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Company Watch
Filtration Industry Analyst
September 2000
Calgon Carbon Corp, USA
Waterlink Inc, USA
Key Figures (US$ million) 1 Second quarter ended 30.6
Key Figures (US$ million) 1 Third quarter ended 30.6
2000
1999
2000
1999
43.9
43.1
Net Sales
72.2
80.2
Net Sales
Cost of Products Sold
45.1
51.9
Cost of Sales
30.9
31.2
Selling, Administrative & Research
14.0
16.8
Gross Profit
12.9
11.9
7.8
5.7
Operating Income/(Loss)
1.9
(2.3)
Income Before Income Taxes and Minority Interest 6.3
Income/(Loss) Before Income Taxes (0.2)
(4.2)
4.1
Net/(Loss) Income
(4.6)
Net Income
3.9
2.7
(Loss) per Common Share
US$0.10
US$0.07
Income from Operations
Net Income per Common Share
(0.3)
US$(0.02) US$(0.36)
Nine months ended 30.6 Six months ended 30.6
2000
1999
135.3
128.9
2000
1999
Net Sales
138.1
152.0
Cost of Sales
94.4
88.7
Cost of Products Sold
86.5
97.6
Gross Profit
41.0
40.2
Selling, Administrative & Research
28.5
31.4
Operating Income
6.4
3.0
Income from Operations
12.4
11.2
Income/(Loss) Before Income Taxes
0.5
(2.3)
Income Before Income Taxes and Minority Interest
9.1
8.2
(0.2)
(3.2)
Net Income
5.7
5.3
US$0.15
US$0.14
Net Sales
Net Income per Common Share
Net Income/(Loss) (Loss) per Common Share
US$(0.01) US$(0.25)
1Exceptper sharedata (assumingdilution).
1Exceptper sharedata (basicand diluted).
Calgon Carbon achieved earnings growth during the second quarter ended 30 June 2000 despite making sweeping operational and organizational changes in both Europe and the USA. In Europe, the company shut down its activated carbon manufacturing facility and established a 'centre of excellence' which combines its European headquarters, formerly in Brussels, with its Benelux sales offices and its largest carbon reactivation operation a! Feluy, Belgium. In the USA, progress was made in forming a second 'engineering solutions centre of excellence' to combine the company's ion exchange,
6
ultraviolet light and activated carbon systems businesses in Pittsburgh. Net income for the threemonth period ended 30 June 2000 was US$3.9 million. which represents an increase ofUS$1.2 million, or 43.4%, on last year's second-quarter figure. Compared with the equivalent period of 1999. sales for the second quarter dropped by USS8 million to US$72.2 million. Net income for the six months ended 30 June 2000 was US$5.7 million. This was US$0.4 million, or 8.1%, higher than the figure the company posted for the first half of 1999. •
Although Waterlink Inc did not perform as well as it had expected to do during the third quarter of fiscal 2000. its results were significantly better than those it posted for the previous three-month period, particularly for its Pure Water and Biological Divisions, which had a very active quarter from a bidding and booking perspective. In addition, the company's Specialty Products and Separations Divisions continue to provide solid performance, For the third quarter ended 30 June 2000 Waterlink reported net sales of US$43.9 million, compared with US$43.1 million, which
it reported for the equivalent period a year earlier. The marginal increase in net sales was driven mainly by an 8.1% improvement in sales within the Specialty Products Division, through higher recurring revenue sales, and from the Pure Water Division, which experienced a 26.7% increase in sales because of strong bookings during the quarter. These improvements were partially offset by the cornpany's European Division, where revenues declined by 12.6% compared with last year's quarter. This was caused by low bookings levels. •
September 2000
Filtration Industry Analyst
Osmonics Inc, USA
Lydall Inc, USA
Key Figures (US$ million) 1 Second quarter ended 30.6
Key Figures (US$ million) 1 Second quarter ended 30.6
2000
1999
2000
1999
Net Sales
49.4
46.5
Net Sales
79.4
83.1
Gross Profit
15.9
16.2
Cost of Sales
60.3
62.8
19.0
20.3
Income from Operations
2.6
3.7
Gross Margin
Income Before Income Taxes
2.8
3.2
Operating Income
5.0
6.1
Net Income
1.8
2.1
Net Income
3.2
3.6
US$0.13
US$0.15
US$0.20
US$0.23
Earnings per Share
Basic Earnings per Common Share
Six months ended 30.6 2000
1999
Net Sales
99.7
91.0
Gross Profit
32.2
31.5
Income from Operations
5.0
Income Before Income Taxes Net Income Earnings per Share
Six months ended 30.6 2O00
1999
Net Sales
159.5
166.0
7.0
Cost of Sales
121.4
126.6
5.2
5.6
Gross Margin
38.1
39.4
3.4
3.7
Operating Income
9.9
12.0
US$0.24
US$0.26
10.0
7.7
US$0.63
US$0.49
1Exceptper share data (assumingdilution).
