) has partnered with Australia's largest water utility, Sydney
Water, to replace old meters with Itron's high efficiency ones.
These meters will serve Sydney Water's residential and commercial
customers in Sydney.
Sydney Water supplies about 500 billion liters of water annually
catering to more than 4.6 million people. The installation of the
new high efficiency Itron meters will take three years and will
help Sydney Water to meet rigorous national water standards.
Down under, Itron has been proactive in solving water providers'
supply and distribution challenges. Itron's other contracts
in Australia are with the Town of Port Douglas, the City of
Kalgoorlie, City West Water, South East Water, Yarra Valley Water
and Barwon Water.
In February 2012, Itron was chosen by the Cairns Regional Council,
under the Port Douglas Demand Management Campaign, to deploy its
advanced water metering solution. This follows last year's
full-scale deployment of the same system in the city of Kalgoorlie.
Over the course of the six-month project, Itron is implementing a
system that will help the Cairns Regional Council track water
consumption and optimize supply according to demand.
Itron is restructuring its manufacturing operations for increasing
efficiency and lowering manufacturing cost. Under the restructuring
plans, Itron will close projects or consolidate several
manufacturing facilities. The company expects annualized cost
savings of $15 million in 2012; projected to grow to $30 million in
2013. However, restructuring costs will weigh on margins in 2012
and early 2013. We maintain our Neutral recommendation on Itron in
conformity with the Zacks #3 Rank (short-term Hold rating) held by
the stock over the near term.
Headquartered in Liberty Lake, Washington, Itron Inc. is one of the
principal technology providers to the energy and water industries
worldwide. It produces electricity, gas, water, and heat meters,
data collection and utility software solutions along with various
other associated metering products for residential, commercial and
industrial and transmission and distribution) customers. It has two
reportable segments: Itron North America and Itron International.
Itron competes with
General Electric Company
Cooper Industries Ltd.
Badger Meter Inc.
BADGER METER (BMI): Free Stock Analysis Report
COOPER INDS PLC (CBE): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis Report
ITRON INC (ITRI): Free Stock Analysis Report
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