- Email: [email protected]
Cummins Inc, USA
COMPANY WATCH
Ceco Environmental Corp, USA
Cummins Inc, USA
Key Figures (US$ million) Three months ended 31.12 2015
2014
Key Figures (US$ million) Fourth quarter ended 31.12 2015
2014
103.9
76.1
4766
5090
Cost of Sales
70.7
53.5
Gross Profit
33.2
22.6
Net Sales Of Which: Components Distribution
1236 1707
1321 1694
Selling and Admin Expenses
23.1
15.0
Cost of Sales
3554
3817
Acquisition and Integration Expenses
1.0
1.0
Gross Margin
1212
1273
Income from Operations
0.1
3.7
Operating Income
229
581
(3.2)
1.9
Income before Income Taxes
212
612
Net Income
178
467
Net Sales
Net Income/(Loss) Year ended 31.12
2015
2014
Net Sales
370.1
263.2
Cost of Sales
258.5
178.4
Gross Profit
111.6
84.8
69.3
51.4
Acquisition and Integration Expenses
7.9
1.3
Income from Operations
5.4
21.7
(5.7)
13.1
Selling and Admin Expenses
Net Income/(Loss)
COMMENT Ceco Environmental Corp posted a 41% increase in 2015 revenue to US$370.1 million. Recent acquisitions contributed US$104.5 million of incremental revenue for 2015, while organic revenue was up 3.4% on a year earlier. Meanwhile, operating income for the full year 2015 was US$5.4 million compared with US$21.7 million in 2014. Total backlog at 31 December 2015 was US$208.5 million versus US$140.1 million at the end of 2014, and US$212.3 million on 30 September 2015. Bookings were US$358.0 million for full year 2015, an increase of 40% on a year earlier. “Despite macroeconomic challenges, which caused top line results to come in below expectations for the fourth quarter, we delivered margin expansion and outperformed on the Peerless acquisition integration,” said Ceco 88
Filtration Industry Analyst
Environmental CEO Jeff Lang. “In addition, we achieved several annual milestones, including record revenue, bookings, gross profit, adjusted EBITDA and non-GAAP earnings per diluted share. Our continued focus on our Sales Excellence and OneCECO initiatives helped drive full-year organic and recurring aftermarket revenue growth.” “While we anticipate ongoing headwinds in the coming year, we are confident that the actions we have taken in 2015 and our diversity of end markets, geographies and revenue streams provide us with a solid foundation to drive profitable growth through various cycles. The direction and core of our business is fundamentally strong, and we have the right team in place to deliver growth in our solid end markets,” added Lang. ■ www.cecoenviro.com
Year ended 31.12 2015
2014
Net Sales Of Which: Components Distribution
19 110
19 221
5172 6229
5118 5174
Cost of Sales
14 163
14 360
Gross Margin
4947
4861
Operating Income
2057
2365
Income before Income Taxes
2025
2434
Net Income
1470
1736
COMMENT Cummins has posted fourth quarter fiscal 2015 sales of US$4.8 billion, down 6.4% on the year earlier. Net income slumped 61.9% to US$178 million. The company’s filtration business units posted mixed results for the quarter. In its Distribution segment, Parts & Filtration sales were up 9.8% on the year prior to US$648 million contributing to the sector’s uplift of 0.8% to US$1.7 billion. In contrast, in the Components segment Filtration revenues fell 6.7% to US$249 million mirroring the division’s overall 6.4% decline to US$1.2 billion. “As a result of weakening market conditions in the fourth quarter of 2015, the
company reviewed its global manufacturing footprint and now expects to scale back the range of light duty engines it plans to manufacture in North America,” said Rich Freeland, Cummins president and COO. “This change in plans, combined with the uncertainty of winning additional customers for the V8 light duty engine, caused the company to reassess the book value of its light duty manufacturing assets in North America. As a result, a non-cash, pre-tax impairment charge of US$211 million was recorded to adjust the assets to fair value.” For the full year, Cummins sales eased 0.6% on the year earlier to US$19.1 billion. ■ www.cummins.com
