Ex-Im Bank approves funding for Bucyrus project in India; Magnetek revises outlook to reflect rising revenues; Bemis completes sale of discontinued operations
Ex-Im Bank approves funding for Bucyrus project in India
The board of the Export-Import Bank of the United States (Ex-Im Bank) last week voted to proceed to a full financial, technical and environmental review of an application to finance Bucyrus-made mining equipment to a coal-fired power plant in India.
Ex-Im Bank officials said about two weeks ago that they would be willing to enter into a memo of understanding to provide loan guarantees, which would help finance the purchase of mining equipment from Bucyrus by Reliance Power Ltd., an Indian company. One week earlier, the bank denied support for the loan, saying that the equipment would be used to feed a new coal fired power plant that would create carbon-dioxide emissions.
The $600 million loan from Ex-Im Bank will allow Reliance Power to order mining equipment that will feed a 3,960 megawatt power plant in India. The project is expected to support about 1,000 jobs at South Milwaukee-based Bucyrus and many more at its suppliers.
Last week’s vote is the precursor to a full financial, technical and environmental due diligence process. Following that, the board of the Ex-Im Bank will vote on whether to approve the application.
Magnetek revises outlook to reflect rising revenues
Magnetek Inc. today revised upward the expected revenue range for its fiscal fourth quarter, which ended June 27.
The Menomonee Falls-based company currently expects revenue for the fourth quarter to fall within the range of $24.0 million to $24.5 million, compared with the prior estimated range of $21.5 million to $22.0 million. In addition, bookings for the fourth quarter of fiscal 2010 exceeded fourth quarter revenue, resulting in an increase in the company’s order backlog as of June 27, 2010, to the highest level since August 2008.
Given the increase in sales volume over the previous estimate, the company further expects to report net income from continuing operations of 1 cent to 2 cents per share for the fourth quarter of fiscal 2010. Previous estimates related to profitability for the fourth quarter of fiscal 2010 projected a net loss from continuing operations of 1 cent per share.
The Company expects to release final results for the fourth quarter and full fiscal year 2010 on or around August 19.
Magnetek, Inc. provides digital power and motion control systems used in overhead material handling, elevator, and energy delivery applications.
Bemis completes sale of discontinued operations
Neenah-based Bemis Co. Inc. has completed the sale of its discontinued operations in Menasha and Catoosa, Okla. to Exopack Holding Corp., an affiliate of private investment firm Sun Capital Partners, Inc. for about $82 million. Bemis said it will use the cash proceeds to pay down outstanding debt.
These assets have been classified as discontinued operations in Bemis’ financial statements since March 1.