- Email: [email protected]
Calgon Carbon Corp, USA
April 2004
Filtration Industry Analyst
Calgon Carbon Corp, USA
Cummins Inc, USA Key Figures (US$ million) Fourth quarter ended 31.12
2003
2002
2003
2002
Net Sales Of Which: Filtration and Other
1736
1414
282
244
Cost of Goods Sold
1400
1192
336
222
59
3
25
28
43
46
Net Sales Of Which: Activated Carbon Service Engineered Solutions Consumer
69.6
62.6
25.3 25.2 12.3 6.8
25.9 22.4 9.4 4.9
Cost of Products Sold
49.6
42.7
Income from Operations
1.5
0.4
EBIT* Of Which: Filtration and Other
Net Income/(Loss)
2.0
0.3
Net Earnings
Gross Margin
Year ended 31.12
Year ended 31.12
2003
2002
Net Sales Of Which: Activated Carbon Service Engineered Solutions Consumer
278.3
258.1
108.4 96.2 40.8 33.0
100.6 93.5 40.1 23.9
Cost of Products Sold
195.1
178.0
Income from Operations
7.1
9.1
Net Income/(Loss)
4.5
(26.7)
2003
2002
Net Sales Of Which: Filtration and Other
6296
5853
1056
951
Cost of Goods Sold
5173
4808
Gross Margin
1123
1045
EBIT* Of Which: Filtration and Other
91
78
86
94
Net Earnings
50
82
* Earnings Before Interest, Income Taxes, Minority Interest and Preferred Dividends
COMMENT Calgon Carbon enjoyed fourth quarter sales of US$69.6 million, up 11.1% on the figure of a year earlier. Net income for the period was US$2.0 million, a 505.1% increase on the 2002 quarter. Sales of activated carbon in the fourth quarter were down slightly compared with a year earlier. Increased demand from the drinking water market in Europe and for specialty carbons in the USA was offset by weakness in the industrial process market in the USA. Service sales increased 12.3% to US$25.2 million, driven by strong demand for potable water
services in Europe. Engineered Systems sales increased 31.7% due to increased revenue from contracts secured in earlier quarters. Calgon Carbon’s sales for the full year were US$278.3 million, up 7.8% on 2002. Positive currency translation effects contributed US$14.6 million, partially offset by changes to the accountancy methods that had a negative impact of US$4.4 million. Looking ahead, economic recovery in both the USA and Europe are expected to be the major factor in driving demand for Calgon’s products and services. ■
COMMENT Growing filtration product sales contributed to a good year for automotive giant Cummins, which posted total full year net sales of US$6.3 billion and net earnings of US$50 million. The Filtration and Other segment had record sales of US$282 million for its final quarter, which was a 16% increase compared with the 2002 equivalent. Automotive emission products sales in North America and aftermarket sales in the Middle East, Eastern Europe and Africa contributed to the year-overyear revenue increase, as did an overall favourable
currency impact. The Filtration and Other segment reported EBIT of US$25 million for the period, compared with US$28 million a year ago. The decline was attributed to the funding of growth initiatives, including the development of longterm sales agreements, and to improvements to its distribution and logistics systems. The company is forecasting double-digit revenue growth in the Filtration and Other segment during 2004, as the division continues to develop long-term supply arrangements with major OEMs. ■
7
COMPANY WATCH
Key Figures (US$ million) Fourth quarter ended 31.12
Filtration Industry Analyst
Calgon Carbon Corp, USA
Cummins Inc, USA Key Figures (US$ million) Fourth quarter ended 31.12
2003
2002
2003
2002
Net Sales Of Which: Filtration and Other
1736
1414
282
244
Cost of Goods Sold
1400
1192
336
222
59
3
25
28
43
46
Net Sales Of Which: Activated Carbon Service Engineered Solutions Consumer
69.6
62.6
25.3 25.2 12.3 6.8
25.9 22.4 9.4 4.9
Cost of Products Sold
49.6
42.7
Income from Operations
1.5
0.4
EBIT* Of Which: Filtration and Other
Net Income/(Loss)
2.0
0.3
Net Earnings
Gross Margin
Year ended 31.12
Year ended 31.12
2003
2002
Net Sales Of Which: Activated Carbon Service Engineered Solutions Consumer
278.3
258.1
108.4 96.2 40.8 33.0
100.6 93.5 40.1 23.9
Cost of Products Sold
195.1
178.0
Income from Operations
7.1
9.1
Net Income/(Loss)
4.5
(26.7)
2003
2002
Net Sales Of Which: Filtration and Other
6296
5853
1056
951
Cost of Goods Sold
5173
4808
Gross Margin
1123
1045
EBIT* Of Which: Filtration and Other
91
78
86
94
Net Earnings
50
82
* Earnings Before Interest, Income Taxes, Minority Interest and Preferred Dividends
COMMENT Calgon Carbon enjoyed fourth quarter sales of US$69.6 million, up 11.1% on the figure of a year earlier. Net income for the period was US$2.0 million, a 505.1% increase on the 2002 quarter. Sales of activated carbon in the fourth quarter were down slightly compared with a year earlier. Increased demand from the drinking water market in Europe and for specialty carbons in the USA was offset by weakness in the industrial process market in the USA. Service sales increased 12.3% to US$25.2 million, driven by strong demand for potable water
services in Europe. Engineered Systems sales increased 31.7% due to increased revenue from contracts secured in earlier quarters. Calgon Carbon’s sales for the full year were US$278.3 million, up 7.8% on 2002. Positive currency translation effects contributed US$14.6 million, partially offset by changes to the accountancy methods that had a negative impact of US$4.4 million. Looking ahead, economic recovery in both the USA and Europe are expected to be the major factor in driving demand for Calgon’s products and services. ■
COMMENT Growing filtration product sales contributed to a good year for automotive giant Cummins, which posted total full year net sales of US$6.3 billion and net earnings of US$50 million. The Filtration and Other segment had record sales of US$282 million for its final quarter, which was a 16% increase compared with the 2002 equivalent. Automotive emission products sales in North America and aftermarket sales in the Middle East, Eastern Europe and Africa contributed to the year-overyear revenue increase, as did an overall favourable
currency impact. The Filtration and Other segment reported EBIT of US$25 million for the period, compared with US$28 million a year ago. The decline was attributed to the funding of growth initiatives, including the development of longterm sales agreements, and to improvements to its distribution and logistics systems. The company is forecasting double-digit revenue growth in the Filtration and Other segment during 2004, as the division continues to develop long-term supply arrangements with major OEMs. ■
7
COMPANY WATCH
Key Figures (US$ million) Fourth quarter ended 31.12