- Email: [email protected]
Cummins Inc, USA
COMPANY WATCH
Cummins Inc, USA
CECO Environmental Corp, USA Key Figures (US$ million) Three months ended 30.6 2014
2013
Net Sales
66.6
44.4
Cost of Sales
45.2
30.1
Gross Profit
21.4
Selling and Administrative
11.7
Key Figures (US$ million) Second quarter ended 29.6.2014
30.6.2013
4835
4525
14.3
Net Sales Of Which: Components Distribution
1280 1238
1117 954
8.1
Cost of Sales
3608
3372
1227
1153
Acquisition and Integration Expenses
0.2
2.3
Gross Margin
Income from Operations
7.2
3.3
Operating Income
612
610
Net Income
4.5
3.0
Income before Income Taxes
642
613
Net Income
446
414
Six months ended 29.6.2014
30.6.2013
Six months ended 30.6 2014
2013
123.8
78.8
Cost of Sales
82.6
53.3
Gross Profit
41.2
25.5
Selling and Administrative
23.4
14.7
Net Sales
Acquisition and Integration Expenses Income from Operations Net Income
0.2
3.4
12.7
6.6
7.5
5.3
COMMENT CECO Environmental Corp’s revenue in the second quarter of 2014 was US$66.6 million, up 50% from the US$44.4 million a year earlier, with Met-Pro contributing US$23.1 million. Revenue in the first six months of 2014 was US$123.8 million, up 57.1% from the US$78.8 million delivered last year. Met-Pro’s contribution was US$42.3 million. The CECO Environmental results include the operations of Aarding Thermal Acoustics from the date of its acquisition on 28 February 2013 and Met-Pro Corp from 27 August 2013. Net income also increased 50% in the second quarter of 2014 to US$4.5 million, and lifted 41.5% to US$7.5 million in the first six months of 2014. Total backlog at 30 June 2014 was US$96.0 million compared with US$98.5 million on 31 December 2013, and US$104.9 million on 31 March 2014. Bookings were US$121.3
August 2014
Net Sales Of Which: Components Distribution
9241
8447
2510 2188
2135 1732
Cost of Sales
6898
6337
Gross Margin
2343
2110
Operating Income
1125
1024
Income before Income Taxes
1153
1044
784
696
Net Income
million in the first six months of 2014, an increase of 44.2% on the same point last year. Year-to-date bookings to 31 July 2014 were more than US$150 million as the company achieved bookings of over US$30 million in July 2014. “Our continued focus on our “OneCECO” sales initiative is strengthening our organic growth drivers and complements our acquisition strategy. Our efforts in China are also progressing as planned, with strong bookings from many new projects in the region during the quarter. We have made solid progress across a number of our initiatives in the first half of 2014 and we are excited about our prospects in the second half of 2014 and beyond, as we continue to leverage our growing installed base, recurring revenue focus and our strengthened platform,” said CECO Environmental CEO Jeff Lang. ■ www.cecoenviro.com
COMMENT Cummins had a positive second quarter of fiscal 2014 with its sales up 6.9% at US$4.8 billion and net income 7.7% stronger at US$446 million. The company’s Components segment, home to filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw sales increase 14.6% for the period to US$1.3 billion, while EBIT was up 36.0% at US$185 million. Filtration sales within the segment grew 3.8% to US$275 million. Mainly on the back of acquisitions, the Distribution segment enjoyed sales growth of 29.8% on the year earlier to US$1.2 billion, with its EBIT up 26.0% to US$126 million. The Parts and Filtration business
unit within the segment saw its sales up 20.7% at US$461 million. “Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets,” Cummins chair and CEO, Tom Linebarger, said. “Our Components business delivered very strong results in the second quarter generating record sales and profits.” Cummins expects full year 2014 revenues to grow between 8% and 11% on the prior year, while EBIT is expected to be in the range of 12.75% to 13.25% of sales. ■ www.cummins.com
Filtration Industry Analyst
9
Cummins Inc, USA