Net Income Basic Earnings per Common Share
ZZ
>. Z
1Exceptper sharedata. Osmonics lnc should be encouraged by its first-half sales performance, because it reflects renewed organic growth as well as US$6.1 million in sales at its Kent, Washington facility, which was acquired during July 1999. Internal growth amounted to US$5.4 million for the period. This growth helped replace US$2.8 million in first-half sales for 1999 from discontinued product lines at the company's former Rockland, Massachusetts and Upland facilities in California. which have since been closed. The company reported sales of US$49.4 million for the second quarter ended 30 June 2000. This represents an increase of 6.3% on sales of US$46.5 million that it posted for the second quarter of 1999. Net income for the quarter was US$1.8 million, compared with US$2.1 million for the previous year.
Unfortunately, the untimely bankruptcy filing by SafetyKleen (SK) slowed sales momentum for the second quarter of 2000. During 1999. SK purchased US$4.9 million of Osmonics' 'WasteWizard' product, and it expected to nearly double this in 2000. However, sales during 2000 have only reached US$2.8 million after six months, and SK business as a percentage of total sales has declined from 4.2% in the first quarter to 1.3% in the second quarter. All three of Osmonics' business segments experienced improvements in revenue during the second quarter of 2000, compared with the second quarter of 1999. In particular, the Process Water segment posted good results, showing a 14.6% increase in sales for the second quarter of 2000, compared with the same period last year. •
© Lydall Inc's financial results for the second quarter and six months ended 30 June 2000 were in line with expectations. The company's core businesses, especially filtration/separation and industrial thermal, showed solid growth. However, lower sales and losses by the noncore Gerhardi operations, as well as pricing pressures in its paperboard markets, offset the stronger performance of these segments. Net sales for the second quarter of 2000 totaled US$79.4 million, compared with US$83:1 million for the equivalent quarter in 1999. Income from continuing operations was US$3.2 million, compared with US$3.7 million that was posted for the second quarter of 1999, In Lydall's filtration/ separation segment, sales
increased by 18% during the second quarter of 2000, compared with the equivalent quarter last year. The general resurgence of air-filtration markets was marked by a 21% increase in the company's air-filtration media sales during the quarter. In addition, increased sales of synthetic and home air-purification media, and significant operational improvements accomplished by Lydall's French facility, contributed to this strong performance. Excluding Gerhardi, sales in the company's thermal/acoustical segment increased by 3% for the second quarter ended 30 June 2000. New automotive product launches are on track and will be phased in over the remainder of 2000, and during 200E B
7
Filtration Industry Analyst
September 2000
BHA Group Holdings Inc, USA
Ionics Inc, USA
Key Figures (US$ million) 1 Third quarter ended 30.6
Key Figures (US$ million) 1 Second quarter ended 30.6
Net Sales
2000
1999
2000
1999
102.8
84.6
39.8
38.9
Operating Income
2.6
1.4
Income from Operations
6.8
7.3
Earnings Before Income Taxes
2.1
0.9
Net Earnings
1.3
0.6
Income Before Income Taxes and Minority Interest
6.5
7.7
US$0.20
US$0.08
Net Income
4.2
5.1
US$0.26
US$0.32
Earnings per Share
Revenue
Basic Earnings per Share
Nine months ended 30.6 Net Sales
1999
123.1
114.5
Operating Income
8.5
4.1
Earnings Before Income Taxes
8.5
4.1
Net Earnings
4.6
1.8
US$0.68
US$0.25
Earnings per Share
Z
2000
Six months ended 30.6 2000
1999
205.6
172.0
Income from Operations
12.5
14.5
Income Before Income Taxes and Minority Interest
12.2
15.0
7.8
9.8
US$0.48
US$0.61
Revenue
Net Income Basic Earnings per Share
1Exceptper sharedata tdilutedbasisJ.
