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Cummins Inc, USA
COMPANY WATCH
Cummins Inc, USA
Cantel Medical Corp, USA Key Figures (US$ million) Three months ended 31.1 2015
2014
135.4
119.0
Cost of Sales
74.8
66.7
Gross Profit
60.6
Net Sales
Key Figures (US$ million) Fourth quarter ended 31.12 2014
2013
5090
4588
52.3
Net Sales Of Which: Components Distribution
1321 1694
1135 1073
3.2
2.5
Cost of Sales
3817
3451
Income before Interest and Income Taxes
18.3
18.2
Gross Margin
1273
1137
Net Income
11.1
11.1
Operating Income
581
553
Income before Income Taxes
612
547
Six months ended 31.1 2015
Net Income
467
461
2014
Net Sales
272.2
237.3
Cost of Sales
151.1
133.5
2014
2013
Gross Profit
121.1
103.8
19 221
17 301
6.8
4.8
Income before Interest and Income Taxes
Net Sales Of Which: Components Distribution
5118 5174
4342 3749
37.3
36.5
Cost of Sales
14 360
13 021
Net Income
22.3
22.3
Research and Development
Research and Development
Year ended 31.12
Gross Margin
4861
4280
Operating Income
2365
2101
Income before Income Taxes
2434
2119
Net Income
1736
1588
COMMENT Cantel Medical Corp delivered net income of almost US$11.1 million on a 14% increase in sales to US$135.4 million for the second quarter ended 31 January 2015. This compares with net income of US$11.1 million and sales of US$119.0 million a year earlier. Andrew Krakauer, Cantel’s CEO, said they were pleased to have delivered solid sales and adjusted net income growth in the quarter. “All three business units have greatly benefited from further investments in new product development, sales and marketing programs, and the integration of recent acquisitions. Overall, we had solid organic sales growth of 6.5%, while our total sales growth of 14% demonstrates
March 2015
the success of our acquisition program,” said Krakauer. The Mar Cor Water Purification and Filtration segment showed second quarter organic sales growth of 3% against an unusually strong quarter in the same period last year. The gains were driven mainly by the strength of consumables and service growth, and the segment delivered a 14% increase in operating income. The acquisition of Pure Water Solutions Inc in January 2015 has strengthened the company’s Water Purification and Filtration footprint through eight regional offices in the southeastern United States (see Filtration Industry Analyst, January 2015). ■ www.cantelmedical.com
COMMENT Cummins has posted fourth quarter fiscal 2014 sales of US$5.1 billion, up 10.9% on the year earlier. Net income was 1.3% stronger at US$467 million. Results for the full year followed the same trends with net sales increasing 11.1% on the 2013 figure to a record US$19.2 billion and net income 9.3% stronger at US$1.7 billion. “We reported record revenues in 2014 despite weak economic conditions in several of our most important international markets,” Cummins chair and CEO Tom Linebarger said. “Revenues grew 11% as demand in on-highway markets
in North America improved, we continued executing our distributor acquisition strategy, and we delivered strong growth in China driven by new products.” Linebarger said the improvement in profitability was driven by record performance in the Components and Distribution businesses and higher earnings in the Engine business. “Results in the company’s Power Generation business fell short of expectations, but the actions the company has taken to lower costs will improve earnings going forward,” he added. ■ www.cummins.com
Filtration Industry Analyst
9
Cummins Inc, USA
Cantel Medical Corp, USA Key Figures (US$ million) Three months ended 31.1 2015
2014
135.4
119.0
Cost of Sales
74.8
66.7
Gross Profit
60.6
Net Sales
Key Figures (US$ million) Fourth quarter ended 31.12 2014
2013
5090
4588
52.3
Net Sales Of Which: Components Distribution
1321 1694
1135 1073
3.2
2.5
Cost of Sales
3817
3451
Income before Interest and Income Taxes
18.3
18.2
Gross Margin
1273
1137
Net Income
11.1
11.1
Operating Income
581
553
Income before Income Taxes
612
547
Six months ended 31.1 2015
Net Income
467
461
2014
Net Sales
272.2
237.3
Cost of Sales
151.1
133.5
2014
2013
Gross Profit
121.1
103.8
19 221
17 301
6.8
4.8
Income before Interest and Income Taxes
Net Sales Of Which: Components Distribution
5118 5174
4342 3749
37.3
36.5
Cost of Sales
14 360
13 021
Net Income
22.3
22.3
Research and Development
Research and Development
Year ended 31.12
Gross Margin
4861
4280
Operating Income
2365
2101
Income before Income Taxes
2434
2119
Net Income
1736
1588
COMMENT Cantel Medical Corp delivered net income of almost US$11.1 million on a 14% increase in sales to US$135.4 million for the second quarter ended 31 January 2015. This compares with net income of US$11.1 million and sales of US$119.0 million a year earlier. Andrew Krakauer, Cantel’s CEO, said they were pleased to have delivered solid sales and adjusted net income growth in the quarter. “All three business units have greatly benefited from further investments in new product development, sales and marketing programs, and the integration of recent acquisitions. Overall, we had solid organic sales growth of 6.5%, while our total sales growth of 14% demonstrates
March 2015
the success of our acquisition program,” said Krakauer. The Mar Cor Water Purification and Filtration segment showed second quarter organic sales growth of 3% against an unusually strong quarter in the same period last year. The gains were driven mainly by the strength of consumables and service growth, and the segment delivered a 14% increase in operating income. The acquisition of Pure Water Solutions Inc in January 2015 has strengthened the company’s Water Purification and Filtration footprint through eight regional offices in the southeastern United States (see Filtration Industry Analyst, January 2015). ■ www.cantelmedical.com
COMMENT Cummins has posted fourth quarter fiscal 2014 sales of US$5.1 billion, up 10.9% on the year earlier. Net income was 1.3% stronger at US$467 million. Results for the full year followed the same trends with net sales increasing 11.1% on the 2013 figure to a record US$19.2 billion and net income 9.3% stronger at US$1.7 billion. “We reported record revenues in 2014 despite weak economic conditions in several of our most important international markets,” Cummins chair and CEO Tom Linebarger said. “Revenues grew 11% as demand in on-highway markets
in North America improved, we continued executing our distributor acquisition strategy, and we delivered strong growth in China driven by new products.” Linebarger said the improvement in profitability was driven by record performance in the Components and Distribution businesses and higher earnings in the Engine business. “Results in the company’s Power Generation business fell short of expectations, but the actions the company has taken to lower costs will improve earnings going forward,” he added. ■ www.cummins.com
Filtration Industry Analyst
9