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Donaldson Co Inc, USA
COMPANY WATCH
Indutrade AB, Sweden
Donaldson Co Inc, USA Key Figures (US$ million) Three months ended 30.4 2014
2013
Net Sales Of Which: Engine Industrial
624.2
619.4
402.2 222.1
383.3 236.1
Cost of Sales
400.8
Gross Profit
Key Figures (SEK million) First quarter ended 31.3 2014
2013
Net Sales
2250
2051
1486
1358
397.9
Cost of Goods Sold Of Which: Fluid & Mechanical Solutions Industrial Components
251 447
243 404
223.5
221.5
Gross Profit
764
693
Operating Income
92.7
98.6
224
191
Earnings before Income Taxes Of Which: Engine Industrial
94.2
99.5
61.4 32.5
65.7 37.6
EBITA Of Which: Fluid & Mechanical Solutions Industrial Components
31 49
30 40
Operating Profit
189
159
Net Earnings
67.3
69.8
Net Profit before Income Taxes
165
139
Net Profit
126
107
Nine months ended 30.4 2014
2013
Net Sales Of Which: Engine Industrial
1805.2
1804.4
COMMENT
1160.9 644.3
1107.8 696.5
Cost of Sales
1165.7
1185.6
Gross Profit
639.5
618.8
Operating Income
256.6
243.3
Earnings before Income Taxes Of Which: Engine Industrial
259.9
247.0
170.8 91.7
152.1 102.7
Net Earnings
187.3
174.8
Swedish industrial manufacturer Indutrade has reported first quarter fiscal 2014 sales of SEK2250 million, up 9.7%% on a year ago. Excluding acquisitions and currency effects, however, the revenue increase was around 1.0%. In the company’s Fluids & Mechanical Solutions segment, home to much of its filtration activity, revenues rose 3.3% on the 2013 figure to SEK251 million. Sales were boosted by improved market conditions for hydraulic components used in forest and construction machinery, as well as favourable development of its water/ wastewater segment in Sweden. In the Industrial Components segment, which includes filters and process technology, sales climbed 10.6% on the year earlier to SEK447 million. Excluding acquisitions sales were up around 7%, with a stronger climate in most of its markets particularly commercial vehicles and general engineering. Indutrade made two acquisitions during the quarter, AP Tobler AG in Switzerland and Svenska Geotech AB in
COMMENT Donaldson Co Inc CEO Bill Cook said they were proud of their execution during the third quarter while remaining aggressively focused on additional growth opportunities. End market conditions remain mixed as demand for Donaldson replacement filters continues to improve in both the company’s Engine and Industrial segments, while conditions for new first-fit systems in the OEM markets are recovering slower than
June 2014
anticipated. Engine Products’ third quarter sales increased 5% in local currency from last year, driven by increases in Engine Aftermarket and On-Road sales of 11% and 13%, respectively. Industrial Products’ third quarter sales slipped 7% in local currency as a result of a 40% decline in Gas Turbine shipments from last year’s record third quarter. Industrial Filtration Solutions and Special Applications businesses grew 8% and 4%, respectively. ■ www.donaldson.com
Sweden. AP Tobler specialises in surface treatment of equipment for the pharmaceutical industry, while Svenska Geotech supplies products for the civil engineering industry. “The trend of market segments and countries beginning to show growth during the second half of 2013 continued into the first quarter of 2014,” Johnny Alvarsson, Indutrade’s president and CEO, said. “However, order intake in the energy segment was considerably lower than in the same period in 2013, and the Finnish market had continued weak performance. As a result, despite favourable development in most markets, organic growth at the Group level did not materialise.” Alvarsson added that it was gratifying to note that all of the acquisitions made during the last 12 months had made a contribution to the company’s earnings improvement. “The acquisitions have strengthened product areas in which we are already established, while we also took a step into a new one – the construction sector in the UK with Verplas,” he said. ■ www.indutrade.com
