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Company Watch
Filtration Industry Analyst
Clarcor Inc, USA
Millipore Corp, USA
Key Figures (US$ million)1 First quarter ended
Key Figures (US$ million) 1 First quarter ended 31.3
3.3,2001
26.2.2000
2001
2000
Net Sales
156.2
150.7
Net Sales
244,5
224.8
Cost of Sales
109.9
106.4
Cost of Sales
116.9
100.3
Gross Profit
46.3
44.3
Gross Profit
127.6
124.5
Operating Profit
17.7
13.5
Net Income
5.2
26.2
Earnings Before Income Taxes
15.4
11.0
Diluted Net Income per ShareUS$0.11
US$0.56
9.8
7.1
US$0.40
US$0.29
Net Earnings Net Earnings per C o m m o n Share
©
Microelectronics 3
3.3,2001
26,2,2000
58.8
59.9
Industrial/Environmental Filtration 77.5
75.0
Packaging
15.8
Engine/Mobile Filtration
19.9
Revenues by Business Segment (US$ million) First quarter ended 31.3 BioScience 2
Net Sales by Market Segment First quarter ended
Z:
>. Z <
May 2001
For the first quarter of fiscal 2001, ended 3 March, Clarcor Ine's sales increased by 4% and its operating profit rose by 31%, compared with the corresponding period a year earlier. Included in the first-quarter results was a contract cancellation payment made by a Packagingsegment customer which increased sales by approximately US$4.7 million, and operating profit by about US$3.7 million, compared with the first quarter of 2000. Sales growth slowed during the first quarter compared with the previous year largely because of the downturn in the US economy. After-market, heavy-duty filter sales were not as affected by the downturn, as were sales of air-quality equipment, railway filters and light-duty filters. The company's environmental air-filter business
II
continued to grow through increased customer demand for new products which were introduced during the last half of fiscal 2000. The company is fortunate that most of its sales come from the aftermarket, which tends to be less sensitive to economic conditions than sales to the OEM and new construction markets. In Clarcor's Engine/ Mobile segment, operating profit was good, as cost reductions and productivity improvements made over last few years continue to drive increased margins. This is also true for the company's IndustriaVEnvironmental segment, except that it is still incurring start-up costs from two new facilities which were established in the second half of fiscal 2000. These costs will continue, but should diminish by the end of the year. •
2000
162.0
148.0
83.0
77.0
Revenues by Geographic Area (U55 million) First quarter ended 31.3 2001 Americas
1Exceptper sharedata (basic)
2001
2000
105.0
97.0
Europe
66.0
60.0
Asia/Pacific
74.0
68.0
1Exceptper sharedata. 2Millipore'sBioSciencebusinesssegmentincludesproductsand services which are targetedat pharmaceuticalcompanies,blotechnologycompanies, food and beveragecompanies,universityand governmentlaboratories, and researchinstitutes 3MiIIipore'sMlcroelectronlcsbusinesssegmentincludes productsand services which are targetedat semtconductorfabricationcompanies,OEM suppl)ersto those companies,and other mJcroelectromcscomponent manufacturers.
