- Email: [email protected]
Crane Co, USA
February 2006
Pump Industry Analyst
Alfa Laval AB, Sweden
Crane Co, USA
2005
2004
5020
3771
Net Sales
4683.8
4166.1
Cost of Goods Sold
3137.8
2845.1
Gross Profit
1546.0
1321.0
Adjusted EBITA
534.5
Net Income
316.0
Order Intake
Net Sales Of Which: Fluid Handling
222.5 60.3
466.0
22.5
12.7
224.4
Net Income/(Loss)
35.3
46.4
Year ended 31.12 2004
18 516
15 740
Net Sales
16 330.4
14 985.8
Cost of Goods Sold
10 800.4
9937.0
Gross Profit
5530.0
5048.8
Adjusted EBITA
1765.7
1695.1
928.0
840.1
COMMENT Alfa Laval enjoyed a good fiscal 2005 with net sales reaching SKr16 330.4 million, up 6.8% on 2004 after adjustments for exchange rate variations. Net sales for the group’s fourth quarter were up 4.1% on the 2004 figure, currency adjusted, at SKr4683.8 million. For the full year, the equipment division saw its sales rise 4.6% on a year ago to SKr8631.5 million. All of the division’s six segments showed positive development, with the exception of comfort & refrigeration and sanitary equipment. The most significant growth was found within the marine & diesel segment followed by the OEM segment. In the process technology division, full year net sales were up 14.8% on the
235.5 55.1
2005
Net Income
2004 485.6
Operating Profit/(Loss) Of Which: Fluid Handling
Year ended 31.12 Order Intake
2005 506.3
2004 figure to reach SKr7672.8 million. All of the division's segments, except food technology, reported an increase in orders received with the largest growth recorded in the process industry segment followed by energy & environment. The group’s net income for the full year rose 10.5% on 2004 to reach SKr928.0 million, benefiting from a SKr51.7 million gain on a land sale but impacted by SKr125 million in costs to close manufacturing sites in Madrid, Spain, and Toronto, Canada. With a 22.7% increase in fourth quarter orders year-on-year, Alfa Laval president and CEO Lars Renström said that the company’s outlook was very favourable. ■
Net Sales Of Which: Fluid Handling
2005
2004
2061.2
1890.3
954.0
861.9
Operating Profit/(Loss) Of Which: Fluid Handling
213.6
(161.5)
76.1
52.2
Net Income/(Loss)
136.0
(105.4)
Order Backlog Of Which: Fluid Handling
597.1
566.7
188.8
183.2
COMMENT Crane Pumps & Systems’ sales of US$27.5 million increased US$3.5 million, or 15%, over the fourth quarter of 2004. Profit margin of 13% was up from 8% in the prior year due to productivity gains realised from the Salem, Ohio closure, increased low cost country sourcing, and the ability to effectively leverage the incremental volume. Valve Group sales of US$122.4 million increased US$2.2 million, or 2%, from 2004. Core sales increased US$6.0 million (5%) from increased market demand for industrial valves and strengthening pricing across all the valve product businesses, partially offset by US$3.8 million
(3%) of unfavourable foreign currency translation. Operating profit increased 93%, reflecting higher selling prices and volumes, and improved operating costs which more than offset higher material costs. Profit margin of approximately 8% improved from approximately 4% in the prior year. Crane Ltd sales of US$29.1 million decreased 3%, as core business growth of 8% was offset by US$1.9 million of unfavourable foreign currency translation (6%) and the absence of revenue from the Victaulic business which was sold in December 2004. Profit margin improved slightly to 12% from 11% in the prior year period. ■
7
COMPANY WATCH
Key Figures (US$ million) Three months ended 31.12
Key Figures (SKr million) Fourth quarter ended 31.12
Pump Industry Analyst
Alfa Laval AB, Sweden
Crane Co, USA
2005
2004
5020
3771
Net Sales
4683.8
4166.1
Cost of Goods Sold
3137.8
2845.1
Gross Profit
1546.0
1321.0
Adjusted EBITA
534.5
Net Income
316.0
Order Intake
Net Sales Of Which: Fluid Handling
222.5 60.3
466.0
22.5
12.7
224.4
Net Income/(Loss)
35.3
46.4
Year ended 31.12 2004
18 516
15 740
Net Sales
16 330.4
14 985.8
Cost of Goods Sold
10 800.4
9937.0
Gross Profit
5530.0
5048.8
Adjusted EBITA
1765.7
1695.1
928.0
840.1
COMMENT Alfa Laval enjoyed a good fiscal 2005 with net sales reaching SKr16 330.4 million, up 6.8% on 2004 after adjustments for exchange rate variations. Net sales for the group’s fourth quarter were up 4.1% on the 2004 figure, currency adjusted, at SKr4683.8 million. For the full year, the equipment division saw its sales rise 4.6% on a year ago to SKr8631.5 million. All of the division’s six segments showed positive development, with the exception of comfort & refrigeration and sanitary equipment. The most significant growth was found within the marine & diesel segment followed by the OEM segment. In the process technology division, full year net sales were up 14.8% on the
235.5 55.1
2005
Net Income
2004 485.6
Operating Profit/(Loss) Of Which: Fluid Handling
Year ended 31.12 Order Intake
2005 506.3
2004 figure to reach SKr7672.8 million. All of the division's segments, except food technology, reported an increase in orders received with the largest growth recorded in the process industry segment followed by energy & environment. The group’s net income for the full year rose 10.5% on 2004 to reach SKr928.0 million, benefiting from a SKr51.7 million gain on a land sale but impacted by SKr125 million in costs to close manufacturing sites in Madrid, Spain, and Toronto, Canada. With a 22.7% increase in fourth quarter orders year-on-year, Alfa Laval president and CEO Lars Renström said that the company’s outlook was very favourable. ■
Net Sales Of Which: Fluid Handling
2005
2004
2061.2
1890.3
954.0
861.9
Operating Profit/(Loss) Of Which: Fluid Handling
213.6
(161.5)
76.1
52.2
Net Income/(Loss)
136.0
(105.4)
Order Backlog Of Which: Fluid Handling
597.1
566.7
188.8
183.2
COMMENT Crane Pumps & Systems’ sales of US$27.5 million increased US$3.5 million, or 15%, over the fourth quarter of 2004. Profit margin of 13% was up from 8% in the prior year due to productivity gains realised from the Salem, Ohio closure, increased low cost country sourcing, and the ability to effectively leverage the incremental volume. Valve Group sales of US$122.4 million increased US$2.2 million, or 2%, from 2004. Core sales increased US$6.0 million (5%) from increased market demand for industrial valves and strengthening pricing across all the valve product businesses, partially offset by US$3.8 million
(3%) of unfavourable foreign currency translation. Operating profit increased 93%, reflecting higher selling prices and volumes, and improved operating costs which more than offset higher material costs. Profit margin of approximately 8% improved from approximately 4% in the prior year. Crane Ltd sales of US$29.1 million decreased 3%, as core business growth of 8% was offset by US$1.9 million of unfavourable foreign currency translation (6%) and the absence of revenue from the Victaulic business which was sold in December 2004. Profit margin improved slightly to 12% from 11% in the prior year period. ■
7
COMPANY WATCH
Key Figures (US$ million) Three months ended 31.12
Key Figures (SKr million) Fourth quarter ended 31.12