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Cantel Medical Corp, USA
Company watch
Donaldson Co Inc, USA
Cantel Medical Corp, USA
Key Figures (US$ million) Third quarter ended 30.4 2017 2016
Net Sales Of Which: Water Purification & Filtration
192.1
173.7
47.9
44.6
Cost of Sales
100.7
93.4
Gross Profit
91.4
80.3
Operating Expenses
64.0
57.1
Operating Income Of Which: Water Purification & Filtration
35.1
31.2
7.8
6.9
Net Income/(Loss)
17.5
14.0
Nine months ended 30.4 2017 2016
Net Sales Of Which: Water Purification & Filtration
564.7
485.8
145.2
132.6
Cost of Sales
295.2
261.9
Gross Profit
269.4
223.9
Operating Expenses
186.3
152.4
Operating Income Of Which: Water Purification & Filtration
107.2
90.1
25.2
22.3
54.4
43.7
Net Income/(Loss)
Key Figures (US$ million) Third quarter ended 30.4 2017 2016
Net Sales
608.2
571.3
Cost of Sales
396.7
374.7
Gross Margin
211.5
196.6
Operating Expenses
123.0
121.7
Operating Income
88.5
74.9
Earnings before Income Taxes
84.3
72.1
Net Earnings
60.1
54.8
Nine months ended 30.4 2017 2016
Net Sales
1711.8
1626.5
Cost of Sales
1118.2
1081.0
Gross Margin
593.6
545.5
Operating Expenses
359.3
361.4
Operating Income
234.3
184.1
Earnings before Income Taxes
230.3
174.9
Net Earnings
164.6
131.3
COMMENT COMMENT Cantel Medical has posted a 10.6% increase in third quarter sales to US$192.1 million, while its net income grew 25.0% to US$17.5 million. Jørgen Hansen, Cantel’s president and CEO, said the sales growth could be broken down into organic growth of 7.4% and a 1.2% decline due to foreign currency translation, with acquisitions making up the remaining 4.4%. Hansen said that for the third consecutive quarter the company’s Healthcare Disposables segment had yielded the strongest sales growth, with its revenues up 21.5% to US$36.2 million reflecting its August 2016 acquisition of 88
Filtration Industry Analyst
infection prevention company Accutron. Sales in Cantel Medical’s Water Purification and Filtration segment increased 7.4% US$47.9 million, which was in-line with the company’s expectations. Commenting on the sector’s performance, Hansen said the continued strength of its backlog had translated into solid shipments of equipment, which had driven the majority of the growth. “Order intake remained strong in the third quarter, and our backlog ended at a record level for the fourth consecutive quarter, positioning us well for the remainder of fiscal year 2017,” he said. n www.cantelmedical.com
Donaldson has posted net sales of US$608.2 million for its third quarter of fiscal 2017, an increase of 6.5% on the year earlier. Excluding the negative impact from currency translation, revenues increased 7.7% on the 2016 equivalent. Sales in its Engine Products segment jumped 13.5% (14.3% at constant currencies) on the year earlier to US$405.6 million. Revenues were up in all its business units, with the biggest growth registered in Off-Road (27.5% to US$68.9 million) and Aerospace & Defense (22.3% to US$28.1 million). There was also a double-digit increase for its Aftermarket business area, where sales were up 11.1% to US$279.8 million, while On-Road revenues were up 1.6% to US$28.8 million. In contrast, Donaldson’s
Industrial Products segment fell 5.3% (3.3% currency adjusted) to US$202.6 million. The performance reflected a 34.5% drop in Gas Turbine Systems sales to US$31.2 million, with revenues up in both the Industrial Filtration Solutions (0.3% to US$129.3 million) and Special Applications (12.1% to US$42.1 million) business areas. “While the signs of stabilization in our Engine markets are encouraging, the variability in our Industrial segment is a reminder that there is still economic and geopolitical uncertainty,” Tod Carpenter, Donaldson’s president and CEO, said. “We continue to address the mixed operating environment by planning cautiously while making targeted investments.” n www.donaldson.com
