Latin America Region Continues Growth

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1 August 2006 An Informative Newswire for Employees of AMECO. Issue 18 Latin America Region Continues Growth Since setting up shop 12 years ago, AMECO s Latin America operations have quickly grown to represent a large portion of the company s overall revenue. Tom Zabel, Vice President of the Latin America region, said AMECO s market share should continue to increase from Mexico to the southern tip of Chile. AMECO currently has active operations and presence in Mexico, Puerto Rico, Chile, Peru, and Venezuela and will open a branch in Guatemala by the end of AMECO is also analyzing opportunities to open operations in other countries within Latin America. AMECO has successfully used a strategy of partnering with or acquiring local companies to help establish itself in new locations. These relationships helped AMECO personnel develop local contacts and get up to speed quickly on finance, tax, and customs/duty regulations that vary significantly from country to country. In the fall of 2004 the Latin America regional management team created a strategic growth plan for the region. The plan included a lengthy narrative that discussed the unique opportunities and challenges they would face in each country. In This Issue Grupo ICA, Others Key to Mexico Growth 2 Murfin, Jones Eager to Learn, Help Grow Business 2-3 Service Pins 4 Letter From the President 5 Safety Awards 6 Revenue from operations in Mexico continues to represent a substantial portion of AMECO s bottom line. Meanwhile, the Venezuelan office recently received its first major contract award and new awards are imminent in Peru. We will be positively impacted by the strength of the economies in Mexico and Chile and the current construction boom in Peru and Venezuela, Zabel added. We re constantly reviewing and updating our strategic plan as we want to retain our distribution business in Mexico and Puerto Rico and continue to focus on Site Services SM and Fleet Outsourcing SM in all countries in the region. Zabel, who has spent almost two years living in Mexico City and has nine years experience in Latin America, said booming commodity prices in much of the region have led to the development of large infrastructure projects. Prices of gold, copper, and other commodities going through the roof, has made it possible to get financing for highways, bridges, expanded mining operations, etc., Zabel said. One such recent project was the 750- megawatt El Cajon hydroelectric plant near Tepic, Nayarit, Mexico, which has generated more than $30 million in revenue for AMECO over the past three years. The project was one of the largest public infrastructure projects that had been undertaken in Mexico within recent years. AMECO has almost 950 employees and four ex-pats in the Latin America region. Zabel said there would be more than enough work to keep them busy because, in addition to the planned mining, oil production, and infrastructure projects, the average age of the equipment in the region is typically more than 25 years. We intend to be the preferred equipment services provider and employer in this region. Tom Zabel Vice President, Sales, Latin America Region 1

2 Grupo ICA, Others Key to Mexico Growth Since opening its first office there in 1994, AMECO has become the second largest full-service equipment company in Mexico. AMECO Mexico has grown to include 12 commercial branches and equipment depots. Much of that growth is due to its work with Grupo ICA, the largest construction company in Mexico. We have a great relationship with them, said Victor Martinez, Director of Sales in Mexico and Central America. It s a relationship that has been built slowly over time and we have had plenty of successes with them. About 70 percent of AMECO Mexico s business is providing distribution. The other 30 percent consists of typical fleet outsourcing and site services on a project-by-project basis. Martinez said they serve about 25 different companies in a country where the construction business has changed drastically in the past several years. Companies in Mexico used to be comprised of assets, Martinez said. They had massive amounts of debt because they purchased all their equipment and when the utilization dropped they were stuck. Especially when they bought a piece of equipment with the intention of paying it off in three years and instead their client wanted the project completed in two years. There was no way they could pay it off in just two years or less. Today, Martinez said, AMECO has about 20 different ongoing projects with Grupo ICA and ICA Fluor including work on power plants, petrochemical facilities, highways, and bridges. AMECO s work with Grupo ICA includes special pricing and trusted relationships built over the past