Many projects are detailed in monthly updates under Industry Analysis in this Report’s Chapters. Click on the links below to view information on these projects.

CHEMICALS
ETHANOL
FOOD & BEVERAGE
METALWORKING
MINING
OIL & GAS
OTHER ELECTRONICS
PHARMACEUTICAL / BIOTECH
PULP & PAPER
REFINERIES
SEMICONDUCTOR

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Acquisition

Sany Purchases Putzmeister

Putzmeister Holding GmbH (“Putzmeister”) and Sany Heavy Industry Co., Ltd (“Sany”) announced the signing of an agreement on the merger of both companies. Sany, together with the Chinese Private Equity company CITIC PE Advisors (Hong Kong) Limited as a minority shareholder, thereby acquires 100 per cent of Putzmeister. The final closing of the deal is subject to approval by the relevant authorities and the customary closing conditions. Both parties agreed not to disclose the financial terms of the transaction.

Putzmeister develops, produces and sells construction machinery worldwide, especially concrete pumps, for the building- and mining-industry, as well as for tunnel construction and large-scale industrial projects. Sany, based in Changsha, China, is a large Chinese producer of construction machinery and market leader for concrete pumps in China, which is the largest and fastest-growing market for concrete pumps and other industrial equipment worldwide. The business activities of Putzmeister and Sany are highly complementary geographically. The merger of the Chinese market leader in concrete pumps with the leading provider in most markets outside of China thus follows a clear strategic and industrial rationale: the creation of the global market leader for concrete pumps.

Both partners benefit substantially from the combination. Sany’s financial strength secures Putzmeister’s growth prospects and provides a significant competitive advantage. Sany adds to its portfolio technologically cutting-edge products and innovations “Made in Germany” and acquires a strong distribution and service network outside of China.

This transaction marks the first time that a large and well-known German Mittelstand company has decided to merge with a Chinese partner. Karl Schlecht, founder of Putzmeister, said: “This merger is a global showcase transaction. Sany is one of the few large Chinese conglomerates which is personally operated by the founder, who is also the majority shareholder. In fact, Liang Wengen is one of China’s most successful entrepreneurs. He not only shares our entrepreneurial spirit, but also Putzmeister’s visions and corporate values.”

Aichtal/Germany will become Sany’s new headquarter for concrete machinery in the world outside China. Putzmeister will continue to operate with a high degree of independence in day-to-day management. Sany will focus on operations in China where Putzmeister will continue to be the premium brand. Norbert Scheuch will remain in his position as CEO of Putzmeister within Sany and will join the Sany executive board.

Dover Pump Solutions Acquires Quattroflow

Pump Solutions Group (PSG), a business unit operating within the Fluid Solutions platform of Dover’s Engineered Systems, a segment of Dover Corporation, has acquired Quattroflow Fluid System GmbH & Co. KG in Germany.

Quattroflow products primarily serve the pharmaceutical and biotech industries that require high containment, purity and cleanability. Quattroflow’s positive-displacement pumps incorporate a four-piston diaphragm technology with no mechanical seals and are driven by an eccentric shaft and motor. This pump technology can be found in multiple- or single-use applications, such as cross-flow systems, chromatography devices and centrifuges.

With this acquisition, Quattroflow joins a family portfolio of pump technologies that includes global brands such as Almatec, Blackmer, EnviroGear, Griswold, Mouvex, Neptune, RedScrew, and Wilden.

Agilent Technologies Buys PVR

Agilent Technologies Inc. has acquired P.V.R. s.r.l., a long-established vacuum pump manufacturer based in Valmadrera, Italy. The addition of P.V.R., a privately held company, expands Agilent's vacuum products portfolio for industrial applications. Financial details of the transaction were not disclosed.

P.V.R. began designing and manufacturing vacuum pumps in the 1960s. Its current portfolio includes rotary vane vacuum pumps for the industrial market, as well as oil-free micro pumps, rotary lobe vacuum pumps, dry rotary claw vacuum pumps, central vacuum systems, and vacuum accessories for the food, paper, chemical and other industries.

Agilent's Vacuum Products Division has had an original equipment manufacturer relationship with P.V.R. since 2008. Agilent gained its vacuum division as part of the Varian Inc. acquisition in 2010.

"P.V.R. has been a trusted partner for years," said Giampaolo Levi, Agilent's vice president and general manager, Vacuum Products Division. "Joining together as one company will only accelerate our innovations and increase our ability to serve customers faster and better with a broader range of solutions. This acquisition is a very good example of the whole being greater than the sum of its parts."

P.V.R.'s products complement Agilent's existing vacuum portfolio, which includes high vacuum pumps, dry and wet primary pumps, and vacuum instrumentation. The acquisition also brings Agilent a significant vacuum customer base in the growth markets of Asia.

P.V.R.'s 38 employees have now joined a wholly owned subsidiary of Agilent in Italy.

Interpump Acquires Galtech

Interpump Group acquires 53 percent of Galtech for a total consideration of €3.3 million. Galtech, which has its headquarters in Reggio Emilia, specializes in the production and sale of pumps and gear motors, hydraulic distributors and accessories and components in general. The company had net sales of €13.1 million in 2010. At December 31, 2010 it had net debt of €1.4 million. The sellers have the right to sell a further 47 percent between the date on which the 2014 financial statements are approved and the date on which the 2025 financial statements are approved.

Galtech’s operations are highly complementary with those of Interpump Group’s Hydraulic Sector. Interpump Hydraulics S.p.A., a fully owned subsidiary of Interpump Group S.p.A., is in fact the world leader in power take-offs for industrial vehicles and through the purchase of Galtech will strengthen its market position by extending its range of products to include those of the newly acquired company, which offer considerable synergies with the hydraulic products already manufactured and sold by Interpump Hydraulics.