March 2016
Ceco Environmental Corp, USA
Cummins Inc, USA
Key Figures (US$ million) Three months ended 31.12 2015
2014
Key Figures (US$ million) Fourth quarter ended 31.12 2015
2014
103.9
76.1
4766
5090
Cost of Sales
70.7
53.5
Gross Profit
33.2
22.6
Net Sales Of Which: Components Distribution
1236 1707
1321 1694
Selling and Admin Expenses
23.1
15.0
Cost of Sales
3554
3817
Acquisition and Integration Expenses
1.0
1.0
Gross Margin
1212
1273
Income from Operations
0.1
3.7
Operating Income
229
581
(3.2)
1.9
Income before Income Taxes
212
612
Net Income
178
467
Net Sales
Net Income/(Loss) Year ended 31.12
2015
2014
Net Sales
370.1
263.2
Cost of Sales
258.5
178.4
Gross Profit
111.6
84.8
69.3
51.4
Acquisition and Integration Expenses
7.9
1.3
Income from Operations
5.4
21.7
(5.7)
13.1
Selling and Admin Expenses
Net Income/(Loss)
COMMENT Ceco Environmental Corp posted a 41% increase in 2015 revenue to US$370.1 million. Recent acquisitions contributed US$104.5 million of incremental revenue for 2015, while organic revenue was up 3.4% on a year earlier. Meanwhile, operating income for the full year 2015 was US$5.4 million compared with US$21.7 million in 2014. Total backlog at 31 December 2015 was US$208.5 million versus US$140.1 million at the end of 2014, and US$212.3 million on 30 September 2015. Bookings were US$358.0 million for full year 2015, an increase of 40% on a year earlier. “Despite macroeconomic challenges, which caused top line results to come in below expectations for the fourth quarter, we delivered margin expansion and outperformed on the Peerless acquisition integration,” said Ceco 88
Filtration Industry Analyst
Environmental CEO Jeff Lang. “In addition, we achieved several annual milestones, including record revenue, bookings, gross profit, adjusted EBITDA and non-GAAP earnings per diluted share. Our continued focus on our Sales Excellence and OneCECO initiatives helped drive full-year organic and recurring aftermarket revenue growth.” “While we anticipate ongoing headwinds in the coming year, we are confident that the actions we have taken in 2015 and our diversity of end markets, geographies and revenue streams provide us with a solid foundation to drive profitable growth through various cycles. The direction and core of our business is fundamentally strong, and we have the right team in place to deliver growth in our solid end markets,” added Lang. ■ www.cecoenviro.com
Year ended 31.12 2015
2014
Net Sales Of Which: Components Distribution
19 110
19 221
5172 6229
5118 5174
Cost of Sales
14 163
14 360
Gross Margin
4947
4861
Operating Income
2057
2365
Income before Income Taxes
2025
2434
Net Income
1470
1736
COMMENT Cummins has posted fourth quarter fiscal 2015 sales of US$4.8 billion, down 6.4% on the year earlier. Net income slumped 61.9% to US$178 million. The company’s filtration business units posted mixed results for the quarter. In its Distribution segment, Parts & Filtration sales were up 9.8% on the year prior to US$648 million contributing to the sector’s uplift of 0.8% to US$1.7 billion. In contrast, in the Components segment Filtration revenues fell 6.7% to US$249 million mirroring the division’s overall 6.4% decline to US$1.2 billion. “As a result of weakening market conditions in the fourth quarter of 2015, the
company reviewed its global manufacturing footprint and now expects to scale back the range of light duty engines it plans to manufacture in North America,” said Rich Freeland, Cummins president and COO. “This change in plans, combined with the uncertainty of winning additional customers for the V8 light duty engine, caused the company to reassess the book value of its light duty manufacturing assets in North America. As a result, a non-cash, pre-tax impairment charge of US$211 million was recorded to adjust the assets to fair value.” For the full year, Cummins sales eased 0.6% on the year earlier to US$19.1 billion. ■ www.cummins.com
March 2016