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Alfa Laval AB, Sweden
COMPANY WATCH
Alfa Laval AB, Sweden
AO Smith Corp, USA
Key Figures (SEK million) Second quarter ended 30.6 2010
2009
Key Figures (US$ million) Second quarter ended 30.6 2010
2009
Order Intake
6267
5188
572.5
498.7
Net Sales
6359
6746
Cost of Goods Sold
3937
4281
Net Sales Of Which: Water Products
374.9
337.1
Gross Profit
2422
2465
Cost of Goods Sold
414.2
376.3
135
165
Gross Profit
158.3
122.4
1173
872
33.7
44.1
838
637
Operating Earnings Of Which: Water Products
7.8
36.5
Earnings before Income Taxes
18.4
29.8
Net Earnings
16.6
23.7
Six months ended 30.6 2010
2009
1095.9
980.4
741.7
676.1
R&D Costs Operating Income Net Income
Six months ended 30.6 2010
2009
11356
11 041
11 740
13 669
Cost of Goods Sold
7115
8612
Gross Profit
4625
5057
276
331
Operating Income
2089
2051
Net Income
1453
1401
Order Intake Net Sales
R&D Costs
Net Sales Of Which: Water Products Cost of Goods Sold
793.0
756.5
Gross Profit
302.9
223.9
51.7
65.6
40.2
4.6
Operating Earnings Of Which: Water Products Earnings before Income Taxes
60.6
41.1
Net Earnings
47.4
32.3
COMMENT Swedish engineering group Alfa Laval had a mostly positive second quarter of fiscal 2010 with order intake up 21% on a year earlier at SEK6267 million and net income 32% stronger at SEK838 million, although sales were down 6% at SEK6359 million. “The base business showed growth for the first time in two years and almost all business segments grew, compared to both last year and the first quarter,” Lars Renström, Alfa Laval’s president and CEO, said. “The growth of Parts & Service continued as a result of our customers’ continued increased capacity utilisation. The growth was 9% sequentially and 17% compared with the corresponding quarter 2009.”
8
Filtration Industry Analyst
Figures for the corresponding six months followed a similar pattern with orders up 3% on a year earlier at SEK11 356 million and net income 4% stronger at SEK1453 million, while net sales were down 14% at SEK11 740 million. Excluding exchange rate variations, orders received for the company’s Equipment segment increased 8.7% and net sales decreased by 6.8% during the first half-year. In the Process Technology segment order intake was up 8.9% and net sales down 13.1% for the period compared with the 2009 comparator. Alfa Laval expects demand in the third quarter to be similar or a little lower that the second quarter. ■ www.alfalaval.com
COMMENT Water products and electric motor manufacturer AO Smith Corp has posted net sales for the second quarter of fiscal 2010 of US$572.5 million, up 15% on a year earlier, while its net earnings fell 30% to US$16.6 million. The company’s Water Products segments recorded second quarter sales of US$374.9 million, up 11% on the previous year, following higher sales in China and Canada. Included in the revenues were US$9.3 million in sales from AO Smith’s new water purification business in China. The company reported that progress in this business unit had been slower than anticipated due to
a number of unforeseen challenges, but added that it was expected to break even in 2010. The firm plans to introduce an AO Smith branded line of water purification products to the China retail market during the third quarter. The Water Product segment’s operating profits in the second quarter were US$7.8 million compared with US$36.5 million recorded last year, as the contribution from higher overall global volumes was more than offset by US$34.2 million in one-time expenses related to a flood at its Ashland City plant in Tennessee, USA. ■ www.aosmith.com
August 2010
Alfa Laval AB, Sweden
AO Smith Corp, USA
Key Figures (SEK million) Second quarter ended 30.6 2010
2009
Key Figures (US$ million) Second quarter ended 30.6 2010
2009
Order Intake
6267
5188
572.5
498.7
Net Sales
6359
6746
Cost of Goods Sold
3937
4281
Net Sales Of Which: Water Products
374.9
337.1
Gross Profit
2422
2465
Cost of Goods Sold
414.2
376.3
135
165
Gross Profit
158.3
122.4
1173
872
33.7
44.1
838
637
Operating Earnings Of Which: Water Products
7.8
36.5
Earnings before Income Taxes
18.4
29.8
Net Earnings
16.6
23.7
Six months ended 30.6 2010
2009
1095.9
980.4
741.7
676.1
R&D Costs Operating Income Net Income
Six months ended 30.6 2010
2009
11356
11 041
11 740
13 669
Cost of Goods Sold
7115
8612
Gross Profit
4625
5057
276
331
Operating Income
2089
2051
Net Income
1453
1401
Order Intake Net Sales
R&D Costs
Net Sales Of Which: Water Products Cost of Goods Sold
793.0
756.5
Gross Profit
302.9
223.9
51.7
65.6
40.2
4.6
Operating Earnings Of Which: Water Products Earnings before Income Taxes
60.6
41.1
Net Earnings
47.4
32.3
COMMENT Swedish engineering group Alfa Laval had a mostly positive second quarter of fiscal 2010 with order intake up 21% on a year earlier at SEK6267 million and net income 32% stronger at SEK838 million, although sales were down 6% at SEK6359 million. “The base business showed growth for the first time in two years and almost all business segments grew, compared to both last year and the first quarter,” Lars Renström, Alfa Laval’s president and CEO, said. “The growth of Parts & Service continued as a result of our customers’ continued increased capacity utilisation. The growth was 9% sequentially and 17% compared with the corresponding quarter 2009.”
8
Filtration Industry Analyst
Figures for the corresponding six months followed a similar pattern with orders up 3% on a year earlier at SEK11 356 million and net income 4% stronger at SEK1453 million, while net sales were down 14% at SEK11 740 million. Excluding exchange rate variations, orders received for the company’s Equipment segment increased 8.7% and net sales decreased by 6.8% during the first half-year. In the Process Technology segment order intake was up 8.9% and net sales down 13.1% for the period compared with the 2009 comparator. Alfa Laval expects demand in the third quarter to be similar or a little lower that the second quarter. ■ www.alfalaval.com
COMMENT Water products and electric motor manufacturer AO Smith Corp has posted net sales for the second quarter of fiscal 2010 of US$572.5 million, up 15% on a year earlier, while its net earnings fell 30% to US$16.6 million. The company’s Water Products segments recorded second quarter sales of US$374.9 million, up 11% on the previous year, following higher sales in China and Canada. Included in the revenues were US$9.3 million in sales from AO Smith’s new water purification business in China. The company reported that progress in this business unit had been slower than anticipated due to
a number of unforeseen challenges, but added that it was expected to break even in 2010. The firm plans to introduce an AO Smith branded line of water purification products to the China retail market during the third quarter. The Water Product segment’s operating profits in the second quarter were US$7.8 million compared with US$36.5 million recorded last year, as the contribution from higher overall global volumes was more than offset by US$34.2 million in one-time expenses related to a flood at its Ashland City plant in Tennessee, USA. ■ www.aosmith.com
August 2010