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Curtiss-Wright Corp, USA
COMPANY WATCH
Curtiss-Wright Corp, USA
Flowserve Corp, USA
Key Figures (US$ million) Three months ended 31.3 2010
2009
Net Sales Of Which: Flow Control
441.8
423.8
240.7
230.4
Cost of Sales
303.8
288.0
Gross Profit
138.0
135.8
Research & Development Costs
13.8
13.1
Selling Expenses
27.8
25.9
General and Admin Expenses
65.2
65.6
Operating Income Of Which Flow Control
31.1
31.1
16.7
13.3
Selling, General and Admin Expenses 211.2
225.3
15.8
Operating Income Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
142.2
147.1
102.4 21.0 40.1
99.8 23.0 47.6
Earnings before Income Taxes
112.0
128.8
80.2
92.3
1071.6
968.2
592.4 194.4 318.9
479.9 215.3 302.8
Net Earnings
16.3
8
Pump Industry Analyst
tenance on domestic nuclear reactors. Flow Control also had higher domestic revenues for its next-generation reactor coolant pumps for the AP1000 power plants, but this was largely offset by lower revenues from China. The slightly lower sales in the oil and gas market were due to the timing of new orders, which increased in the quarter and will generate sales in future periods. Flow Control’s operating income in the first quarter of 2010 was US$17 million, an increase of 25% on last year’s first quarter. Curtiss Wright says that acquisitions had a minimal impact on Flow Control’s operating income in the first quarter of 2010. Organic operating margin increased 180 basis points from 2009’s first quarter due to savings generated by the segment’s cost reduction programs, including lower headcount and compensation expense. These improvements were partially offset by higher remediation costs for the AP1000 program. ■ www.curtisswright.com
2009
Sales Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
958.9
1024.7
531.8 196.1 256.1
539.2 214.3 297.2
Cost of Sales
610.6
657.0
Gross Profit Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
348.3
367.8
196.7 55.0 95.7
201.4 59.0 107.2
Net Earnings of Flowserve Corp
COMMENT Curtiss-Wright Corp’s Flow
ÌÀÊ Ãi}iÌÊ qÊ iÊ ÌÊ ÌÃÊ «Õ«Ê «iÀ>ÌÃÊ qÊ Ã>ÜÊ Ã>iÃÊ increase 4% in the first quarter of 2010 to US$241 million. The increase included higher organic sales of US$6 million, incremental sales of US$2 million, primarily from the 2009 acquisition of EST, and favourable foreign currency translation of US$2 million. Organic sales were led by increased sales to naval defence and commercial power markets, but were partially offset by decreases in the oil and gas and general industrial markets. The higher organic sales in Flow Control’s naval defence market were driven by strong increases in production on the Virginia class submarines due to the ramp-up in production from one to two submarines per year. The business also saw sales increase on helicopter handling systems for foreign navies. The organic sales growth in the commercial power market was due to increased demand for upgrades and plant main-
Key Figures (US$ million) Three months ended 31.3 2010
Bookings Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
COMMENT The Flowserve Flow Solutions Group (FSG), formed earlier this year by combining the former Flowserve Pump Division and Flow Solutions Division, has two reportable segments based on type of product and how the businesses are managed: FSG Engineered Product Division * ®ÆÊ >`Ê -Ê `ÕÃÌÀ>Ê Product Division (IPD). EPD includes the longer lead-time, highly engineered pump product operations of the former Flowserve Pump Division and substantially all of the mechanical seal operations of the former Flow Solutions Division. IPD covers the more standardised, general purpose pump product operations of the former
Flowserve Pump Division. FSG EPD first quarter bookings were up 23.4% to US$592.4 million, while sales slipped 1.4% to US$531.8 million and gross profit fell 2.3% to US$196.7 million. EPD operating income for the first quarter of 2010 increased 2.6% to US$102.4 million, mainly reflecting a US$5.7 million decrease in segment SG&A expenses, partially offset by the decrease in gross profit. FSG IPD bookings for 2010’s first quarter were US$194.4 million, down 9.7% on a year ago. IPD sales were US$196.1 million, a 8.5% decrease, while IPD gross profit slipped 6.8%. ■ www.flowserve.com