several years, Martinez said. We see ourselves as a partner to Grupo ICA, Martinez said. Sometimes we have to be flexible and sometimes we have to be a little tough. It s a solid relationship that we will continue to build upon in the coming years. Murfin, Jones, Smith Eager to Learn, Help Grow Business Three recent additions to the AMECO team immediately rolled up their sleeves and got to work. Mark Murfin, Vice President of Sales & Marketing, Tom Jones, VP Operations for the North America/Caribbean region, and Dean Smith, VP Global Asset Management, are quickly making a difference. Murfin Says People Make the Company What makes a good leader? A good leader must be able to clearly set and communicate the strategy and goals of the organization, be it for the entire company, a specific site, or a department. They must make sure that the right people are in the right jobs and that everyone understands how their individual performances are keys to achieving the goals of the company. From there a good leader keeps the organization on track, is committed to developing people, becomes personally engaged, leads by example, and motivates the organization. What one thing differentiates AMECO from its competitors? Of course the first thing that comes to mind is the people. In the three months that I have been here, I have been continually impressed by the work ethic, quality, and innovation displayed by the people here. From a product offering perspective, AMECO truly has a unique offering. Our ability to package the product, service, and quality as we do is not offered by any other company. In the end what really makes us unique is the unrelenting commitment to safety and customer satisfaction. AMECO s culture in these areas really sets the company apart from all others. How has your previous work experience prepared you for your current position? This is a good question since my experience has not been with AMECO s specific industry. My career of 30-plus years has been in the business segment of providing outsourcing in the area of equipment and services. The principles are the same develop and deliver innovative solutions for customers at a price that is good for AMECO and good for the customer. We literally touch customers and prospects all over the world. The challenge of my job is to help focus the great resources and people of AMECO on the right opportunities. That means opportunities where we can bring value to our customers, provide a safe working environment for our employees and their families, and provide a good return for the shareholders of the company. Wife and children? My wife s name is Deirdre. I have a son, Andrew, in graduate school at the University of Florida and a daughter, Allie, living in Melbourne, Florida. What is the last book you read? You are probably looking for some business or professional improvement book. Sorry, it was the Richard Sharpe series by Bernard Cornwell. What was your first job? Shingle and hot-tar roofs during my high school and college summers. How has someone served as a mentor to you? I always think of a customer that I had back in the 1980s, Bob Lomas with Benjamin Moore Paints. Bob always championed me within his industry, counseled me on career decisions, and helped me understand how to effectively manage a customer relationship that was diverse in geography and personalities. Mark has global responsibility for sales, marketing, and growth strategy development with emphasis on refining AMECO s growth strategy and developing a strong global pipeline of Site Services SM and Fleet Outsourcing SM opportunities. 2

3 He has more than 28 years of diversified leadership experience with Ryder Systems, Inc., and Trinity Industries, Inc. He successfully spearheaded the development of international markets and was responsible for aggressive market penetration, start-up operations, joint ventures, and alliances throughout North America, Europe, Argentina and Brazil. In his most recent position as Senior Vice President of Ruan, Inc., a provider of supply chain solutions, Mark s responsibilities included chief marketing officer, direct P&L responsibility for Ruan Certified Brokerage Services, key account management, and all sales and marketing initiatives. Jones Working to Incorporate Best Practices What makes a good leader? A person who guides and/or inspires others. Someone who understands the vision of the company, evaluates the team within their organization, identifies the top performers, communicates the vision, supplies the incentive and resources to follow that vision, and empowers those people to accomplish those goals. What one thing differentiates AMECO from its competitors? The ability to be flexible as needs of the client change and give value added solutions that enable our clients to focus on their core competencies. A