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Asahi Kasei Corp, Japan
Filtration Industry Analyst
March 2006
Asahi Kasei Corp, Japan
Cummins Inc, USA Key Figures (US$ million) Fourth quarter ended 31.12
Key figures (¥ billion)
COMPANY WATCH
Third quarter ended 30.9 2005
2004
Net sales Of which: Chemicals Pharma Fibres
372.3
352.5
171.3 27.4 22.0
150.7 26.6 23.7
Cost of sales
274.2
255.1
34.2
34.5
Operating profit Of which: Chemicals Pharma Fibres
13.8 4.3 0.7
10.5 4.3 1.6
Net income
21.2
19.8
Nine months ended 30.9 2005
2004
1090.7
1011.8
815.4
733.3
Operating profit
81.6
89.7
Net income
46.6
46.7
Net sales Cost of sales
2005
2004
Net sales Of which: Components
2753
2349
535
478
Cost of sales
2134
1876
Gross margin
619
473
269
172
Earnings before interest and taxes (EBIT) Of which: Components Net earnings
2005
2004
Net sales Of which: Components
9918
8438
2000
1783
Cost of sales
7732
6758
Gross margin
2186
1680
907
543
Earnings before interest and taxes (EBIT) Of which: components
89
84
550
350
COMMENT
COMMENT
12
13 119
Twelve months ended 27.3.05 (28.3.04)
Net earnings
Asahi Kasei, the Japanese industrial conglomerate, has posted increased sales and income figures for its 2005 third quarter compared with the year earlier figures. Total net sales were up 6% to ¥372 billion, while net income rose 7% to ¥21.2 billion. In its chemicals business unit, sales were up 14% at ¥171 billion and operating profit up 31% to ¥13.8 billion. The strong performers included the company’s electrolysis products, both membraneprocess salt electrolysis systems and their ionexchange membranes. In its Pharma unit, sales rose 3% to ¥27.4 billion, while operating profit was static at ¥4.3 billion. The
24 167
quarter saw a decline in profit for medical devices largely as the result of elevated capital depreciation following plant expansions for the company’s artificial kidneys. Asahi Kasei’s fibres business segment net sales were down 7% to ¥22 billion, while its operating profit plunged 57% to ¥0.7 billion. The company’s figures for the first nine-months of 2005 saw net sales rise 8% to ¥1091 billion, although net income was down slightly at ¥47 billion. Sector performance was similar to the third quarter, with chemicals showing good growth, pharma a modest increase and fibres a slight decline. ■
Cummins Inc has completed a record 2005 with its most profitable quarter ever. For the full year, Cummins reported earnings before interest and taxes (EBIT) of US$907 million, a 67% increase from 2004. Sales increased 18% to US$9.92 billion, while its net income of US$550 million was up 57%. In the fourth quarter of 2005, Cummins sales increased 17% on the 2004 figure to a record US$2.75 billion, while net income rose 40% for the period to US$167 million. Its somponent segment, until recently the filtration and other business segment, saw segment revenues increase 12% during the quarter to US$535 million, while the segment’s EBIT rose 85% to US$24 million, or 4.5% of sales, compared to
2.7% during the same period in 2004. During the quarter, the company’s filtration, turbocharger and fuel systems businesses all reported revenue gains. The filtration business saw strong aftermarket sales in North and Latin America, and higher OEM sales in Europe/Middle East/Africa. “Our results for both the fourth quarter and all of 2005 are outstanding,” said Cummins chairman and CEO Jim Solso. “This performance is evidence that we are transforming Cummins into a less cyclical, more diversified company while converting a larger percentage of sales into profit. As good as the last two years have been, we are expecting 2006 to be more profitable,” Solso added. ■
March 2006
Asahi Kasei Corp, Japan
Cummins Inc, USA Key Figures (US$ million) Fourth quarter ended 31.12
Key figures (¥ billion)
COMPANY WATCH
Third quarter ended 30.9 2005
2004
Net sales Of which: Chemicals Pharma Fibres
372.3
352.5
171.3 27.4 22.0
150.7 26.6 23.7
Cost of sales
274.2
255.1
34.2
34.5
Operating profit Of which: Chemicals Pharma Fibres
13.8 4.3 0.7
10.5 4.3 1.6
Net income
21.2
19.8
Nine months ended 30.9 2005
2004
1090.7
1011.8
815.4
733.3
Operating profit
81.6
89.7
Net income
46.6
46.7
Net sales Cost of sales
2005
2004
Net sales Of which: Components
2753
2349
535
478
Cost of sales
2134
1876
Gross margin
619
473
269
172
Earnings before interest and taxes (EBIT) Of which: Components Net earnings
2005
2004
Net sales Of which: Components
9918
8438
2000
1783
Cost of sales
7732
6758
Gross margin
2186
1680
907
543
Earnings before interest and taxes (EBIT) Of which: components
89
84
550
350
COMMENT
COMMENT
12
13 119
Twelve months ended 27.3.05 (28.3.04)
Net earnings
Asahi Kasei, the Japanese industrial conglomerate, has posted increased sales and income figures for its 2005 third quarter compared with the year earlier figures. Total net sales were up 6% to ¥372 billion, while net income rose 7% to ¥21.2 billion. In its chemicals business unit, sales were up 14% at ¥171 billion and operating profit up 31% to ¥13.8 billion. The strong performers included the company’s electrolysis products, both membraneprocess salt electrolysis systems and their ionexchange membranes. In its Pharma unit, sales rose 3% to ¥27.4 billion, while operating profit was static at ¥4.3 billion. The
24 167
quarter saw a decline in profit for medical devices largely as the result of elevated capital depreciation following plant expansions for the company’s artificial kidneys. Asahi Kasei’s fibres business segment net sales were down 7% to ¥22 billion, while its operating profit plunged 57% to ¥0.7 billion. The company’s figures for the first nine-months of 2005 saw net sales rise 8% to ¥1091 billion, although net income was down slightly at ¥47 billion. Sector performance was similar to the third quarter, with chemicals showing good growth, pharma a modest increase and fibres a slight decline. ■
Cummins Inc has completed a record 2005 with its most profitable quarter ever. For the full year, Cummins reported earnings before interest and taxes (EBIT) of US$907 million, a 67% increase from 2004. Sales increased 18% to US$9.92 billion, while its net income of US$550 million was up 57%. In the fourth quarter of 2005, Cummins sales increased 17% on the 2004 figure to a record US$2.75 billion, while net income rose 40% for the period to US$167 million. Its somponent segment, until recently the filtration and other business segment, saw segment revenues increase 12% during the quarter to US$535 million, while the segment’s EBIT rose 85% to US$24 million, or 4.5% of sales, compared to
2.7% during the same period in 2004. During the quarter, the company’s filtration, turbocharger and fuel systems businesses all reported revenue gains. The filtration business saw strong aftermarket sales in North and Latin America, and higher OEM sales in Europe/Middle East/Africa. “Our results for both the fourth quarter and all of 2005 are outstanding,” said Cummins chairman and CEO Jim Solso. “This performance is evidence that we are transforming Cummins into a less cyclical, more diversified company while converting a larger percentage of sales into profit. As good as the last two years have been, we are expecting 2006 to be more profitable,” Solso added. ■