Diversified industrial manufacturer Eaton Corporation ETN announced today it has committed to acquire the small systems business of Schneider Electric's MGE UPS Systems for EUR 425 million ($570 million). Subject to the satisfaction of certain customary closing conditions, the transaction is expected to close in the third quarter.
"The addition of MGE's products will bring us valuable technology to fill product gaps in our UPS single-phase portfolio," said Randy W. Carson, Eaton senior vice president and president - Electrical Group. "In addition, MGE's presence in more than 40 countries will provide us with access to new markets and important distribution channels and will further establish our manufacturing presence in regions like China. This transaction clearly underlines Eaton's stated strategic focus to expand our Power Quality business globally."
Eaton Buys Small Systems BusinessStocks Rise After Strong Economic Data
For the 12-month period ending May 31, 2007, the small systems business of MGE had sales of approximately EUR 163 million ($218 million) and EBITDA of approximately EUR 39 million ($52 million).
MGE's small systems business employs approximately 600 people worldwide and is a global provider of power quality solutions designed to increase the availability and uptime of mission-critical applications and processes. Its products include uninterruptible power systems (UPS), power distribution units, static transfer switches and surge suppressors. The business is headquartered in Saint-Ismier, France.
Saturday, June 23, 2007
Thursday, May 10, 2007
Schneider Electric Partners with IBM to Bring Energy Efficient Solutions to Data Centers
NEW YORK, NY--May 10, 2007--Schneider Electric, the world leader in electrical distribution, automation and industrial control products, systems, and services, and APC, a global leader in critical power and cooling services, announce their participation in the IBM Energy Efficiency Initiative. As partners in the IBM Initiative, APC and Schneider Electric bring global solutions, services, and products to IBM clients through IBM Site and Facilities Services.
APC, now part of Schneider Electric's APC-MGE Critical Power & Cooling Services business unit, is a Global Alliance Partner with IBM and a technology provider of the IBM Scalable Modular Data Center architecture. This solution, now available worldwide, incorporates award-winning technologies for power, cooling, racks and enterprise management software and helps clients rapidly deploy an energy-efficient, scalable 500 to 1,000 square foot data center to support their business. The partnership enables clients to quickly design and build a data center in nearly any working environment using IBM Global Services' capabilities and a standardized data center architecture, reducing up front costs and reducing human error in the operations of the site.
By combining IBM technologies with those of APC and Schneider Electric, IBM will be able to construct complete IT, power and cooling infrastructure solutions for small, medium, or large data centers. IBM clients can expect to see large improvements in energy efficiency through enhanced data center design and management tools using the latest IT, uninterruptible power supply (UPS), measurement and control, and cooling technologies.
"IBM, with its broad set of capabilities and ecosystem of partners, is setting a new standard for data center energy efficiency," says Steven Sams, IBM vice president, Site and Facilities Services. "We are very pleased to have Schneider Electric join IBM's Energy Efficiency Initiative and are confident that together, Schneider Electric and IBM will deliver real energy efficiency value to IBM's clients worldwide."
"Modern data centers are faced with the daunting task of managing ever-increasing demands for data storage and processing power," says Laurent Vernerey, president and CEO of APC-MGE. "As data center managers have rushed to adopt new technologies to keep up with these demands, the operating cost profile of the typical data center has changed. Energy costs to power and cool computer servers have become a much larger part of the total cost of ownership for data centers. For every 1 watt of energy used to power servers, up to 3 watts of energy are required for cooling. Together, APC and Schneider Electric are uniquely positioned to work with IBM, the worldwide leader in technology services, to address the growing need for energy efficiency in the data center. "
Dave Petratis, president and chief executive officer of Schneider Electric's North American Operating Division and Schneider Electric IBM relationship executive sponsor emphasized, "When markets undergo dramatic change, clients generally look for an integrated solution from partners they trust. We are confident our vision to provide energy efficient solutions from desktop to data center to factory floor will be even more compelling as we leverage our technology leadership and expand our relationship with IBM."
About Schneider Electric:
Schneider Electric is the world's power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers' requirements in the residential, building, industry and energy and infrastructure markets. With 112,000 employees and operations in 190 countries, Schneider Electric generated sales of 13.7 billion in 2006 through 13,000 distributor outlets.
