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Crane Co, USA
COMPANY WATCH
Andritz Group, Austria
Crane Co, USA
Key Figures (E million) First quarter ended 31.3 2012
2011
Order Intake Of Which: Hydro
1361.2
1666.0
597.5
583.9
Sales Of Which: Hydro
1185.7
923.7
403.4
364.5
Operating Expenses
1144.8
897.7
EBITA Of Which: Hydro
72.5
56.1
30.2
27.1
Earnings before Interest and Taxes
66.7
52.0
Net Income
50.4
38.8
July 2012
2011
657.7
633.2
302.3
286.1
69.4
78.9
26.8
36.9
62.6
50.4
Net Sales Of Which: Fluid Handling Operating Profit from Continuing Operations Of Which: Fluid Handling Net Income Attributable to Common Shareholders
Six months ended 30.6 2012
2011
1303.3
1233.5
600.5
546.8
147.7
150.3
66.0
71.6
Net Income Attributable to Common Shareholders 114.2
98.9
Net Sales Of Which: Fluid Handling Operating Profit from Continuing Operations Of Which: Fluid Handling
COMMENT Andritz has posted first quarter sales for fiscal 2012 of E1185.7 million, an increase of 28.4% compared with the previous year. Revenues were up in all business areas, particularly the Pulp & Paper segment that saw sales rise 51.0% to reach E563.5 million. In its Hydro division, sales rose 10.7% to E403.4 million. Net income was also up significantly on the 2011 comparator with the group figure increasing 29.9% to E50.4 million. Andritz’s total EBITA for the period amounted to E72.5 million, up 29.2% on the year earlier. The associated EBITA margin of 6.1% remained unchanged compared with the first quarter of 2011. In the Hydro segment EBITA rose 11.4% to reach E30.2 million, while the EBITA margin was nudged up from 7.4% to 7.5%. Less favourable was order intake for the quarter which, at E1361.2 million, was down 18.3% on a year earlier. Andritz president and CEO, Wolfgang Leitner, said the 2011 figure included a
Key Figures (US$ million) Three months ended 30.6 2012
major order for the Pulp & Paper division and that the company was pleased with the performance in the latest period. Andritz’s order backlog at the end of the quarter was 5.3% higher than 12 months previously, putting it at E7034.7 million. Looking forward, Leitner said growth prospects looked favourable, although it was expected to be slower in its Metals segment. “We currently see solid project activity in all markets that Andritz serves,” he said. “On the basis of these expectations and the very high order backlog, the Andritz Group expects an increase in sales and net income in 2012 compared to 2011.” Andritz has also been active on the acquisitions front since the year began. It recently completed the purchase of Soutec AG, a Swiss based manufacturer of welding systems and has also announced that it plans to take over Schuler AG and has begun acquiring its stock. ■ www.andritz.com
COMMENT Fluid Handling’s second quarter 2012 sales increased US$16 million, or 6%, including a core sales increase of US$23 million (+8%), US$7 million from the acquisition of WTA (+3%), and unfavourable foreign currency translation of US$14 million (-5%). Before special items, operating profit increased to US$38.2 million while operating margin declined slightly to 12.6%. Backlog was US$335 million at 30 June 2012, compared with US$338 million at 31 March 2012 and US$314 million at the end of December 2011. The decline in backlog from 31 March 2012 to 30 June 2012 was due mainly to changes in foreign currency translation rates and the divestment of the
Houston valve service centre. Crane’s European Fluid Handling operations have taken a number of steps to cut costs by reducing headcount and improving processes, mainly at the Krombach operations in Kreuztal, Germany. Under a continuing cost reduction strategy, a number of manufacturing operations will be transferred from facilities in Germany to company plants in lower cost regions. Repositioning charges of US$11.4 million on a pretax basis were recorded in the second quarter of 2012. The company expects to incur additional pre-tax charges of US$3 million in the second half of 2012. ■ www.craneco.com
