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Australia’s wackiest tenant complaints

October 6, 2020 | By admin | No Comments | Filed in: ekyaaglzf.

first_img‘KEEPING the cutlery sharp’ isn’t something you’d find in your standard lease agreement, but common sense hasn’t stopped some tenants from making insane complaints. The rules around renting a home can be confounding, but some tenants are known to ‘try their luck’ and demand some pretty wacky stuff.Simon Hampel, founder of property investor website PropertyChat.com.au, said a recent forum thread caught his eye.Mr Hampel said in most cases with over-demanding tenants, it’s a matter of inexperience.“Some of those people are naive – maybe they’re young and inexperienced or maybe they’ve never been responsible for the upkeep of a property themselves and don’t really understand how much things cost or what’s reasonable to expect.”Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 2:23Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -2:23 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Trackdefault, selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenClose Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Passive aggressive notes! The truth about share houses…02:23 Related videos 02:23Passive aggressive notes! The truth about share houses…01:57Save on rent but still live close to the CBD01:54VIC rental legislation changes: What does it mean for you?01:08Flatmates wanted! Top 10 hottest suburbs 01:35Renting in Australia: issues faced by tenants02:09Rental AffordabilityMr Hampel said landlords aren’t immune from being unreasonable either.“In my experience, sometimes the owners are just as problematic – demanding unreasonable things from their tenants.“It’s about balance – all parties need to understand their rights and responsibilities and it’s in a landlord’s best interest to maintain their property to a reasonable standard to minimise tenant churn – but they also need to manage their costs. This is an investment after all.”However, even the most reasonable landlord might find a few of these posts from PropertyChat members hard to swallow:“My tenant complained to me about the loud ping of the microwave in the apartment next door. Yup.”“I manage one of our i.p.’s (investment properties) and got a request a couple of months back. ‘Can you come and sharpen the knives as they are not sharp anymore?’ It seems the tenants aren’t either.”“Last year a tenant sent one of our landlords an invoice for $250 – a restaurant bill for a family of 4 including drinks. All had roast. The reason: the oven was not working and they HAD to have roast dinner on the weekend. The stove top was working.”“Tenants complained house had too many flies, it was an 80 year old house in regional Vic.”“Tenants insisted on removing ‘old cupboard’ (Art Deco Stained Glasss) in the kitchen, then complained about lack of storage.”“My best one, so far, was the Cairns tenant who complained the rain came in when the window was open.”“Not one of mine but I read online: Tenant complains of dripping tap after hours, PM deems as non urgent so files it away for the morning. Tenant gets aggravated by the sound, abuses PM says its keeping her kids awake, tenant calls an after-hours plumber themselves threatening to forward the bill. Plumber gets there – turns out the sound is not from the tap, but someone left their electric toothbrush switched on inside the vanity cupboard.”More from newsMould, age, not enough to stop 17 bidders fighting for this home5 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor5 hours ago“Tenant threatening to sue the owner for not having access to her back yard due to bindies …”“My (overseas student) tenants complained that the smoke alarm wouldn’t turn off. Property is just around the corner. I go over, smoke alarm is still going off 15 minutes later. Took it down, noticing a wet patch on the ceiling. Water leak? No. Tenants got sick of it going off every time they burned their toast, so they would throw water at it to ‘cool it down’ and make it stop beeping. Water had fried the electronics. Lucky it wasn’t hard wired.”“Got an email the other day saying “my toilet has a voice of concern” We took that as meaning that the toilet was making noises. Lol Or maybe it was just ta (l) king sh**.”“Mum and dad are on a rural property and their neighbour has complained to their landlord that there are rabbits and wildlife coming into their yard! (They rent 5 acres of land).Their landlord forwarded an application for gun ownership.”Follow Kieran Clair on Twitter @kieranclairlast_img read more

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The owners turned this old home inside out with the help of a renowned architect

October 6, 2020 | By admin | No Comments | Filed in: lprxfsblu.