About Schneider Electric's Critical Power & Cooling Services Business Unit:
APC and MGE UPS Systems recently combined to form the Critical Power & Cooling Services business unit of Schneider Electric, $3 billion (2.4 billion) global provider of critical power and cooling services. Together, APC and MGE offer the industry's most comprehensive product and solution range for critical IT and process applications in industrial, enterprise, small and medium business and home environments. APC and MGE solutions include uninterruptible power supplies (UPS), precision cooling units, racks, and design and management software, including the industry's only integrated power, cooling, and management solution. Backed by the industry's broadest service organization and an industry leading R&D investment, the combined company's 12,000 employees help customers confront today's unprecedented power, cooling and management challenges.
APC, now part of Schneider Electric's APC-MGE Critical Power & Cooling Services business unit, is a Global Alliance Partner with IBM and a technology provider of the IBM Scalable Modular Data Center architecture. This solution, now available worldwide, incorporates award-winning technologies for power, cooling, racks and enterprise management software and helps clients rapidly deploy an energy-efficient, scalable 500 to 1,000 square foot data center to support their business. The partnership enables clients to quickly design and build a data center in nearly any working environment using IBM Global Services' capabilities and a standardized data center architecture, reducing up front costs and reducing human error in the operations of the site.
By combining IBM technologies with those of APC and Schneider Electric, IBM will be able to construct complete IT, power and cooling infrastructure solutions for small, medium, or large data centers. IBM clients can expect to see large improvements in energy efficiency through enhanced data center design and management tools using the latest IT, uninterruptible power supply (UPS), measurement and control, and cooling technologies.
"IBM, with its broad set of capabilities and ecosystem of partners, is setting a new standard for data center energy efficiency," says Steven Sams, IBM vice president, Site and Facilities Services. "We are very pleased to have Schneider Electric join IBM's Energy Efficiency Initiative and are confident that together, Schneider Electric and IBM will deliver real energy efficiency value to IBM's clients worldwide."
"Modern data centers are faced with the daunting task of managing ever-increasing demands for data storage and processing power," says Laurent Vernerey, president and CEO of APC-MGE. "As data center managers have rushed to adopt new technologies to keep up with these demands, the operating cost profile of the typical data center has changed. Energy costs to power and cool computer servers have become a much larger part of the total cost of ownership for data centers. For every 1 watt of energy used to power servers, up to 3 watts of energy are required for cooling. Together, APC and Schneider Electric are uniquely positioned to work with IBM, the worldwide leader in technology services, to address the growing need for energy efficiency in the data center. "
Dave Petratis, president and chief executive officer of Schneider Electric's North American Operating Division and Schneider Electric IBM relationship executive sponsor emphasized, "When markets undergo dramatic change, clients generally look for an integrated solution from partners they trust. We are confident our vision to provide energy efficient solutions from desktop to data center to factory floor will be even more compelling as we leverage our technology leadership and expand our relationship with IBM."
About Schneider Electric:
Schneider Electric is the world's power and control specialist. Through its world-class brands, Merlin Gerin, Square D and Telemecanique, Schneider Electric anticipates and satisfies its customers' requirements in the residential, building, industry and energy and infrastructure markets. With 112,000 employees and operations in 190 countries, Schneider Electric generated sales of 13.7 billion in 2006 through 13,000 distributor outlets.
About Schneider Electric's Critical Power & Cooling Services Business Unit:
APC and MGE UPS Systems recently combined to form the Critical Power & Cooling Services business unit of Schneider Electric, $3 billion (2.4 billion) global provider of critical power and cooling services. Together, APC and MGE offer the industry's most comprehensive product and solution range for critical IT and process applications in industrial, enterprise, small and medium business and home environments. APC and MGE solutions include uninterruptible power supplies (UPS), precision cooling units, racks, and design and management software, including the industry's only integrated power, cooling, and management solution. Backed by the industry's broadest service organization and an industry leading R&D investment, the combined company's 12,000 employees help customers confront today's unprecedented power, cooling and management challenges.