Interpump Group is the world leader in the high and very high water pressure pumps sector and in the sector of power-take offs and the related hydraulic components. In 2010 it had a turnover of €424.9 million.

Hitachi Plant Technologies Buys Saudi Arabian Services Company

Hitachi Plant Technologies, Ltd. ("Hitachi Plant Technologies"), on December 13, reached an agreement to acquire 70 percent of the stocks of the industrial equipment maintenance service company Saihati Weir Engineering Services Co., Ltd. ("Saihati"), and will convert the company into a subsidiary and change its name to "Hitachi Saihati Engineering Services Co., Ltd." (tentative) in February 2012.

With this acquisition, Hitachi Plant Technologies will leverage Saihati's resources to serve as a base for maintenance, manufacturing, and sales of industrial equipment, such as compressors, and for other infrastructure businesses in Saudi Arabia and elsewhere in the Middle East. The move is expected to strengthen the company’s industrial equipment and infrastructure business in the region.

On June 21, 2011, Hitachi Plant Technologies became the first Japanese manufacturer to sign a comprehensive corporate procurement agreement (CPA) with the Saudi state-owned oil company, the Saudi Arabian Oil Company (Saudi Aramco) for the supply and servicing of compressors for the oil and gas industry. Hitachi Plant Technologies also intends to move forward with plans to expand its aftersales service base in Saudi Arabia to strengthen its compressor servicing and maintenance business with Saudi Aramco.

For over 30 years since its establishment in 1979, Saihati has developed, as its main business, the servicing and maintenance of motors, pumps, compressors, and other industrial equipment for various infrastructure fields in Saudi Arabia. Saihati has two service and maintenance shops in Dammam, Saudi Arabia close to Saudi Aramco headquarters, and it has a proven record of achievement in meeting Saudi Aramco needs.

Hitachi Plant Technologies decided to enter into this agreement to acquire Saihati for its customer base, human resources, and facilities to meet the growing demand in Saudi Arabia and other areas in the Middle East for industrial equipment and infrastructure.

Through this acquisition, Hitachi Plant Technologies will not only be able to expand its compressor service and maintenance business with Saudi Aramco, but it will also be able to utilize Saihati as a base for other Hitachi Plant Technologies products, including pumps, water treatment systems, industrial plant, and HVAC systems. Saihati is also expected to serve as a base for ventures by Hitachi Group companies in social innovation business fields.

Ruhrpumpen Acquires Tigerflow

Ruhrpumpen, Inc. and Tigerflow Systems, Inc. have entered into an investment

agreement. Ruhrpumpen has become the majority shareholder in Tigerflow Systems, LLC.

Tigerflow Systems, LLC will continue operations at the Dallas, TX manufacturing

location and will operate as an independent subsidiary. Marvin F. Yoder, Jr. and Monroe P. Guest will continue as President and VP/CFO respectively.

Ruhrpumpen is a global leader in pumping technology complete with its own foundry,

machine shop, 30 worldwide sales and service centers, 8 worldwide pumping manufacturing

plants, worldwide sales of $300,000,000.

Tigerflow is an industry leader of packaged pumping systems for domestic water, fire,

HVAC, industrial, heat transfer, municipal, landscape irrigation and custom controls.

This joint venture agreement will allow Tigerflow a worldwide distribution network and

allow Ruhrpumpen access to standard and custom pumping packages.

For Sale

Schwing Concrete Pump Company Up for Sale

Bloomburg.com reported Schwing GmbH, a German maker of concrete pumps, is up for sale, as Rothschild has been given a mandate to sell the business or find an investor, the Financial Times Deutschland reported, citing people familiar with the matter. Schwing had sales of €396 million in 2009, the newspaper said.

New Facilities

Xylem Godwin Expands Plant

Xylem Inc., a leading global water technology company, has broken ground on a 10,000-square-foot extension of its manufacturing facility in Bridgeport, New Jersey, to support continuing growth in the dewatering segment. The Bridgeport facility is a manufacturing plant for Godwin pumps, a leading global brand of automatic self-priming portable pumps used in the growing markets for drainage pump rental, services and sales for the global industrial, construction, mining, municipal, and oil and gas segments.

The additional capacity will be used to meet growing demand for Godwin pumps, including the new Godwin Dri- Prime NC Series introduced in November 2011. The Godwin Dri-Prime NC Series is the first portable, diesel-driven dewatering pump to include the Flygt N-technology which delivers clog-free hydraulics and enables sustained high-efficiency pumping.

"We continued to see excellent growth in 2011, expanding both our pump rental and sales business considerably. To keep up with demand in 2012 and beyond, we are adding shop space at the main manufacturing facility in Bridgeport," said Michel Bakhos, head of Xylem’s Dewatering Solutions business. “Growing our product offering and increasing manufacturing capabilities is essential in ensuring unequaled customer support and service."

The building extension is expected to be completed during 2012.

Kirloskar Brothers Setting Up New Factory in Egypt and New Factory in South Africa

Kirloskar Brothers Ltd (KBL) is setting up a new facility in Egypt, one of its biggest overseas markets, to assemble as well as refurbish pumps, according to Alka Kshirsagar in the January 27, 2012 issue of The Hindu Business Line. It will go on stream in March. The company is also in the process of acquiring a valve manufacturing company in South Africa over the next six months, and plans to consolidate all its operations here at a single location. Both these initiatives are being undertaken by KBL's Amsterdam-based, wholly owned subsidiary Kirloskar Brothers International B V.

Elaborating on their plans for Egypt, Mr. J.V. Sapre, Director, KBL, said that the new assembling unit as well as refurbishing center will be based at an existing facility that KBL has rented. It will cater to both, business in Egypt as well as the surrounding areas. “With over 3,000 pumping stations, the refurbishing business may be larger,” he added.

