COMPANY WATCH
DXP Enterprises Inc, USA Key Figures (US$ million) Three months ended 30.6 2009
Flowserve Corp, USA Key Figures (US$ million) Three months ended 30.6 2009
2008
Sales
144.4
187.8
Cost of Sales
103.0
135.9
Gross Profit
41.4
51.9
Selling, General and Admin Expense
36.3
40.4
Operating Income
5.1
11.5
Net Income
2.2
6.4
Six months ended 30.6
Sales Of Which: Flowserve Pump
1090.4 659.8
633.2
704.1
739.6
Gross Profit Of Which: Flowserve Pump
386.3
418.0
211.6
206.0
Selling, General and Admin Expense
231.3
250.2
158.8
172.3
113.8
103.7
108.2
122.9
Six months ended 30.6 2009
2008
2009
2008
Sales
302.0
356.3
Cost of Sales
214.5
258.5
Net Earnings
Gross Profit
87.5
97.8
Selling, General and Admin Expense
75.6
75.8
Operating Income
11.8
22.1
Net Income
5.3
11.8
DXP Enterprises Inc, the industrial distributor, reported net income of US$2.2 million for the second quarter ended 30 June 2009, with diluted earnings per share of US$0.15 compared with net income of US$6.4 million and diluted earnings per share of US$0.46 for the second quarter of 2008. Sales decreased US$43.4 million, or 23.1%, to approximately US$144.4 million from US$187.8 million for the same period in 2008. Sales by businesses acquired in 2008, on a same store sales basis, accounted for US$12.0 million of 2009 sales for the three month period. Excluding these sales by the acquired businesses, sales decreased 29.5%. Net income for the second quarter of 2009 declined 31.7% from US$3.2 million for the first quarter of 2009. Second quarter 2009 sales declined 8.4% from US$157.6 million for the first quarter of 2009. For the six months ended 30 June 2009 DXP Enterprises’ net
August 2009
income was US$5.3 million, with diluted earnings per share of US$0.38 compared with net income of US$11.8 million and diluted earnings per share of US$0.85 for the first half of 2008. Sales for the six months ended 30 June 2009 decreased US$54.3 million, or 15.2%, to approximately US$302.0 million from US$356.3 million a year earlier. Excluding first half 2009 sales of US$26.2 million by the businesses acquired in 2008, sales decreased 22.6% from the first half of 2008. “In the short term, we believe these unprecedented conditions will continue to adversely affect our industry and our business. However, we will continue to proactively grow our market share, aggressively manage our costs and cash flow, and position ourselves to take advantage of opportunities when the economy begins to recover,” said David Little, DXPE chairman and CEO. ■ www.dxpe.com
1157.6
Cost of Sales
Operating Income Of Which: Flowserve Pump
COMMENT
2008
Sales Of Which: Flowserve Pump
2115.1
2150.9
1259.4
1194.3
Cost of Sales
1361.0
1387.1
Gross Profit Of Which: Flowserve Pump
754.1
763.8
410.4
380.6
Selling, General and Admin Expense
456.7
482.7
Operating Income Of Which: Flowserve Pump
305.9
291.6
217.3
182.2
Net Earnings
200.5
210.9
COMMENT At US$650 million, the Flowserve Pump Division’s (FPD) bookings for the second quarter of 2009 were down 12%, or up 1% excluding the impact of negative currency effects of US$70 million and US$22 million of thruster orders last year that did not recur in this current quarter. Bookings of original equipment were down 18%, reflecting a decline across all industries, but mainly in the chemical, oil and gas and general industries markets. FPD’s sales for the second quarter of 2009 were US$660
million, an increase of US$27 million, up 4%, or 15% excluding negative currency effects of US$69 million. After excluding negative currency effects, sales of original equipment increased 11%, while aftermarket sales were comparable to the same period in 2008. Flowserve says that original equipment sales growth reflects successful execution against the strong backlog in FPD’s oil and gas and power markets. Gross profit increased to US$212 million, up US$6 million or 3%. ■ www.flowserve.com
Pump Industry Analyst
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