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Cummins Inc, USA
COMPANY WATCH
Cummins Inc, USA
Calgon Carbon Corp, USA Key Figures (US$ million) Third quarter ended 30.9 2012 Net Sales Of Which: Activated Carbon and Service Equipment Consumer
Key Figures (US$ million) Third quarter ended 30.9.2012
25.9.2011
Net Sales Of Which: Components Distribution
4118
4626
938 801
1015 783
2011
135.5
143.6
115.0 18.2 2.3
130.0 11.6 2.0
Cost of Sales
3076
3438
Cost of Products Sold
98.5
95.0
Gross Margin
1042
1188
Gross Profit
37.0
48.6
Operating Income
493
639
Income/(Loss) from Operations
(3.6)
18.2
Income before Income Taxes
487
629
Net Income/(Loss)
(4.5)
14.5
Net Income
370
472
Six months ended 30.9 2012
2011
Nine months ended 30.9.2012
25.9.2011
Net Sales Of Which: Components Distribution
13 042
13 127
3073 2370
2971 2210
Cost of Sales
9592
9779
Gross Margin
3450
3348
Operating Income
1789
1936
Income before Income Taxes
1798
1913
Net Income
1340
1374
Net Sales Of Which: Activated Carbon and Service Equipment Consumer
420.5
403.3
358.6 54.2 7.7
364.4 32.4 6.5
Cost of Products Sold
294.8
268.9
Gross Profit
125.7
134.4
Income/(Loss) from Operations
25.1
49.0
Net Income
14.2
34.3
COMMENT COMMENT Carbon Corp has reported net sales of US$135.5 million for the third quarter of fiscal 2012, a decrease of 5.6% on the year earlier. Sales in its core Activated Carbon and Service segment decreased 11.6% to US$115.0 million, reflecting lower demand from drinking water, environmental air, and wastewater markets. The company also posted a net loss of US$4.5 million for the period primarily resulting from a restructuring charge of US$8.0 million that included
November 2012
US$3.7 million of severance costs and a US$3.6 million impairment charge for the closure of its manufacturing facility in Datong, China. “The results for the quarter clearly confirm the need to reduce Calgon Carbon’s cost structure and improve operating efficiencies,” Randy Dearth, Calgon’s president and CEO, said. “We are implementing additional initiatives to address those issues, and that will be our primary focus for the remainder of the year.” ■ www.calgoncarbon.com
Cummins endured a tough third quarter of fiscal 2012 with its sales down 11.0% at US$4.1 billion and net income 21.6% lower at US$370 million. The company’s Components segment, home to its filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw sales fall 7.6% for the period to US$0.9 billion, while EBIT was down 21.1% at US$89 million. Filtration sales within the segment slipped 9.1% to US$260 million. The Distribution segment bucked the trend with sales up 2.3% on a year earlier at US$801 million, although benefiting from acquisitions.
The segment’s EBIT fell 4.8% to US$99 million. The Parts and Filtration business unit within the segment saw its sales up 15.2% at US$326 million. “Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets,” Tom Linebarger, Cummins chair and CEO, said. “We have been responding to the conditions by delaying or cancelling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses, and reducing our workforce” ■ www.cummins.com
Filtration Industry Analyst
9
Cummins Inc, USA
Calgon Carbon Corp, USA Key Figures (US$ million) Third quarter ended 30.9 2012 Net Sales Of Which: Activated Carbon and Service Equipment Consumer
Key Figures (US$ million) Third quarter ended 30.9.2012
25.9.2011
Net Sales Of Which: Components Distribution
4118
4626
938 801
1015 783
2011
135.5
143.6
115.0 18.2 2.3
130.0 11.6 2.0
Cost of Sales
3076
3438
Cost of Products Sold
98.5
95.0
Gross Margin
1042
1188
Gross Profit
37.0
48.6
Operating Income
493
639
Income/(Loss) from Operations
(3.6)
18.2
Income before Income Taxes
487
629
Net Income/(Loss)
(4.5)
14.5
Net Income
370
472
Six months ended 30.9 2012
2011
Nine months ended 30.9.2012
25.9.2011
Net Sales Of Which: Components Distribution
13 042
13 127
3073 2370
2971 2210
Cost of Sales
9592
9779
Gross Margin
3450
3348
Operating Income
1789
1936
Income before Income Taxes
1798
1913
Net Income
1340
1374
Net Sales Of Which: Activated Carbon and Service Equipment Consumer
420.5
403.3
358.6 54.2 7.7
364.4 32.4 6.5
Cost of Products Sold
294.8
268.9
Gross Profit
125.7
134.4
Income/(Loss) from Operations
25.1
49.0
Net Income
14.2
34.3
COMMENT COMMENT Carbon Corp has reported net sales of US$135.5 million for the third quarter of fiscal 2012, a decrease of 5.6% on the year earlier. Sales in its core Activated Carbon and Service segment decreased 11.6% to US$115.0 million, reflecting lower demand from drinking water, environmental air, and wastewater markets. The company also posted a net loss of US$4.5 million for the period primarily resulting from a restructuring charge of US$8.0 million that included
November 2012
US$3.7 million of severance costs and a US$3.6 million impairment charge for the closure of its manufacturing facility in Datong, China. “The results for the quarter clearly confirm the need to reduce Calgon Carbon’s cost structure and improve operating efficiencies,” Randy Dearth, Calgon’s president and CEO, said. “We are implementing additional initiatives to address those issues, and that will be our primary focus for the remainder of the year.” ■ www.calgoncarbon.com
Cummins endured a tough third quarter of fiscal 2012 with its sales down 11.0% at US$4.1 billion and net income 21.6% lower at US$370 million. The company’s Components segment, home to its filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw sales fall 7.6% for the period to US$0.9 billion, while EBIT was down 21.1% at US$89 million. Filtration sales within the segment slipped 9.1% to US$260 million. The Distribution segment bucked the trend with sales up 2.3% on a year earlier at US$801 million, although benefiting from acquisitions.
The segment’s EBIT fell 4.8% to US$99 million. The Parts and Filtration business unit within the segment saw its sales up 15.2% at US$326 million. “Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets,” Tom Linebarger, Cummins chair and CEO, said. “We have been responding to the conditions by delaying or cancelling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses, and reducing our workforce” ■ www.cummins.com
Filtration Industry Analyst
9