Monday, March 26, 2007
Eaton CEO receives $12.1 Million in compensation
Eaton Corp.'s Alexander M. Cutler, chairman, president and chief executive officer, in 2006 received compensation the company valued at $12.1 million, the industrial parts and systems maker said in a regulatory filing Friday.The Associated Press calculation of total pay includes executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.According to a proxy filing with the Securities and Exchange Commission, Cutler received a salary of just over $1 million, incentive plan pay of nearly $8.2 million and other compensation totaling $139,961.Included in that last figure are perks, such as: a car allowance of $18,000, an executive benefit allowance of $14,400; personal use of company aircraft valued at $55,800; and a $17,289 reimbursement of taxes associated with the use of company-owned aircraft.Directors have authorized Cutler to use company aircraft for professional and personal reasons to enhance his productivity and personal security.Cutler also received an annual premium for company-purchased life insurance of $11,472, $8,800 in matching payments to his employee savings plan, and financial planning and tax preparation worth $14,200.Eaton reported above-market earnings on non-qualified deferred compensation to Cutler of $3,902.The total amount listed in the filing for fair value of restricted stock and options awards that were valued at $2.77 million when they were granted.Cutler, 55, became president and chief operating officer in 1995 and was named chairman, CEO and president in 2000. He previously had led Eaton's industrial and controls units.The Eaton board's compensation committee noted that Cutler surpassed performance expectations. The committee also bases compensation on what executives are paid within a peer group of companies including General Electric , Illinois Tool Works , ITT Industries , United Technologies , Honeywell and Parker Hannifin .In January, Eaton said fourth-quarter earnings were up nearly 15 percent from a year ago, driven by continuing growth of its electrical and fluid power business segments. For the year, Eaton's profit grew 18 percent to $950 million, or $6.22 per share, on sales of $12.37 billion.Eaton has 60,000 employees and plants in 29 countries. Its products include transmissions, couplings, hoses, motors, circuit breakers, filters, pumps and cockpit controls.Eaton shares rose 37 cents to close at $82.52 on the New York Stock Exchange. The stock has traded within a one-year range of $62.81 and $84.89.
Friday, February 2, 2007
Department of Justice and SEC probe Siemens
FRANKFURT (Reuters) - A corruption affair that has shaken German industrial conglomerate Siemens AG has spread to the United States with investigations by the U.S. Department of Justice and Securities and Exchange Commission.
"The U.S. Department of Justice is conducting an investigation of possible criminal violations of U.S. law by Siemens in connection with these matters," Siemens said in its first-quarter financial report posted on its Website (www.siemens.com).
"Siemens understands that the U.S. Securities and Exchange Commission's enforcement division is conducting an informal inquiry into the matters at this time," it added in the notes to its consolidated financial statements for the quarter to the end of December.
German prosecutors are investigating 200 million euros ($260 million) missing from Siemens's accounts that it suspects were transferred into foreign accounts and used as slush funds for bribes to win telecoms equipment contracts.
Siemens also is conducting its own internal investigation into 420 million euros of dubious payments that were booked as consultancy fees over a seven-year period.
Informal SEC inquiries can but do not necessarily result in formal investigations, under which the watchdog gains powers to subpoena documents and other information from a company.
Siemens said its business could be hurt by the investigations and that it had not made any provisions for any possible future penalties that could be imposed on it.
"The company's operating activities may also be negatively affected due to imposed penalties, compensatory damages or due to the exclusion from public procurement contracts," it said.
"No charges or provisions for any such penalties or damages have been accrued as management does not yet have enough information to reasonably estimate such amounts."
Siemens added that the Munich prosecutor's investigation had led to related probes in Liechtenstein and Switzerland.
Greek prosecutors were also investigating one of Siemens's former officers there, it said, and had questioned the chief executive of Siemens Greece and another employee as witnesses.
"The U.S. Department of Justice is conducting an investigation of possible criminal violations of U.S. law by Siemens in connection with these matters," Siemens said in its first-quarter financial report posted on its Website (www.siemens.com).
"Siemens understands that the U.S. Securities and Exchange Commission's enforcement division is conducting an informal inquiry into the matters at this time," it added in the notes to its consolidated financial statements for the quarter to the end of December.
German prosecutors are investigating 200 million euros ($260 million) missing from Siemens's accounts that it suspects were transferred into foreign accounts and used as slush funds for bribes to win telecoms equipment contracts.
Siemens also is conducting its own internal investigation into 420 million euros of dubious payments that were booked as consultancy fees over a seven-year period.
Informal SEC inquiries can but do not necessarily result in formal investigations, under which the watchdog gains powers to subpoena documents and other information from a company.
Siemens said its business could be hurt by the investigations and that it had not made any provisions for any possible future penalties that could be imposed on it.
"The company's operating activities may also be negatively affected due to imposed penalties, compensatory damages or due to the exclusion from public procurement contracts," it said.
"No charges or provisions for any such penalties or damages have been accrued as management does not yet have enough information to reasonably estimate such amounts."
Siemens added that the Munich prosecutor's investigation had led to related probes in Liechtenstein and Switzerland.
