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ANALYST NEWS ISSN 1359-6128/05 © 2005 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional pur- poses, resale, and all forms of document delivery.Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use. Josef Gerstner, the chair- man of KSB’s board of man- agement, has left the company. In a statement, the German pump and valve manufacturer said that Gerstner and KSB were parting “by best mutual agreement.” Gerstner joined KSB AG in 1996 as chairman of the board of management and human resources director. He was in charge of sales/ marketing and the group cor- porate development, human resources, communications and internal audit functions. He was also responsible for the KSB growth and innova- tion initiative. Gerstner’s cur- rent contract was due to end in May 2006. Following Gerstner’s departure, the chairman of KSB’s supervisory board, Peter Schubert, has been appointed to the board of management taking over the temporary chairmanship of KSB AG until a successor to Gerstner is found. As a result, Richard Lederer, a member of KSB’s supervisory board, who was previously employed for many years within KSB Group manage- ment, will head up KSB’s supervisory board during this interim period. Board of management members Dr-Ing Willi Enderle and Dr rer pol Alois Wittmann will remain in their present roles. KSB acknowledges that under Gerstner’s leadership the financial situation of the pump and valve manufac- turer enjoyed a sustainable improvement and that as chairman of the board of management, he succeeded in “accentuating and promot- ing the company’s external image.” COMMENT With Gerstner’s sudden departure, KSB loses a high profile, dynamic, out- ward looking leader. Under Gerstner, KSB con- tinued to expand interna- tionally, particularly in China, India and South America, and through acquisitions like DP Pumps and Bombas Itur. But while KSB returned to profit under Gerstner, earnings growth remained challeng- ing, despite a number of restructuring programmes and initiatives. CONTENTS CALENDAR 13 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 DIVIDENDS 11 ECONOMIC REVIEW 14 IN BRIEF 10,12,13 MARKET PROSPECTS 2–4 NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15 WEIR TO DIVEST TECHNA BUSINESSES The Weir Group plc has entered into agreements to dispose of the desalination and water treatment busi- nesses of its Techna Division to Veolia Water Systems, part of Veolia Environnement. The net proceeds from the £27.7 million transactions will be re-invested in the Weir Group’s core operations. The companies include Weir Westgarth in Scotland, Weir Entropie in France and Weir Envig in South Africa. These businesses provide specialist engineering design and system solutions in water treatment and sulphate removal with operations in the UK, France, South Africa, North and South America, the Middle East and Australia. Together they repre- sent less than 7% of Weir Group sales. The Techna Division’s defence and liquid gas handling businesses of Weir Strachan & Henshaw and Weir LGE will remain within the Weir Group, however. The disposal of Weir Westgarth and Weir Entropie was completed on 8 July 2005 when £25.3 million of the aggregate consideration was paid. The disposal of the South African company is conditional on approval from the local competition authorities. PUMP INDUSTRY JULY 2005 ISSN 1359-6128 www.worldpumps.com GERSTNER GOES IN KSB SHAKE-UP The changing dynamics of the desalination market towards larger scale projects and a move from design and build to ownership lie behind Weir’s decision to divest these businesses. “This transaction is con- sistent with our strategy to realize value from our non- core assets and to focus on our core operations. This com- plements our June disposal of Flowguard Ltd, our UK pulsation dampener business in the Engineered Products division for £2.9 million,” explained Mark Selway, Weir Group chief executive. “The desalination and water treatment businesses, within Techna, have an excellent track record of developing specialist tech- nologies for both the desalina- tion and oil industries. We believe that Veolia is well positioned to further develop these businesses to realize their full potential and look forward to a continuing rela- tionship supplying them with our specialist pumps, valves and engineering services,” added Selway. For the year ended 31 December 2004 the three desalination and water treat- ment businesses reported loss- es of £0.2 million on turnover of £46.9 million. Together the businesses employ 230 people. All employees, including the divisional managing director, Paul Capell, will transfer with the businesses to Veolia.

Gerstner goes in KSB shake-up

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ANALYST

NE

WS

ISSN 1359-6128/05 © 2005 Elsevier Ltd. All rights reserved.This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms andconditions apply to their use:

PhotocopyingSingle photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher andpayment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional pur-poses, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies fornon-profit educational classroom use.

