- Email: [email protected]
Crane Co, USA
February 2004
Pump Industry Analyst
Crane Co, USA
Dover Corp, USA
Net Sales Of Which: Fluid Handling
2003
2002
428.3
367.2
192.9
176.8
Operating Profit/(Loss) Of Which: Fluid Handling
53.2
(72.4)
10.9
13.9
Net Income/(Loss)
33.7
(51.2)
Net Sales Of Which: Dover Resources Earnings from Continuing Operations Of Which: Dover Resources
2002 1007.8
284.2
219.7
128.0
57.5
34.9
30.1
Year ended 31.12
Year ended 31.12 Net Sales Of Which: Fluid Handling
2003 1198.0
2003
2002
1636.0
1516.3
748.3
715.8
Operating Profit/(Loss) Of Which: Fluid Handling
169.0
39.7
43.5
53.7
Net Income/(Loss)
104.3
(11.4)
Order Backlog Of Which: Fluid Handling
451.7
385.7
140.2
130.2
Net Sales Of Which: Dover Resources Earnings from Continuing Operations Of Which: Dover Resources
2003
2002
4413.3
4053.6
982.7
872.9
474.7
359.0
136.9
124.4
COMMENT The Fluid Handling segment continued to suffer from weak market conditions in chemical processing, power, marine and general industrial markets during 2003. Fourth quarter Fluid Handling sales of US$192.9 million were US$16.1 million higher than 2002’s fourth quarter, reflecting the US$14.5 million sales volume from Etex’s pipe coupling and fittings businesses, and favourable currency effects. Operating profit of US$10.9 million was 21% down on a year earlier. Sales in the pump business were down 4% on 2002’s fourth quarter due to the Chempump divestment, while operating profit margins for the pump business were 17%.
Valve Group fourth quarter 2003 sales of US$104.0 million declined US$1.4 million. This business continued to be affected by low volume driven by the weak chemical processing and power markets, and costs associated with reducing operating capacity. The Valve Group was marginally profitable during the quarter, with the results including US$2.5 million in severance costs. During 2003 management focused on right-sizing its Fluid Handling business to better align itself to the weak demand in many end markets. Right-sizing initiatives resulted in the closure of three plants and three service centres and a reduction of approximately 370 employees. ■
COMMENT Dover Resources’ results for the fourth quarter improved over the prior year, with positive earnings comparisons at eight of its 12 operating companies. Most businesses benefited from stronger markets worldwide, as well as management-led initiatives to reduce cost and grow market share. However Blackmer had to absorb costs related to manufacturing realignments. Most Resources companies with strong global positions benefited from the weaker dollar and improved business
activity, particularly in Asia and Europe. For the full year, all 12 Resources operating companies increased bookings, 10 increased sales, and eight improved earnings on a year earlier. Dover Resources’ pump companies, Blackmer and Wilden, faced various challenges in 2003 which hurt their earnings, although both made strides to improve their product lines, global reach and competitiveness and had full year positive increases in bookings and backlog. ■
7
COMPANY WATCH
Key Figures (US$ million) Three months ended 31.12
Key Figures (US$ million) Three months ended 31.12
Pump Industry Analyst
Crane Co, USA
Dover Corp, USA
Net Sales Of Which: Fluid Handling
2003
2002
428.3
367.2
192.9
176.8
Operating Profit/(Loss) Of Which: Fluid Handling
53.2
(72.4)
10.9
13.9
Net Income/(Loss)
33.7
(51.2)
Net Sales Of Which: Dover Resources Earnings from Continuing Operations Of Which: Dover Resources
2002 1007.8
284.2
219.7
128.0
57.5
34.9
30.1
Year ended 31.12
Year ended 31.12 Net Sales Of Which: Fluid Handling
2003 1198.0
2003
2002
1636.0
1516.3
748.3
715.8
Operating Profit/(Loss) Of Which: Fluid Handling
169.0
39.7
43.5
53.7
Net Income/(Loss)
104.3
(11.4)
Order Backlog Of Which: Fluid Handling
451.7
385.7
140.2
130.2
Net Sales Of Which: Dover Resources Earnings from Continuing Operations Of Which: Dover Resources
2003
2002
4413.3
4053.6
982.7
872.9
474.7
359.0
136.9
124.4
COMMENT The Fluid Handling segment continued to suffer from weak market conditions in chemical processing, power, marine and general industrial markets during 2003. Fourth quarter Fluid Handling sales of US$192.9 million were US$16.1 million higher than 2002’s fourth quarter, reflecting the US$14.5 million sales volume from Etex’s pipe coupling and fittings businesses, and favourable currency effects. Operating profit of US$10.9 million was 21% down on a year earlier. Sales in the pump business were down 4% on 2002’s fourth quarter due to the Chempump divestment, while operating profit margins for the pump business were 17%.
Valve Group fourth quarter 2003 sales of US$104.0 million declined US$1.4 million. This business continued to be affected by low volume driven by the weak chemical processing and power markets, and costs associated with reducing operating capacity. The Valve Group was marginally profitable during the quarter, with the results including US$2.5 million in severance costs. During 2003 management focused on right-sizing its Fluid Handling business to better align itself to the weak demand in many end markets. Right-sizing initiatives resulted in the closure of three plants and three service centres and a reduction of approximately 370 employees. ■
COMMENT Dover Resources’ results for the fourth quarter improved over the prior year, with positive earnings comparisons at eight of its 12 operating companies. Most businesses benefited from stronger markets worldwide, as well as management-led initiatives to reduce cost and grow market share. However Blackmer had to absorb costs related to manufacturing realignments. Most Resources companies with strong global positions benefited from the weaker dollar and improved business
activity, particularly in Asia and Europe. For the full year, all 12 Resources operating companies increased bookings, 10 increased sales, and eight improved earnings on a year earlier. Dover Resources’ pump companies, Blackmer and Wilden, faced various challenges in 2003 which hurt their earnings, although both made strides to improve their product lines, global reach and competitiveness and had full year positive increases in bookings and backlog. ■
7
COMPANY WATCH
Key Figures (US$ million) Three months ended 31.12
Key Figures (US$ million) Three months ended 31.12