Itron, Inc. ( ITRI )
recently announced that it has joined forces with the Water
Corporation of Australia to install 13,000 smart meters across the
Pilbara region of Western Australia. The installation will be
carried out over the next year and is consistent with the region's
new water efficiency program, which targets to save one billion
liters of water annually.
This follows the successful installation of the same system in
the city of Kalgoorlie. The Pilbara region encompasses the
townships of Port and South Hedland, Karratha, Roebourne, Wickham
and Point Samson.
The Itron smart water meters will record and report water flow
on an hourly basis. This data will facilitate Water Corporation to
detect leaks and spot abnormal increases in demand. Going forward,
this data will be useful to compare hourly readings on a
week-by-week or month-by-month timeframe to determine usage trends
and identify potential areas to target conservation. The customers
will also have access to information, which will help them
understand how to cut down their usage and save money.
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, City West Water, South East
Water, Yarra Valley Water and Barwon Water. Itron is primarily
committed to solving water providers' supply and distribution
challenges in Australia. In July this year, Itron partnered with
Sydney Water to replace old meters with Itron's high efficiency
ones, which will serve the latter's residential and commercial
customers in Sydney.
Itron is restructuring its manufacturing operations to increase
efficiency and lower manufacturing cost. Under the restructuring
plans, Itron will close projects or consolidate several
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, industrial, transmission and distribution
It has two reportable segments: Itron North America and Itron
International. Itron competes with General Electric
Company ( GE ), Cooper Industries Ltd. (
and Badger Meter Inc. ( BMI
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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