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Donaldson Co Inc, USA
COMPANY WATCH
Ceco Environmental Corp, USA
Donaldson Co Inc, USA
Key Figures (US$ million) Fourth quarter ended 31.12 2010
2009
Key Figures (US$ million) Second quarter ended 31.1 2011
Net Sales
36.9
36.6
Cost of Sales
28.4
28.7
Gross Profit
8.5
7.8
2010
Net Sales Of Which: Engine Products Industrial Products
537.1
436.1
331.1 206.0
256.4 179.7
Operating Income/(Loss)
1.4
(16.5)
Cost of Sales
347.6
290.2
Income/(Loss) before Tax
1.2
(17.0)
Gross Profit
189.5
145.9
Net Income/(Loss)
0.7
(14.1)
Operating Expenses
122.1
106.9
Operating Income
67.4
39.1
68.0
37.5
44.6
31.0
Year ended 31.12 2010
2009
Earnings before Income Taxes
Net Sales
140.6
139.0
Net Earnings
Cost of Sales
107.9
108.0
Gross Profit
32.7
30.9
Operating Income/(Loss)
5.0
(15.8)
Income/(Loss) before Tax
3.7
(17.9)
Net Income/(Loss)
2.1
(15.0)
Six months ended 31.1 2011
2010
1074.0
864.2
664.9
507.7
409.1
356.5
Net Sales Of Which: Engine Products Industrial Products
COMMENT Air pollution control manufacturer Ceco Environmental closed out fiscal 2010 by posting fourth quarter sales of US$36.9 million, up marginally on the US$36.6 million recorded a year earlier. The company also returned to profitability for the period with net income reaching US$0.7 million, compared with the net loss of US$14.1 million registered in 2009. The full-year picture was similar with net sales up slightly, they increased 1.2% to US$140.6 million, while a net profit of US$2.1 million reversed the US$15.0 million loss posted a year earlier. Jeff Lang, Ceco’s CEO, said the company was now a leaner, stronger and more global entity than a year ago and was look forwarding to further progress in fiscal 2011. “We’ve successfully optimized and pruned the overall asset
April 2011
portfolio and while our base is a little smaller entering 2011, our operating income and gross margin potential is much greater,” Lang said. “In addition, our backlog today has much stronger expected gross margins than in previous years. I’m excited with our strong Ceco product brand names and the improving demand for air pollution control products and services. We are positioned well for the future of this global sector.” Ceco’s backlog at the end of fiscal 2010 was US$54.3 million, down 18.3% on the US$66.5 million at the prior year-end. Lang commented that this decline was due largely to the strategic initiative implemented in 2010 to focus on higher margin backlog with shorter cycles that would generate higher gross margins than previous years. ■ www.cecoenviro.com
Cost of Sales
696.4
569.9
Gross Profit
377.6
294.3
Operating Expenses
235.7
202.9
Operating Income
141.9
91.5
Earnings before Income Taxes
140.0
87.6
97.7
65.5
Net Earnings
COMMENT Donaldson has posted second quarter 2011 revenues of US$537.1 million, up 23.2% on a year earlier, while its net earnings were 43.9% stronger at US$44.6 million. “We experienced a continued strengthening in many of our end markets and all of our regions, and our cost structure has continued to improve from our ongoing continuous improvement initiatives,” Bill Cook, Donaldson’s chair, president and CEO, said. “As our sales have grown we have
added people and significantly increased our investments, but at a slower rate than our sales growth.” Cook said that raw material costs were up slightly in the quarter, and Donaldson expected further increases in the future. “During the second half of our fiscal year, we plan to offset the majority of the impact of these cost increases through our continuous improvement initiatives and selective price increases,” he said. ■ www.donaldson.com
Filtration Industry Analyst
9
Ceco Environmental Corp, USA
Donaldson Co Inc, USA
Key Figures (US$ million) Fourth quarter ended 31.12 2010
2009
Key Figures (US$ million) Second quarter ended 31.1 2011
Net Sales
36.9
36.6
Cost of Sales
28.4
28.7
Gross Profit
8.5
7.8
2010
Net Sales Of Which: Engine Products Industrial Products
537.1
436.1
331.1 206.0
256.4 179.7
Operating Income/(Loss)
1.4
(16.5)
Cost of Sales
347.6
290.2
Income/(Loss) before Tax
1.2
(17.0)
Gross Profit
189.5
145.9
Net Income/(Loss)
0.7
(14.1)
Operating Expenses
122.1
106.9
Operating Income
67.4
39.1
68.0
37.5
44.6
31.0
Year ended 31.12 2010
2009
Earnings before Income Taxes
Net Sales
140.6
139.0
Net Earnings
Cost of Sales
107.9
108.0
Gross Profit
32.7
30.9
Operating Income/(Loss)
5.0
(15.8)
Income/(Loss) before Tax
3.7
(17.9)
Net Income/(Loss)
2.1
(15.0)
Six months ended 31.1 2011
2010
1074.0
864.2
664.9
507.7
409.1
356.5
Net Sales Of Which: Engine Products Industrial Products
COMMENT Air pollution control manufacturer Ceco Environmental closed out fiscal 2010 by posting fourth quarter sales of US$36.9 million, up marginally on the US$36.6 million recorded a year earlier. The company also returned to profitability for the period with net income reaching US$0.7 million, compared with the net loss of US$14.1 million registered in 2009. The full-year picture was similar with net sales up slightly, they increased 1.2% to US$140.6 million, while a net profit of US$2.1 million reversed the US$15.0 million loss posted a year earlier. Jeff Lang, Ceco’s CEO, said the company was now a leaner, stronger and more global entity than a year ago and was look forwarding to further progress in fiscal 2011. “We’ve successfully optimized and pruned the overall asset
April 2011
portfolio and while our base is a little smaller entering 2011, our operating income and gross margin potential is much greater,” Lang said. “In addition, our backlog today has much stronger expected gross margins than in previous years. I’m excited with our strong Ceco product brand names and the improving demand for air pollution control products and services. We are positioned well for the future of this global sector.” Ceco’s backlog at the end of fiscal 2010 was US$54.3 million, down 18.3% on the US$66.5 million at the prior year-end. Lang commented that this decline was due largely to the strategic initiative implemented in 2010 to focus on higher margin backlog with shorter cycles that would generate higher gross margins than previous years. ■ www.cecoenviro.com
Cost of Sales
696.4
569.9
Gross Profit
377.6
294.3
Operating Expenses
235.7
202.9
Operating Income
141.9
91.5
Earnings before Income Taxes
140.0
87.6
97.7
65.5
Net Earnings
COMMENT Donaldson has posted second quarter 2011 revenues of US$537.1 million, up 23.2% on a year earlier, while its net earnings were 43.9% stronger at US$44.6 million. “We experienced a continued strengthening in many of our end markets and all of our regions, and our cost structure has continued to improve from our ongoing continuous improvement initiatives,” Bill Cook, Donaldson’s chair, president and CEO, said. “As our sales have grown we have
added people and significantly increased our investments, but at a slower rate than our sales growth.” Cook said that raw material costs were up slightly in the quarter, and Donaldson expected further increases in the future. “During the second half of our fiscal year, we plan to offset the majority of the impact of these cost increases through our continuous improvement initiatives and selective price increases,” he said. ■ www.donaldson.com
Filtration Industry Analyst
9