first_imgDining options extend to the outdoor areaInspired by the beach, the home features an attic and the original fireplace. Mrs Heath said the family are big on entertaining and celebrated her birthday at home with a band and 100 guests.“The best thing is the flow of the design,” she said. “You could have 20 teenagers over and everyone can mingle happily. There is space for everyone.” 106 Seagull Ave, Mermaid Beach.SUE and Lawson Heath knew exactly what they wanted when they knocked on Gold Coast architect, Paul Uhlmann’s door almost a decade ago. “The dream was to create a Californian bungalow,” Mrs Heath said. “Paul had designed our last home in Byron Bay so we were knew exactly what to expect and we are big fans of his work.” It was designed for kids, parties and it is sand proof.More from news02:37Purchasers snap up every residence in the $40 million Siarn Palm Beach North5 hours ago02:37International architect Desmond Brooks selling luxury beach villa1 day agoMrs Heath said they kept the original home and extended it from back to front. “We knocked the middle out,” she said.“I grew up next door to a beautiful home that had painted white bricks and I really wanted to create that here.” Thehome embraces 80s style white bricks, reminiscent of its humble beginningsTheir home at 106 Seagull Ave may look new but Mrs Heath said the home was one of Mermaid Beach’s original brick homes. “We were going to knock it down but our builder said doing that would be a crime,” she said. “We decided to work with it.” Raw materials create a stylish beach house designThe mother-of-three said her children were raised in the home and it has been the ideal place to cater for them.“The clean lines and modern style mean the home stays timeless and is easy to retain. It has lasted a decade and it will last a lifetime more.”last_img read more

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This near-CBD property is selling for the first time in 60 years and offers a huge rental income

October 6, 2020 | By admin | No Comments | Filed in: zuwmcftfp.

first_imgThe property offers a huge rental income in the heart of Brisbane’s hottest cafe suburb.BLUE chip location? Check!Elevated 910sq m block? Check!Gross income $118,000 per year? CHECK!The listing of 24-26 Hazlewood Street New Farm has caused a gleeful rush from buyers looking to lock down a deal that’s reeks of opportunity.More from newsParks and wildlife the new lust-haves post coronavirus1 day agoNoosa’s best beachfront penthouse is about to hit the market1 day agoThe holding is moments from the CBDThe flats have been in the same family for decades and they’ve always looked after the building’s maintenance, according to LJ Hooker New Farm principal, Brett Greensill.“It’s been owned in the family since they built the flats in the 1950s so it hasn’t changed hands for over 60 years,” Mr Greensill said. The building is great but the potential is in the landComprising eight x one bedroom flats, the two level brick structure also provides one car space for each resident.Mr Greensill said the property was listed last week and there has been a lot of inquiry since.“The interest has been significant — because its two lots, 910sq m in elevated New Farm position surrounded by houses is a pretty rare offering,” he said.Follow Kieran Clair at Twitter at @kieranclairlast_img read more

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One-bedroom apartments on the Gold Coast back in fashion

October 6, 2020 | By admin | No Comments | Filed in: pllavecyf.