May 2010
Curtiss-Wright Corp, USA
Flowserve Corp, USA
Key Figures (US$ million) Three months ended 31.3 2010
2009
Net Sales Of Which: Flow Control
441.8
423.8
240.7
230.4
Cost of Sales
303.8
288.0
Gross Profit
138.0
135.8
Research & Development Costs
13.8
13.1
Selling Expenses
27.8
25.9
General and Admin Expenses
65.2
65.6
Operating Income Of Which Flow Control
31.1
31.1
16.7
13.3
Selling, General and Admin Expenses 211.2
225.3
15.8
Operating Income Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
142.2
147.1
102.4 21.0 40.1
99.8 23.0 47.6
Earnings before Income Taxes
112.0
128.8
80.2
92.3
1071.6
968.2
592.4 194.4 318.9
479.9 215.3 302.8
Net Earnings
16.3
8
Pump Industry Analyst
tenance on domestic nuclear reactors. Flow Control also had higher domestic revenues for its next-generation reactor coolant pumps for the AP1000 power plants, but this was largely offset by lower revenues from China. The slightly lower sales in the oil and gas market were due to the timing of new orders, which increased in the quarter and will generate sales in future periods. Flow Control’s operating income in the first quarter of 2010 was US$17 million, an increase of 25% on last year’s first quarter. Curtiss Wright says that acquisitions had a minimal impact on Flow Control’s operating income in the first quarter of 2010. Organic operating margin increased 180 basis points from 2009’s first quarter due to savings generated by the segment’s cost reduction programs, including lower headcount and compensation expense. These improvements were partially offset by higher remediation costs for the AP1000 program. ■ www.curtisswright.com
2009
Sales Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
958.9
1024.7
531.8 196.1 256.1
539.2 214.3 297.2
Cost of Sales
610.6
657.0
Gross Profit Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
348.3
367.8
196.7 55.0 95.7
201.4 59.0 107.2
Net Earnings of Flowserve Corp
COMMENT Curtiss-Wright Corp’s Flow
ÌÀÊ Ãi}iÌÊ qÊ iÊ ÌÊ ÌÃÊ «Õ«Ê «iÀ>ÌÃÊ qÊ Ã>ÜÊ Ã>iÃÊ increase 4% in the first quarter of 2010 to US$241 million. The increase included higher organic sales of US$6 million, incremental sales of US$2 million, primarily from the 2009 acquisition of EST, and favourable foreign currency translation of US$2 million. Organic sales were led by increased sales to naval defence and commercial power markets, but were partially offset by decreases in the oil and gas and general industrial markets. The higher organic sales in Flow Control’s naval defence market were driven by strong increases in production on the Virginia class submarines due to the ramp-up in production from one to two submarines per year. The business also saw sales increase on helicopter handling systems for foreign navies. The organic sales growth in the commercial power market was due to increased demand for upgrades and plant main-
Key Figures (US$ million) Three months ended 31.3 2010
Bookings Of Which: FSG Engineered Product Division FSG Industrial Product Division Flow Control Division
COMMENT The Flowserve Flow Solutions Group (FSG), formed earlier this year by combining the former Flowserve Pump Division and Flow Solutions Division, has two reportable segments based on type of product and how the businesses are managed: FSG Engineered Product Division * ®ÆÊ >`Ê -Ê `ÕÃÌÀ>Ê Product Division (IPD). EPD includes the longer lead-time, highly engineered pump product operations of the former Flowserve Pump Division and substantially all of the mechanical seal operations of the former Flow Solutions Division. IPD covers the more standardised, general purpose pump product operations of the former
Flowserve Pump Division. FSG EPD first quarter bookings were up 23.4% to US$592.4 million, while sales slipped 1.4% to US$531.8 million and gross profit fell 2.3% to US$196.7 million. EPD operating income for the first quarter of 2010 increased 2.6% to US$102.4 million, mainly reflecting a US$5.7 million decrease in segment SG&A expenses, partially offset by the decrease in gross profit. FSG IPD bookings for 2010’s first quarter were US$194.4 million, down 9.7% on a year ago. IPD sales were US$196.1 million, a 8.5% decrease, while IPD gross profit slipped 6.8%. ■ www.flowserve.com
May 2010