April 1999 Pump Industry Analyst

Tsurumi Manufacturing Co Ltd, Japan Profile Tsurumi is one of Japan’s largest pump manufacturers. The product range includes submersible sewage pumps. industrial pumps, aerators and submersible contractors’ pumps. The company has 11 main branches in Japan and 69 business offices, with overseas 5ubsidiaries in Hong Kong, Singapore, USA, Germany and Taiwan. Tsurumi employs 695 people.

Analysis The domestic Japanese market for pumps continues to be affect- of excessive sludge. In terms of public sales operations, cd by restrictions on public expenditure, sluggish private invest- despite a severe reduction in the public works budget, large ment in plant and the decline in personal consumption. Tsurumi’s scale construction and an increase in orders for pump stations fiscal 1998 sales remained stable, despite intense competition. made up for the slowdown in the private sector. Domestic operations saw a decrease in demand for construction Profits in international operations increased substantially use pumps, caused by sluggish consumer demand and restric- helped by the weak yen. Overall, exports were up 11.7 per Cons on public expenditures. Demand for industrial pumps cent to Y4024 million; while Southeast Asia export sales remained steady, helped by new markets and new products. decreased, exports to North America were brisk. In the construction machinery market, which is Tsurumi’s main market. pump sales have been hit by the lack of replace- ment demand from rental and lease dealers, because of the slack construction sector. However, demand for automatic submersible pumps increased.

Growing sales in the current Japanese economic climate is

In the industrial machinery market, sales promotions resulted a real achievement and Tsurumi has managed not only to

in increased activity in sewage improvement projects, in the increase turnover but also to record just a small decrease in

manhole pump market for rural water projects and in the sep- net income. Steps to improve manufacturing management

tic tank market. System engineering operations’ sales and reduce inventories should help Tsununi to emerge

increased for wastewater treatment equipment, pH neutraliza- from these difficult operating conditions, with a more

lion equipment and dehydrators for reduction and dehydration focused approach to its business. m

Key Figures (U billion) Tsurumi Manufacturing Co Ltd Year ended 31.3

1998 1997 1996 1995

Net Sales 29.9 29.3 28.2 27.0

Cost of Sales 21.6 21 .l 20.5 19.2

Operating Income 2.2 2.3 1.9 2.3

Net Income 1.2 1.3 1.1 1.1

Stockholders’ Equity 25.1 24.4 22.8 22.2

Total Assets 46.2 47.8 45.1 52.0

Current Assets 22.4 21 .o 27.0 29.7

Current Liabilities 7.7 9.0 15.0 16.7

Contact Details President: Osamu Tsujimoto Address: 16-40 4-chome Tsurumi

Tsurumi-ku Tel: +81 6 91 I 2351 Osaka Fax: +81 6 91 I 1800 Japan Web: www.tsurumi-europe.com

Recent Events ?? During the first year of Tsurumi’s Innovation 2000 three year management plan, priority was given to strengthening sales and

growing Tsurumi’s main business, moving from quantity to quality and making customer satisfaction a key business goal. ?? 50 Tsurumi submersible pumps were used to sink the closed-box steel caissons of the new Akashi-Kaikyo Bridge. which spans

the Kobe area and Awaji Island. ?? To streamline the organisation, Tsurumi has discontinued the South and West domestic sales departments and merged them into

a single domestic sales department. Branch offices have also been consolidated and modified.