Net Revenue by Business Group Second quarter ended 30.6
© BHA Group Holdings Inc has announced unaudited operating results for the three-month and nine-month periods ended 30 June 2000. Net sales for the third quarter of 2000 increased by 2% to US$39.8 million, from US$38.9 million for the equivalent period of fiscal 1999. Operating income for the three-month period was US$2.6 million, up sharply from US$1.4 million, which was recorded last year. Net earnings for the quarter amounted to US$1.3 million, compared with US$0.6 million for the three-month period of 1999. The fiscal 1999 results included US$0.7 million in unusual charges (US$0.5 million after tax). Net sales for the nine months ended 30 June 2000 rose by 8% to US$123.1 million, from US$114.5 million which was reported a year
earlier. Net earnings for the nine-month period increased to US$4.6 million from US$1.8 million. BHA Group Holdings's core air-pollution control businesses remain strong. In the USA, sales for the quarter of fabric filter replacement parts and services were 24 0% higher than those posted for the equivalent period of 1999. As the company expected, domestic sales of electrostatic precipitator (ESP) replacement parts and services declined for the most recent quarter because of a lower open-order backlog at 31 March 2000. However. BHA has seen a rise in ESP replacement parts and services orders during the third quarter of 2000 which should enable this group to achieve its financial targets for the year. •
2000
1999
Equipment Business Group
42.4
30.7
Ultrapure Water Group
26.6
23,3
Consumer Water Group
26.9
23.7
6.9
6.9
Instrument Business Group 1Exceptper sharedata.
Ionics Inc's revenues for the quarter ended 30 June 2000 totaled US$102.8 million. This represents an increase of 21.6%, compared with revenues of US$84.6 million that the company posted for the second quarter of 1999. Net income of US$4.2 million dropped 17.4% from US$5.1 million, For the first half of 2000, revenues of US$205.6 million were 19.50% higher than the first six months of 1999, while net income of US$7.8 million declined by 20.4%.
Backlog at the end of the quarter ended 30 June 2000 was a record US$281.3 million. up 49.1% over the backlog a year earlier of US$188.6 million. Bookings for the quarter totaled US$110 million, which represents the fourth consecutive quarter of bookings over US$100 million. The company believes that the momentum which has been created by strong bookings over the past year, and the recent signing of membrane supply arrangements. •
September 2000
Filtration Industry Analyst
Pall Corp, USA
Donaldson Co Inc, USA
Key Figures (US$ million)l Fourth quarter ended 29.7
Key Figures (US$ million) 1 Fourth quarter ended 31.7 2000
1999
Net Sales
301.2
254.2
Cost of Sales
211.9
177.4
Gross Margin
89.2
76.8
Operating Expenses
61.0
51.7
Earnings before Income Taxes
26.2
26.4
Net Earnings
18.4
18.5
Net Earnings per Common Share US$0.41
US$0.40
2000
1999
Net Sales
344.2
319.0
Cost of Sales
152.7
137.3
15,2
13.0
Research and Development Total Costs and Expenses
286.4
253.7
Earnings Before Income Taxes
57.9
65.3
Net Earnings
46.1
50.4
Earnings per Share
US$0.37 US$0.40
Twelve months ended 29.7 Twelve months ended 31.7
2000
2000
1999
Net Sales Cost of Sales
1092.2 764.7
944.1 668.4
Gross Margin
327.5
275,6
Net Earnings
70.2
62.4
1Exceptper share data.
Net Sales Cost of Sales Research and Development Total Costs and Expenses
1999
1224.1
1147.0
557.7
548.0
51.4
56.5
1035.7
1088.2
Earnings Before Income Taxes
188.4
58.9
Net Earnings
146.6
51.5
• Exceptper sharedata. Donaldson Co's sales for the fourth quarter o f fiscal 2000 were up 18% compared with the same quarter of fiscal 1999 - US$301.2 million. Businesses acquired in 2000 contributed US$29.2 million of revenue in the fourth quarter. Excluding the impact of acquisitions, revenue was up 7% from the comparable quarter last year. Net earnings of US$18.4 million were down slightly from prior-year comparable quarter net earnings of US$18.5 millioni For the year, sales of US$1.092 billion were up 16% from prior-year sales of US$944.1 million. Businesses acquired in this fiscal year contributed US$56.6 million ofrevenuesyear-to-date, Excluding the impact of acquisitions, sales for the year ended 3 1 July 2000~ were up 10% from the prior year.