Millipore Corp's first-quarter revenue totalled US$245 million, whieh is 9% higher than the equivalent period of 2000. Revenue growth in local currency "terms was 14%, with both Millipore's BioScience business segment and its Microeleetronics business segment growing by 14 % in local currency terms. Millipore incurred a restructuring charge of US$31 million, which includes costs for reorganising both the Microelectronics and BioScience businesses, to prepare them to operate successfully as two companies. There were also
costs associated with resizhag the Microeleetronics business in view of the current industry downturn. The company's BioScience segment launched a number of new products and alliances during the first quarter. New biotechnology drugs, increased demand for these drugs, and continued strong investments in life-science research all fuelled increased demand for the company's products and services.The Mieroeleetronics business has been incorporated as a wholly-owned subsidiary of Millipore, called Mykrolis Corp. •
May 2001
Filtration Industry Analyst
Donaldson Co Inc, USA Key Figures (US$ million) 1 Second quarter ended 31.1
Baker Hughes Inc, USA Key Figures (US$ million) 1 First quarter ended 31.3 Revenues
1228.5
1240.8
2000
Cost of Revenues
890.0
988.7
128.3
59.9
71.1
15.4
US$0.21
US$0.04
Net Sales
279.6
259,3
Operating Income
193.3
179.7
Net Income
Gross Margin
86,3
79.8
Operating Expenses
58.8
53.4
Earnings Before Income Taxes
25.9
24.9
Net Earnings
18.1
17.4
US$0,41
US$0,38
2001
2000
Net Sales
569.5
505,8
Cost of Sales
397.2
352.3
Gross Margin
172.3
153.5
Operating Expenses
115.9
102.1
Earnings Before Income Taxes
49.9
49.2
Net Earnings
34.9
34.4
US$0.79
US$0.75
1Exceptper sharedata.
Donaldson Co Inc reported record revenue of US$279.6 million for its second fiscal quarter ended 31 January 2001. Despite challenging business conditions, revenue for the quarter rose by 7.9% from US$259.3 million, which the company posted for the corresponding period a year earlier. For the sixmonth period ended 31 January 2001, ~ e company reported record revenue of US$569.5 million, up 12.6% from US$505.8 million reported for the equivalent period a year earlier. Exchding the impact of businesses acquired in the previous year, revenue rose by 4.7%.Net earnings amounted to US$34.9 million, an increase
Basic Earnings per Share
Revenues by Business Segment (US$ million) First quarter ended 31.3 Oilfield Operations2 Baker Process Operations
Six months ended 31.1
Net Earnings per Share
2000
2001 Cost of Sales
Net Earnings per Share
2001
of 1.4% from US$34.4 million in 2000. Industrial product sales for the second quarter were a record US$141 million - - an increase of 42.4% from US$99 million a year earlier. Dust-collection product sales rose by 47% for the quarter, and were up 52 % for the sixmonth period ended 31 January 2001. Excluding the acquisition of DCE, sales in dust-collection products increased by 4 % and 9% for the respective periods. Sales from the Engine Products Segment totalled US$138.6 million for the second quarter, which represents a decrease of 13.5% from US$160.2 million posted in 2000 year. •
2001
2000
1156.2
942.6
72.3
83,4
1Exceptper sharedata. 2OflfieldOperahonsexcludingWesternGeophysicaland WesternGECO,at US$214.8 mflhon
For the first quarter of 2001, Baker Hughes Inc recorded an operating profit after tax of US$75.2 million, compared with US$10.8 million for the first quarter of 2000. Total revenue for the first quarter of 2001 was US$1228.5 million, compared with US$1240.8 million which it reported for the first quarter of 2000. Oilfield Operations' revenue for the first quarter of 2001, excluding Western Geophysical, was US$1156.2 million, up 23% from US$942.6 million which was reported for the first quarter of 2000. Baker Process revenue for the first quarter of 2001 amounted to US$72.3 million, down 13% from the US$83.4 million reported for equivalent quarter a year earlier. Operating profits for the first quarter of 2001 exclude the impact of losses, net of tax, totalling US$4.9 million, primarily related to restrncturing costs from Baker Process' German operation.