CECO Environmental Corp, USA Key Figures (US$ million) Three months ended 30.6 2014
2013
Net Sales
66.6
44.4
Cost of Sales
45.2
30.1
Gross Profit
21.4
Selling and Administrative
11.7
Key Figures (US$ million) Second quarter ended 29.6.2014
30.6.2013
4835
4525
14.3
Net Sales Of Which: Components Distribution
1280 1238
1117 954
8.1
Cost of Sales
3608
3372
1227
1153
Acquisition and Integration Expenses
0.2
2.3
Gross Margin
Income from Operations
7.2
3.3
Operating Income
612
610
Net Income
4.5
3.0
Income before Income Taxes
642
613
Net Income
446
414
Six months ended 29.6.2014
30.6.2013
Six months ended 30.6 2014
2013
123.8
78.8
Cost of Sales
82.6
53.3
Gross Profit
41.2
25.5
Selling and Administrative
23.4
14.7
Net Sales
Acquisition and Integration Expenses Income from Operations Net Income
0.2
3.4
12.7
6.6
7.5
5.3
COMMENT CECO Environmental Corp’s revenue in the second quarter of 2014 was US$66.6 million, up 50% from the US$44.4 million a year earlier, with Met-Pro contributing US$23.1 million. Revenue in the first six months of 2014 was US$123.8 million, up 57.1% from the US$78.8 million delivered last year. Met-Pro’s contribution was US$42.3 million. The CECO Environmental results include the operations of Aarding Thermal Acoustics from the date of its acquisition on 28 February 2013 and Met-Pro Corp from 27 August 2013. Net income also increased 50% in the second quarter of 2014 to US$4.5 million, and lifted 41.5% to US$7.5 million in the first six months of 2014. Total backlog at 30 June 2014 was US$96.0 million compared with US$98.5 million on 31 December 2013, and US$104.9 million on 31 March 2014. Bookings were US$121.3
August 2014
Net Sales Of Which: Components Distribution
9241
8447
2510 2188
2135 1732
Cost of Sales
6898
6337
Gross Margin
2343
2110
Operating Income
1125
1024
Income before Income Taxes
1153
1044
784
696
Net Income
million in the first six months of 2014, an increase of 44.2% on the same point last year. Year-to-date bookings to 31 July 2014 were more than US$150 million as the company achieved bookings of over US$30 million in July 2014. “Our continued focus on our “OneCECO” sales initiative is strengthening our organic growth drivers and complements our acquisition strategy. Our efforts in China are also progressing as planned, with strong bookings from many new projects in the region during the quarter. We have made solid progress across a number of our initiatives in the first half of 2014 and we are excited about our prospects in the second half of 2014 and beyond, as we continue to leverage our growing installed base, recurring revenue focus and our strengthened platform,” said CECO Environmental CEO Jeff Lang. ■ www.cecoenviro.com
COMMENT Cummins had a positive second quarter of fiscal 2014 with its sales up 6.9% at US$4.8 billion and net income 7.7% stronger at US$446 million. The company’s Components segment, home to filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw sales increase 14.6% for the period to US$1.3 billion, while EBIT was up 36.0% at US$185 million. Filtration sales within the segment grew 3.8% to US$275 million. Mainly on the back of acquisitions, the Distribution segment enjoyed sales growth of 29.8% on the year earlier to US$1.2 billion, with its EBIT up 26.0% to US$126 million. The Parts and Filtration business
unit within the segment saw its sales up 20.7% at US$461 million. “Demand is growing in on-highway markets in North America this year as the economy improves and we have gained market share in medium duty truck and bus markets,” Cummins chair and CEO, Tom Linebarger, said. “Our Components business delivered very strong results in the second quarter generating record sales and profits.” Cummins expects full year 2014 revenues to grow between 8% and 11% on the prior year, while EBIT is expected to be in the range of 12.75% to 13.25% of sales. ■ www.cummins.com
Filtration Industry Analyst
9