For the year, sales for the Engine Products segment of US$674 million were up 10% from prior year sales of US$611.4 million. Engine Products sales for the fourth quarter increased 11% from the same period in the prior year. These increases were led by strong sales in aftermarket products which more than offset the decline in transportation products as a result of declining truck builds. For the year, sales for the Industrial Products segment ofUS$418.3 million were up 26% from the prior year sales o f US$332.8 million. Industrial Products sales for the fourth quarter increased 32% from the same period in the prior year. The increase in Industrial Product sales was led by both the Dust Collection and Gas Turbine product sales for the quarter and the year. •
For the year Pall Corp's sales increased 6.5% to US$1224.1 million compared with US$1147.1 million .last year. Reported earnings amounted to US$146.6 million or US$1.18 per share, compared with US$51.5 million or US$0.41 per share last year. The reported earnings reflect restructuring and other charges of US$13.3 million in fiscal year 2000 and US$89.4 million in fiscal year 1999. Sales for the quarter were up 8% at US$344.2 million compared with US$319.1 million in the prior year. Excluding restructuring and other charges, fourth quarter earnrags amounted to US$54.8 million compared with US$50.4 million in last year's fourth quarter,
Z ©
As expected, total sales of blood filters were up 3.5% as the quarter last year included countries stocking up as they move to full filtration. Sales to blood centres this quarter increased 21.5% and hospital sales decreased 18%, The company's most significant player in its Industrial Process business in the quarter was Water, which increased its sales by 70%, reflecting the orders Pall achieved earlier in the year. Microelectrunics had a good quarter as well, finishing the year with sales o f US$104 million, an increase of 61% from last year. By geography, sales continued to strengthen in the Western Hemisphere, 0 posting 14Yo growth in the quarter. •
9
September 2000
Calgon Carbon Corp, USA
Waterlink Inc, USA
Key Figures (US$ million) 1 Second quarter ended 30.6
Key Figures (US$ million) 1 Third quarter ended 30.6
2000
1999
2000
1999
43.9
43.1
Net Sales
72.2
80.2
Net Sales
Cost of Products Sold
45.1
51.9
Cost of Sales
30.9
31.2
Selling, Administrative & Research
14.0
16.8
Gross Profit
12.9
11.9
7.8
5.7
Operating Income/(Loss)
1.9
(2.3)
Income Before Income Taxes and Minority Interest 6.3
Income/(Loss) Before Income Taxes (0.2)
(4.2)
4.1
Net/(Loss) Income
(4.6)
Net Income
3.9
2.7
(Loss) per Common Share
US$0.10
US$0.07
Income from Operations
Net Income per Common Share
(0.3)
US$(0.02) US$(0.36)
Nine months ended 30.6 Six months ended 30.6
2000
1999
135.3
128.9
2000
1999
Net Sales
138.1
152.0
Cost of Sales
94.4
88.7
Cost of Products Sold
86.5
97.6
Gross Profit
41.0
40.2
Selling, Administrative & Research
28.5
31.4
Operating Income
6.4
3.0
Income from Operations
12.4
11.2
Income/(Loss) Before Income Taxes
0.5
(2.3)
Income Before Income Taxes and Minority Interest
9.1
8.2
(0.2)
(3.2)
Net Income
5.7
5.3
US$0.15
US$0.14
Net Sales
Net Income per Common Share
Net Income/(Loss) (Loss) per Common Share
US$(0.01) US$(0.25)
1Exceptper sharedata (assumingdilution).
1Exceptper sharedata (basicand diluted).
