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GLV Inc, Canada
COMPANY WATCH
KSB Group, Germany
GLV Inc, Canada Key Figures (C$ million) Third quarter ended 31.12 2013
2012
Revenues Of Which: Ovivo Pulp and Paper
158.6
145.5
102.9 47.7
89.6 46.6
Cost of Sales
124.0
113.9
Gross Profit
34.6
31.6
Operating Income/(Loss)
(26.3)
0.7
Net Earnings/(Loss)
(26.6)
(1.4)
Nine months ended 31.12 2013
2012
Revenues Of Which: Ovivo Pulp and Paper
453.1
432.8
282.6 144.0
260.3 149.4
Cost of Sales
350.1
333.5
Gross Profit
103.0
99.3
Operating Income/(Loss)
(22.8)
3.4
Net Earnings/(Loss)
(23.9)
(13.2)
COMMENT Industrial water and pulp treatment firm GLV enjoyed 9.0% year-on-year sales growth to C$158.6 million for the third quarter of fiscal 2014. Revenues at its water segment Ovivo rose 14.9% from the fiscal 2013 figure, driven primarily by 21.3% growth in its four core segments of Municipal, Electronics & Metals, Energy, and, Parts and Services. Revenues at GL&V Pulp and Paper were up 2.4% due to higher sales in the Parts and Services market, partly offset by delays in the awarding of contracts for new equipment sales. The company, however, recorded a C$26.6 million net loss for the period compared with a year earlier loss of
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Pump Industry Analyst
C$1.4 million. The loss was primarily related to an asset impairment charge of C$26.9 million at its water segment Ovivo arising mainly from lacklustre performance in the Municipal market in Europe, the Middle East and Africa and re-evaluation of the value of its Energy segment. “Despite the asset impairment charge, management of GLV is satisfied with revenue growth, particularly in Ovivo, and is pleased with the increase in the backlog,” Richard Verreault, GLV’s president and CEO, said. “We are confident about the prospects for our two operating groups and will continue our efforts to improve our profit margin.” ■ www.glv.com
Key Figures (E million) January–December 2013
2012
2240.7
2257.4
Order Intake Sales Revenue
2252.9
2268.2
Employees (31.12)
16 551
16 207
COMMENT KSB’s 2013 consolidated sales revenues were down 0.7% on 2012 to E2252.9 million. Increased service sales were offset by a significant decrease in sales revenue from valves, while pump sales revenue declined slightly. Sales revenues were also impacted by negative currency exchange effects of around E68 million. When converted into euros, the sales revenues of the companies in Asia and the Americas were particularly negatively affected. In contrast, the Europe region was able to virtually maintain its volume and KSB AG’s sales revenues increased by 3.4% to E855.9 million. The group companies in the Middle East/Africa region also saw an increase in their sales revenues. The 2013 figures included eight operating companies consolidated for the first time during the year, contributing E27.0 million in total order intake and E26.0 million in sales revenue. Group incoming orders were also down 0.7% on the previous year to E2240.7 million, reflecting negative currency exchange effects of around E70 million and the continuing weakness in the project business. 2013’s orders
for pumps and valves were below 2012 levels, while service reported significant growth. In Europe and Asia, local company orders remained fairly stable. KSB AG increased its order intake slightly (+0.5 %) to E806.1 million. Order volume was significantly down in the Americas, due mainly to currency exchange effects. In contrast, the group companies in the Middle East/Africa region experienced strong growth rates. Group employee numbers stood at 16 551 at 31 December 2013, up 344 on 2012. The newly integrated companies brought 377 employees to the group in 2013. KSB expects the momentum in the global economy to boost demand for pumps and valves during 2014. An increase in order intake for standard pumps, valves and service would likely lead to a short-term rise in sales revenue. KSB does not expect an improvement in project orders to be reflected in sales revenue before 2015. The company is anticipating a moderate increase in consolidated sales revenue in 2014, although order intake should grow more significantly. Consolidated earnings are also expected to increase, helped by cost-cutting measures. ■ www.ksb.com
