- Email: [email protected]
Alfa Laval, Sweden
June 2004
Filtration Industry Analyst
Alfa Laval, Sweden
Cuno Inc, USA
Key Figures (SKr million) First quarter ended 31.3
Key Figures (US$ million) Second quarter ended 30.4 2003
Net Sales Of Which: Equipment Process Technology Operations
3183.9
2994.7
1863.8 1314.0 6.1
1829.5 1143.5 21.7
Cost of Goods Sold
2015.4
1874.4
Gross Profit
1168.5
1120.3
Operating Income
245.4
201.2
Result after Financial Items
210.7
141.5
Net Income
105.2
97.8
No of Employees
9333
9186
2004
2003
Net Sales
82.7
69.3
Costs and Expenses
70.2
59.6
Operating Income
12.5
9.7
Income before Income Taxes
12.7
9.6
8.4
6.3
Net Income
Six months ended 30.4 2004
2003
Net Sales
158.2
135.7
Cost and Expenses
135.2
117.8
23.0
18.0
Operating Income Income before Income Taxes
23.1
17.9
Net Income
15.4
11.7
COMMENT Commenting on 2004’s first quarter results, Sigge Haraldsson, president and CEO of Alfa Laval said, “Our first quarter 2004 was strong, both in terms of order intake, net sales and operating profit. Order intake increased by 23%, excluding exchange rate variations, compared to the first quarter last year. All customer segments developed better and geographically Europe, Asia and North America showed a strong increase. Net sales during the period increased 6%, and operating profit by approximately 20%, a clear, positive development compared to the first quarter of 2003.” After this positive start to the year, sources at the company are confident this improvement can be sustained throughout the year. Market recovery during the second half of 2003 in the
customer segments Alfa Laval is active in – such as oil, water, chemicals, starch, and pharmaceuticals – should, according to the company, continue during 2004. Cash flow from operating and investing activities was also positive during the company’s first quarter, increasing from SKr142.6 million in 2003’s first quarter to SKr254.1 million. Divestments generated SKr13.7 million of this. The order backlog at 31 March 2004 was SKr4840.1 million, 19.8% higher than the order backlog at 31 March 2003, and 31.4% higher than the order backlog at the end of 2003. The latter is due to the fact that the Group normally has considerably higher invoicing during the latter months of the year. ■
COMMENT Cuno Inc’s second quarter results for the period ended 30 April 2004 were impressive. Sales were US$82.7 million, up 19% versus the same period in 2003 and up 13% in local currency. Net income for the second quarter increased by 34% – to US$8.4 million from US$6.3 million reported in the same period in 2003. Commenting on the results, Mark Kachur, chairman and CEO, said “Our record second quarter results reflect the strength and effectiveness of our business model. We achieved doubledigit sales growth in each of our primary markets, including Potable Water, Healthcare and Fluid Processing. In addition, our geographic diversity contributed to our strong results, as international
sales increased by 26% (up 12% in local currency), reflecting double-digit sales growth in each of our major geographic segments.” For the first six months of 2004, sales were a record US$158.2 million, up 17% (9% in local currency), and net income was US$15.4 million versus US$11.7 million in the previous year’s first half. Particularly strong sales growth in the company’s international operations supplemented solid growth in North America. Kachur added, “our incoming orders were a second quarter record US$89.9 million and our backlog remains strong. As a result, we expect to achieve strong financial results in fiscal 2004.” ■
7
COMPANY WATCH
2004
Filtration Industry Analyst
Alfa Laval, Sweden
Cuno Inc, USA
Key Figures (SKr million) First quarter ended 31.3
Key Figures (US$ million) Second quarter ended 30.4 2003
Net Sales Of Which: Equipment Process Technology Operations
3183.9
2994.7
1863.8 1314.0 6.1
1829.5 1143.5 21.7
Cost of Goods Sold
2015.4
1874.4
Gross Profit
1168.5
1120.3
Operating Income
245.4
201.2
Result after Financial Items
210.7
141.5
Net Income
105.2
97.8
No of Employees
9333
9186
2004
2003
Net Sales
82.7
69.3
Costs and Expenses
70.2
59.6
Operating Income
12.5
9.7
Income before Income Taxes
12.7
9.6
8.4
6.3
Net Income
Six months ended 30.4 2004
2003
Net Sales
158.2
135.7
Cost and Expenses
135.2
117.8
23.0
18.0
Operating Income Income before Income Taxes
23.1
17.9
Net Income
15.4
11.7
COMMENT Commenting on 2004’s first quarter results, Sigge Haraldsson, president and CEO of Alfa Laval said, “Our first quarter 2004 was strong, both in terms of order intake, net sales and operating profit. Order intake increased by 23%, excluding exchange rate variations, compared to the first quarter last year. All customer segments developed better and geographically Europe, Asia and North America showed a strong increase. Net sales during the period increased 6%, and operating profit by approximately 20%, a clear, positive development compared to the first quarter of 2003.” After this positive start to the year, sources at the company are confident this improvement can be sustained throughout the year. Market recovery during the second half of 2003 in the
customer segments Alfa Laval is active in – such as oil, water, chemicals, starch, and pharmaceuticals – should, according to the company, continue during 2004. Cash flow from operating and investing activities was also positive during the company’s first quarter, increasing from SKr142.6 million in 2003’s first quarter to SKr254.1 million. Divestments generated SKr13.7 million of this. The order backlog at 31 March 2004 was SKr4840.1 million, 19.8% higher than the order backlog at 31 March 2003, and 31.4% higher than the order backlog at the end of 2003. The latter is due to the fact that the Group normally has considerably higher invoicing during the latter months of the year. ■
COMMENT Cuno Inc’s second quarter results for the period ended 30 April 2004 were impressive. Sales were US$82.7 million, up 19% versus the same period in 2003 and up 13% in local currency. Net income for the second quarter increased by 34% – to US$8.4 million from US$6.3 million reported in the same period in 2003. Commenting on the results, Mark Kachur, chairman and CEO, said “Our record second quarter results reflect the strength and effectiveness of our business model. We achieved doubledigit sales growth in each of our primary markets, including Potable Water, Healthcare and Fluid Processing. In addition, our geographic diversity contributed to our strong results, as international
sales increased by 26% (up 12% in local currency), reflecting double-digit sales growth in each of our major geographic segments.” For the first six months of 2004, sales were a record US$158.2 million, up 17% (9% in local currency), and net income was US$15.4 million versus US$11.7 million in the previous year’s first half. Particularly strong sales growth in the company’s international operations supplemented solid growth in North America. Kachur added, “our incoming orders were a second quarter record US$89.9 million and our backlog remains strong. As a result, we expect to achieve strong financial results in fiscal 2004.” ■
7
COMPANY WATCH
2004