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Andritz Group, Austria
COMPANY WATCH
Calgon Carbon Corp, USA
Andritz Group, Austria Key Figures (€ million) First quarter ended 31.3 2016
2015
Sales Of Which: Separation
1285.6
1404.3
127.1
138.8
EBITA Of Which: Separation
83.9
73.4
2.7
3.9
Earnings before Interest and Taxes
74.2
Key Figures (US$ million) Second quarter ended 31.3 2016 120.2
135.7
106.2 11.5 2.5
122.7 10.7 2.2
61.5
Cost of Products Sold (Excluding Depreciation and Amortization)
78.5
87.2
52.6
43.8
Depreciation and Amortization
8.8
8.7
Order Intake Of Which: Separation
1247.4
1430.6
24.5
22.5
150.5
136.3
17.2
26.0
Order Backlog Of Which: Separation
7147.6
7785.6
370.9
385.6
16.8 (0.1) 0.6
25.9 (0.4) 0.5
Income from Operations
8.5
17.3
Net Income
5.5
11.1
Net Income
COMMENT Andritz Group boosted its profitability during the first quarter of fiscal 2016, despite drops in both sales and order intake compared with the year earlier. Group sales were down 8.5% on the 2015 comparator at €1.3 billion with all four of its business areas experiencing a downturn on the year prior. In the Separation segment sales dropped by 8.4% to settle at €127.1 million. Overall new orders were down 12.8% at €1.2 billion with performance very mixed across the company. The Pulp & Paper (18.0% to €545.6 million) and Separation (10.4% to €150.5 million) business areas both enjoyed increased order intakes on the prior period, while in contrast the Hydro (-43.6% to €252 million) and Metals (-22.2% to €299.3 million) sectors saw significant declines. Important orders for the period in the Separation segment included an agreement for a membrane filter press and two gypsum centrifuges from a major producer of soda ash in Europe. Another saw a customer in Peru order two overhead membranes
June 2016
for its copper business, with the order including the development of a flotation process for dry stacking of solids. Several orders for animal and aqua feed processing lines and pelleting equipment were received from customers in Europe, Asia and South America. Andritz’s EBITA in the first quarter of 2016 amounted to €83.9 million, 14.3% above the prior year due mainly to improved performance in the Hydro and Pulp & Paper sectors. The Separation business area, however, had a more challenging period with its EBITA figure down 30.8% to €2.7 million and the associated margin falling from 2.8% to 2.1%. Overall net income rose 20.1% on the year prior to reach €52.6 million. Andritz is anticipating its first quarter performance to be replicated throughout the remainder of fiscal 2016 with group sales forecast to decline slightly compared with 2015, while profitability is expected to remain at a solid level. Q www.andritz.com
Net Sales Of Which: Activated Carbon and Service Equipment Consumer
2015
Selling, Administrative & Research Income from Operations before Depreciation and Amortization Of Which: Activated Carbon and Service Equipment Consumer
COMMENT Calgon Carbon Corp saw first quarter 2016 net sales, income from operations and net income all decline on a year earlier. Net sales for the first quarter of 2016 were US$120.2 million, down from US$135.7 million for the comparable period in 2015, with currency translation having a US$1.1 million negative effect. Income from operations for the first quarter of 2016 was US$8.5 million, compared to US$17.3 million for the first quarter of 2015. Current year first quarter income from operations includes US$1.6 million of expenses attributable to the company’s planned acquisition of the European Activated Carbon and Filter Aid Business of CECA, which was announced in April 2016 (see Filtration Industry Analyst, April 2016).