Net income for the first quarter of 2001 totalled US$71.1 million, compared with US$15.4 million for the first quarter of 2000. Baker Process revenues were affected by weak aftermarket sales for the EIMCO and Bird product lines be,cause marly customers, mindful of a potential economic slowdown, delayed maintenance operations and reduced spare-part inventories. However, the company claims that bookings in the quarter were the strongest in over two years, particularly in the municipal waste-water treatment sector, which supports plans to return Baker Process to profitability this year. Baker Process has begun to restructure its Bird machine operation in Germany, which was announced in February 2001. Severance cost related to the reorganisation will be US$6 million, and was recorded in the first quarter of 2001. •
9
Clarcor Inc, USA
Millipore Corp, USA
Key Figures (US$ million)1 First quarter ended
Key Figures (US$ million) 1 First quarter ended 31.3
3.3,2001
26.2.2000
2001
2000
Net Sales
156.2
150.7
Net Sales
244,5
224.8
Cost of Sales
109.9
106.4
Cost of Sales
116.9
100.3
Gross Profit
46.3
44.3
Gross Profit
127.6
124.5
Operating Profit
17.7
13.5
Net Income
5.2
26.2
Earnings Before Income Taxes
15.4
11.0
Diluted Net Income per ShareUS$0.11
US$0.56
9.8
7.1
US$0.40
US$0.29
Net Earnings Net Earnings per C o m m o n Share
©
Microelectronics 3
3.3,2001
26,2,2000
58.8
59.9
Industrial/Environmental Filtration 77.5
75.0
Packaging
15.8
Engine/Mobile Filtration
19.9
Revenues by Business Segment (US$ million) First quarter ended 31.3 BioScience 2
Net Sales by Market Segment First quarter ended
Z:
>. Z <
May 2001
For the first quarter of fiscal 2001, ended 3 March, Clarcor Ine's sales increased by 4% and its operating profit rose by 31%, compared with the corresponding period a year earlier. Included in the first-quarter results was a contract cancellation payment made by a Packagingsegment customer which increased sales by approximately US$4.7 million, and operating profit by about US$3.7 million, compared with the first quarter of 2000. Sales growth slowed during the first quarter compared with the previous year largely because of the downturn in the US economy. After-market, heavy-duty filter sales were not as affected by the downturn, as were sales of air-quality equipment, railway filters and light-duty filters. The company's environmental air-filter business
II
continued to grow through increased customer demand for new products which were introduced during the last half of fiscal 2000. The company is fortunate that most of its sales come from the aftermarket, which tends to be less sensitive to economic conditions than sales to the OEM and new construction markets. In Clarcor's Engine/ Mobile segment, operating profit was good, as cost reductions and productivity improvements made over last few years continue to drive increased margins. This is also true for the company's IndustriaVEnvironmental segment, except that it is still incurring start-up costs from two new facilities which were established in the second half of fiscal 2000. These costs will continue, but should diminish by the end of the year. •
2000
162.0
148.0
83.0
77.0
Revenues by Geographic Area (U55 million) First quarter ended 31.3 2001 Americas
1Exceptper sharedata (basic)
2001
2000
105.0
97.0
Europe
66.0
60.0
Asia/Pacific
74.0
68.0
1Exceptper sharedata. 2Millipore'sBioSciencebusinesssegmentincludesproductsand services which are targetedat pharmaceuticalcompanies,blotechnologycompanies, food and beveragecompanies,universityand governmentlaboratories, and researchinstitutes 3MiIIipore'sMlcroelectronlcsbusinesssegmentincludes productsand services which are targetedat semtconductorfabricationcompanies,OEM suppl)ersto those companies,and other mJcroelectromcscomponent manufacturers.