Filtration Industry Analyst
9
Indutrade AB, Sweden
Donaldson Co Inc, USA Key Figures (US$ million) Three months ended 30.4 2014
2013
Net Sales Of Which: Engine Industrial
624.2
619.4
402.2 222.1
383.3 236.1
Cost of Sales
400.8
Gross Profit
Key Figures (SEK million) First quarter ended 31.3 2014
2013
Net Sales
2250
2051
1486
1358
397.9
Cost of Goods Sold Of Which: Fluid & Mechanical Solutions Industrial Components
251 447
243 404
223.5
221.5
Gross Profit
764
693
Operating Income
92.7
98.6
224
191
Earnings before Income Taxes Of Which: Engine Industrial
94.2
99.5
61.4 32.5
65.7 37.6
EBITA Of Which: Fluid & Mechanical Solutions Industrial Components
31 49
30 40
Operating Profit
189
159
Net Earnings
67.3
69.8
Net Profit before Income Taxes
165
139
Net Profit
126
107
Nine months ended 30.4 2014
2013
Net Sales Of Which: Engine Industrial
1805.2
1804.4
COMMENT
1160.9 644.3
1107.8 696.5
Cost of Sales
1165.7
1185.6
Gross Profit
639.5
618.8
Operating Income
256.6
243.3
Earnings before Income Taxes Of Which: Engine Industrial
259.9
247.0
170.8 91.7
152.1 102.7
Net Earnings
187.3
174.8
Swedish industrial manufacturer Indutrade has reported first quarter fiscal 2014 sales of SEK2250 million, up 9.7%% on a year ago. Excluding acquisitions and currency effects, however, the revenue increase was around 1.0%. In the company’s Fluids & Mechanical Solutions segment, home to much of its filtration activity, revenues rose 3.3% on the 2013 figure to SEK251 million. Sales were boosted by improved market conditions for hydraulic components used in forest and construction machinery, as well as favourable development of its water/ wastewater segment in Sweden. In the Industrial Components segment, which includes filters and process technology, sales climbed 10.6% on the year earlier to SEK447 million. Excluding acquisitions sales were up around 7%, with a stronger climate in most of its markets particularly commercial vehicles and general engineering. Indutrade made two acquisitions during the quarter, AP Tobler AG in Switzerland and Svenska Geotech AB in
COMMENT Donaldson Co Inc CEO Bill Cook said they were proud of their execution during the third quarter while remaining aggressively focused on additional growth opportunities. End market conditions remain mixed as demand for Donaldson replacement filters continues to improve in both the company’s Engine and Industrial segments, while conditions for new first-fit systems in the OEM markets are recovering slower than
June 2014
anticipated. Engine Products’ third quarter sales increased 5% in local currency from last year, driven by increases in Engine Aftermarket and On-Road sales of 11% and 13%, respectively. Industrial Products’ third quarter sales slipped 7% in local currency as a result of a 40% decline in Gas Turbine shipments from last year’s record third quarter. Industrial Filtration Solutions and Special Applications businesses grew 8% and 4%, respectively. ■ www.donaldson.com
Sweden. AP Tobler specialises in surface treatment of equipment for the pharmaceutical industry, while Svenska Geotech supplies products for the civil engineering industry. “The trend of market segments and countries beginning to show growth during the second half of 2013 continued into the first quarter of 2014,” Johnny Alvarsson, Indutrade’s president and CEO, said. “However, order intake in the energy segment was considerably lower than in the same period in 2013, and the Finnish market had continued weak performance. As a result, despite favourable development in most markets, organic growth at the Group level did not materialise.” Alvarsson added that it was gratifying to note that all of the acquisitions made during the last 12 months had made a contribution to the company’s earnings improvement. “The acquisitions have strengthened product areas in which we are already established, while we also took a step into a new one – the construction sector in the UK with Verplas,” he said. ■ www.indutrade.com
Filtration Industry Analyst
9