first_img50/38 Enderley Ave, Surfers Paradise — a one-bedroom apartment — has a $219,000 price tag. Picture: realestate.com.auRising property prices were also bringing one-bedroom apartments back into focus for owner-occupiers and investors.“These days, properties are much more expensive and often people can’t afford the luxury of a second bedroom, or investors don’t want to tie up their capital in a two-bedder.“The one-bedroom apartment is a realistic way for young couples or young buyers to get a foothold in the property market, especially if they are willing to settle for less room in theearly years.“And a small mortgage gives them the opportunity to build equity in their home, allowing them to move on to something bigger a few years down the track.” A one-bedroom apartment at 3262 Surfers Paradise Blvd, Surfers Paradise is on the market at $279,000. Picture: realestate.com.au.Mr Bell said one-bedroom apartments could be snapped up in the heart of Surfers Paradise for the price of a parking garage in Sydney.“You can still buy a one-bedroom apartment on the Gold Coast for less than $200,000,” Mr Bell said.“Quite often these are in older buildings, but they represent an entry-point to the market for some buyers and a lifestyle solution for others.” What a view! A one-bedroom apartment at 3262 Surfers Paradise Blvd, Surfers Paradise is on the market at $279,000. Picture: realestate.com.au.More from news02:37International architect Desmond Brooks selling luxury beach villa18 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days agoMr Bell said changing demographics were driving the trend.“The 2016 Census found that almost one in four Australians now live in single-person households,” he said.“More people are choosing not to get married or to remain childless, while others might choose to live alone after a breakup.“There are also the empty-nesters who are looking to downsize to a low-maintenance yet well-located lifestyle that also allows them to free up equity in the family home.” This one-bedroom apartment at 3197 Surfers Paradise Blvd, Surfers Paradise is on the market at $159,000. Picture: realestate.com.auONE-bedroom apartments are back in vogue thanks to demographic shifts and rising property prices, according to Ray White Surfers Paradise Group CEO Andrew Bell.Mr Bell said the growth of one-person households, the upsurge in downsizing and the search for housing affordability were all factors in the resurgence of one-bedders.And these “property pocket rockets” can also be the ticket to achieving the real estate holy grail of location, location, location. 50/38 Enderley Ave, Surfers Paradise has a $219,000 price tag. Picture: realestate.com.aulast_img read more

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More than 50 Gold Coast properties to go under hammer

October 6, 2020 | By admin | No Comments | Filed in: zuwmcftfp.

first_imgThe view from the property at 15 Queen Anne Crt, Sovereign Islands, which is also going under the hammer on Sunday. Floor to ceiling windows offer the best views from the bedroom. Ray White Queensland chief auctioneer Mitch Peereboom in action.MORE than 50 Gold Coast homes will go under the hammer this weekend in an auction event being held to leverage off the region’s exposure during the Commonwealth Games.Hundreds of people are expected at Ray White Queensland’s Gold Coast Auction Spectacular on Sunday.Houses, apartments and land are among the millions of dollars worth of property on offer at Main Beach’s Sheraton Grand Mirage from 10am.Ray White Queensland chief auctioneer Mitch Peereboom said it was a strategic decision to hold the event this weekend. One of the bedrooms. Ray White Queensland chief auctioneer Mitch Peereboom in action. The property at 112 Cypress Terrace, Palm Beach, is among the more than 50 properties that will go to auction on Sunday.center_img It has an open plan living area.More from news02:37International architect Desmond Brooks selling luxury beach villa18 hours ago02:37Gold Coast property: Sovereign Islands mega mansion hits market with $16m price tag2 days ago“As a group, our Ray White offices on the Gold Coast saw a real opportunity to capture the market’s attention during the Commonwealth Games and capitalise on the interest of buyers from all over the world,” he said.“An auction event of this size allows us to showcase so many different types of properties from all over the Gold Coast to potential buyers.”He said they had received a big response from buyers already, with some properties that had been scheduled to go to auction on the day already sold. The bathroom is heavenly with a window that extends into a skylight.Among those listed is a waterfront property at 15 Queen Anne Ct, Sovereign Islands, which has attracted plenty of attention.Ray White Sovereign Islands principal Ali Mian said interest in the prestige listing was coming from interstate and local buyers.“It’s prime land, north-facing with good views, a pontoon suitable for a large boat, and a beautiful house in a quiet position so there’s a lot going for it,” he said. The outdoor entertaining area overlooks the pool. The home theatre is the perfect spot for movie marathons.The three-level house included two master bedrooms, an impressive sports bar and media room, indoor and outdoor entertaining areas, and a lift.Mr Mian said buyers would have a wide variety of properties to choose from at the event. Top 3 prestige properties going to auction: – 15 Queen Anne Court, Sovereign Islands – 112 Cypress Tce, Palm Beach – 77 Commodore Drive, Paradise Waterslast_img read more

