ABB net income up 87% on energy efficiency and infrastructure demand

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  • Orders and revenues grow at a double-digit pace
  • EBIT hits record $1.4 billion, EBIT margin at 17.0 percent
  • Net income reaches $1 billion in the quarter, EPS up 76%

ABB’s first-quarter net income reached $1 billion, an increase of 87 percent compared to the same quarter in 2007, as global demand for more reliable power and improved industrial efficiency continued to grow and the company’s efforts to improve operational performance generated further benefits.

Earnings before interest and taxes (EBIT) reached a record $1.4 billion, up 65 percent from a year earlier. The EBIT margin increased to 17.0 percent from 13.2 percent in the first quarter of 2007. Approximately one percentage point of the EBIT margin in the first quarter resulted from gains on the mark-to-market treatment of hedging transactions. The gains were related mainly to the sharp decline in the value of the U.S. dollar and increases in commodity prices during the quarter.

Orders, revenues and EBIT increased in all divisions as market demand remained robust in all regions. Utilities continued to invest in new and refurbished power infrastructure while industrial customers, especially in the metals, minerals and marine sectors, further expanded capacity on the back of high commodity prices. Industrial demand for more energy efficient technologies also continued to be a key growth driver.

“ABB experienced a very good start in 2008 across all businesses and regions,” said Michel DemarǸ, ABB’s Chief Executive Officer and Chief Financial Officer. “Demand from utilities and most of our major industrial markets remained strong around the world, especially in emerging economies, but also in the U.S. Customers continued to invest in areas where we are market and technology leaders – power infrastructure, energy efficiency and productivity.

“These excellent results also reflect our continuing strong operational performance,” DemarǸ added. “Lower cost sourcing, footprint optimization, better project execution and risk management, and more efficient capacity utilization all contributed to our improved results.”

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VMZINC's first appearance at Ecobuild

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Stand 1457 sees market leader VM Zinc exhibiting at Ecobuild for the first time. Its range of standing seam roofing and cladding systems will be on display alongside BRE certified interlocking panels and a new, fully integrated, standing seam PV system. This utilises low profile panels which provide a high energy return and therefore occupy far less roof space. The VMZINC PLUS warm roof system on rigid insulation will also be exhibited following the award of its BBA certificate. VMZINC’s compact roof approach, using Foamglas® enables zinc to be used in environments such as swimming pools, where extreme humidity and chemicals would otherwise cause damage as they evaporate.

Zinc’s continued increase in use owes much to its lasting appearance, minimal maintenance requirements, low design life cost and proven sustainability. It complements a diverse range of building materials and styles, while pre-weathered Anthra-Zinc®, Quartz-Zinc® and Pigmento® colours have also greatly extended design scope.

90% of old rolled zinc is reclaimed in mainland Europe (around 100,000 tonnes each year), and no other non-ferrous metal uses less energy in the manufacturing process. Even when comparing consumption using recycled materials, over 30% less is used than with aluminium.

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'Condensafe '+' Helps Protect the Environment by Addressing Growing Condensate Problems from High Efficiency Boilers

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The increasing problem of untreated low level acidic condensate from condensing boilers heading for the drainage infrastructure has been addressed by Salamander, part of Sentinel Performance Solutions, with the release of the new 'Condensafe '+' unit.

This unique and innovative in-line unit, designed to be mounted between the boiler condensate outlet and the drain, contains a special medium that will effectively neutralise acidic waste from condensing boilers before allowing the now harmless waste to be discharged to the drains. The neutralising medium can be easily replaced every twelve months when the boiler undergoes its annual service and the spent medium can be safely disposed of in household waste.

The Salamander 'Condensafe '+' offers a sensible approach to low level acidic discharge management, it's easy to fit, clean and maintain, fits all domestic condensing boilers, has no adverse effect on the operation of a condensing boiler and complies with all relevant standards. The company has applied for a patent to cover the product and its design.

An average condensing boiler will produce around 800 litres of condensate a year at about pH 4.0. It's a simple mathematical calculation to work out that this means there will be millions of litres of low level acidic waste heading for the sewage system, the sewage treatment works and soakaways every year, potentially threatening the biological purification processes in septic tanks and local water treatment plant, and causing significant upset to the drainage infrastructure. And it's a problem that can only grow as the Government has ensured through Building Regulations that virtually all new boilers installed from now on must be high efficiency condensing boilers.

