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Crane Co, USA
Company WATCH
Crane Co, USA
The Gorman-Rupp Co, USA
Key Figures (US$ million) Three months ended 30.9 2015 2014
Net Sales Of Which: Fluid Handling
669.9
727.4
264.7
314.5
Cost of Sales
431.1
475.8
Selling, General & Administrative
141.4
143.6
93.2
47.7
29.4
48.1
Operating Profit Of Which: Fluid Handling Net Income Attributable to Common Shareholders
56.9 28.1
Nine months ended 30.9 2015 2014
Net Sales Of Which: Fluid Handling
2060.0
2194.3
832.2
949.8
Cost of Sales
1341.9
1421.3
Selling, General & Administrative
431.2
460.7
Operating Profit Of Which: Fluid Handling
269.4
226.7
96.2
144.8
Net Income Attributable to Common Shareholders 163.7 136.5 Order Backlog Of Which: Fluid Handling
807.8
827.7
278.6
349.6
COMMENT Fluid Handling’s third quarter sales decreased US$50 million, driven by US$24 million, or 8%, of unfavourable foreign exchange effects, and a US$26 million, or 8%, core sales decline. Adjusted operating margin declined to 11.8%, mainly reflecting lower volumes, and to a lesser extent, competitive pricing and unfavourable product mix. Fluid Handling’s order backlog was US$279 million at 30 September 2015, compared with US$311 million at 31 December 2014 and US$350 million at 30 September 2014. “Consistent with our commentary last quarter,
October 2015
Fluid Handling sales and orders remain depressed. Customers continue to defer capital spending, and there is continued uncertainty and lack of predictability in our end markets,” said Max Mitchell, Crane president and CEO. “While Fluid Handling market conditions remain challenging, we were pleased with the continued solid performance at our Payment & Merchandising Technologies and Engineered Materials businesses, as well as sequential improvement at Aerospace & Electronics.” n www.craneco.com
Key Figures (US$ million) Three months ended 30.9 2015 2014
Net Sales
104.2
110.2
Cost of Products Sold
80.9
82.1
Gross Profit
23.3
28.1
Selling, General and Admin Expenses 14.4
14.0
Operating Income
8.9
14.0
Net Income
5.9
9.4
Nine months ended 30.9 2015 2014
Net Sales
307.4
330.0
Cost of Products Sold
236.0
247.4
71.4
82.5
Selling, General and Admin Expenses 41.9
40.4
Operating Income
29.4
42.1
Net Income
19.8
28.3
Gross Profit
COMMENT The Gorman-Rupp Co’s third quarter 2015 net sales of US$104.2 million were down US$5.9 million from a record US$110.2 million during the third quarter of 2014. Domestic sales slipped 7.9% or US$6.2 million while international sales increased US$237 000. Sales in the water end markets fell 2.9% or US$2.2 million during the quarter while sales in non-water end markets decreased 10.8% or US$3.8 million. US$1.7 million or 28.8% of the overall decrease in net sales was due to unfavourable foreign currency translation. Third quarter activity in water end market sales included US$5.3 million of increased sales in the fire protection market due to higher international and domestic sales. Despite increased shipments of US$6.4 million related to the Permanent Canal Closures and
Pumps (PCCP) project in New Orleans, sales in the municipal market decreased US$3.9 million reflecting reduced demand for large volume pumps for wastewater and flood control projects. Meanwhile sales in the construction market were down US$3.5 million due primarily to the decline in drilling of oil and gas in North America. Decreased sales in the non-water end markets during 2015’s third quarter were mainly due to US$2.3 million of lower sales in the industrial market also largely due to the downturn in oil and gas. Sales in the OEM market decreased US$1.1 million primarily due to lower sales of pumps for military applications. Net income was US$5.9 million during the third quarter of 2015 compared to US$9.4 million a year earlier. n www.gormanrupp.com
Pump Industry Analyst
7
Crane Co, USA
The Gorman-Rupp Co, USA
Key Figures (US$ million) Three months ended 30.9 2015 2014
Net Sales Of Which: Fluid Handling
669.9
727.4
264.7
314.5
Cost of Sales
431.1
475.8
Selling, General & Administrative
141.4
143.6
93.2
47.7
29.4
48.1
Operating Profit Of Which: Fluid Handling Net Income Attributable to Common Shareholders
56.9 28.1
Nine months ended 30.9 2015 2014
Net Sales Of Which: Fluid Handling
2060.0
2194.3
832.2
949.8
Cost of Sales
1341.9
1421.3
Selling, General & Administrative
431.2
460.7
Operating Profit Of Which: Fluid Handling
269.4
226.7
96.2
144.8
Net Income Attributable to Common Shareholders 163.7 136.5 Order Backlog Of Which: Fluid Handling
807.8
827.7
278.6
349.6
COMMENT Fluid Handling’s third quarter sales decreased US$50 million, driven by US$24 million, or 8%, of unfavourable foreign exchange effects, and a US$26 million, or 8%, core sales decline. Adjusted operating margin declined to 11.8%, mainly reflecting lower volumes, and to a lesser extent, competitive pricing and unfavourable product mix. Fluid Handling’s order backlog was US$279 million at 30 September 2015, compared with US$311 million at 31 December 2014 and US$350 million at 30 September 2014. “Consistent with our commentary last quarter,
October 2015
Fluid Handling sales and orders remain depressed. Customers continue to defer capital spending, and there is continued uncertainty and lack of predictability in our end markets,” said Max Mitchell, Crane president and CEO. “While Fluid Handling market conditions remain challenging, we were pleased with the continued solid performance at our Payment & Merchandising Technologies and Engineered Materials businesses, as well as sequential improvement at Aerospace & Electronics.” n www.craneco.com
Key Figures (US$ million) Three months ended 30.9 2015 2014
Net Sales
104.2
110.2
Cost of Products Sold
80.9
82.1
Gross Profit
23.3
28.1
Selling, General and Admin Expenses 14.4
14.0
Operating Income
8.9
14.0
Net Income
5.9
9.4
Nine months ended 30.9 2015 2014
Net Sales
307.4
330.0
Cost of Products Sold
236.0
247.4
71.4
82.5
Selling, General and Admin Expenses 41.9
40.4
Operating Income
29.4
42.1
Net Income
19.8
28.3
Gross Profit
COMMENT The Gorman-Rupp Co’s third quarter 2015 net sales of US$104.2 million were down US$5.9 million from a record US$110.2 million during the third quarter of 2014. Domestic sales slipped 7.9% or US$6.2 million while international sales increased US$237 000. Sales in the water end markets fell 2.9% or US$2.2 million during the quarter while sales in non-water end markets decreased 10.8% or US$3.8 million. US$1.7 million or 28.8% of the overall decrease in net sales was due to unfavourable foreign currency translation. Third quarter activity in water end market sales included US$5.3 million of increased sales in the fire protection market due to higher international and domestic sales. Despite increased shipments of US$6.4 million related to the Permanent Canal Closures and
Pumps (PCCP) project in New Orleans, sales in the municipal market decreased US$3.9 million reflecting reduced demand for large volume pumps for wastewater and flood control projects. Meanwhile sales in the construction market were down US$3.5 million due primarily to the decline in drilling of oil and gas in North America. Decreased sales in the non-water end markets during 2015’s third quarter were mainly due to US$2.3 million of lower sales in the industrial market also largely due to the downturn in oil and gas. Sales in the OEM market decreased US$1.1 million primarily due to lower sales of pumps for military applications. Net income was US$5.9 million during the third quarter of 2015 compared to US$9.4 million a year earlier. n www.gormanrupp.com
Pump Industry Analyst
7