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Luxury in the treetops

October 6, 2020 | By admin | No Comments | Filed in: zuwmcftfp.

first_img20/18 High Vista Drv, Mount Louisa“A family retreat that brought the outdoors and indoors into one.More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020“High Vista Drive has a strong sense of community where neighbours become friends and it was a place where our children felt safe.“The rock walls, landscaping and natural vegetation provided a safe haven to the local wildlife.”The home was architecturally designed by Danny Oberski who was familiar with life in the tropics. 20/18 High Vista Drv, Mount Louisa“From the house you can see right out to Magnetic Island, Cleveland Bay and Douglas.“The house also has solar because it was the owner’s dream to be energy neutral and off the grid.” 20/18 High Vista Drv, Mount LouisaThe pole home has five bedrooms, three bathrooms, double car accommodation and is on 1.5 acres of land high on Mount Louisa.The owners of the house said their vision was for a family home that would capture the essence of living in North Queensland.“We wanted a home that used its elevation and captured the panoramic views north, south, east and west resulting in beautiful outlooks from every room. 20/18 High Vista Drv, Mount LouisaGlass has been used extensively throughout the home to maximise natural light and views while louvres in the bedrooms capture breezes.The swimming pool is positioned between two of the pavilions and is visible from the kitchen. It also has a waterfall feature that is illuminated with blue neon lights.Ray White selling agent Julie Mahoney said the home offered great value for money at the high end of the market because it would most likely sell at below the replacement cost.“You couldn’t recreate it,” she said. “It’s in an absolutely amazing spot because the owners purchased the block straight from the developer and they got one of the best blocks,” she said.center_img 20/18 High Vista Drv, Mount LouisaThe pole home has soaring steel beams which meant manual excavation was kept to a minimum to help maintain the natural rock formation of the land.The home is made up of three pavilions which provide private sanctuaries but also allow space for a family to enjoy time together.The open-plan living areas flow out to the oversized, covered timber decks through bi-fold and french doors. 20/18 High Vista Drv, Mount LouisaPERCHED among the treetops of Mount Louisa some of the best views in Townsville can be seen from the decks of this luxury home.20/18 High Vista Drive will be sold under the hammer on May 8.last_img read more

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Holland park five bedder to go under the hammer

October 6, 2020 | By admin | No Comments | Filed in: oioiyzvto.

first_imgThe kitchen is spacious.Ms Dwyer said her kids grew up and went to school in the area, saying the suburb had a “lovely family atmosphere”.The single-level home is on a 650sq m fully fenced block, with hedges surrounding the property. There is an Ozone mineral spa.At the back of the home is an open plan kitchen, living and dining area which opens out to a deck, Ozone mineral spa and the backyard. One of the home’s bathrooms.Ms Dwyer said the size of the home made entertaining a large number of people both comfortable and practical, with her having special memories of having the family over for Christmas several years ago. Entertain outside on the deck.“Before my dad went into a nursing home two years ago, we had the whole family here for Christmas,” Ms Dwyer said.“There were 60 adults and we had the backyard cricket match while my father sat and watched with my mother.“Because of the size of the house it was easy to entertain.” There are polished wooden floorboards throughout.More from newsCrowd expected as mega estate goes under the hammer7 Aug 2020Hard work, resourcefulness and $17k bring old Ipswich home back to life20 Apr 2020There are five bedrooms, all at the front of the house and four with built in wardrobes.The master bedroom is Ms Dwyer’s favourite area of the home, with an ensuite and shared access to a sunroom.“From my bedroom you can look out across the deck and spa out to the backyard,” she said.“I love it.” The home at 12 Murton Ave, Holland Park, will go under the hammer this Sunday.TRICIA Dwyer will be saying goodbye to Holland Park after living in the suburb for 35 years.The home at 12 Murton Ave is the third she has lived at in the suburb, moving there in 2009, but she has decided it is time to downsize.“My grandmother moved to Holland Park in the ’50s and we used to visit all the time,” Ms Dwyer said.“It’s close to shops, public transport and has lovely parks which is why I moved here.” The floorplan of 12 Murton Ave, Holland Park.Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 3:17Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -3:17 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels576p576p480p480p256p256p228p228pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenMichelle Hele’s May market wrap03:17last_img read more