lot of our competitors are boxed in by their business model and don t look outside of their core strategy for opportunities. How has your previous work experience prepared you for your current position? I have been in the equipment industry for more than 16 years and have seen this business managed in several different ways. Taking those best practices and incorporating them within the existing AMECO culture will allow the North American/Caribbean region to continue its successful growth. Secondly, I ve managed regions in other organizations and the concept is the same. Identify your top performers and continue to train and incentivize for retention purposes. Recruiting is an ongoing process to develop bench strength and will allow you to upgrade your talent pool and build for the future. Also, communication is critical in any organization. Wife and children? My wife Susan and I have a daughter, Lindsay, and a son, Patrick. What is the last book you read? Real Money by Jim Kramer What was your first job? While living in Panama in the 4th grade I delivered newspapers in Panama City. How has someone served as a mentor to you? Bill Traylor, who was the previous VP of U.S. Dealerships with AMECO, was a mentor to me. Bill truly embraced the mentoring program with AMECO and put me through grueling financial training sessions. Every six weeks I was required to go through a Q and A lightning round until I was thoroughly versed in P and L and balance sheet knowledge. This helped me tremendously during my time with United Rentals and now with AMECO. Tom, as VP Operations for the North America/Caribbean region, rejoins AMECO after six years with United Rentals. Tom s most recent role was District Manager - Los Angeles, the third largest district in United Rentals with more than 300 employees, 12 locations, and more than $113 million of total assets. Smith to Focus on Improving Fleet Planning What makes a good leader? Honesty, ability to inspire others, adaptability, and, most importantly, having a great team. What one thing differentiates AMECO from its competitors? AMECO s flexibility to think outside of the box. This differentiates us from all major rental companies. No national rental company can provide the scope of services AMECO offers. How has your previous work experience prepared you for your current position? I have spent 16 years in the commercial equipment rental business. Basic knowledge of rental industry and fleet management are the two key areas. Wife and children? My wife Jennifer and I have a son, Sam, who is 6 months old. What is your favorite hobby? Golf and cooking What was your first job? Summer job - landscaping Out of college - Sales coordinator for Hertz Equipment Rental How has someone served as a mentor to you? Joe Dixon, formerly of Hertz Equipment Rental and Home Depot and is currently with JLG, has served as a mentor to me throughout my entire professional career in the equipment rental industry. He instilled in me the general principles of the rental industry and how to apply them to achieve efficiency in this industry. His work ethic and passion for the industry has also been an inspiration. Dean brings over 16 years of industry experience in branch management, operations and fleet management. Dean has held various positions with Hertz Equipment and most recently Home Depot. As Global Asset Manager, Dean will focus on improving fleet planning and forecasting to help leverage global spend and enhance relationships with key equipment manufacturers. 3

4 Our Greatest Assets, Engaged and Talented People S E R V I C E P I N S January - June 2006 January Vince Mahon Manuel Ivan Acuña Juica Gabriel Eduardo Aguirre Miranda Hernan Alexis Alvarado Zuñiga Hellman Alfredo Bastias Caceres Felipe Alejandro Besa Tudela Segundo Ruben Bustamante Contreras Carlos Humberto Caimanque Cerda Favian Cristobal Castillo Gamboa Oscar Alejandro Chang Jeraldo Victor Manuel Cornejo Leiva Manuel Amabri Cuello Gonzalez Cristian Alonso Escobar Dinamarca Mauricio Alejandro Espinoza Halabi Francesco Jeronimo Fasce Duran Benjamin Franklin Flores Aguayo Wilson Hugo Gomez Mercado Marcelo Alejandro Gonzalez Bijman Hernan Andres Hernandez Trabuco Arturo Ivan Maldonado Valderrama Guillermo Jose Martinez Gutierrez Damian Enrique Maturana Araya Leonardo David Medel Rivera Patricio Antonio Moya Castillo Luis Antonio Nuñez Artigas Mario Eduardo Perez Ramos Franco Antonio Rodriguez Cifuentes Miguel Angel Rodriguez Echeverria Alamiro Nestor Rojas Zarricueta Freddy Enrique Saavedra Zepeda Zuleyma Medina Arnoldo Ramirez Miguel Rivas Maria de Lourdes Trujillo Michael Huckabee Francisco Javier Cataldo Diaz Cesar Patricio Cruz Alvarado Manuel de la Riva Ruben Sanchez Cynthia D Seyller Jennifer Whitfield Shirley Giesbrecht Gerardo Guillermo Espinoza Tanya Morales 30 Years Susan