In South Africa, KBL is present through two subsidiaries, Braybar Pumps in which it acquired 90 per cent stake two years ago, and SPP Pumps UK (acquired in 2003). “We want to move both these into the premises of the new valve company that we will be buying out as this will ease our operations,” Mr. Sapre said.

Another geography that KBL is looking for a presence in is in Latin America. “Two years ago, an initiative in Argentina did not work out. Now we are looking for a strategic partner in Brazil,” says Mr Sapre, adding that feasibility studies for this are currently under way.

On the domestic front, KBL's seventh manufacturing plant at Sanand will go into commercial production in a month's time. Built with an investment of Rs 45 crore, the plant will make submersible pumps. “The installed capacity is 500 pumps per day in single shift operations,” Mr Sapre says, adding that the company expects revenue from Sanand to touch Rs 350 crore through three-shift operations in three years' time.

ITT Opens Brazilian Pump Factory Upgrade

ITT Corporation has completed the upgrade and expansion of its facility in Salto, Brazil, to better serve customers in the oil and gas, chemical, pulp and paper, and general industrial markets.

“Brazil and Latin America are important markets for ITT, and this project represents our commitment to expanding our global presence in key growth areas,” said Robert Pagano Jr., president of the ITT’s Industrial Process business. “The modernization of our Salto plant will enhance our ability to provide products and services and ensure a premier customer experience across the region.”

In addition to increasing the plant’s overall efficiency, the upgrade and expansion allow ITT to better serve the oil and gas market through enhanced quality processes and test capabilities, as well as expanded product lines including American Petroleum Institute (API)-certified overhung and between bearing pumps. The facility also offers additional slurry valves and pumps for mining customers.

Ingersoll Rand ARO Expands Chinese Pump Plant

Ingersoll Rand has expanded its pump production capacity at its manufacturing facility in Guilin, China, according to World Pumps.com. The 317,000 sq. ft.facility is now building ARO EXP Series air-operated diaphragm pumps, as well as the existing PRO Series and Compact Series product lines.

“Our strategy calls for us to triple ARO sales in the Asia Pacific region in the coming years, and what we’ve done with the EXP Series in Guilin is just the first in a series of major investments in personnel, product development, facility expansion and brand development,” said Mike Medaska, vice president for Ingersoll Rand’s ARO Fluid Products.

HMS Opens New Testing Facility

HMS Group plc (the “Group”), the leading pump manufacturer and provider of flow control solutions and related services in Russia and the CIS, has launched one of the most powerful testing facilities in Europe to conduct field tests of pumping equipment. This new test facility provides the capacity of 14 MW and is unique in the CIS.

Only few of the world's leading pump manufacturers have similar equipment. The whole project has been implemented in 18 months and included the facility design, procurement of equipment, construction and commissioning. Investments exceeded 20 million US dollars.

This facility increases R&D capacities of HMS Group considerably. It is intended for field testing of pumping equipment in the operating mode measuring rotating speed, capacity, head and power. The facility provides test benches for all sizes of oil trunk pipeline pumps from the HMS Group product range. The maximum parameters are up to 12.5 MW; 16,000 m³/h and head of 350 m.

The first pump units to be tested will be NM 10000-380-2 pumps made for Transneft to be installed in the ESPO pipeline system. Then pump equipment for downstream and nuclear power plants under construction will be tested; including feed pumps for a unique "VVER-TOI" project carried out by Rosatom envisaging the construction of NPP units with pressurized water reactors.

Putting this testing facility into operation is an important milestone in the HMS Group development, which strengthens its positions as a provider of unique technical solutions for clients’ need of any complexity.

NOV Monoflo Moves to New Facility

NOV Monoflo, a leading manufacturer of progressing cavity pumps, solids reduction grinders and artificial lift products, recently announced plans to relocate their manufacturing, distribution and administration operations. They will occupy a leading-edge facility in the Cole Creek Industrial Park, a 50,000 square foot campus, in Houston, Texas. NOV Monoflo’s grand opening was held in January 2012.

“The timing on this project was perfect,” explains Jim Putnam, General Manager. “Our parent company, National Oilwell Varco, is investing aggressively in our rapidly growing group. They just completed construction of our new Australian facility, embarked on a three-fold expansion of our Shanghai, China facility, and finished expansions in our Argentine facility just last year.”

The relocation allows NOV Monoflo to grow their workforce, including the addition of new sales, operations and engineering positions. In addition, the production and distribution capacity is significantly increased in the new facility.

“We have rapidly exceeded the capacity of our current location,” explains Jean Paul Lafaire, Monoflo Operations Manager. “We continue to add staff and we anticipate growing our employee base by at least 10 percent in the next six months. Our current location is completely maxed out. The new facility is ideal.”

Wilo USA Moves Corporate Headquarters

Wilo USA’s corporate headquarters moved into a new building in Rosemont, Illinois. The new offices and training facility is located just minutes from

O’Hare Airport.

Company Reorganization

Desmi Divides into Three Groups

While Desmi A/S, the Danish pump manufacturer, can look back on a year that in many ways is expected to be the fifth consecutive record year, the company is constantly working on initiatives to pursue the global opportunities of further growth.

Desmi is to establish a structure with three business units as of January 2012: An Oil Spill business unit, a Pump business unit, and a Contracting business unit. They will all report to a parent company, Desmi I A/S, and the idea is that this company will acquire more companies.