Net income was US$5.5 million for the first quarter of 2016, down from US$11.1 million a year ago. “While we projected a slow start to the year, our first quarter results were below our expectations,” acknowledged Randy Dearth, Calgon Carbon’s chairman, president and CEO. “On a positive note, we were pleased that the performance of our industrial and food businesses was in line with our expectations, and our business activities in Asia showed modest growth – when excluding last year’s revenues from a significant initial carbon fill in South Korea.” Dearth said the company was working diligently toward the fourth quarter closing of its planned acquisition of CECA’s wood-based activated carbon and filter aid business. Q www.calgoncarbon.com
Filtration Industry Analyst
9
Calgon Carbon Corp, USA
Andritz Group, Austria Key Figures (€ million) First quarter ended 31.3 2016
2015
Sales Of Which: Separation
1285.6
1404.3
127.1
138.8
EBITA Of Which: Separation
83.9
73.4
2.7
3.9
Earnings before Interest and Taxes
74.2
Key Figures (US$ million) Second quarter ended 31.3 2016 120.2
135.7
106.2 11.5 2.5
122.7 10.7 2.2
61.5
Cost of Products Sold (Excluding Depreciation and Amortization)
78.5
87.2
52.6
43.8
Depreciation and Amortization
8.8
8.7
Order Intake Of Which: Separation
1247.4
1430.6
24.5
22.5
150.5
136.3
17.2
26.0
Order Backlog Of Which: Separation
7147.6
7785.6
370.9
385.6
16.8 (0.1) 0.6
25.9 (0.4) 0.5
Income from Operations
8.5
17.3
Net Income
5.5
11.1
Net Income
COMMENT Andritz Group boosted its profitability during the first quarter of fiscal 2016, despite drops in both sales and order intake compared with the year earlier. Group sales were down 8.5% on the 2015 comparator at €1.3 billion with all four of its business areas experiencing a downturn on the year prior. In the Separation segment sales dropped by 8.4% to settle at €127.1 million. Overall new orders were down 12.8% at €1.2 billion with performance very mixed across the company. The Pulp & Paper (18.0% to €545.6 million) and Separation (10.4% to €150.5 million) business areas both enjoyed increased order intakes on the prior period, while in contrast the Hydro (-43.6% to €252 million) and Metals (-22.2% to €299.3 million) sectors saw significant declines. Important orders for the period in the Separation segment included an agreement for a membrane filter press and two gypsum centrifuges from a major producer of soda ash in Europe. Another saw a customer in Peru order two overhead membranes
June 2016
for its copper business, with the order including the development of a flotation process for dry stacking of solids. Several orders for animal and aqua feed processing lines and pelleting equipment were received from customers in Europe, Asia and South America. Andritz’s EBITA in the first quarter of 2016 amounted to €83.9 million, 14.3% above the prior year due mainly to improved performance in the Hydro and Pulp & Paper sectors. The Separation business area, however, had a more challenging period with its EBITA figure down 30.8% to €2.7 million and the associated margin falling from 2.8% to 2.1%. Overall net income rose 20.1% on the year prior to reach €52.6 million. Andritz is anticipating its first quarter performance to be replicated throughout the remainder of fiscal 2016 with group sales forecast to decline slightly compared with 2015, while profitability is expected to remain at a solid level. Q www.andritz.com
Net Sales Of Which: Activated Carbon and Service Equipment Consumer
2015
Selling, Administrative & Research Income from Operations before Depreciation and Amortization Of Which: Activated Carbon and Service Equipment Consumer
COMMENT Calgon Carbon Corp saw first quarter 2016 net sales, income from operations and net income all decline on a year earlier. Net sales for the first quarter of 2016 were US$120.2 million, down from US$135.7 million for the comparable period in 2015, with currency translation having a US$1.1 million negative effect. Income from operations for the first quarter of 2016 was US$8.5 million, compared to US$17.3 million for the first quarter of 2015. Current year first quarter income from operations includes US$1.6 million of expenses attributable to the company’s planned acquisition of the European Activated Carbon and Filter Aid Business of CECA, which was announced in April 2016 (see Filtration Industry Analyst, April 2016).
Net income was US$5.5 million for the first quarter of 2016, down from US$11.1 million a year ago. “While we projected a slow start to the year, our first quarter results were below our expectations,” acknowledged Randy Dearth, Calgon Carbon’s chairman, president and CEO. “On a positive note, we were pleased that the performance of our industrial and food businesses was in line with our expectations, and our business activities in Asia showed modest growth – when excluding last year’s revenues from a significant initial carbon fill in South Korea.” Dearth said the company was working diligently toward the fourth quarter closing of its planned acquisition of CECA’s wood-based activated carbon and filter aid business. Q www.calgoncarbon.com
Filtration Industry Analyst
9