March 2014
KSB Group, Germany
GLV Inc, Canada Key Figures (C$ million) Third quarter ended 31.12 2013
2012
Revenues Of Which: Ovivo Pulp and Paper
158.6
145.5
102.9 47.7
89.6 46.6
Cost of Sales
124.0
113.9
Gross Profit
34.6
31.6
Operating Income/(Loss)
(26.3)
0.7
Net Earnings/(Loss)
(26.6)
(1.4)
Nine months ended 31.12 2013
2012
Revenues Of Which: Ovivo Pulp and Paper
453.1
432.8
282.6 144.0
260.3 149.4
Cost of Sales
350.1
333.5
Gross Profit
103.0
99.3
Operating Income/(Loss)
(22.8)
3.4
Net Earnings/(Loss)
(23.9)
(13.2)
COMMENT Industrial water and pulp treatment firm GLV enjoyed 9.0% year-on-year sales growth to C$158.6 million for the third quarter of fiscal 2014. Revenues at its water segment Ovivo rose 14.9% from the fiscal 2013 figure, driven primarily by 21.3% growth in its four core segments of Municipal, Electronics & Metals, Energy, and, Parts and Services. Revenues at GL&V Pulp and Paper were up 2.4% due to higher sales in the Parts and Services market, partly offset by delays in the awarding of contracts for new equipment sales. The company, however, recorded a C$26.6 million net loss for the period compared with a year earlier loss of
8
Pump Industry Analyst
C$1.4 million. The loss was primarily related to an asset impairment charge of C$26.9 million at its water segment Ovivo arising mainly from lacklustre performance in the Municipal market in Europe, the Middle East and Africa and re-evaluation of the value of its Energy segment. “Despite the asset impairment charge, management of GLV is satisfied with revenue growth, particularly in Ovivo, and is pleased with the increase in the backlog,” Richard Verreault, GLV’s president and CEO, said. “We are confident about the prospects for our two operating groups and will continue our efforts to improve our profit margin.” ■ www.glv.com
Key Figures (E million) January–December 2013
2012
2240.7
2257.4
Order Intake Sales Revenue
2252.9
2268.2
Employees (31.12)
16 551
16 207
COMMENT KSB’s 2013 consolidated sales revenues were down 0.7% on 2012 to E2252.9 million. Increased service sales were offset by a significant decrease in sales revenue from valves, while pump sales revenue declined slightly. Sales revenues were also impacted by negative currency exchange effects of around E68 million. When converted into euros, the sales revenues of the companies in Asia and the Americas were particularly negatively affected. In contrast, the Europe region was able to virtually maintain its volume and KSB AG’s sales revenues increased by 3.4% to E855.9 million. The group companies in the Middle East/Africa region also saw an increase in their sales revenues. The 2013 figures included eight operating companies consolidated for the first time during the year, contributing E27.0 million in total order intake and E26.0 million in sales revenue. Group incoming orders were also down 0.7% on the previous year to E2240.7 million, reflecting negative currency exchange effects of around E70 million and the continuing weakness in the project business. 2013’s orders
for pumps and valves were below 2012 levels, while service reported significant growth. In Europe and Asia, local company orders remained fairly stable. KSB AG increased its order intake slightly (+0.5 %) to E806.1 million. Order volume was significantly down in the Americas, due mainly to currency exchange effects. In contrast, the group companies in the Middle East/Africa region experienced strong growth rates. Group employee numbers stood at 16 551 at 31 December 2013, up 344 on 2012. The newly integrated companies brought 377 employees to the group in 2013. KSB expects the momentum in the global economy to boost demand for pumps and valves during 2014. An increase in order intake for standard pumps, valves and service would likely lead to a short-term rise in sales revenue. KSB does not expect an improvement in project orders to be reflected in sales revenue before 2015. The company is anticipating a moderate increase in consolidated sales revenue in 2014, although order intake should grow more significantly. Consolidated earnings are also expected to increase, helped by cost-cutting measures. ■ www.ksb.com
March 2014