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DXP Enterprises Inc, USA
COMPANY WATCH
Crane Co, USA
DXP Enterprises Inc, USA
Key Figures (US$ million) Three months ended 31.3 2017 2016
Net Sales Of Which: Fluid Handling
673.4
660.0
239.6
Cost of Sales Selling, General & Administrative
Key Figures (US$ million) Three months ended 31.12 2016 2015 222.3 278.7
248.0
Sales Of Which: Innovative Pumping Solutions
45.5
52.2
429.5
426.1
Cost of Sales
161.7
201.7
147.3
148.4
Gross Profit
60.6
76.9
Operating Profit/(Loss) Of Which: Fluid Handling
96.6
85.5
Selling, General and Admin Expenses 53.0
71.5
27.1
25.4
20.5
Income before Income Taxes
87.9
76.6
Total Operating Income for Segments 18.4 Of Which: Innovative Pumping Solutions 2.4
Net Income Attributable to Common Shareholders
Operating Income/(Loss)
7.6
(4.4)
63.1
55.0
Net Income/(Loss)
7.1
(3.2)
705.8
758.6
249.8
263.4
Order Backlog Of Which: Fluid Handling
0.9
Year ended 31.12
2016 2015
Sales Of Which: Innovative Pumping Solutions
962.1 1247.0 187.1
254.8
Cost of Sales
697.3
895.1
Gross Profit
264.8
352.0
Selling, General and Admin Expenses 245.5
303.8
Total Operating Income for Segments 73.0 Of Which: Innovative Pumping Solutions 9.9
114.0
Operating Income/(Loss)
19.3
(27.9)
7.2
(39.1)
Net Income/(Loss)
21.6
COMMENT COMMENT Crane Co’s first quarter 2017 sales of US$673 million were up 2% on 2016’s US$660 million, with core sales increasing US$28 million, or 4%. Fluid Handling’s sales decreased US$8 million, with US$6 million of unfavourable foreign exchange effects and a US$2 million core sales decline. Operating margin improved to 11.3%, compared with 10.3% last year, mainly reflecting strong productivity and partially offset by lower volumes. Fluid Handling order backlog was US$250 million at 31 March 2017 compared with US$228
April 2017
million at 31 December 2016, and US$263 million at 31 March 2016. Crane president and CEO Max Mitchell said: “We are pleased with our strong start to the year, with first quarter operating results that were slightly better than anticipated. End market demand is generally as expected, and we continue to drive productivity, with strong execution evident across our businesses. We are also making consistent progress on growth initiatives throughout the organization.” n www.craneco.com
DXP Enterprises Inc’s sales fell 20.2% to US$222.3 million in the fourth quarter of 2016, while fiscal 2016 sales were down 22.9% on the prior year to US$962.1 million. Innovative Pumping Solutions’ revenue for the fourth quarter increased 14.3% sequentially, but full year revenue was down 26.6% to US$187.1 million. David Little, chairman and CEO of DXP Enterprises, said they were encouraged by the finish to the fiscal year and DXP’s operational execution against the challenging oil & gas and industrial environment. “While we fought through difficult market conditions,
2016 was a successful year as we were able to improve our balance sheet and position DXP in a volatile period in our history,” said Little. “DXP’s fourth quarter results indicate we have bottomed and full-year 2016 results were in-line with our expectations after we adjusted during the first half of the year. We are also encouraged by the general increased optimism about the macroeconomic environment. Our efforts to win business, serve our customers, reduce costs and improve efficiencies through the past two years are driving performance.” n www.dxpe.com
Pump Industry Analyst
7
Crane Co, USA
DXP Enterprises Inc, USA
Key Figures (US$ million) Three months ended 31.3 2017 2016
Net Sales Of Which: Fluid Handling
673.4
660.0
239.6
Cost of Sales Selling, General & Administrative
Key Figures (US$ million) Three months ended 31.12 2016 2015 222.3 278.7
248.0
Sales Of Which: Innovative Pumping Solutions
45.5
52.2
429.5
426.1
Cost of Sales
161.7
201.7
147.3
148.4
Gross Profit
60.6
76.9
Operating Profit/(Loss) Of Which: Fluid Handling
96.6
85.5
Selling, General and Admin Expenses 53.0
71.5
27.1
25.4
20.5
Income before Income Taxes
87.9
76.6
Total Operating Income for Segments 18.4 Of Which: Innovative Pumping Solutions 2.4
Net Income Attributable to Common Shareholders
Operating Income/(Loss)
7.6
(4.4)
63.1
55.0
Net Income/(Loss)
7.1
(3.2)
705.8
758.6
249.8
263.4
Order Backlog Of Which: Fluid Handling
0.9
Year ended 31.12
2016 2015
Sales Of Which: Innovative Pumping Solutions
962.1 1247.0 187.1
254.8
Cost of Sales
697.3
895.1
Gross Profit
264.8
352.0
Selling, General and Admin Expenses 245.5
303.8
Total Operating Income for Segments 73.0 Of Which: Innovative Pumping Solutions 9.9
114.0
Operating Income/(Loss)
19.3
(27.9)
7.2
(39.1)
Net Income/(Loss)
21.6
COMMENT COMMENT Crane Co’s first quarter 2017 sales of US$673 million were up 2% on 2016’s US$660 million, with core sales increasing US$28 million, or 4%. Fluid Handling’s sales decreased US$8 million, with US$6 million of unfavourable foreign exchange effects and a US$2 million core sales decline. Operating margin improved to 11.3%, compared with 10.3% last year, mainly reflecting strong productivity and partially offset by lower volumes. Fluid Handling order backlog was US$250 million at 31 March 2017 compared with US$228
April 2017
million at 31 December 2016, and US$263 million at 31 March 2016. Crane president and CEO Max Mitchell said: “We are pleased with our strong start to the year, with first quarter operating results that were slightly better than anticipated. End market demand is generally as expected, and we continue to drive productivity, with strong execution evident across our businesses. We are also making consistent progress on growth initiatives throughout the organization.” n www.craneco.com
DXP Enterprises Inc’s sales fell 20.2% to US$222.3 million in the fourth quarter of 2016, while fiscal 2016 sales were down 22.9% on the prior year to US$962.1 million. Innovative Pumping Solutions’ revenue for the fourth quarter increased 14.3% sequentially, but full year revenue was down 26.6% to US$187.1 million. David Little, chairman and CEO of DXP Enterprises, said they were encouraged by the finish to the fiscal year and DXP’s operational execution against the challenging oil & gas and industrial environment. “While we fought through difficult market conditions,
2016 was a successful year as we were able to improve our balance sheet and position DXP in a volatile period in our history,” said Little. “DXP’s fourth quarter results indicate we have bottomed and full-year 2016 results were in-line with our expectations after we adjusted during the first half of the year. We are also encouraged by the general increased optimism about the macroeconomic environment. Our efforts to win business, serve our customers, reduce costs and improve efficiencies through the past two years are driving performance.” n www.dxpe.com
Pump Industry Analyst
7