 2002 was
replaced during the first months of 2003 by gradually
increasing uncertainty. Now that the situation in Iraq
appears to be over, we can hope for more stable economic
conditions, Mr Zaunders said.
"In the years
ahead, a growing number of companies around the world is
expected to again need to invest, which should impact
our industry - and many others - positively.
- BT Industries
NEW 7FBE MARKS TOYOTA MILESTONE
IRVINE, United States
Material Handling USA Inc (TMHU) has unveiled a new
7-Series three-wheel electric forklift, which uses
Toyotas next-generation AC technology.
president Dr Shankar Basu said that, with the release of
the 7FBE, TMHU, the leading full-line supplier of
forklifts to the US market, now assembled 99 percent of
its forklifts in the USA. Production of the 7FBE began
Most Toyota forklifts for the US market
are assembled by Toyota Industrial Equipment
Manufacturing Inc (TIEM) at a state-of-the-art facility
in Columbus, Indiana.
Toyota has achieved a
long-term goal by bringing nearly all our manufacturing
efforts to the USA, Dr Basu said. We strongly believe
in supporting the communities where we live and work,
and investing in our local economy at every opportunity
to create jobs and encourage prosperity.
opening in 1990 to support Toyotas US growth, the TIEM
manufacturing facility has increased its initial
employment to more than 500, increased production more
than 10-fold and more than doubled in physical
Last year the facility was expanded to
include a 43,000-square-foot (4,000 square metre) parts
- Toyota USA
YALE FORKLIFTS TO FEATURE ON THE SMALL
GREENVILLE, United States
Materials Handling Corporation will star in a television
special on loading docks, aired by The History Channels
Modern Marvels program.
Loading Docks, which
airs on July 30, documents the history of loading docks,
warehousing, trucking, shipping, rail and air
Yale features in a segment on the
history of forklifts, with interviews with Yale
executives Warren Eck and Bill Gilroy.
company provided antique Yale product photographs, and
videos of forklift applications and its Greenville
manufacturing plant, for the documentary.
Marvels website -
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