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French under fire from Korea

October 1, 2020 | By admin | No Comments | Filed in: ercinbyyl.

first_imgA BITTER row has erupted between France and South Korea that could see the 431 km Seoul – Pusan TGV line delayed by more than the four years already likely because of problems with civil engineering work (RG 12.96 p777). The problem stems from a decision last December by France’s privatisation commission not to permit the sale of the Thomson Multimedia group to Korea’s Daewoo Electronics.The Koreans took it badly, demanding renegotiation of contracts with French suppliers – such as the deal which sees GEC Alsthom and its partners building prototype trains and providing know-how for Korean companies to build their own TGVs (RG 11.96 p735). French emissaries travelled to Seoul to try and smooth things over, but they returned empty-handed. Worse, the Koreans accused the French of ’yellow racism’, with President Kim Young Sam saying that France could not be trusted to keep its word. The French have not exactly handled the situation with aplomb. It seems that the Thomson-Daewoo deal was announced before the privatisation commission had given its ruling, and attempts to explain to the Koreans that the commission was an independent body met with incomprehension. Calling off the deal was seen as revenge for Korea’s previous cancellation of air defence contracts in favour of American companies that had allegedly offered hefty bribes to the then President Roh Tae Woo, now serving a gaol sentence for corruption.The freak cold weather in France in early January that immobilised TGVs for hours (RG 2.97 p82) prompted the Koreans to set up a formal investigation to see if TGVs suffered from ’critical defects’. They also took the opportunity to suggest that the Seoul – Pusan TGV contract be renegotiated. This may turn out to be cover for further problems with the civil engineering work – there are indications that the 300 km/h line may not be ready until 2010. olast_img read more

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The bottom line can’t be bought

October 1, 2020 | By admin | No Comments | Filed in: zuwcxmlkn.