Calgon Carbon achieved earnings growth during the second quarter ended 30 June 2000 despite making sweeping operational and organizational changes in both Europe and the USA. In Europe, the company shut down its activated carbon manufacturing facility and established a 'centre of excellence' which combines its European headquarters, formerly in Brussels, with its Benelux sales offices and its largest carbon reactivation operation a! Feluy, Belgium. In the USA, progress was made in forming a second 'engineering solutions centre of excellence' to combine the company's ion exchange,
6
ultraviolet light and activated carbon systems businesses in Pittsburgh. Net income for the threemonth period ended 30 June 2000 was US$3.9 million. which represents an increase ofUS$1.2 million, or 43.4%, on last year's second-quarter figure. Compared with the equivalent period of 1999. sales for the second quarter dropped by USS8 million to US$72.2 million. Net income for the six months ended 30 June 2000 was US$5.7 million. This was US$0.4 million, or 8.1%, higher than the figure the company posted for the first half of 1999. •
Although Waterlink Inc did not perform as well as it had expected to do during the third quarter of fiscal 2000. its results were significantly better than those it posted for the previous three-month period, particularly for its Pure Water and Biological Divisions, which had a very active quarter from a bidding and booking perspective. In addition, the company's Specialty Products and Separations Divisions continue to provide solid performance, For the third quarter ended 30 June 2000 Waterlink reported net sales of US$43.9 million, compared with US$43.1 million, which
it reported for the equivalent period a year earlier. The marginal increase in net sales was driven mainly by an 8.1% improvement in sales within the Specialty Products Division, through higher recurring revenue sales, and from the Pure Water Division, which experienced a 26.7% increase in sales because of strong bookings during the quarter. These improvements were partially offset by the cornpany's European Division, where revenues declined by 12.6% compared with last year's quarter. This was caused by low bookings levels. •
September 2000
Filtration Industry Analyst
Osmonics Inc, USA
Lydall Inc, USA
Key Figures (US$ million) 1 Second quarter ended 30.6
Key Figures (US$ million) 1 Second quarter ended 30.6
2000
1999
2000
1999
Net Sales
49.4
46.5
Net Sales
79.4
83.1
Gross Profit
15.9
16.2
Cost of Sales
60.3
62.8
19.0
20.3
Income from Operations
2.6
3.7
Gross Margin
Income Before Income Taxes
2.8
3.2
Operating Income
5.0
6.1
Net Income
1.8
2.1
Net Income
3.2
3.6
US$0.13
US$0.15
US$0.20
US$0.23
Earnings per Share
Basic Earnings per Common Share
Six months ended 30.6 2000
1999
Net Sales
99.7
91.0
Gross Profit
32.2
31.5
Income from Operations
5.0
Income Before Income Taxes Net Income Earnings per Share
Six months ended 30.6 2O00
1999
Net Sales
159.5
166.0
7.0
Cost of Sales
121.4
126.6
5.2
5.6
Gross Margin
38.1
39.4
3.4
3.7
Operating Income
9.9
12.0
US$0.24
US$0.26
10.0
7.7
US$0.63
US$0.49
1Exceptper share data (assumingdilution).
Net Income Basic Earnings per Common Share
ZZ
>. Z
1Exceptper sharedata. Osmonics lnc should be encouraged by its first-half sales performance, because it reflects renewed organic growth as well as US$6.1 million in sales at its Kent, Washington facility, which was acquired during July 1999. Internal growth amounted to US$5.4 million for the period. This growth helped replace US$2.8 million in first-half sales for 1999 from discontinued product lines at the company's former Rockland, Massachusetts and Upland facilities in California. which have since been closed. The company reported sales of US$49.4 million for the second quarter ended 30 June 2000. This represents an increase of 6.3% on sales of US$46.5 million that it posted for the second quarter of 1999. Net income for the quarter was US$1.8 million, compared with US$2.1 million for the previous year.
