Cardo AB, Sweden

COMPANY WATCH

Cardo AB, Sweden

Curtiss-Wright Corp, USA

Key Figures (SKr million) Three months ended 30.9 2008

2007

Inflow of Orders Of Which: Wastewater Technology Solutions Pulp & Paper Solutions

2247

2337

724 176

700 182

Net Sales Of Which: Wastewater Technology Solutions Pulp & Paper Solutions

2325

2186

717 186

679 170

Operating Earnings Of Which: Wastewater Technology Solutions Pulp & Paper Solutions

189

150

80 19

73 12

Nine months ended 30.9 2008

2007

Inflow of Orders Of Which: Wastewater Technology Solutions Pulp & Paper Solutions

7322 2313 638

2135 598

Net Sales Of Which: Wastewater Technology Solutions Pulp & Paper Solutions

6855

6576

2070 560

1964 566

472

424

203 59

192 59

Operating Earnings Of Which: Wastewater Technology Solutions Pulp & Paper Solutions

7172

COMMENT Wastewater Technology Solutions’ inflow of orders in the third quarter was SKr724 million, up 3% on 2007 adjusted for the effects of exchange rate movements. Cardo says that Eastern Europe, Latin America and the Middle East are developing well, but the company is seeing a downturn in other regions. Net sales of SKr717 million were up 5% adjusted for exchange rates. For the January–September 2008 period, the inflow of orders was up 9% to SKr2313 million. All regions saw positive development especially eastern Europe, the Middle East and AsiaPacific. Net sales, at SKr2070 million, were up 6% adjusted for texchange rates.

December 2008

Pulp & Paper Solutions’ third quarter inflow of orders came in at SKr176 million, down 3% a year ago adjusted for exchange rates. Organic inflow of orders fell 5%. Order inflow in Europe was good, while North America, Latin America and Asia-Pacific showed a decrease. Net sales, at SKr186 million, were up 9% adjusted for exchange rates. Organic growth was 6%. In January–September 2008, order inflow was up 7% adjusted for exchange rates. Organic growth was 6%. Europe and Asia-Pacific showed gains during this period. Net sales of SKr560 million were down 1% adjusted for exchange rates. In organic terms, this was a 2% fall. ■ www.cardo.com

Key Figures (US$ million) Three months ended 30.9 2008

2007

435.7

396.3

Net Sales Of Which: Flow Control

216.2

190.8

Operating Income Of Which: Flow Control

48.2

44.5

23.1

18.7

Net Earnings

27.5

25.2

Nine months ended 2008

2007

1322.5

1094.5

653.9

491.7

138.6

118.0

58.4

38.8

76.4

66.1

Net Sales Of Which: Flow Control Operating Income Of Which: Flow Control Net Earnings

COMMENT Curtiss-Wright’s Flow Control Division’s third quarter 2008 sales were US$216.2 million, up 13% over the same period last year due to solid organic growth and the US$9.8 million contribution from a third quarter 2007 acquisition. Organic sales growth was 8% in the third quarter of 2008, led by higher sales to the power generation market, driven by revenues from the company’s AP1000 reactor coolant pumps. In addition, the general industrial market growth was due to increased sales of mission critical motor-controls and protection product solutions. These increases were partially offset by a decline in the oil and gas market due to the recent hurricanes and general economic conditions. Flow Control’s sales were

negatively affected by foreign currency translation of US$0.4 million in the third quarter of 2008. Operating income for the Flow Control segment increased 24% in the third quarter of 2008, driven by strong organic growth of 30%. Organic operating margin improved 200 basis points, while overall operating margin improved 90 points. The increase in both organic operating income and margin was largely due to higher sales volumes, improved profitability on several long-term contracts, and reduced research and development costs primarily related to the 2007 AP1000 design study, which did not recur in 2008. ■ www.curtisswright.com

Pump Industry Analyst

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