This means that the pump activities will be gathered in an independent company in the Desmi group - a company that will be named Desmi Pumping Technology A/S as of January 2012. As a starting point, it is expected that this company will contribute with a turnover of about 500 million DKK in the first year. Henrik Mørkholt, who has been the Sales Director of Desmi A/S for a long period, will be appointed CEO of Desmi Pumping Technology A/S. Henrik Mørkholt, who has a background as marine engineer, will rank equally with Dennis W. Larsen, CEO of Desmi Ro-Clean A/S (the Oil Spill business unit) and Erling Pakula, CEO of Desmi Contracting A/S (the Contracting business unit).

The Desmi group aims high and the immediate target is to reach a turnover in the core business amounting to 1 billion DKK within the next three years. The growth is primarily to come from increasing the global activities of the group. Furthermore, it is expected to have a high activity level within new areas

Desmi pumps and pump solutions are gaining a still bigger foothold in the business segments Marine & Offshore, Oil Spill, Industry, Utility and Defense & Fuel, which ensures growth in spite of the expected difficult market conditions.

The group CEO finally discloses that the turnover is expected to reach well over 710 million DKK in 2011, while it amounted to 622 million DKK in 2010. Desmi has more than 500 employees of which the majority works outside Denmark.

Name Change

Godwin Pumps Becomes Xylem Dewatering Pumps

Godwin, manufacturer of the Dri-Prime® automatic self-priming, dry-running pump, is changing its legal name to Xylem Dewatering Solutions, Inc. The change is effective on January 1, 2012.

"Godwin will remain the brand name for the Dri-Prime series of pumps," said Michel Bakhos, president of Xylem Dewatering Solutions, Inc. The change in company name reflects our continued efforts to provide customers a broader product range, value-added services, and integrated solutions from a growing branch footprint.

Financials

Dover Corporation’s Revenues for 2011 Up 20 Percent

Dover Corporation announced that for the fourth quarter ended December 31, 2011, revenue was $2.0 billion, an increase of 15 percent over the prior-year period. The revenue increase was driven by organic growth of 6 percent and a 9 percent increase from acquisitions. Earnings from continuing operations for the fourth quarter of 2011 were diluted earnings per share ("EPS") of $1.12, compared to $0.97 EPS, in the prior-year period, representing an increase of 15 percent.

Revenue for the year ended December 31, 2011 was $8.0 billion, an increase of 20 percent over the prior year, reflecting organic growth of 11 percent, a 7 percent increase from acquisitions and a 2 percent impact from foreign exchange. Earnings from continuing operations for the year ended December 31, 2011 were $4.48 EPS, compared to $3.65 EPS in the prior year, representing a 23 percent increase in EPS.

Strong organic revenue growth continues in Energy (up 25 percent), with solid growth in Engineered Systems and Communication Technologies (up 8 percent and 6 percent respectively).

Schlumberger’s Full Year 2011 Revenues Grew

Schlumberger Limited reported full-year 2011 revenue of $39.54 billion versus $27.45 billion in 2010. Full-year 2011 income from continuing operations attributable to Schlumberger, excluding charges and credits, was $4.97 billion, representing diluted earnings-per-share of $3.66 versus $2.86 in 2010.

Fourth-quarter 2011 revenue was $10.97 billion versus $10.23 billion in the third quarter of 2011, and $9.07 billion in the fourth quarter of 2010. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.11 versus $0.98 in the previous quarter, and $0.85 in the fourth quarter of 2010.

Reservoir Production Group’s fourth-quarter revenue of $3.60 billion increased 7 percent sequentially and 29 percent year-on-year. Among Reservoir Production Group Technologies, Completions and Artificial Lift posted the strongest sequential growth driven by robust product sales across all Areas. Well Services sequential growth was seen mainly in North America Land as additional fleets deployed and continued improvements in asset utilization and crew efficiency were achieved although these positive factors were partially muted by the impact of year-end seasonal effects. Framo and SPM also posted strong sequential increases.

Sequentially, fourth-quarter pretax operating margins were slightly up at 21.3 percent. Completions, Artificial Lift and Well Services reported improvements from strong sales.

Reservoir Production Group highlights included technology deployments in a number of key areas.

In the UK sector of the North Sea, Xcite Energy has awarded Schlumberger Artificial Lift and Schlumberger Completions a contract to supply, install, and provide operational support for ESP systems and intelligent completions for the Phase 1A Development of the Bentley field. The award was based on Schlumberger expertise in heavy oil solutions and the ability to provide a unique lifting solution integrating REDA* electrical submersible pumping systems, variable speed drives and Schlumberger intelligent completion systems.

KSB’s Sales in 2011 Increase 7.2 Percent

During the course of 2011, global growth slowed down considerably. The worsening debt crisis in Europe, the dramatic events in Japan – with their consequences for energy policy – and the political changes in North Africa all had a negative impact on the willingness of many customers to invest in the construction of major new facilities such as power generation plants. Project business with pumps and valves therefore remained difficult. Our general business with standard products, mainly for industry, offered comparatively good opportunities.

Due to the difficult market conditions, the Group’s consolidated order intake increased only moderately by 2.8 percent to € 2,132.3 million. Service orders increased strongly, while order intake for valves also showed good growth. Orders received for pumps remained slightly below last year’s level following the spin-off of a Chinese business segment into a joint venture outside the Group during the course of the year.

Companies in the Americas in particular increased their order volumes considerably in 2011. Outstanding growth was achieved by US subsidiary GIW Industries, Inc., which with its range of slurry pumps benefited from the good order situation in mining.

KSB AG improved its order intake by 4.5 percent to € 819.0 million, a value higher than average for European companies. In several companies in Southern Europe, order intake remained lower than last year.

KSB’s sales revenue increased in the three segments – pumps, valves and service – as well as in all four sales regions. Consolidated sales revenue rose by 7.2 percent to € 2,079.1 million, exceeding two billion Euros for the first time. The companies in the Region Asia/Pacific achieved significant double-digit growth.