Unfortunately, the untimely bankruptcy filing by SafetyKleen (SK) slowed sales momentum for the second quarter of 2000. During 1999. SK purchased US$4.9 million of Osmonics' 'WasteWizard' product, and it expected to nearly double this in 2000. However, sales during 2000 have only reached US$2.8 million after six months, and SK business as a percentage of total sales has declined from 4.2% in the first quarter to 1.3% in the second quarter. All three of Osmonics' business segments experienced improvements in revenue during the second quarter of 2000, compared with the second quarter of 1999. In particular, the Process Water segment posted good results, showing a 14.6% increase in sales for the second quarter of 2000, compared with the same period last year. •
© Lydall Inc's financial results for the second quarter and six months ended 30 June 2000 were in line with expectations. The company's core businesses, especially filtration/separation and industrial thermal, showed solid growth. However, lower sales and losses by the noncore Gerhardi operations, as well as pricing pressures in its paperboard markets, offset the stronger performance of these segments. Net sales for the second quarter of 2000 totaled US$79.4 million, compared with US$83:1 million for the equivalent quarter in 1999. Income from continuing operations was US$3.2 million, compared with US$3.7 million that was posted for the second quarter of 1999, In Lydall's filtration/ separation segment, sales
increased by 18% during the second quarter of 2000, compared with the equivalent quarter last year. The general resurgence of air-filtration markets was marked by a 21% increase in the company's air-filtration media sales during the quarter. In addition, increased sales of synthetic and home air-purification media, and significant operational improvements accomplished by Lydall's French facility, contributed to this strong performance. Excluding Gerhardi, sales in the company's thermal/acoustical segment increased by 3% for the second quarter ended 30 June 2000. New automotive product launches are on track and will be phased in over the remainder of 2000, and during 200E B
7
Filtration Industry Analyst
September 2000
BHA Group Holdings Inc, USA
Ionics Inc, USA
Key Figures (US$ million) 1 Third quarter ended 30.6
Key Figures (US$ million) 1 Second quarter ended 30.6
Net Sales
2000
1999
2000
1999
102.8
84.6
39.8
38.9
Operating Income
2.6
1.4
Income from Operations
6.8
7.3
Earnings Before Income Taxes
2.1
0.9
Net Earnings
1.3
0.6
Income Before Income Taxes and Minority Interest
6.5
7.7
US$0.20
US$0.08
Net Income
4.2
5.1
US$0.26
US$0.32
Earnings per Share
Revenue
Basic Earnings per Share
Nine months ended 30.6 Net Sales
1999
123.1
114.5
Operating Income
8.5
4.1
Earnings Before Income Taxes
8.5
4.1
Net Earnings
4.6
1.8
US$0.68
US$0.25
Earnings per Share
Z
2000
Six months ended 30.6 2000
1999
205.6
172.0
Income from Operations
12.5
14.5
Income Before Income Taxes and Minority Interest
12.2
15.0
7.8
9.8
US$0.48
US$0.61
Revenue
Net Income Basic Earnings per Share
1Exceptper sharedata tdilutedbasisJ.
Net Revenue by Business Group Second quarter ended 30.6
© BHA Group Holdings Inc has announced unaudited operating results for the three-month and nine-month periods ended 30 June 2000. Net sales for the third quarter of 2000 increased by 2% to US$39.8 million, from US$38.9 million for the equivalent period of fiscal 1999. Operating income for the three-month period was US$2.6 million, up sharply from US$1.4 million, which was recorded last year. Net earnings for the quarter amounted to US$1.3 million, compared with US$0.6 million for the three-month period of 1999. The fiscal 1999 results included US$0.7 million in unusual charges (US$0.5 million after tax). Net sales for the nine months ended 30 June 2000 rose by 8% to US$123.1 million, from US$114.5 million which was reported a year
earlier. Net earnings for the nine-month period increased to US$4.6 million from US$1.8 million. BHA Group Holdings's core air-pollution control businesses remain strong. In the USA, sales for the quarter of fabric filter replacement parts and services were 24 0% higher than those posted for the equivalent period of 1999. As the company expected, domestic sales of electrostatic precipitator (ESP) replacement parts and services declined for the most recent quarter because of a lower open-order backlog at 31 March 2000. However. BHA has seen a rise in ESP replacement parts and services orders during the third quarter of 2000 which should enable this group to achieve its financial targets for the year. •
2000
1999
Equipment Business Group
42.4
30.7
Ultrapure Water Group
26.6
23,3
Consumer Water Group
26.9
23.7
6.9
6.9
Instrument Business Group 1Exceptper sharedata.
Ionics Inc's revenues for the quarter ended 30 June 2000 totaled US$102.8 million. This represents an increase of 21.6%, compared with revenues of US$84.6 million that the company posted for the second quarter of 1999. Net income of US$4.2 million dropped 17.4% from US$5.1 million, For the first half of 2000, revenues of US$205.6 million were 19.50% higher than the first six months of 1999, while net income of US$7.8 million declined by 20.4%.
