DXP Enterprises Inc, USA

DXP Enterprises Inc, USA

COMPANY WATCH DXP Enterprises Inc, USA Key Figures (US$ million) Three months ended 30.6 2009 Flowserve Corp, USA Key Figures (US$ million) Three mo...

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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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