In the domestic European market, which also remains KSB’s main market, companies only managed to improve their performance slightly overall. KSB AG recorded an above-average sales revenue increase of 4.2 percent to € 811.3 million. Some subsidiaries in Central, Northern and Eastern Europe also enjoyed double-digit growth rates, while the sales revenues generated by the Southern European companies were largely down on the previous year.

In 2011, ten companies consolidated for the first time also contributed to the positive Group performance. These achieved a total order intake of € 66.3 million and sales revenue of € 63.7 million.

Due to the difficult environment, earnings development in project business was impacted by severe price erosion and correspondingly lower margins; rising material and staff costs also weighed down on earnings.

The number of employees in the Group as of December 31, 2011 rose by 6.6 percent year on year to 15,666. The newly consolidated companies, accounting for 527 employees at year end, contributed significantly to this growth. KSB AG, too, increased the number of employees by 91 to 4,329, partly in order to be able to implement initiated and planned strategic projects.

Sulzer’s Orders Up 13.7 Percent for Full Year 2011

For the full year 2011, Sulzer received orders of CHF 3,566.1 million. This was a significant adjusted increase of 13.7 percent (nominal increase of 8.4 percent) from the previous year. In a challenging environment, the growth was driven by larger orders in the oil and gas upstream market (mainly in the first half of the year), the automotive industry, and other general industrial markets as well as by acquisitions. The strong Swiss franc again led to a significant negative currency translation effect, but the company’s global presence is a natural hedge against material impacts on profitability. The acquisition of Cardo Flow Solutions was closed at the end of July and added to the order intake in the remaining five months of 2011.

Sulzer Pumps increased its order intake by 10.4 percent from the previous year. On a nominal basis—including Cardo Flow Solutions—orders increased by 5.7 percent. Activities in the oil and gas industry were at a high level in the first half of the year. In the hydrocarbon processing industry, project activity remained at a low level in general, with some ongoing activity in emerging markets. The power generation industry weakened in the course of the year. Nuclear projects suffered delays as a consequence of the nuclear incident in Japan. The pulp and paper market showed higher activity levels compared with the previous year. The acquisition of Cardo Flow Solutions was closed at the end of July and added CHF 160 million to the order intake in the remaining five months of the year; this figure was influenced by currency translation effects and slowdowns in some local markets. Through this acquisition, Sulzer has become a leading provider of pumps and related equipment in the water and wastewater industry. The integration process is ongoing and is progressing well. Geographically, North America, the CIS countries and some Middle Eastern countries helped drive the order intake for the division.

Baker Hughes’ 2011 Sales Up 38 Percent

Baker Hughes Incorporated announced adjusted net income for the fourth quarter 2011 of $1.22 per diluted share. This compares to $0.77 per diluted share for the fourth quarter 2010, and to adjusted net income of $1.18 per diluted share for the third quarter 2011. Adjusted net income for the year 2011 was $4.20 per diluted share, compared to $2.06 per diluted share for the

year 2010.

Revenue for the fourth quarter 2011 was $5.39 billion, up 22 percent compared to $4.42 billion for the fourth quarter 2010 and up 4 percent compared to $5.18 billion for the third quarter 2011. Revenue for the year 2011 was $19.83 billion, up 38 percent compared to $14.41 billion for the year 2010.

Martin Craighead, Baker Hughes President and Chief Executive Officer, said: “In North America, the fundamentals of the business continue to be robust driven by activity growth in the unconventional basins. The geology and economics in the liquids-rich shale plays will support substantial additional drilling, and we have every reason to be confident about the long-term prospects of this market. Our Drilling and Evaluation and Completion and

Production groups showed steady improvement, except for Pressure Pumping.

"The issues in Pressure Pumping were related to the availability, cost and transportation of materials, such as sand and gel. Further, as we increased headcount and added capacity to address the growing market needs, we were not able to sufficiently utilize these resources. We are resolving these issues and expect to see improvement in the second half of the year.

Crane’s Profit Hit By Asbestos

Crane Co., a diversified manufacturer of highly engineered industrial products, reported a fourth quarter 2011 net loss of $2.16 per share, compared to earnings of $0.66 per diluted share in the fourth quarter of 2010. Fourth quarter 2011 results include an after-tax asbestos provision of $157 million and an after-tax environmental provision of $20 million (totaling $3.05 per share). Fourth quarter 2010 results were impacted by net after-tax charges from Special Items of $0.02 per diluted share. Excluding these Special Items, fourth quarter 2011 earnings per diluted share increased 29 percent to $0.88 compared to $0.68 in the fourth quarter of 2010.

Fourth quarter 2011 sales of $632 million increased $58 million, or 10 percent, compared to the fourth quarter of 2010, resulting from a core sales increase of $40 million (7 percent), an increase in sales from acquired businesses (net of divestitures) of $16 million (3 percent), and favorable foreign currency translation of $2 million.

Total sales in 2011 were $2.55 billion, an increase of 15 percent from $2.22 billion in 2010, resulting from a core sales increase of $217 million (10 percent), an increase in sales from acquired businesses (net of divestitures) of $60 million (3 percent), and favorable foreign currency translation of $51 million (2 percent). Full year 2011 earnings per diluted share declined to $0.44, compared to $2.59 in 2010. Excluding Special Items, 2011 earnings per diluted share increased 32 percent to $3.43 compared to $2.59 in 2010. Order backlog was $778 million at December 31, 2011 compared to $768 million at December 31, 2010.

