Power Systems is taking advantage of the crisis to prepare for a shift in its business model towards integrated solutions for drive-power and energy needs in the post-COVID era – with a special focus on sustainable, climate-friendly technologies. This is being aided by a reorganization featuring special business units for “Sustainable Power Solutions” and for China as well as investments in new technologies and site facilities.

Profitable despite revenue hit

“The COVID-19 crisis hit us hard, but we are still profitable, albeit not as profitable as in previous years. However, this is proof positive of the resilient nature of our business,”

said Andreas Schell, CEO of Rolls-Royce Power Systems.

Profit in the commercial marine segment was adversely affected by the pandemic-related collapse in tourism, among other factors.

Shipyards closed down temporarily, hitting the yacht business, and economic uncertainty in many sectors of the economy led to a slowdown in capital investment and, in particular, shelving of plans to purchase power generation solutions. Public sector sales remained stable.

“The relatively good result for the year is largely down to a strict cost and liquidity management regime which we have applied throughout to mitigate the impact of the drop in revenue,”

emphasized CFO Louise Öfverström. The company says it saw signs of an initial recovery in the second half of the year, however extensive lockdowns in many parts of the world since then continue to dampen customers’ willingness to invest. 

Öfverström continued:

“We expect an improvement in order intake during the first half of 2021, converting into a recovery in sales from the second half of the year with revenues returning to approximately 2019 levels in 2022.

Impact of the pandemic well under control

Ensuring employee health while maintaining production so that customer orders can be fulfilled was one of the key challenges in this pandemic year.

“We managed this very well without having to stray off our chosen transformation path,”

said CEO Andreas Schell.

Three acquisitions drive activities as a solution provider

Despite the financial challenges presented by COVID, Power Systems acquired three businesses last year in order to be able to ramp up activities as a solution provider to customers in a variety of markets. In 2020, Power Systems acquired Kinolt, a Belgian company making uninterruptible power supply systems using rotating flywheels, and Servowatch, a British ship automation manufacturer, as well as taking a majority stake in Qinous, now Power Systems’ microgrid competence center.

The companies are being integrated into the Power Systems division.

“The Rolls-Royce Group enabled us to make these investments in our future in 2020 despite exceedingly difficult economic conditions. This illustrates the great confidence the Group has in us, particularly with regard to climate-friendly and environmentally friendly solutions,”

continued Schell.

Major investment – from fuel cells to production facilities

The company will be continuing down its transformation path in 2021 with selective investment in climate-friendly products, fully integrated solutions, and existing site facilities, as well as continuing to drive the company’s established lines of business.

“This year and last year, the larger-scale investments we made alone in extending our production sites up to a high double-digit-million amount. This is another way we are using the time of crisis to emerge stronger,”

said Dr. Otto Preiss, member of the board for R&D and operations.

Production of the MTU EnergyPack battery storage containers is being expanded to over 50 containers per year at the company’s Ruhstorf facility in Lower Bavaria. In just twelve months, Power Systems has already made its mark on the market for renewable and smart energy solutions with interesting orders, for example in the South Pacific, Costa Rica, Australia, and Norway.

Hydrogen, the fuel of the future

In Friedrichshafen, the company is working hard on ways to exploit hydrogen as the fuel of the future:

“We’re convinced that hydrogen has a key role to play in the green energy revolution,”

stressed Schell.

A demonstration emergency power generator using fuel cell technology is expected to go live in the first half of the year. Developers are also working on hydrogen engines and engines using methanol-based on climate-neutrally produced hydrogen.

Millions being invested in core business

“These major investments in our future are being funded by proceeds from today’s core business. It is the mainstay of our division, which is why we continue to invest heavily in it,”

said Schell. The materials management center in Kluftern near Friedrichshafen will be expanded this year and next. Among other things, the Friedrichshafen assembly line for MTU Series 2000 engines is to be moved temporarily to the 10,000 sqm facility, which has already been approved, to allow refurbishment of the existing plant. Other major investments include a machining center for large engine housings, completion of the plant expansion in Mankato, and the microgrid at the Aiken plant (both in the US), hydrogen infrastructure for the Friedrichshafen and Augsburg plants, and test stand refurbishments.

Newly positioned for customer proximity, the green energy revolution, and new markets

The fundamental strategic course of the Power Systems division is also reflected in its reorganization, which will take effect on 31 March.

“Our transformation to a solution provider requires us to be even closer to customers so that we can make it clear to them what benefits we can now offer them. After all, we’re already so much more than an engine maker,”

Schell continued.

The core business featuring propulsion and drive solutions for vehicles – from combine harvesters to mining machines – and ships are to be pulled together under Mobile Power Solutions. All activities involving diesel and gas engine-powered power plants, from combined heat and power plants to emergency power supplies for safety-critical facilities, will come under Stationary Power Solutions.

The Sustainable Power Solutions unit is of particular importance. It will manage closely all existing and future innovative solutions for more climate-friendly and more environmentally friendly drive power, propulsion, and electrical power supplies. These will range from energy storage containers and fuel cells to the production and use of synthetic fuels. It will promote the use of new technologies for the green energy revolution across all areas of application and ensure that switching to new, climate-friendly solutions is as easy as possible for the company’s customers.

