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Cardo AB, Sweden
November 2005
Pump Industry Analyst
Cardo AB, Sweden
GL&V, Canada
Key Figures (SKr million) July–September
Operating Earnings Of Which: Cardo Pump Net Earnings
2005
2004
1901
1800
728
658
117
43
Revenues Of Which: Process Water Treatment
65
48
Cost of Contracts and Goods Sold
85
28
January–September Net Sales Of Which: Cardo Pump
2005
2004
5476
5491
2053
2032
Operating Earnings Of Which: Cardo Pump
185
190
152
126
Net Earnings
113
117
2005
2004
179.2
135.3
96.4 25.1
69.7 17.2
136.9
103.0
Gross Margin
42.3
32.4
EBITDA1
16.3
8.8
9.3
1.3
Net Earnings
Six months ended 30.9 2005
2004
Revenues Of Which: Process Water Treatment
338.6
259.5
183.5 49.3
130.3 36.7
Cost of Contracts and Goods Sold
259.4
194.6
Gross Margin
79.2
65.0
EBITDA1
27.0
17.4
Net Earnings
17.2
9.1
1 Earnings before depreciation and amortization, financial expenses and income taxes.
COMMENT Cardo Pump’s positive trend continued into the third quarter, with the inflow of orders showing organic growth of almost 5% after an increase of 6% during the second quarter. For the nine months ended 30 September, Cardo Pump’s inflow of orders rose 3% after adjusting for the effects of exchange rate movements. The inflow of orders rose in both the wastewater technology applications and the construction industry segments, while it was lower in the pulp and paper industry segment. Net sales of SKr2053 million showed a 1% increase after adjusting for
the effects of exchange rate movements. At SKr152 million, operating earnings were well up on the SKr56 million posted a year earlier. Earnings for the previous year included SKr70 million of reorganization costs. From 1 January 2006, Cardo will be reorganized into a purely operational industrial group aimed at business-to-business customers. The present business areas Cardo Door and Cardo Pump will be replaced by Door & Logistics Solutions, Wastewater Technology Solutions, Pulp & Paper Solutions and Residential Garage Doors. ■
COMMENT GL&V enjoyed strong sales growth in its second quarter 2005, with its consolidated revenues of C$179.2 million up 32.4% on the comparable figure a year earlier. Richard Verreault, President and COO, said that all the company’s groups had contributed to the strong performance. “The Process Group remained our primary source of growth, increasing its sales by 38% and its earnings before financial expenses, income taxes and restructuring costs (normalized EBIT) by 66% in the second quarter,” he said. Verreault said that the process group continued to
benefit from the boom in investments in new mining infrastructures worldwide, while achieving significant growth in the aftermarket. The water treatment group also improved its second-quarter performance, as its revenues rose 46% while its EBIT almost quadrupled. This group has achieved increases of 34% in its revenues and of 18% in its EBIT since the beginning of fiscal 2006. The April 2005 acquisition of Jones and Attwood contributed to its sales growth, while the unit has also announced the purchase of Brackett Green. ■
7
COMPANY WATCH
Net Sales Of Which: Cardo Pump
Key Figures (C$ million) Second quarter ended 30.9
Pump Industry Analyst
Cardo AB, Sweden
GL&V, Canada
Key Figures (SKr million) July–September
Operating Earnings Of Which: Cardo Pump Net Earnings
2005
2004
1901
1800
728
658
117
43
Revenues Of Which: Process Water Treatment
65
48
Cost of Contracts and Goods Sold
85
28
January–September Net Sales Of Which: Cardo Pump
2005
2004
5476
5491
2053
2032
Operating Earnings Of Which: Cardo Pump
185
190
152
126
Net Earnings
113
117
2005
2004
179.2
135.3
96.4 25.1
69.7 17.2
136.9
103.0
Gross Margin
42.3
32.4
EBITDA1
16.3
8.8
9.3
1.3
Net Earnings
Six months ended 30.9 2005
2004
Revenues Of Which: Process Water Treatment
338.6
259.5
183.5 49.3
130.3 36.7
Cost of Contracts and Goods Sold
259.4
194.6
Gross Margin
79.2
65.0
EBITDA1
27.0
17.4
Net Earnings
17.2
9.1
1 Earnings before depreciation and amortization, financial expenses and income taxes.
COMMENT Cardo Pump’s positive trend continued into the third quarter, with the inflow of orders showing organic growth of almost 5% after an increase of 6% during the second quarter. For the nine months ended 30 September, Cardo Pump’s inflow of orders rose 3% after adjusting for the effects of exchange rate movements. The inflow of orders rose in both the wastewater technology applications and the construction industry segments, while it was lower in the pulp and paper industry segment. Net sales of SKr2053 million showed a 1% increase after adjusting for
the effects of exchange rate movements. At SKr152 million, operating earnings were well up on the SKr56 million posted a year earlier. Earnings for the previous year included SKr70 million of reorganization costs. From 1 January 2006, Cardo will be reorganized into a purely operational industrial group aimed at business-to-business customers. The present business areas Cardo Door and Cardo Pump will be replaced by Door & Logistics Solutions, Wastewater Technology Solutions, Pulp & Paper Solutions and Residential Garage Doors. ■
COMMENT GL&V enjoyed strong sales growth in its second quarter 2005, with its consolidated revenues of C$179.2 million up 32.4% on the comparable figure a year earlier. Richard Verreault, President and COO, said that all the company’s groups had contributed to the strong performance. “The Process Group remained our primary source of growth, increasing its sales by 38% and its earnings before financial expenses, income taxes and restructuring costs (normalized EBIT) by 66% in the second quarter,” he said. Verreault said that the process group continued to
benefit from the boom in investments in new mining infrastructures worldwide, while achieving significant growth in the aftermarket. The water treatment group also improved its second-quarter performance, as its revenues rose 46% while its EBIT almost quadrupled. This group has achieved increases of 34% in its revenues and of 18% in its EBIT since the beginning of fiscal 2006. The April 2005 acquisition of Jones and Attwood contributed to its sales growth, while the unit has also announced the purchase of Brackett Green. ■
7
COMPANY WATCH
Net Sales Of Which: Cardo Pump
Key Figures (C$ million) Second quarter ended 30.9