There are an estimated 17 million gas boilers in the UK, with around 1.5 million new boilers installed each year. The amount of acid condensate put down the drain is thought to be growing at a rate in excess of half a million litres per week as more and more condensing boilers are installed. It's conservatively thought that in two years time, we could be adding in the region of 50 million litres of acid at pH 4.0 to our drains each week. There doesn't seem to have been any research or concern expressed about the environmental consequences. Even at a relatively low level of acidity, common sense suggests this must be having an effect on the infrastructure or water treatment process at some level.

“We know that the condensate generated by the growing numbers of condensing boilers installed across the UK is acidic discharge. When you consider the age of many – if not most – of the drainage infrastructures and the huge quantity of condensate being discharged without treatment to the sewers, it seems sensible to consider doing something to neutralise the problem,” says Salamander's Louise Morris. “A much smaller quantity – but still a significant amount – is discharged to 'soak aways' and if the quantity was high enough, it could have an impact on groundwater. Bearing in mind how much of our drinking water is still drawn from boreholes, we feel condensate should be addressed now before it becomes a problem. Using a Salamander 'Condensafe '+' would seem to make a huge amount of sense.”

'Condensafe '+' is available now from merchants across the UK.

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Eaton Completes Purchase Of The Moeller Group

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CLEVELAND … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced it has completed the purchase of The Moeller Group, as announced in Eaton’s December 20, 2007 news release.

The Moeller Group, based in Bonn, Germany, had sales of ?1.02 billion for the year ended December 31, 2007. The company is a leading supplier of components for commercial and residential building applications and industrial controls for industrial equipment applications. Moeller sells products primarily to customers in Western and Eastern Europe and the Asia Pacific region. The Moeller Group has 15 global production facilities, sales offices in more than 90 countries and approximately 8,700 employees.

“This acquisition, coupled with our acquisition of Phoenixtec Power Company, Ltd., solidifies Eaton’s position as a leading global supplier of electrical power distribution and control products and power quality equipment and systems,” said Alexander M. Cutler, Eaton chairman and chief executive officer. “Now that these acquisitions have closed, our electrical business will have annual revenues in excess of $7.5 billion. In addition, Eaton’s non-United States revenues, based on final destination of our products, will be between 55 to 60 percent.

“Additionally,” Cutler continued, “The Moeller Group’s broad portfolio of power distribution and control products that meet International Electrotechnical Commission (IEC) standards, its European and Asian distribution networks, and its significant Eastern European production facilities significantly expand our capabilities in electrical markets outside the United States.”

Eaton Corporation is a diversified industrial manufacturer with 2007 sales of $13.0 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 79,000 employees and sells products to customers in more than 150 countries.

This news release contains forward-looking statements concerning annual revenues for our electrical business and our non-US annual revenues. These statements should be used with caution. They are subject to various risks and uncertainties, many of which are outside of our control. Factors that could cause actual results to differ materially from those in the forward-looking statements include the risks that the new businesses will not be integrated successfully; unanticipated changes in the markets for our business segments; unanticipated downturns in business relationships with customers or their purchases from Eaton; competitive pressures on our sales and pricing; increases in the cost of material, energy and other production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties; new laws and governmental regulations. We do not assume any obligation to update these forward-looking statements.

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Fakro first for Ecobuild

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Stand 1363 sees roof window manufacturer Fakro GB at Ecobuild for the first time. In addition to its unique FPP preSelect® top hung and pivot window it will be exhibiting a number of new products including the new Balcony Window. Particular emphasis will be given to the patented topSafe® system which enables standard products to meet a minimum Class 3 – EN13049 for security and safety, the best currently available. Also featured will be the V40P automatic air vent which is now used routinely to added thermal efficiency at no additional cost.

Most Fakro roof windows are now manufactured from timber obtained from FSC approved sources using only slow growing redwood pine which is guaranteed to be knot-free. Operating handles in the base of the sash enable a larger overall glazing area is provided in products which are far easier to use. With the biggest range of conservation windows currently available and a wide selection of glazing options, scope to use roof windows as an intrinsic element of interior design has never been greater.

