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Pentair Inc, USA
Pump Industry Analyst
January 2007
Met-Pro Corp, USA
Pentair Inc, USA Key Figures (US$ million) Third quarter ended
COMPANY WATCH
Key Figures (US$ million) Third quarter ended 31.10 2006
2005
Net Sales Of Which: Fluid Handling
25.3
21.9
4.9
4.9
Cost of Goods Sold
17.0
15.2
Gross Profit
8.3
Income from Operations Of Which: Fluid Handling Net Income
30.9.2006 Net Sales Of Which: Water
778.0
716.3
531.7
515.9
Cost of Goods Sold
565.5
515.5
6.7
Gross Profit
212.5
200.8
3.2
2.5
60.3
76.9
1.3
0.9
Operating Income Of Which: Water
36.2
59.0
2.2
1.9
Net Income
34.8
44.5
Nine months ended
Nine months ended 31.10 Net Sales Of Which: Fluid Handling
1.10.2005
2006
2005
68.9
62.5
19.4
30.9.2006
1.10.2005
2411.4
2214.5
17.3
Net Sales Of Which: Water
1654.4
1613.7
1713.7
1574.3
Cost of Goods Sold
48.0
42.8
Cost of Goods Sold
Gross Profit
20.9
19.7
Gross Profit
697.7
640.2
7.2
7.2
246.8
256.2
3.1
2.8
Operating Income Of Which: Water
176.0
211.6
5.2
Net Income
145.1
146.1
Income from Operations Of Which: Fluid Handling Net Income
5.2
COMMENT
COMMENT Met-Pro posted third quarter sales of US$25.3 million, up 16% on the year earlier and the highest quarterly sales total in its history. At US$2.2 million, net income for the quarter also set a new company benchmark, compared with US$1.9 million last year. Performance for the corresponding nine-month period was also strong. Sales were up 10% on 2005 to a record US$68.9 million, although net income was static at US$5.2 million. Year-to-date net income was impacted by the relocation of the Sethco and Mefiag business units and the expansion of its Netherlands and Telford, Pennsylvania facilities, as well as accounting
8
changes. Met-Pro’s bookings of new orders for the third quarter were US$26.4 million, a 12% increase on the same quarter a year earlier, while for the nine months they rose 11% to US$76.8 million. “The aggressive steps we have taken to improve operational performance have begun to provide better gross margins resulting in improved profitability. Our record high third quarter bookings and backlog serve as a solid sales base for the fourth quarter, and in combination with our steady quotation activity, give us continued optimism about our future prospects,” said Raymond De Hont, MetPro’s CEO. ■
Pentair had a mixed third quarter of 2006 with its net sales up 8.6% to US$778.0 million, compared with a year earlier, while its net income slumped 21.8% to US$34.8 million. Its Water Group posted sales of US$531.7 million, up 3.1% over the same period last year, with a strong performance from its filtration segment compensating for a downturn in its pool and spa business. Filtration sales were driven by growth in commercial and industrial markets that more than offset declines in recreational vehicle and marine sectors. “The majority of our businesses performed well with continued excellent
results from our Technical Products and Pump businesses,” Pentair chair and CEO Randall Hogan said. “Sales in commercial and industrial markets have remained robust and investments are beginning to pay off in international sales growth. In addition, our Filtration business achieved the strongest sales growth we have seen in two years.” Hogan said that excluding the Pool and Spa business, the Water Group’s sales grew nearly 5% in the quarter. “However, as expected third quarter sales in Pool and Spa were about 2% lower than a year ago, driven by the slowing housing market.” ■
January 2007
Met-Pro Corp, USA
Pentair Inc, USA Key Figures (US$ million) Third quarter ended
COMPANY WATCH
Key Figures (US$ million) Third quarter ended 31.10 2006
2005
Net Sales Of Which: Fluid Handling
25.3
21.9
4.9
4.9
Cost of Goods Sold
17.0
15.2
Gross Profit
8.3
Income from Operations Of Which: Fluid Handling Net Income
30.9.2006 Net Sales Of Which: Water
778.0
716.3
531.7
515.9
Cost of Goods Sold
565.5
515.5
6.7
Gross Profit
212.5
200.8
3.2
2.5
60.3
76.9
1.3
0.9
Operating Income Of Which: Water
36.2
59.0
2.2
1.9
Net Income
34.8
44.5
Nine months ended
Nine months ended 31.10 Net Sales Of Which: Fluid Handling
1.10.2005
2006
2005
68.9
62.5
19.4
30.9.2006
1.10.2005
2411.4
2214.5
17.3
Net Sales Of Which: Water
1654.4
1613.7
1713.7
1574.3
Cost of Goods Sold
48.0
42.8
Cost of Goods Sold
Gross Profit
20.9
19.7
Gross Profit
697.7
640.2
7.2
7.2
246.8
256.2
3.1
2.8
Operating Income Of Which: Water
176.0
211.6
5.2
Net Income
145.1
146.1
Income from Operations Of Which: Fluid Handling Net Income
5.2
COMMENT
COMMENT Met-Pro posted third quarter sales of US$25.3 million, up 16% on the year earlier and the highest quarterly sales total in its history. At US$2.2 million, net income for the quarter also set a new company benchmark, compared with US$1.9 million last year. Performance for the corresponding nine-month period was also strong. Sales were up 10% on 2005 to a record US$68.9 million, although net income was static at US$5.2 million. Year-to-date net income was impacted by the relocation of the Sethco and Mefiag business units and the expansion of its Netherlands and Telford, Pennsylvania facilities, as well as accounting
8
changes. Met-Pro’s bookings of new orders for the third quarter were US$26.4 million, a 12% increase on the same quarter a year earlier, while for the nine months they rose 11% to US$76.8 million. “The aggressive steps we have taken to improve operational performance have begun to provide better gross margins resulting in improved profitability. Our record high third quarter bookings and backlog serve as a solid sales base for the fourth quarter, and in combination with our steady quotation activity, give us continued optimism about our future prospects,” said Raymond De Hont, MetPro’s CEO. ■
Pentair had a mixed third quarter of 2006 with its net sales up 8.6% to US$778.0 million, compared with a year earlier, while its net income slumped 21.8% to US$34.8 million. Its Water Group posted sales of US$531.7 million, up 3.1% over the same period last year, with a strong performance from its filtration segment compensating for a downturn in its pool and spa business. Filtration sales were driven by growth in commercial and industrial markets that more than offset declines in recreational vehicle and marine sectors. “The majority of our businesses performed well with continued excellent
results from our Technical Products and Pump businesses,” Pentair chair and CEO Randall Hogan said. “Sales in commercial and industrial markets have remained robust and investments are beginning to pay off in international sales growth. In addition, our Filtration business achieved the strongest sales growth we have seen in two years.” Hogan said that excluding the Pool and Spa business, the Water Group’s sales grew nearly 5% in the quarter. “However, as expected third quarter sales in Pool and Spa were about 2% lower than a year ago, driven by the slowing housing market.” ■