Kinkennon February Marcial Vazquez Juan Enrique Altamirano Valdivia Roberto Luis Carvajal Venegas Juan Segundo Castillo Etchegaray Julio Bladimir Gonzalez Alcota Pablo Andres Lasnibat Zepeda Ricardo German Mondaca Rivera Mauricio Fernando Perez Villalobos Haylle Erwin Santos Veliz Florentino Ignacio Gomez Ledezma Mario Rafael Becerra Catarry Nestor Gerardo Nuñez Michael Andres Espinoza Canales Fernando Javier Bugueño Cortes Sergio Patricio Toledo Cabrera Rob Meyers Norbert Fisher Dale Hennigar Manuel Francisco Alarcòn Silva Juan Lorenzo Huerta Tapia Juvencio De La Rosa Victor Hugo Vega Herrera Aldo Alejandro Ortega Escobar Sara Ponce Juan Barcenas Nelson Arturo Alvarado Toro Pedro Urrutia Rojas Gaston Orlando Morales Hidalgo Jose Gabriel Yañez Robles Sergio Sanchez Juan Hector Alcayaga Fabrehga Emilio Vargas Julio Enrique Hoyos Lizardo Quezada Reyes Alfredo Sanchez Juan Salomón Atala Tedmund Hurlbut 15 Years Benjamin Sanchez Tasaduk Adamjee 30 Years Eugenio Saez March Ricardo Audenago Alcayaga Mallea Ivo Rodrigo Alfaro Morgado Manuel Alejandro Alvarez Torres Fernando Alexis Avila Torres Waldo del Carmen Castillo Rojo Pedro Miguel Cortes Rivera Cristian Miguel Gonzalez Galleguillos Mario Antonio Gonzalez Jimenez Jorge Hernan Gonzalez Rojas Eduardo Enrique Perez Olivares Francisco Antonio Ponce Moscoso Guillermo Julio Soto Lynch Claudio Enrique Soto Rivera Yazmin del Carmen Varas Varas Jose Enrique Veragua Saez Jose Humberto Ayluardo Isela Bernal Vicente Cruz Jose Leonel Hernandez Roberto Carlos Huerta Carlos Morales Robin Arooji Benjamin Davis Robin Frymire Lorenzo Cortes Valdes Javier Fernandez Montecinos Román González Concha Manuel Olivares Aguilera Adrian Lombera Mauricio Medina Orlando Perez Mario Pineda Angel Alvarez Migdalia Roman Mario Garcia Briseida Pereda Donald Wooten Tomás Albornoz Rodriguez Jerry Mason James McCollum 25 Years Pamela Duncan Diane Semones April Raymond Campbell Joseph Parent Richard Yenaro Alcayaga Alvarez Emilio Andrés Aravena Rojas Axel Mauricio Bauer Callejas Eliseo Esteban Benitez Garcia Miguel Angel Bonilla Tabilo Juan Angel Cancino Barros Martín Segundo Castillo Alvarez Jorge Arturo Cortés Alvarez Claudio Andrés Flores Pasten Maritza Paulina Garay Morales Ernest Leonard Hennings Berríos Guillermo Claudio Laferte Anes Luis Alejandro Leon Milla Oscar Domingo Loyola Hurtado Mario Francisco Morales Novoa Alejandro Pedro Pastenes Idiaquez Andrés Francisco Pizarro Arriagada Juan Carlos Retamales Díaz Gonzalo Alejandro Ríos Virgilio Marco Antonio Torres Guerra Juan Francisco Torres Mellado Pedro Segundo Valencia Peralta Cesar Abraham Castrejon Raul Garcia Sergio Perez Charles Campbell Pamela Durham Aleksandr Klochko Joshua McConnell John Moore Leila Shipman Theresa Vaughn José Dubo Carmona Yerko Yuri Romero Soto Ransford Bennett Warren Blackstock Fitzroy Breakingridge Norval Brown Richard Chin Adrian Clarke Devon Cole Mark Cooper Leopold Dobson Michael Duval Benton East Kenneth Ellis Devon Fitzgerald Paul Fraser Mavis Gibson Michael Green Paul Hall Raymond Hall David Henry Mark Hudson Howard Hutchings Stephanie Isaacs Edmond James Loletta Jarrett Barrington Johnson Garth Johnson Altimond Jordan Daphne Martinez Dionne Mason Oneil McKay Errol McKenzie Michael McNaught Leroy Morgan Cornelius Nelson Kermit Newton Andrew Palomino Philip Paragh Trevor Pitter Fitzroy Salmon Hopeton Samuda Michael Shirley Kerth Sievwright Norris Simpson Ainsworth Smith Algie Stewart Karl Tomlinson Noel Wallace Albert White Courtney Wilks Albert Williams David Wright Jorge Luis Rios Jimmy Garza Jason Meade John Trenthem Cesar Araya Villalobos John Monnot 25 Years Eva Epps Sheila Lewis May Cortland Campbell Chris Newhook Mauricio Alejandro Arenas Tello Jorge Mascaro Valdes Jose Omar Acevedo Pacheco Mario del Transito Jorquera Jorquera Victor Miguel Godoy Fuentes Alvaro Nestor Romero Barraza Nebol Gabriel Jimenez Barriga Cristian Luis Martinez Malla Gaston Francisco Osorio Jamett Agustin Ricardo Farfan Guerrero Charles James Castro Villagran Hector Alejandro Aldana Berrios Mauricio Andres Aguilera Navidad Claudio Hernan Delgado Contreras Jesus Antonio Sarmiento Carlos Mario Serrano Francisco Cuday Armando Cruz Jorge Antonio Renteria John Falton-Bisbing Jose Felix-Colon Edwin Rosa-Ortiz Christopher Forsha Michael Hilton Randy Young Olivia Clarke Francisco Carrasco Juan Antonio Bautista John Hayes Sharon Sharpe Max Baeza Vasquez Jorge Alvarado Godoy June Shona Henry Sergio Gonzalez Araya Mauricio Antonio Gonzalez Carvajal Giovanni Alexander Lopez Flores Janittzia Isabel Perez Villalobos York Cristian Pizarro Gonzalez Patricio Andres Yañez Morales Marcia Campollo Omar Fabian Carrillo Oscar Flores Felix Garcia Rodolfo Navarro Rene Rios Maria de Jesus Soto Jose Veloz Esperanza Vera Dian Bellanfante Sanjay Welsh Francisco Castillo Moises Hernandez Alberto Hipolito Paulino Ponce Francisco Javier Sifuentes Jesus Valencia George Lyda Harry Mayer Wilfredo Rodas Rita Kociuba Marcelo Gálvez Gutiérrez Gabriel Pizarro Viera Erick Valenzuela Aguirre Yaritza Colon 25 Years Ricardo Morales 4