Millipore Corp's first-quarter revenue totalled US$245 million, whieh is 9% higher than the equivalent period of 2000. Revenue growth in local currency "terms was 14%, with both Millipore's BioScience business segment and its Microeleetronics business segment growing by 14 % in local currency terms. Millipore incurred a restructuring charge of US$31 million, which includes costs for reorganising both the Microelectronics and BioScience businesses, to prepare them to operate successfully as two companies. There were also
costs associated with resizhag the Microeleetronics business in view of the current industry downturn. The company's BioScience segment launched a number of new products and alliances during the first quarter. New biotechnology drugs, increased demand for these drugs, and continued strong investments in life-science research all fuelled increased demand for the company's products and services.The Mieroeleetronics business has been incorporated as a wholly-owned subsidiary of Millipore, called Mykrolis Corp. •
May 2001
Filtration Industry Analyst
Donaldson Co Inc, USA Key Figures (US$ million) 1 Second quarter ended 31.1
Baker Hughes Inc, USA Key Figures (US$ million) 1 First quarter ended 31.3 Revenues
1228.5
1240.8
2000
Cost of Revenues
890.0
988.7
128.3
59.9
71.1
15.4
US$0.21
US$0.04
Net Sales
279.6
259,3
Operating Income
193.3
179.7
Net Income
Gross Margin
86,3
79.8
Operating Expenses
58.8
53.4
Earnings Before Income Taxes
25.9
24.9
Net Earnings
18.1
17.4
US$0,41
US$0,38
2001
2000
Net Sales
569.5
505,8
Cost of Sales
397.2
352.3
Gross Margin
172.3
153.5
Operating Expenses
115.9
102.1
Earnings Before Income Taxes
49.9
49.2
Net Earnings
34.9
34.4
US$0.79
US$0.75
1Exceptper sharedata.
Donaldson Co Inc reported record revenue of US$279.6 million for its second fiscal quarter ended 31 January 2001. Despite challenging business conditions, revenue for the quarter rose by 7.9% from US$259.3 million, which the company posted for the corresponding period a year earlier. For the sixmonth period ended 31 January 2001, ~ e company reported record revenue of US$569.5 million, up 12.6% from US$505.8 million reported for the equivalent period a year earlier. Exchding the impact of businesses acquired in the previous year, revenue rose by 4.7%.Net earnings amounted to US$34.9 million, an increase
Basic Earnings per Share
Revenues by Business Segment (US$ million) First quarter ended 31.3 Oilfield Operations2 Baker Process Operations
Six months ended 31.1
Net Earnings per Share
2000
2001 Cost of Sales
Net Earnings per Share
2001
of 1.4% from US$34.4 million in 2000. Industrial product sales for the second quarter were a record US$141 million - - an increase of 42.4% from US$99 million a year earlier. Dust-collection product sales rose by 47% for the quarter, and were up 52 % for the sixmonth period ended 31 January 2001. Excluding the acquisition of DCE, sales in dust-collection products increased by 4 % and 9% for the respective periods. Sales from the Engine Products Segment totalled US$138.6 million for the second quarter, which represents a decrease of 13.5% from US$160.2 million posted in 2000 year. •
2001
2000
1156.2
942.6
72.3
83,4
1Exceptper sharedata. 2OflfieldOperahonsexcludingWesternGeophysicaland WesternGECO,at US$214.8 mflhon
For the first quarter of 2001, Baker Hughes Inc recorded an operating profit after tax of US$75.2 million, compared with US$10.8 million for the first quarter of 2000. Total revenue for the first quarter of 2001 was US$1228.5 million, compared with US$1240.8 million which it reported for the first quarter of 2000. Oilfield Operations' revenue for the first quarter of 2001, excluding Western Geophysical, was US$1156.2 million, up 23% from US$942.6 million which was reported for the first quarter of 2000. Baker Process revenue for the first quarter of 2001 amounted to US$72.3 million, down 13% from the US$83.4 million reported for equivalent quarter a year earlier. Operating profits for the first quarter of 2001 exclude the impact of losses, net of tax, totalling US$4.9 million, primarily related to restrncturing costs from Baker Process' German operation.
Net income for the first quarter of 2001 totalled US$71.1 million, compared with US$15.4 million for the first quarter of 2000. Baker Process revenues were affected by weak aftermarket sales for the EIMCO and Bird product lines be,cause marly customers, mindful of a potential economic slowdown, delayed maintenance operations and reduced spare-part inventories. However, the company claims that bookings in the quarter were the strongest in over two years, particularly in the municipal waste-water treatment sector, which supports plans to return Baker Process to profitability this year. Baker Process has begun to restructure its Bird machine operation in Germany, which was announced in February 2001. Severance cost related to the reorganisation will be US$6 million, and was recorded in the first quarter of 2001. •
9