Fourth quarter Fluid Handling 2011 sales increased $35.8 million, or 13.7 percent, which included a core sales increase of $29.9 million (11.4 percent), an increase in sales from the acquisition of W. T. Armatur (WTA) of $4.8 million (1.9 percent), and favorable foreign currency translation of $1.0 million (0.4 percent). The sales increase was broad based across Fluid Handling. Fluid Handling order backlog was $314 million at December 31, 2011, compared to $329 million at September 30, 2011 and $272 million at December 31, 2010.

People

PCM CEO Retires

PCM SA chief executive officer Jacques Fay retired on January 1, 2012. Fay, who has been succeeded by Mario Martignoni, deputy managing director of PCM, will continue to be involved in the French pump company as a member of the PCM SA board of directors and of the Gevelot board. He will also continue as president of Profluid, the French association of pumps, mixers, compressors and valves.

Warren Rupp Appoints New Vice President of Global Sales

Warren Rupp Inc. has appointed Dan Johnston as vice president of global sales. Johnston will be responsible for the global sales of the Warren Rupp Inc. brands including Sandpiper, Versa-Matic, Blagdon, Pumper Parts and Marathon. He replaces Scott Aiello who has accepted a new role within Warren Rupp as general manager of Parts & Services. Before joining Warren Rupp, Johnston held a number of roles including vice president of product management for Stanley Black & Decker, IAR North America and vice president of sales and marketing for Therm-O-Disc.

Pump Solutions Appoints Senior VP, PSG Commercial

Pump Solutions Group (PSG®), a business unit operating within the Dover Fluid Management Segment of Dover Corporation, announced the appointment of Karl Buscher to the newly created position of Senior Vice President-PSG Commercial. In this position, Buscher will report directly to PSG President Dean Douglas.

In March 2010, PSG completed a reformation of its regional sales structure that separated it into three distinct geographical regions—Americas, EMEA and Asia. Working closely with the PSG Marketing Group, since then this reconfigured sales organization has delivered increased global coverage and outstanding growth. The charge to the newly formed Global Commercial Organization, which will be headed by Buscher, will help in the ever increasing need to better coordinate global ambitions and to ensure that this growth continues into the future.

Buscher brings more than 20 years of experience with the ITT Corporation to the position. He has extensive global experience in business-to-business sales and marketing, channel development and optimization, and acquired brand integration, and was most recently Managing Director of ITT’s Water & Wastewater USA division. Buscher holds a Bachelor’s degree in General Engineering from the University of Illinois and an MBA from the Kellogg Graduate School of Management at Northwestern University.

Flowserve Changes Top Leadership

Tom Pajonas, formerly senior vice president and president of the Flow Control Division, assumes the role of chief operating officer and is responsible for both the Flow Control Division and the Flow Solutions Group (including the Engineered Product Division and the Industrial Product Division), which comprise all company operations. He retains the title of senior vice president and continues to report to Mark Blinn.

"Since joining the company in 2004, Tom Pajonas' proven track record in producing operational process improvements to drive earnings growth makes him an ideal choice to become chief operating officer," Blinn said. "In this new position, Tom will play a pivotal role in leading our focus on margin improvement and on-time customer deliveries."

Tom Ferguson, formerly senior vice president and president of the Flow Solutions Group, will remain with the company until his retirement at the end of the year in a special advisory role to Mark Blinn to assist with the transition and certain strategic initiatives.

Baker Hughes Appoints Martin Craighead as President and CEO

Martin Craighead has assumed the role of Baker Hughes' President and Chief Executive Officer. Craighead will build upon the successful seven-year tenure of Chad Deaton, who will remain Chairman of the Board of Directors.

Craighead, whose tenure with the company dates back to 1986, most recently served as Baker Hughes' President and Chief Operating Officer since 2010, its Chief Operating Officer since 2009 and Senior Vice President from 2009 to 2010. Prior to that, Craighead had various global and regional operational and management responsibilities for an array of the company's business units. He has worked in North America, Latin America and Asia Pacific.

As Baker Hughes' CEO, Craighead will oversee operations in more than 80 countries and more than 53,000 employees. Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The company also provides industrial and other products and services to the downstream refining, process and pipeline industries.

Craighead has a Bachelor of Science degree in Petroleum and Natural Gas Engineering from Pennsylvania State University and a Master of Business Administration from Vanderbilt University. The recipient of the 2010 C. Drew Stahl Distinguished Achievement Award at Penn State, Craighead serves his community in a variety of charitable organizations.

Monoflo Appoints New Sales Director

Dwight Waters has joined the Monoflo in the position of Sales Director. Dwight brings 20 years of international selling, consulting, project management, engineering and distribution experience in the PC pump industry. Over his career, Dwight has been directly and indirectly engaged with Monoflo for most of those twenty years. In addition to Dwight’s Monoflo experience, he has most recently held the position of President and CEO of PELCAN, Inc., a Houston-based industrial distribution company for the past 13 years. Dwight earned a B.S. degree in Petroleum Engineering from Texas Tech University and a B.A. in Business Administration – Business Management from the University of Houston. In addition, he is a member of the Project Management Institute and the Society of Petroleum Engineers. Furthermore, Dwight is fluent in Spanish. Dwight is based out of offices in Houston, and leads the Monoflo Sales efforts in the Americas.

Grundfos Promotes Greg Bretz to Director of Regional Program Management

Grundfos Pumps, based in Olathe, Kan., announces the promotion of Greg Bretz to director of regional program management. In this role, Bretz will be responsible for continuing to develop the strategic direction for regional program management and to accelerate program management development across the entire Grundfos North America organization. Bretz has held a number of positions within Grundfos over his eight-year career. Most recently he served as the business development manager for Grundfos’ Water Industry Business Unit.

Projects

Pompes Garbarino Announces New Industrial Orders

Pompe Garbarino closed 2011 with new orders in the industrial field: several multistage high pressure pumps and vertically suspended line-shaft pumps will be installed in two power stations (Italy and Egypt), two chemical plants (Indonesia and Saudi Arabia) and in a steel plant (Ukraine).