first_imgINTRO: Reviewing industry developments in the rail market over the past decade, Andrew Saxe* finds that acquisitions have not boosted profits for the major suppliersBYLINE: * Andrew Saxe is an occasional commentator on the world railway supply industry for Railway Gazette International; he can be contacted in Boston, Massachusetts, at +1 617 454 4372. Mr Saxe wishes to emphasise that this article is based exclusively on publicly available materialI N THE LAST eight years, Adtranz (ABB/AEG), Siemens, GEC Alsthom and Bombardier have bought up a long list of independent manufacturers and grown immensely. Yet all of them continue to suffer disappointing financial results, while a selected group of independent suppliers has been doing surprisingly well. It may now be time for the major groups to stop the acquisition process, cut capacity, and look to boosting profits by whatever means they can. Additionally, industry observers may need to revise their judgment that the independents are doomed to the grey twilight of financial misery until they too are eventually swallowed up by the industry giants.To be fair to the strategists at the major suppliers, the wave of acquisitions since 1989-90 has succeeded in making these companies dominant players in the world industry. Table I shows the current world market share for mechanical manufacture. As GEC Alsthom builds South Korea’s first high-speed train, Adtranz equips new metros in China and Turkey, and Siemens delivers trams to Denver and St Louis, no-one can doubt that these suppliers have developed a uniquely world-wide presence, far outstripping their American and Japanese rivals in breadth and depth. Except for the two locomotive giants General Electric and General Motors and a few freight wagon manufacturers, the US boasts no major suppliers. And whilst the Japanese continue to develop impressive high speed trains, they simply have not been able to establish a major presence outside their own country.Poor profitabilityBut growing market share has not improved profitability. In 1996 the results for the major suppliers remained unimpressive (Table II). Adtranz reported operating profit rather than earnings before taxes, so its numbers are difficult to compare with other companies. But basically, sales grew a modest 3% from ABB’s and AEG’s combined 1995 total and profits were unremarkable.Operating profit was limited to 4% and Adtranz reported that its return on employed capital was only 8% against a target of 12%. Additionally, the company was embarrassed last year by problems with its VT611 tilting regional trainsets for German Railway.In 1996 Siemens eradicated its 1995 loss of DM128m (Ecu68m) by making a small profit of DM19m (Ecu10m). Yet Siemens Verkehrstechnik’s President Wolfram O Martinsen acknowledged in March that the division may post a loss of around DM80m (Ecu41m) for 1997.GEC Alsthom Transport, as a division, does not report its financial results, but some of its subsidiaries do, and they show a mixed picture. The French operations reported a 5% profit before tax, but sales actually decreased 13% from 1994-95 and were then bolstered by adding Fr539m (Ecu84m) for changes in inventory for work in progress. Under ’Other Information’ in the annual report for the French operations are numbers showing that the affiliated Spanish operations lost money in 1996, as they did in 1995 and 1994. In Germany, GEC Alsthom’s Linke-Hofmann-Busch reported low but improved profitability of 2% before tax.Bombardier reported a return of 4%, down from 6·4% in 1995-96 on flat sales. But there are two stories here. North American activities will be kept humming by Amtrak’s large order for American Flyer high-speed trains to serve the Washington – Boston corridor, and by the recently-awarded US$921m (Ecu743m) contract to supply metro cars for the New York City subway. By contrast, Bombardier Eurorail was forced to write off C$155m (Ecu87m) in 1995 for Eurotunnel shares received as compensation for shuttle trains built by BN. A recent press release also acknowledged that Eurorail’s Austrian and Belgian operations are losing money on tram contracts.Independents thrivingAnd the independents? We are used to tales about the vulnerability of independents, and there is no doubt that many of them are plagued by problems. But several are surviving, or even thriving. Between 1992 and 1995 CAF’s sales grew by 12% a year, and its income before tax by 7·7%. In 1995 exports comprised a whopping 66% of CAF’s order book. Talgo’s sales in 1995 slumped by nearly 32% compared to the year before, and their profitability before tax slid from 7·9% to 4·8% – yet this still leaves them more profitable than all of the major suppliers. Deutsche Waggonbau has revived after a near-death experience. In the early 1990s, the company was clobbered by the collapse of its business with the Russian railways. Sales dived from DM2bn to half that figure when the German Finance Ministry refused to continue export credits for Russia to purchase rolling stock. In 1994 and 1995 DWA had operating losses totalling DM735m (Ecu386m) before federal subsidies shored them up again. Now privately owned by Advent International, the company apparently reduced its operating losses in 1996, although final results were not available when this article went to press. CEO Peter Witt has told the press that he expects to be profitable for 1997.Tenets in questionThe results of these rail suppliers over several years begin to bring into question two widely held tenets: you can buy your way to profit, and you cannot be profitable without being a systems integrator. Neither of these assertions now seems to be totally correct.Whilst many of the acquisitions by major groups have brought skills, market share, and expanded presence, they have also brought financial headaches. GEC Alsthom Transport’s acquisition of Ateinsa, Maquinista and Meinfesa in 1989-91 positioned it to win the AVE contract, but three years of losses by the Spanish operation can have brought no joy to the division’s bottom line. Linke-Hofmann-Busch too has given GEC Alsthom access to new markets, new skills and exciting train designs like the København S-bane EMU, but it remains slightly less profitable than the core French operations.At Adtranz, the limited availability of published figures makes it difficult to determine which operations are profitable and which are not. However, comparison of the 1996 and 1995 results