Greek prosecutors were also investigating one of Siemens's former officers there, it said, and had questioned the chief executive of Siemens Greece and another employee as witnesses.
Tuesday, January 30, 2007
Eaton sets pay limit at CEO's request
Eaton Corp. (ETN) said Monday that at the request of Chairman and Chief Executive Alexander M. Cutler, it set a limit on what the company can pay him under its incentive plan.
The Cleveland-based industrial manufacturer said in a filing with the Securities and Exchange Commission that Cutler decided to limit the incentive award he received because recent company actions had adversely affected employees and forced plant closings.
Cutler's incentive awards for the 2003-2006 incentive-plan period will be no greater than his award for the 2002-2005 period, according to Monday's filing.
Under the plan the executive will be granted phantom share units, which will be converted to cash. Monday's filing didn't say how much Cutler was given under the 2002-2005 incentive plan. A company representative wasn't immediately available to comment.
Eaton shares recently traded at $76.30 each, up 65 cents.
The Cleveland-based industrial manufacturer said in a filing with the Securities and Exchange Commission that Cutler decided to limit the incentive award he received because recent company actions had adversely affected employees and forced plant closings.
Cutler's incentive awards for the 2003-2006 incentive-plan period will be no greater than his award for the 2002-2005 period, according to Monday's filing.
Under the plan the executive will be granted phantom share units, which will be converted to cash. Monday's filing didn't say how much Cutler was given under the 2002-2005 incentive plan. A company representative wasn't immediately available to comment.
Eaton shares recently traded at $76.30 each, up 65 cents.
Wednesday, January 3, 2007
J.T. Packard settles suits with both MGE and Eaton
JT Packard, the fast-growing provider of uninterruptible power supply systems and other network-critical power equipment, announced that it has settled two patent cases and that founder and president Jeff Cason had resigned "to pursue other entrepreneurial interests."
JT Packard reached comprehensive settlements with both MGE UPS Systems (MGE) and Eaton Powerware, Inc. (Powerware), concluding all litigation. The settlements resolved the legal disputes to the parties’ satisfaction, eliminating the distraction of prolonged litigation and allowing them to pursue more productive business objectives. The terms of the settlements are confidential. On October 16, 2006, Power Plus, a California-based provider of power solutions, acquired 80% of JT Packard. Following the acquisition, Power Plus worked with MGE and Powerware to address industry concerns and negotiate equitable resolutions. Concurrent with the settlements, Power Plus completed the acquisition of the remaining 20% of JT Packard. Power Plus is pleased to end the legal disputes and capitalize on the efficiencies associated with the recent acquisition. In addition, Jeff Cason, President of JT Packard, announced his resignation, effective immediately. “After building the company into a UPS industry force, and earning a spot on the Inc. 500 for two consecutive years, Jeff left to pursue other entrepreneurial interests. We wish him the best of luck,” remarked Steve Bray, CEO of Power Plus. Charley Eaton, Executive Vice President of JT Packard, who was instrumental in the firm’s success despite the challenges of the litigation, was appointed President. Eaton has been with JT Packard for nearly two years. Prior to joining to JT Packard, he founded and operated a technology-related firm for 10 years.
JT Packard reached comprehensive settlements with both MGE UPS Systems (MGE) and Eaton Powerware, Inc. (Powerware), concluding all litigation. The settlements resolved the legal disputes to the parties’ satisfaction, eliminating the distraction of prolonged litigation and allowing them to pursue more productive business objectives. The terms of the settlements are confidential. On October 16, 2006, Power Plus, a California-based provider of power solutions, acquired 80% of JT Packard. Following the acquisition, Power Plus worked with MGE and Powerware to address industry concerns and negotiate equitable resolutions. Concurrent with the settlements, Power Plus completed the acquisition of the remaining 20% of JT Packard. Power Plus is pleased to end the legal disputes and capitalize on the efficiencies associated with the recent acquisition. In addition, Jeff Cason, President of JT Packard, announced his resignation, effective immediately. “After building the company into a UPS industry force, and earning a spot on the Inc. 500 for two consecutive years, Jeff left to pursue other entrepreneurial interests. We wish him the best of luck,” remarked Steve Bray, CEO of Power Plus. Charley Eaton, Executive Vice President of JT Packard, who was instrumental in the firm’s success despite the challenges of the litigation, was appointed President. Eaton has been with JT Packard for nearly two years. Prior to joining to JT Packard, he founded and operated a technology-related firm for 10 years.
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