ClydeUnion Pumps Signs Contract with Bahrain Electricity and Water Authority

ClydeUnion Pumps entered into a pump supply contract with the Electricity and Water Authority. The company is the only pump manufacturer in Bahrain to have their own offices and also to start a service center by the middle of this year. They have already supplied about 70 to 80 per cent of the water supply pumps used by the authority. ClydeUnion is expected to supply 24 pumps for installation in six pumping stations.

MZT Pumpi Delivers 6 Pumps to Bulgarian Power Plant

MZT Pumpi has delivered 6 pumps to the Boboy Dol thermal power plant in Bulgaria. The pumps are intended for transport of lime milk for the process of gas cleaning. On November 2011 a new pump station was built. The horizontal double inlet split case pumps with the capacity up to 6000 m³/h, and head of 25 m.

Weir Mineral Gets Largest Pump Order for Madagascar Mine

Weir Minerals Africa has received its largest ever pump order since its merger with the CH Warman pump group in 2008. Kenmare Resources placed the multimillion rand order for the supply of 32 pumps for its Moma Titanium Minerals Mine in northern Mozambique.

Kenmare’s Moma Mine contains reserves of heavy minerals which are mined using dredges which float in an artificial mining pond. The dredges pump the mineral sands that form the wall of the pond into a floating wet concentrator plant. A heavy mineral concentrate is produced, which is then pumped to a nearby minerals separation plant, where it is separated into final products for export via Kenmare’s product transshipment vessel. This vessel is self-propelled, self-discharging and capable of carrying minerals from the jetty to the transshipment point, where product is loaded onto the customer’s vessel.

The original processing plant was purchased in Australia by Kenmare and commissioned at the Moma Mine and was fitted with Warman® pumps. Weir Minerals had already been awarded a service contract to maintain those pumps.

In 2010 Aveng E+PC was appointed as the EPCM contractor to undertake full project management and controls, engineering design, procurement and construction management services for the fast track Moma Sands Expansion Project. When the expansion is completed by the first quarter 2012, the plant capacity will be increased to more than 50 percent of its original capacity with an additional floating separation plant complete with dredge, and increased associated MSP plants and infrastructure.

“The order for 32 pumps is part of the expansion project and includes five Warman® 20/18 AH® horizontal heavy duty rubber lined slurry pumps with standard high-chrome metal impellers,” JP Joseph of Weir Minerals Africa, says. “These are the biggest AH® pumps in the range, designed for continuous pumping of highly abrasive and corrosive slurries and capable of handling more than 4,800 cubic meters of slurry per hour.”

One distinguishing feature of the Warman® 20/18 AH pump is its R55™ premium grade elastomer liner — a high-tech rubber developed to operate in severe wear applications. R55™ is a high grade premium black natural rubber, with a low hardness suitable for pump liners, impellers and cyclone parts. Its superior physical properties deliver improved cut resistance in hard, sharp particle slurries.

“The Warman® impellers are designed to produce an optimum balance between wear life and lifetime efficiency,” Joseph says. “Correct design ensures maximum wear life with a minimum total energy cost over the full service life of the pump. With this in mind, when evaluating alternative pump models, engineers should consider total energy and operating costs over the full service life of the impeller.

Joseph believes that the Warman® 20/18 AH® pumps will prove ideal at the Moma Sands operation in the high volume dredger application in the wet concentrator plant. Of the five new Warman® 20/18 AH® pumps, two will be installed in parallel in the dredge feed de-grit duty, and two will serve as disposal pumps to discharge fine tails back into the mining pond. The fifth pump will operate as a rougher spiral feed pump.

Lewis Pumps Providing Molten Salt Pumps for Arizona Solar Power Plant

Lewis® Pumps, a division of Weir Minerals, has secured the contract to provide molten salt pumps for the 280-megawatt Solana Generating Station in Gila Bend, Arizona. The project, developed by Abengoa Solar S.A., will be one of the largest concentrating solar thermal power plants in the world when it is completed.

Located in Saint Louis, Missouri, Lewis® Pumps will provide all of the molten salt pumps for the project. The highly engineered centrifugal pumps are an integral part of Solana's Thermal Energy Storage system, which will rely on the Lewis® pumps for circulation. The molten salt system will store enough thermal energy to continue generating electricity for six hours without solar input.

Once operational, the plant will produce enough energy to serve 70,000 households and will provide a cleaner energy source, preventing the release of 475,000 tons of carbon dioxide into the environment annually.

Lewis® Pumps proudly manufactures its pumps in the United States and joins numerous other American companies providing supplies and equipment for the solar plant, located approximately 70 miles southwest of Phoenix. The pumps are currently in production at Lewis® Pumps and the solar plant is expected to be fully operational by 2013.

Aker Wirth Delivers 250^th Mud Pump

December 2011 marked delivery by Aker Wirth of the 250th mud pump in the TPK 2200 series. Following its successful trial run, the jubilee pump is now on its way to Korea. It will be installed there as one of four pumps in the “Tungsten Explorer” deep sea drilling vessel project from Vantage Drilling being realized at the DSME shipyard. This drilling vessel will be drilling the seabed several kilometers deep all around the world from 2013 in water depths of up to 3600 m to explore oil and natural gas fields.

Development of this model significantly contributed to making the Oilfield & Pumps product group the most successful business unit at Aker Wirth GmbH today. The company generates more than 50 percent of turnover solely with products for the oil and gas industry.