5 Letter from the President AMECO Team, We just completed one of the most successful six months in AMECO history. Thanks to all employees for your contribution to this success. As we look to the second half of this year and 2007, it is important to reflect on the main reasons why customers choose AMECO: First, we are industry leaders in safety. Contractors and industrial companies expect us to exceed their expectations in this important area. We have demonstrated excellence in safety and must remain best in class. Our focus is to deliver integrated equipment and tool solutions to our customers. This is a key differentiator of AMECO and one of our most critical factors to success. The ability to deliver our expertise and capabilities inside the gate of our customers allows AMECO to be more of a trusted advisor to them. Once we earn this status, we must work every day to maintain it. The AMECO client review process enables us to measure our customers perceptions in a clear and quantifiable way. When we use this process consistently with customers, it sets us apart from our competitors and demonstrates that we are truly committed to client satisfaction. And finally, you are a key element to the success of AMECO. Your ability to deliver safe, integrated solutions while demonstrating a passion for customer satisfaction will position AMECO for continued growth and excellence. Great work everybody and congratulations on a great first half. Let s keep it going! Regards, Editor Shannon Tomlinson 2106 Anderson Road Greenville, SC tel fax Associate Editor Gary Chuck Easterling 100 Fluor Daniel Drive Greenville, SC tel fax Copyright 2006 AMECO AMECO is a registered service mark of American Equipment Company, Inc. Fleet Outsourcing and Site Services are service marks of American Equipment Company.Inc. Fluor is a registered service mark of Fluor Corporation Zero Incidents is a service mark of Fluor Corporation All Rights Reserved GV INDD Visit our web site at Call us at

6 Safety Awards, Milestones Central to AMECO s Success Teamwork and a focus on safety led to recent achievements in Greenville, South Carolina, Borger, Texas and Jamaica. AMECO Worldwide Operations in Greenville received the National Safety Council (NSC) 2005 Industry Leader Award for achieving the best safety performance in its category. AMECO was one of only 63 companies honored for this prestigious award. Gary Bernardez, President of AMECO, said that this safety accomplishment proves the commitment AMECO has to excellent safety standards and principles. He added that this achievement is especially noteworthy considering that AMECO often operates under difficult conditions in war zones, developing countries, and other volatile areas. The ConocoPhillips site in Borger, Texas, and Jamaica Country Operations also recently celebrated safety milestones of their own. Borger s 26 employees proved they have exemplary safety practices by reaching 11 years and 500,000 hours without a lost-time incident while providing support to ConocoPhillips. In 2005, Borger became AMECO s first OSHA Voluntary Protection Program (VPP) Star Site. Operations at Borger include leasing and renting equipment to the refinery and contractors working on the property. Jamaica s 157 employees achieved 1.5 million safe workhours from March 1, 2001, through March 31, 2006, with no losttime injuries. Operations in Jamaica include fleet management to customers such as Cable and Wireless, Jamaica Power Services (JPSCo), and Red Stripe. AMECO has numerous local repair shops across the island with two to three workers in each shop to service clients. This is a tremendous accomplishment and all of our AMECO employees are to be congratulated on the effort they all have put forth, said Ken Mabry, AMECO s Jamaica Country Manager. Larry Gibbs, AMECO HSE Director, said the Borger and Jamaica sites are shining examples of why AMECO has worked more than 13 million safe hours without a lost time incident. Our employees consistently demonstrate the importance of safety to our customers and AMECO, Bernardez said. Safety continues to be an important metric our customers use to select AMECO and evaluate our performance. In the past, AMECO has received other awards from the NSC such as the Green Cross for Safety Excellence, 10,000,000 Safe Work Hours, and Perfect Record Award. AMECO is categorized as Construction, Mining, Forestry Machinery, and Equipment Leasing and Rental by the North American Industry Classification System (NAICS). Visit our website at Anderson Road Greenville, SC

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