July 2017
Donaldson Co Inc, USA
Cantel Medical Corp, USA
Key Figures (US$ million) Third quarter ended 30.4 2017 2016
Net Sales Of Which: Water Purification & Filtration
192.1
173.7
47.9
44.6
Cost of Sales
100.7
93.4
Gross Profit
91.4
80.3
Operating Expenses
64.0
57.1
Operating Income Of Which: Water Purification & Filtration
35.1
31.2
7.8
6.9
Net Income/(Loss)
17.5
14.0
Nine months ended 30.4 2017 2016
Net Sales Of Which: Water Purification & Filtration
564.7
485.8
145.2
132.6
Cost of Sales
295.2
261.9
Gross Profit
269.4
223.9
Operating Expenses
186.3
152.4
Operating Income Of Which: Water Purification & Filtration
107.2
90.1
25.2
22.3
54.4
43.7
Net Income/(Loss)
Key Figures (US$ million) Third quarter ended 30.4 2017 2016
Net Sales
608.2
571.3
Cost of Sales
396.7
374.7
Gross Margin
211.5
196.6
Operating Expenses
123.0
121.7
Operating Income
88.5
74.9
Earnings before Income Taxes
84.3
72.1
Net Earnings
60.1
54.8
Nine months ended 30.4 2017 2016
Net Sales
1711.8
1626.5
Cost of Sales
1118.2
1081.0
Gross Margin
593.6
545.5
Operating Expenses
359.3
361.4
Operating Income
234.3
184.1
Earnings before Income Taxes
230.3
174.9
Net Earnings
164.6
131.3
COMMENT COMMENT Cantel Medical has posted a 10.6% increase in third quarter sales to US$192.1 million, while its net income grew 25.0% to US$17.5 million. Jørgen Hansen, Cantel’s president and CEO, said the sales growth could be broken down into organic growth of 7.4% and a 1.2% decline due to foreign currency translation, with acquisitions making up the remaining 4.4%. Hansen said that for the third consecutive quarter the company’s Healthcare Disposables segment had yielded the strongest sales growth, with its revenues up 21.5% to US$36.2 million reflecting its August 2016 acquisition of 88
Filtration Industry Analyst
infection prevention company Accutron. Sales in Cantel Medical’s Water Purification and Filtration segment increased 7.4% US$47.9 million, which was in-line with the company’s expectations. Commenting on the sector’s performance, Hansen said the continued strength of its backlog had translated into solid shipments of equipment, which had driven the majority of the growth. “Order intake remained strong in the third quarter, and our backlog ended at a record level for the fourth consecutive quarter, positioning us well for the remainder of fiscal year 2017,” he said. n www.cantelmedical.com
Donaldson has posted net sales of US$608.2 million for its third quarter of fiscal 2017, an increase of 6.5% on the year earlier. Excluding the negative impact from currency translation, revenues increased 7.7% on the 2016 equivalent. Sales in its Engine Products segment jumped 13.5% (14.3% at constant currencies) on the year earlier to US$405.6 million. Revenues were up in all its business units, with the biggest growth registered in Off-Road (27.5% to US$68.9 million) and Aerospace & Defense (22.3% to US$28.1 million). There was also a double-digit increase for its Aftermarket business area, where sales were up 11.1% to US$279.8 million, while On-Road revenues were up 1.6% to US$28.8 million. In contrast, Donaldson’s
Industrial Products segment fell 5.3% (3.3% currency adjusted) to US$202.6 million. The performance reflected a 34.5% drop in Gas Turbine Systems sales to US$31.2 million, with revenues up in both the Industrial Filtration Solutions (0.3% to US$129.3 million) and Special Applications (12.1% to US$42.1 million) business areas. “While the signs of stabilization in our Engine markets are encouraging, the variability in our Industrial segment is a reminder that there is still economic and geopolitical uncertainty,” Tod Carpenter, Donaldson’s president and CEO, said. “We continue to address the mixed operating environment by planning cautiously while making targeted investments.” n www.donaldson.com
July 2017