Josef Gerstner, the chair-man of KSB’s board of man-agement, has left the company.

In a statement, the German pump and valve manufacturer said thatGerstner and KSB were parting “by best mutual agreement.”

Gerstner joined KSBAG in 1996 as chairman of the board of managementand human resources director.He was in charge of sales/marketing and the group cor-porate development, humanresources, communicationsand internal audit functions.He was also responsible forthe KSB growth and innova-tion initiative. Gerstner’s cur-rent contract was due to end inMay 2006.

Following Gerstner’sdeparture, the chairman ofKSB’s supervisory board,Peter Schubert, has beenappointed to the board of management taking over the temporary chairmanship ofKSB AG until a successor to Gerstner is found. As aresult, Richard Lederer, amember of KSB’s supervisoryboard, who was previouslyemployed for many yearswithin KSB Group manage-ment, will head up KSB’s

supervisory board during thisinterim period.

Board of managementmembers Dr-Ing Willi Enderleand Dr rer pol Alois Wittmannwill remain in their presentroles.

KSB acknowledges thatunder Gerstner’s leadershipthe financial situation of the pump and valve manufac-turer enjoyed a sustainableimprovement and that aschairman of the board of management, he succeeded in “accentuating and promot-ing the company’s external image.”

COMMENTWith Gerstner’s suddendeparture, KSB loses a high profile, dynamic, out-ward looking leader. Under Gerstner, KSB con-tinued to expand interna-tionally, particularly inChina, India and SouthAmerica, and throughacquisitions like DP Pumpsand Bombas Itur. But whileKSB returned to profitunder Gerstner, earningsgrowth remained challeng-ing, despite a number ofrestructuring programmesand initiatives. ■

CONTENTS CALENDAR 13 COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15DIVIDENDS 11 ECONOMIC REVIEW 14 IN BRIEF 10,12,13 MARKET PROSPECTS 2–4NEWS 1,12,13,16 NPD 14 ORDERS 11 PEOPLE 10 STOCK WATCH 15

WEIR TO DIVESTTECHNA

BUSINESSESThe Weir Group plc hasentered into agreements to dispose of the desalinationand water treatment busi-nesses of its Techna Division to Veolia WaterSystems, part of VeoliaEnvironnement.

The net proceeds from the £27.7 million transactionswill be re-invested in the Weir Group’s core operations.The companies include WeirWestgarth in Scotland, WeirEntropie in France and WeirEnvig in South Africa. These businesses provide specialist engineering design and system solutions in water treatment and sulphateremoval with operations in the UK, France, South Africa, North and SouthAmerica, the Middle East andAustralia. Together they repre-sent less than 7% of WeirGroup sales. The TechnaDivision’s defence and liquidgas handling businesses ofWeir Strachan & Henshawand Weir LGE will remainwithin the Weir Group,however.

The disposal of WeirWestgarth and Weir Entropiewas completed on 8 July 2005 when £25.3 million of the aggregate considerationwas paid. The disposal of the South African company is conditional on approvalfrom the local competitionauthorities.

PUMP INDUSTRYJULY 2005

ISSN 1359-6128www.worldpumps.com

GERSTNER GOESIN KSB

SHAKE-UP

The changing dynamics of the desalination markettowards larger scale projectsand a move from design and build to ownership liebehind Weir’s decision todivest these businesses.

“This transaction is con-sistent with our strategy torealize value from our non-core assets and to focus on our core operations. This com-plements our June disposal of Flowguard Ltd, our UK pulsation dampener businessin the Engineered Productsdivision for £2.9 million,”explained Mark Selway,Weir Group chief executive.

“The desalination andwater treatment businesses,within Techna, have an excellent track record of developing specialist tech-nologies for both the desalina-tion and oil industries. Webelieve that Veolia is wellpositioned to further developthese businesses to realizetheir full potential and lookforward to a continuing rela-tionship supplying them withour specialist pumps, valvesand engineering services,”added Selway.

For the year ended 31December 2004 the threedesalination and water treat-ment businesses reported loss-es of £0.2 million on turnoverof £46.9 million. Together thebusinesses employ 230 people.All employees, including thedivisional managing director,Paul Capell, will transfer with the businesses to Veolia.