suggests that ABB’s 7·2% operating profit in 1995 was diluted by its merger with AEG Bahnsysteme. Ironically, Kaare Vagner made more money with just ABB Transportation in 1995 (Ecu160m) than he could with the combined Adtranz operations in 1996 (Ecu129m). Fortunately for ABB shareholders, it was Daimler-Benz who paid to merge AEG with ABB and not the other way around.For their part, Bombardier shareholders might wonder what financial benefit they have received from the transportation division’s rapid expansion into Europe. The expansion has undoubtedly made Bombardier a major player in the industry. Nevertheless, over the last five years Bombardier Transportation earned C$134m (Ecu72·4m) on sales totalling C$7bn (Ecu 4·3bn), or just 2% before tax. Add in the C$155m write-down of Eurotunnel shares, and the results dip below break even – compared to a five-year accumulated return of 5% for Bombardier’s Aerospace business and 8% for its Motorised Consumer Products.Siemens’ Duewag subsidiary provides a more transparent example of the problems that can occur with acquisitions, because Duewag continues to report its own results. In 1990 Siemens bought 87% of the Duewag shares, increasing this to 96% in 1991. Since the end of 1991 Siemens has poured a hefty DM163m (Ecu85m) into capital investments at Duewag, DM68m (Ecu35m) more than the depreciation over the same period.In 1992 Siemens Verkehrstechnik pumped an additional DM42·75m (Ecu21m) in equity to shore up Duewag’s balance sheet. In return for all this effort, Duewag has lost an accumulated DM30·8m (Ecu19m) since October 1991.Bad management? Before criticising, it is necessary to consider that in the course of the Duewag restructuring, Siemens has boosted this subsidiary’s revenue per employee from Ecu91000 in 1991 to Ecu161000 just five years later, an impressive annual gain of 15%! In the same period GEC Alsthom’s Transport division increased its revenue per employee from Ecu79000 to Ecu111000, and ABB/Adtranz Ecu125 000 to Ecu146 000.Overcapacity cuts pricesProductivity increases of that magnitude should produce fat profits, but as industry insiders will tell you sharp declines in prices have wiped out hard-won gains from restructuring. The reason for the collapse in prices is twofold. National railways and urban public transport operators are under extreme pressure to cut spending, and overcapacity in the industry has allowed purchasers to demand – and get – price cuts of as much as 30% to 40%.This goes right to the heart of the matter. Suppliers will not be able to stabilise prices, let alone increase them, while the industry maintains a high level of overcapacity. There have been some attempts to cut capacity. ABB closed its York plant when British orders fell away, Siemens shut its Essen plant, AEG its works at Berlin-Nonnendamm, and DWA the famed Dessau wagon plant. However, still more needs to be done. Acquisitions and restructuring have maintained capacity within the industry. For instance, might Waggonfabrik Talbot or Matra Transport eventually have gone out of business, if they had not been bought by Bombardier and Siemens respectively? It is impossible to know. Will Adtranz’s recently-acquired Pafawag subsidiary with its 1600 employees build just for the Polish market after Adtranz finishes its planned Ecu23m investment in the plant? Finally, some groups are actually continuing to add capacity, through new plants such as the Adtranz operation at Berlin-Pankow, and through efforts by all companies to boost productivity, which enables each plant to build more trains with the same resources.Which way now?Is there a way out of this maze, apart from the global quest for new markets and innovative service packages, like lifetime maintenance contracts or BOT turnkey projects? A company like CAF shows that it is possible to be a profitable international player without numerous factories and systems capability. And Vagner’s record at ABB in the first half of the decade shows that losses can be turned into respectable profits even in the largest and most international of companies. Money can be made in this industry. But how? Clearly, acquisition is not the simple answer. No supplier can buy its way out of the red. Healthy returns come from focusing on making every discrete activity profitable, and eliminating excess capacity wherever it exists in the organisation. Intelligent rationalisation on everyone’s part, and in complete self-interest, should bring the overall industry capacity back in line with demand, and put a floor under falling prices that will allow future increases in productivity to pay off on the bottom line. oTABLE: Table I. Market share of mechanical work for orders placed since 1990 (%) Adtranz Siemens GEC Alsthom Bombardier Italians Japanese Americans OthersHigh-speed trains 11 15 43 3 13 12 – 3EMU/DMU cars 18 12 12 12 2 10 – 34Light rail/trams 19 28 12 11 6 4 – 201Metro vehicles 15 6 21 12 4 18 2 22Commuter rail 8 6 5 34 1 8 16 222Locomotives 14 8 12 – 4 n/a 46 161. 11% share for Tatra for LRVs 2. 15% share for DWA for commuterTABLE: Table II. Profitability of selected railway suppliers Year Revenue Earnings Revenue per (Ecu m) before tax* employee % of sales (Ecu 000)Adtranz 1996 3196 4·0 146ABB 1995 2228 7·2 141AEG 1995 869 -6·0 117Siemens 1996 2282 0·4 176Duewag 1996 417 0·4 161GEC Alsthom Trans 1996 1901 111GEC AT France 1996 1062 5·0 127GEC AT Spain 1996 316 -2·8 -LHB 1996 180 1·9 96Bombardier 1997 937 4·0 122DWA 1996 485 n/a 108CAF 1995 268 4·5 101Talgo 1995 65 4·8 83* Except Adtranz and ABB which reported Operating Profit Italics indicate independent estimate.CAPTION: Head to head. President of Adtranz Kaare Vagner (left) has overseen the merger of the railway businesses of ABB and AEG, creating a strong international presence. Similarly, Wolfram Martinsen of Siemens has secured a world position for his company through numerous acquisitions. Yet neither group has been able to drive up profitabilityLa rentabilité ne s’achète pasAu cours de ces dix dernières années, un petit groupe de grands fournisseurs de matériel roulant a racheté de nombreux plus petits fabricants indépendants. Il s’ensuit que le marché a été dominé par une poignée de groupes ’d’intégrateurs de systèmes’ ayant une vaste gamme de produits innovateurs mais les résultats financiers ont été décevants. Par contre plusieurs constructeurs de moindre envergure ont fait des affaires plus rentables dans une époque olast_img read more