The successful TPK 2200 model is used in a widely diversified range of applications. The mud pump is used all over the world on drilling platforms, jackups, semi-subs, drilling vessels and onshore drilling rigs which drill for oil and gas deposits. The TPK 2200 has a driving power of 2200 PS and can pump up to 1640 liters of drilling emulsion per minute at a maximum pressure of 517 bar. It operates from min. temperature of –40°C to max. temperature of +60°C. In addition, use of a new water jacket motor with direct water cooling has enabled the reduction of noise, with the level now lying below 83 dBA.

HMS Group Producing Pumping Equipment for Rostov and Baltic Nuclear Power Plants

HMS Group announces that it has concluded the agreements for production and delivery of a large run of specialist pumps for Baltic and Rostov nuclear power plants (NPP) totaled Rub 613 mn (about $20M).

The Baltic NPP is being constructed in Kaliningrad region of Russia and will comprise two generating units with total capacity of 2.3 GW. The ordered pumping equipment will be delivered for both 1st and 2nd generating units of Baltic NPP.

Rostov NPP is situated in Rostov region and is currently one of the major power plants in the south of Russia, generating more than 15 percent of annual power supply in the region. The pumping equipment will be produced for 4th generating unit of the NPP that is currently under construction.

Artem Molchanov, Managing Director (CEO) of HMS Group, commented:

“We have a solid expertise in design and manufacturing of specialist pumps for nuclear power industry both domestically and worldwide. The pump systems produced by HMS Group are installed on a number of Russian power plants, including Rostov, Kursk and Leningrad power stations as well as international ones like Tianwan (China) and Kudankulam (India). The Group devotes particular attention to safety standards of pumps for nuclear application. All the equipment produced according to the contract will be tested on the new unique testing facility launched in the end of 2011."

New Product

Flygt Brings Out New Construction Pump

Xylem Inc., a leading global water technology company, has unveiled a new range of Flygt Ready pumps specifically designed for on-the-spot dewatering at construction or industrial sites, manholes or emergency situations. Xylem, which was spun off from ITT Corporation on October 31, 2011, specifically designed the new Flygt Ready pumps so that they are robust, compact and very easily serviced resulting in a long lasting, durable pump.

Peter Hansen, product manager for Xylem’s Flygt Ready range said, “The Ready pumps are unique on the market in terms of serviceability. They feature a removable top that allows quick access for cable changes and component replacements. By servicing the replaceable components, instead of throwing the pump away and buying a new one, users can lower the total cost of ownership as well as reducing the environmental impact. The pumps are exceptionally durable, intended for a long life of repeated use.”

The smallest of the Flygt pumps, the Ready range is designed for use in small and medium sized applications, removing water, abrasive and corrosive liquids, contaminated water and water containing sand and gravel. Adaptable and portable, the Ready pumps can, for example, be used for dewatering on boats or within the residential market for flooded basement dewatering.

Built with a compact motor and lightweight material, Ready pumps are easy to carry, install and service. These pumps go where other pumps do not fit and can be stored easily in service vehicles for quick response to flooding or clean-up.

The cast aluminum outer casing, stator housing and polyurethane hydraulic parts make Ready pumps durable for tough jobsite environments. They deliver professional level performance and higher wear resistance against tough handling or clogging.

Performance and durability are enhanced with the versatile Ready impeller and a robust and lightweight squirrel cage induction motor. The cable unit features a water-cut to stop water from damaged cables from entering the pump and damaging electrical parts. Other features which further promote reliability include horizontal or vertical discharge options to help reduce the risk of a blocked hose, two sets of mechanical shaft seals and the Spin-outTM which expels abrasive particles from the seal chamber.

Ready pumps handle flows up to seven l/s (100 GPM), heads to 14 m (50 ft) and solids up to 38 mm (1.5 in) in diameter. Power ratings range from 0.5 to 0.82 kW (0.4 to 0.9 HP, 60 Hz).

Weighing only 12 and 14.5 kilos (26 and 32 lbs) respectively, Ready 4 and 8 are designed for dewatering of construction sites, flood cleaning operations and similar applications. They can handle abrasive and corrosive liquids in the range of pH 5–8 and particle sizes up to 5 mm (0.2 in).

The Ready 8S is a solids-handling pump designed for contaminated water and water containing sand, gravel and debris with particle sizes up to 38 mm (1.5 in).

Allweiler Offers New Progressing Cavity Pumps

Colfax Fluid Handling has introduced the Allweiler All-Optflow series of progressing cavity pumps. Applications include waste, wastewater treatment and paper manufacturing.

Colfax Fluid Handling, a global leader in fluid-handling solutions for critical applications, is a business of Colfax Corporation. All-Optiflow progressing cavity pumps offer up to twice the flow of standard pumps for applications up to 6 bar (87 psi) and move virtually any type of liquid, including fibrous and solid materials efficiently and reliably.

The pumps feature high power density to help reduce energy consumption by up to 15 percent when compared to standard progressive cavity pumps. Shaft diameters are approximately 30 percent smaller than those found in standard progressing cavity pumps, reducing friction by nearly 50 percent. This, combined with the application of low-wear materials, provides the potential for reduced maintenance costs. The All-Optiflow series employs a variety of innovative design details designed to reduce energy consumption as well as costs for maintenance and spare parts. Examples include redesigned pumping elements with higher power density, low-friction rotors and shaft seals, and stators with a special surface.

This Allweiler pump series is designed to optimize the standardization of structural components, such as a patented stub shaft connection and a lifetime-lubricated joint, allowing operators to move most liquids economically. The stator surface is honeycombed and works in tandem with the patented “sharkskin” rotor surface. This should provide a lower starting and operating torque, allowing the pump to operate at higher efficiency than normal and providing stable performance curves throughout operation. "The advanced design of the All-Optiflow lowers total costs of ownership (TCO) over that of comparable systems," said Stefan Kleinmann, Sr. Director Marketing & Business Development.