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Ability Fan Coil Units Chosen for Iconic Gateshead Quay Commercial Development

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Fan coil units, manufactured by Ability Projects Ltd, are being installed in the first two blocks of the £35 million iconic Baltic Place development, nearing completion at Gateshead Quays on the River Tyne. This 1st phase of the project will provide 131,000ft2 of high grade office accommodation in two 11 storey tower blocks linked by a shared entrance foyer. Notable for its imaginative use of curved flanks, glass and fascias, Baltic Place also offers striking views of the river and the Gateshead Millennium bridge.

Air conditioning for the complex is provided by almost 300 mixed Ability Trojan and Titan horizontal concealed ceiling 2 and 4 pipe fan coil units with capacities between 4.87 and 25.4kW (cooling) and 5.0 to 13.0kW (heating) and designed to meet NR35 noise level at 30pa restrictions. Installed by Inviron Ltd, Washington, the fan coils are fitted with 2 and 4 port free issue valves with free issue compression fittings on both sides, wire frame filters and stepped discharge plenums of 250mm dia (Trojans) and 300mm dia (Titans) to suit the project's varying size discharge ducts.

Based on simplified design precepts and retaining performance related components – fans, motors and coils – the Trojan fan coil unit enables Ability to offer a highly cost effective, rapid delivery solution for competitive projects without reductions in quality or performance. Design flexibility however, is still inherent in the Trojan unit with squared or mitred discharge plenums, inlet plenum options and virtually any combination of spigots and blanks that enable it to be mixed with other Ability fan coil units (such as Titan) on the same project without the need to reselect.

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Extended green roof and single ply range from Flag-Soprema at Ecobuild

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Following a highly successful Ecobuild in 2009 Flag-Soprema will again be exhibiting at the 2010 show. Having moved to stand 1455, the company will be displaying its diverse range of green roofs, environmentally sustainable TPO and TPO Plus single ply membranes and tunnel liners. Also on display will be the self-healing, Duoflex lightweight, structural waterproofing system which has been designed to last for the lifetime of a structure. Unlike membrane systems, detailing and upstands can be completed first, allowing application of brickwork, curtain walling, rainscreen systems and rendering to be undertaken using the concrete deck as a working platform. All systems are installed by a network of highly trained, approved contractors.

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VRF Water Heater Prooves Its Worth In The Heat Of The Kitchen

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Live trials of Mitsubishi Electric’s unique PWFY water heating system have proved that it is far more cost-effective and produces far less CO2 emissions than traditional methods with demonstrated savings of 78% in both running costs and emissions over the previous system.

The trials show that the unit, which is able to use excess heat recovered from a VRF air conditioning system, costs less than a quarter of the running costs than the previous system and about half as much as a modern gas condensing boiler system.

The PWFY water heating system has been on trial at the Hatfield headquarters of the air conditioning manufacturer since early September 2008 and has been supplying all of the hot water required by the three-storey building’s busy kitchen. The building houses many different divisions within the company and accommodates approximately 300 members of staff. The office has an on-site restaurant that can seat 100 people and serves cooked meals 5 days a week as well as breakfast every morning.

“The restaurant is very popular with employees so the kitchen staff are constantly busy preparing and serving meals from early morning until mid-afternoon,” explained Philip Ord, Product Marketing Manager. “The kitchen area therefore needs constant cooling during these times and a good supply of hot water for all of the washing up and cooking needs.

The restaurant previously used an air conditioning system for cooling and a commercial gas boiler to provide hot water.

“However you look at it, this is a busy kitchen needing a regular supply of hot water and the PWFY has surpassed expectations and delivered measurable reductions in cost,” added Ord.

The trials show that the PWFY and the new air conditioning system that it runs alongside, would average out at annual running costs of around £517, producing 2,222kg of CO2. The previous system is estimated to have cost £2,367 to run on an annual basis at today’s prices and would produce 10,176kg of CO2 in a year.

When compared to a modern gas boiler for water heating and a split system air conditioner for cooling (with a COP of 3.5) it was calculated that the annual running cost of the total system would be approximately £1,114 and would produce 5,020kg of CO2. Using the PWFY system instead of the modern equivalent leads to a 54% reduction in running costs per year as well as a 56% reduction in the amount of CO2 produced annually.