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Publications

October 1, 2020 | By admin | No Comments | Filed in: ekyaaglzf.

first_imgJane’s Urban Transport Systems 1997-98Five ex-Soviet cities and Bamako, Mali, are the new city entries in the 16th edition of this illustrated annual. There are 12 industry sections featuring numerous additional companies, but there have also been many deletions. Detailed coverage of the bewildering variety of complete vehicles, components and electrical equipment for both rail and road vehicles is provided.ú235 from Jane’s Information Group, Sentinel House, 163 Brighton Road, Coulsdon, Surrey, Great Britain, CR52NH.Fax: +44 181 700 3751Syseca GlossaryThis bilingual (French/English) glossary of computer terminology is designed as a guide to the history and products of French company Syseca, which has supplied centralised control systems to a number of metro and light rail networks. It also serves as a general glossary of computing terms associated with engineering.Syseca, 66-68 avenue Pierre-Brossolette, 92247 Malakoff Cedex, France.Fax: +33 1 41 48 00 10Railway Trends 1997 (Canada)The 40-page (20 in English and 20 in French) fifth edition of Railway Trends published by the Railway Association of Canada provides basic statistics on Canada’s railways for the nine years to December 1996. Data is included for the new secondary railways which have been spawned by the sales of former CP and CN lines. Excluded are statistics for commuter passenger, CN and CP operations outside Canada and charges incurred by CN and CP’s recent restructuring.Railway Association of Canada,800 Boulevard René-Lévesque Ouest, Suite 1105, Montréal, Québec, Canada H3B 1X9. Fax: +1 514 879 1522last_img read more

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