Cummins Inc, USA

COMPANY WATCH

Alfa Laval AB, Sweden

Cummins Inc, USA

Key Figures (SEK million) Second quarter ended 30.6 2011

Key Figures (US$ million) Second quarter ended 26.6.2011

2010

27.6.2010

Order Intake

7424

6267

4641

3208

3937

Net Sales Of Which: Components Distribution

Net Sales

7033

6359

Cost of Goods Sold

4254

1032 785

729 576

Gross Profit

2779

2422

Cost of Sales

3438

2455

165

135

Gross Margin

1203

753

1146

1173

768

396

811

838

401

Six months ended 30.6 2011

2010

Earnings before Interest and Taxes (EBIT) 775 Of Which: Components 120 Distribution 106

Order Intake

13 879

11 356

Net Income

505

246

Net Sales

12 932

11 740

Cost of Goods Sold

7853

7115

Six months ended 26.6.2011

27.6.2010

Gross Profit

5079

4625

5686

276

Operating Income

2196

2089

Net Income

1537

1453

Net Sales Of Which: Components Distribution

8501

315

1956 1427

975 1052

Cost of Sales

6341

4332

Gross Margin

2160

1354

Operating Income

R&D Costs Operating Income Net Income

R&D Costs

COMMENT Swedish engineering group Alfa Laval had a mostly positive second quarter of fiscal 2011 with order intake up 18% on a year earlier at SEK7424 million and sales 11% stronger at SEK7033 million, although net income was down 3% at SEK811 million. Excluding exchange rate variations the growth figures were even stronger with order intake up 32% and net sales 23% stronger compared with a year earlier. “Demand continued to develop positively during the second quarter of the year,” Lars Renström, Alfa Laval’s president and CEO, said. “All business segments and regions reported growth. The fast growing regions in Eastern Europe, Latin America and

August 2011

Asia accounted for 50% of the order intake for the Group.” Renström said high energy prices and investments in renewable energy resulted in a high activity level for its Energy & Environment business unit. “At the same time strong growth was noted for Food Technology from breweries as well as vegetable oil plants in the fast growing regions of the world,” he said. “In Process Industry the growth was strong, amongst others within refinery and petrochemicals.” Figures for the corresponding six months followed a similar pattern with orders up 22% on a year earlier at SEK13 879 million and sales 10% stronger at SEK12 932 million. ■ www.alfalaval.com

Operating Income

75 69

1297

642

Earnings before Interest and Taxes (EBIT) 1307 Of Which: Components 225 Distribution 195

667

Net Income

395

848

132 141

COMMENT Cummins enjoyed a strong second quarter of fiscal 2011 with its sales up 45% at US$4.6 billion and net income 105% stronger at US$505 million. The company’s Components segment, home to its filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, posted record figures for both sales and earnings. Sales were up 42% on the 2010 comparator at US$1.0 billion, while EBIT was up 60% at US$120 million. Filtration sales within the segment climbed 12% to US$255 million.

The Distribution segment also enjoyed record sales and earnings with the former up 36% on a year earlier at US$785 million and EBIT up 54% at US$106 million. The Parts and Filtration business unit within the segment saw its sales up 23% at US$271 million. “Our products are performing very well, we have strong leadership positions, and we are delivering strong profitability in all four businesses,” said Tom Linebarger, Cummins president and COO. ■ www.cummins.com

Filtration Industry Analyst

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