The task of a unit entitled ‘Power Solutions for Greater China‘ will be to continue to develop the growing markets in China.

“We have been positioning ourselves increasingly well in China recently, and just at the end of the year, we signed a sensational contract there for 1,000 engines. We want to become even more successful in this fast-growing market, but the Chinese market requires a special approach. That’s why we need an independent business unit there that can meet Chinese requirements specifically and individually,”

said Schell, explaining this move.

“The new organization is the next logical step in implementing our PS 2030 strategy,”

he added, emphasizing:

“2021 is the year we’re going to transform into a solution provider.”

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“The dramatic events of 2020 imposed significant challenges to growers and agribusinesses throughout our chartered service area, none of which could have been anticipated. While growers and agribusinesses are very familiar with managing the unpredictable, as a member-owned association we felt it was our duty to do everything in our power to support our customers during these challenging times.”

said Sureena Thiara, Chair of the Board of Directors at Farm Credit West.

The combined 150 bps patronage distribution for 2020 represents the highest payout Farm Credit West customer-owners have received since the program’s inception in 2002. In each of the years 2018 and 2019, Farm Credit West distributed 100 bps in patronage dividends to customers.

“At a time when many agriculture producers and agribusinesses are reacting to government regulations and health official recommendations to manage the COVID-19 Pandemic, our customers can be confident their lender is committed to their success. Distributing an additional and unexpected 50 bps in Patronage dividends mid-year was the infusion of cash needed to keep many of our customers’ operations thriving during a highly tumultuous time.”

added Mark Littlefield, President, and CEO of Farm Credit West.

Since the Patronage program’s beginning 18 years ago, Farm Credit West has paid $884 million in cash dividends to customer-owners.

The post Farm Credit West Announces an Increase in Cash Dividends Amid Pandemic appeared first on North America FarmQuip Magazine.

According to the Colorado Farm Show website,

“In the best interest of our Vendors, Volunteers & Visitors, the Colorado Farm Show Board has made the difficult decision to cancel the event in 2021 due to rapidly changing conditions related to the COVID-19 pandemic.”

In a typical year, it’s estimated that more than 35,000 people attend the three-day show which includes more than 300 exhibitors. However, with the coronavirus situation across the United States and the situation here in Colorado and after talks with both City, County, and State officials the Board of Directors made the extremely difficult decision to cancel the event which will return January 25, 26, 27, 2022.

“Integrity, history and financial commitment were the main factors in making this tough decision over the last five months,”

said Erich Ehrlich, Colorado Farm Show Board Chair

There is a silver lining…In keeping with the Colorado Farm Show’s mission statement, “…to promote and support agriculture throughout the State of Colorado through the educational seminars, exhibits, trade show, exchange programs, scholarships, and any other method available to assist in obtaining this goal, the Board of Directors unanimously voted to continue to fully fund and award the 2021 Scholarship Program.

Source: Colorado Farm Show

The post The 56th Annual Colorado Farm Show has been cancelled appeared first on North America FarmQuip Magazine.

EIMA International confirms the commitments and confirms the dates. The world exhibition of agricultural machinery will take place as scheduled with the two announced editions: the preview on a digital platform, from 11 to 15 November, and the physical exhibition – in the Bologna exhibition center – from 3 to 7 February 2021.

FederUnacoma, the Italian manufacturers’ association that organizes the event, reiterates the reasons that led to the definition of the current calendar and to decide on the dual rendezvous, in the words of its President Alessandro Malavolti:

“The COVID emergency has slowed down the agricultural machinery market – explains Malavolti – but the demand for machinery is potentially very high, and businesses need an event that brings together the technologies produced by the industries in the sector with the needs of agriculture in different areas of the world. The dual rendezvous aims to serve the market – adds Malavolti – providing an extraordinarily rich virtual preview designed to explore the business potential on a global level, and a physical edition with great technical content and great scenographic impact. Thanks to the digital preview – concludes the president of FederUnacoma – businesses will be able to face the February exhibition in a rational and selective way, optimizing the times and costs of their participation”.

Participation in EIMA International – explains the organizing office of FederUnacoma – has been very high from the moment when registrations for the great event were opened in September 2019. And still today – despite the health emergency that has hit the sector’s production and trade events – the group of registered manufacturers is very large and strong.

“Unlike other trade exhibitions, that recorded a sharp decline in participants even before the pandemic and therefore decided to cancel their event – observes Simona Rapastella, FederUnacoma General Manager – EIMA International maintains a very high profile, as it currently has a contractual obligation towards 1,600 exhibitors, aiming to offer them the best business opportunities. The international scenario is still critical, and for this reason, we are studying measures to facilitate participating companies both from an economic and organizational point of view – adds Rapastella – but above all, we are working to offer exhibitors and visitors the highest standards of safety”.

The EIMA Technical Panel for Safety was established last week, involving the heads of FederUnacoma and BolognaFiere as well as external consultants specializing in health prevention. This way EIMA focuses on the best prevention systems at the international level, aiming to make the Bologna exhibition “the safest place in which to promote and develop business meetings“.

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