“It is clear from the data obtained in this case study that the PWFY is a highly efficient way of providing a hot water supply to commercial buildings and more so when used in conjunction with a heat recovery VRF air conditioning system,” explained Ord. “Not only can companies save on running costs, which is good news in these tough times, but they can also reduce the impact of their operations on the environment.”

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TIMEGUARD: The disabled WC alarm grows up

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We’ve all seen the ring pulls in disabled WC’s and the warming lights above the door outside, and they work perfectly well if there is going to be somebody close by at all times to notice if the over door light or audible alarm goes off. Perhaps it is just because there needs to be someone there to notice the alarm that the valuable protection these systems can provide is kept to the bare minimum and restricted to the WC. But what about other areas of the building such as waiting rooms, changing rooms, etc? The new emergency assist systems can provide additional security and assurance for all users of premises who may at some time or other be alone and vulnerable – disabled, elderly, lone workers, visitors and residents. They are stylish, integrated emergency call systems that range from a single alarm station in, say, a private home or WC to systems that monitor alarm calls over multiple zones at a single control panel. The latter are ideal in a building such as a care home or business with, say, an unstaffed waiting room, disabled W.C., laundry room or changing room and maybe a T.V. room. Whichever approach you choose – single station or multi-zone – you should expect to buy the complete kit in a box as with the Timeguard Emergency Assist range.

Simple activation
How do they work? Quite simply, anyone in need of assistance activates the alarm by pulling the emergency pull cord, activating a flashing lights and audible alarm both outside the room itself (light/alarm units are usually installed just outside or over the door) and, crucially, raising the alarm at the control panel as well. The control panel can be installed in a nearby, permanently-manned room. A simple push button resets the system. Up to four rooms can be monitored at a single control panel, installed in a suitable permanently manned area, ensuring that help will be on its way wherever in the building an emergency arises. A simple flashing light or alarm outside a WC is of little use if no one sees or hears it. The control panels for the new Timeguard range provide “Automatic Fault Detection” and display a warning light in the event of a fault. Also, an optional battery back-up kit is available that will keep the system running during AC mains failure.

Available Kits
Singe zone Timeguard kits comprise a 2-gang control panel, a pull cord and reset button for installation in the room, a unit with a bright flashing light and an audible alarm for installation outside the room, typically over the door and a “Disabled” sticker. The multi-zone kit includes a four channel master control panel featuring flashing lights to identify each zone, 2 x audible overhead door alarm units and 2 x disabled stickers. Extra components are available separately to build up as the installation requires. Connection between control panels and all other system components call only for simple two-wire low voltage links. So how do they look? In a word – good! Timeguard has recognised the importance of good design in helping installers to sell in the concept of emergency call systems to a far wider marketplace. It s new stylish slimline range is available in white plastic and stainless steel finishes to complement any interior.

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Green Gateway Initiative Reaches The Heart Of Europe

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Mitsubishi Electric has used its position as a founder member of the Micropower Europe group to promote a greater understanding of the potential for heat pumps and photovoltaics to help significantly reduce emissions.

The company exhibited its Green Gateway Initiaitve® at the recent launch of Micropower Europe in Brussels with Green Gateway Manager, Martin Fahey on hand to explain the rationale behind the company’s innovative approach to addressing the need to reduce emissions in our built environment.

The launch was opened by European Energy Commissioner, Andris Piebalgs who announced that microgeneration will be a key part of the EU’s future energy mix in his speech at the conference. Commissioner Piebalgs also spent time questioning Martin Fahey about the role air source heat pumps could play in addressing fuel poverty, climate change and energy security. Europe has a target of achieving 20 per cent of energy (heat or power) from renewable sources by 2020.

“I had a very constructive discussion with the Commissioner and explained how we believe that air source heat pumps can help Europe achieve the ambitious targets for carbon reduction, house by house,” explained Fahey. “Our involvement with Micropower Europe has lead to invitations to contribute to discussions that are defining the parameters by which heat pumps will be measured so it is vital for our industry that we are there to represent them,” ended Fahey.

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