Pump Industry Analyst
7
Andritz Group, Austria
Crane Co, USA
Key Figures (E million) First quarter ended 31.3 2012
2011
Order Intake Of Which: Hydro
1361.2
1666.0
597.5
583.9
Sales Of Which: Hydro
1185.7
923.7
403.4
364.5
Operating Expenses
1144.8
897.7
EBITA Of Which: Hydro
72.5
56.1
30.2
27.1
Earnings before Interest and Taxes
66.7
52.0
Net Income
50.4
38.8
July 2012
2011
657.7
633.2
302.3
286.1
69.4
78.9
26.8
36.9
62.6
50.4
Net Sales Of Which: Fluid Handling Operating Profit from Continuing Operations Of Which: Fluid Handling Net Income Attributable to Common Shareholders
Six months ended 30.6 2012
2011
1303.3
1233.5
600.5
546.8
147.7
150.3
66.0
71.6
Net Income Attributable to Common Shareholders 114.2
98.9
Net Sales Of Which: Fluid Handling Operating Profit from Continuing Operations Of Which: Fluid Handling
COMMENT Andritz has posted first quarter sales for fiscal 2012 of E1185.7 million, an increase of 28.4% compared with the previous year. Revenues were up in all business areas, particularly the Pulp & Paper segment that saw sales rise 51.0% to reach E563.5 million. In its Hydro division, sales rose 10.7% to E403.4 million. Net income was also up significantly on the 2011 comparator with the group figure increasing 29.9% to E50.4 million. Andritz’s total EBITA for the period amounted to E72.5 million, up 29.2% on the year earlier. The associated EBITA margin of 6.1% remained unchanged compared with the first quarter of 2011. In the Hydro segment EBITA rose 11.4% to reach E30.2 million, while the EBITA margin was nudged up from 7.4% to 7.5%. Less favourable was order intake for the quarter which, at E1361.2 million, was down 18.3% on a year earlier. Andritz president and CEO, Wolfgang Leitner, said the 2011 figure included a
Key Figures (US$ million) Three months ended 30.6 2012
major order for the Pulp & Paper division and that the company was pleased with the performance in the latest period. Andritz’s order backlog at the end of the quarter was 5.3% higher than 12 months previously, putting it at E7034.7 million. Looking forward, Leitner said growth prospects looked favourable, although it was expected to be slower in its Metals segment. “We currently see solid project activity in all markets that Andritz serves,” he said. “On the basis of these expectations and the very high order backlog, the Andritz Group expects an increase in sales and net income in 2012 compared to 2011.” Andritz has also been active on the acquisitions front since the year began. It recently completed the purchase of Soutec AG, a Swiss based manufacturer of welding systems and has also announced that it plans to take over Schuler AG and has begun acquiring its stock. ■ www.andritz.com
COMMENT Fluid Handling’s second quarter 2012 sales increased US$16 million, or 6%, including a core sales increase of US$23 million (+8%), US$7 million from the acquisition of WTA (+3%), and unfavourable foreign currency translation of US$14 million (-5%). Before special items, operating profit increased to US$38.2 million while operating margin declined slightly to 12.6%. Backlog was US$335 million at 30 June 2012, compared with US$338 million at 31 March 2012 and US$314 million at the end of December 2011. The decline in backlog from 31 March 2012 to 30 June 2012 was due mainly to changes in foreign currency translation rates and the divestment of the
Houston valve service centre. Crane’s European Fluid Handling operations have taken a number of steps to cut costs by reducing headcount and improving processes, mainly at the Krombach operations in Kreuztal, Germany. Under a continuing cost reduction strategy, a number of manufacturing operations will be transferred from facilities in Germany to company plants in lower cost regions. Repositioning charges of US$11.4 million on a pretax basis were recorded in the second quarter of 2012. The company expects to incur additional pre-tax charges of US$3 million in the second half of 2012. ■ www.craneco.com
Pump Industry Analyst
7