Backlog at the end of the quarter ended 30 June 2000 was a record US$281.3 million. up 49.1% over the backlog a year earlier of US$188.6 million. Bookings for the quarter totaled US$110 million, which represents the fourth consecutive quarter of bookings over US$100 million. The company believes that the momentum which has been created by strong bookings over the past year, and the recent signing of membrane supply arrangements. •
September 2000
Filtration Industry Analyst
Pall Corp, USA
Donaldson Co Inc, USA
Key Figures (US$ million)l Fourth quarter ended 29.7
Key Figures (US$ million) 1 Fourth quarter ended 31.7 2000
1999
Net Sales
301.2
254.2
Cost of Sales
211.9
177.4
Gross Margin
89.2
76.8
Operating Expenses
61.0
51.7
Earnings before Income Taxes
26.2
26.4
Net Earnings
18.4
18.5
Net Earnings per Common Share US$0.41
US$0.40
2000
1999
Net Sales
344.2
319.0
Cost of Sales
152.7
137.3
15,2
13.0
Research and Development Total Costs and Expenses
286.4
253.7
Earnings Before Income Taxes
57.9
65.3
Net Earnings
46.1
50.4
Earnings per Share
US$0.37 US$0.40
Twelve months ended 29.7 Twelve months ended 31.7
2000
2000
1999
Net Sales Cost of Sales
1092.2 764.7
944.1 668.4
Gross Margin
327.5
275,6
Net Earnings
70.2
62.4
1Exceptper share data.
Net Sales Cost of Sales Research and Development Total Costs and Expenses
1999
1224.1
1147.0
557.7
548.0
51.4
56.5
1035.7
1088.2
Earnings Before Income Taxes
188.4
58.9
Net Earnings
146.6
51.5
• Exceptper sharedata. Donaldson Co's sales for the fourth quarter o f fiscal 2000 were up 18% compared with the same quarter of fiscal 1999 - US$301.2 million. Businesses acquired in 2000 contributed US$29.2 million of revenue in the fourth quarter. Excluding the impact of acquisitions, revenue was up 7% from the comparable quarter last year. Net earnings of US$18.4 million were down slightly from prior-year comparable quarter net earnings of US$18.5 millioni For the year, sales of US$1.092 billion were up 16% from prior-year sales of US$944.1 million. Businesses acquired in this fiscal year contributed US$56.6 million ofrevenuesyear-to-date, Excluding the impact of acquisitions, sales for the year ended 3 1 July 2000~ were up 10% from the prior year.
For the year, sales for the Engine Products segment of US$674 million were up 10% from prior year sales of US$611.4 million. Engine Products sales for the fourth quarter increased 11% from the same period in the prior year. These increases were led by strong sales in aftermarket products which more than offset the decline in transportation products as a result of declining truck builds. For the year, sales for the Industrial Products segment ofUS$418.3 million were up 26% from the prior year sales o f US$332.8 million. Industrial Products sales for the fourth quarter increased 32% from the same period in the prior year. The increase in Industrial Product sales was led by both the Dust Collection and Gas Turbine product sales for the quarter and the year. •
For the year Pall Corp's sales increased 6.5% to US$1224.1 million compared with US$1147.1 million .last year. Reported earnings amounted to US$146.6 million or US$1.18 per share, compared with US$51.5 million or US$0.41 per share last year. The reported earnings reflect restructuring and other charges of US$13.3 million in fiscal year 2000 and US$89.4 million in fiscal year 1999. Sales for the quarter were up 8% at US$344.2 million compared with US$319.1 million in the prior year. Excluding restructuring and other charges, fourth quarter earnrags amounted to US$54.8 million compared with US$50.4 million in last year's fourth quarter,
Z ©
As expected, total sales of blood filters were up 3.5% as the quarter last year included countries stocking up as they move to full filtration. Sales to blood centres this quarter increased 21.5% and hospital sales decreased 18%, The company's most significant player in its Industrial Process business in the quarter was Water, which increased its sales by 70%, reflecting the orders Pall achieved earlier in the year. Microelectrunics had a good quarter as well, finishing the year with sales o f US$104 million, an increase of 61% from last year. By geography, sales continued to strengthen in the Western Hemisphere, 0 posting 14Yo growth in the quarter. •
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