COMPANY WATCH
DXP Enterprises Inc, USA Key Figures (US$ million) Three months ended 30.6 2012
Ebara Corp, Japan Key Figures (¥ million) Three months ended 30.6 2012
2011
Sales Of Which: Service Centers Innovative Pumping Solutions Supply Chain Services
261.9
197.7
184.1 35.2 42.6
139.5 21.8 36.4
Cost of Sales
185.3
140.4
Gross Profit
76.6
57.3
Operating Income
20.8
13.6
Net Income
12.2
7.6
Net Sales Of Which: Fluid Machinery & Systems
81 288 56 204
53 197
Cost of Sales
63 188
60 704
Gross Profit
18 099
19 333
Selling, General & Admin Expenses
17 260
16 957
839
2375
(823)
(285)
772
1648
(424)
417
Orders Received Of Which: Fluid Machinery & Systems
106 883
88 419
73 918
58 190
Backlog of Orders Received Of Which: Fluid Machinery & Systems
285 108
280 624
174 445
164 069
Operating Income/(Loss) Of Which: Fluid Machinery & Systems Ordinary Income
Six months ended 30.6 2012
2011
Sales Of Which: Service Centers Innovative Pumping Solutions Supply Chain Services
514.2
380.8
359.2 74.6 80.4
271.1 38.5 71.2
Cost of Sales
366.1
271.1
Gross Profit
148.1
109.7
Operating Income
40.8
25.2
Net Income
23.8
14.0
2011
Net Income/(Loss)
80 037
COMMENT DXP Enterprises Inc posted solid gains in sales and net income during both the second quarter and the six months ended 30 June 2012. At US$12.2 million, second quarter 2012 net income was well up on the US$7.6 million recorded for the second quarter of 2011, while sales increased US$64.2 million, or 32.5%, to approximately US$261.9 million from US$197.7 million for the same period in 2011. Net income for the six months ended 30 June 2012 was US$23.8 million compared with US$14.0 million for the first half of 2011. Sales in the first six months of 2012 increased US$133.4 million, or 35.0%, to approximately US$514.2 million from US$380.8 million in 2011. David Little, DXP Enterprises chairman and CEO, said: “We are pleased to report a strong second
September 2012
quarter and a positive outlook for the rest of 2012. We are optimistic that we will continue to show progress over the balance of the year despite the uncertainty and softness in some markets.” Mac McConnell, DXP Enterprises senior vice president and chief financial officer, added: “Our financial results reflect our continued focus on our organic and acquisition driven growth. I am excited that DXP has a new US$325 million credit facility with the ability to increase the facility by an additional US$100 million to support DXP’s growth.” During the first quarter of 2012, DXP Enterprises completed the acquisitions of three US pump distributors: Pump & Power Equipment Inc, Aledco Inc and Force Engineered Products Inc. ■ www.dxpe.com
COMMENT In the three months to 30 June 2012, Ebara Corp’s Fluid Machinery & Systems company saw first quarter sales increase 5.7% year on year to ¥56 204 million. However, the Fluid Machinery & Systems segment, which includes pumps, compressors and chillers, reported a first quarter loss of ¥823 million, ¥537 million higher than the ¥285 million loss reported at the same point last year. The pump business’s overseas markets were brisk during
the quarter. The number of electric power plant projects increased particularly in India, Vietnam and Taiwan, while in the chemicals market demand remains firm for fertilizer plants and other facilities. In Japan, private sector demand for equipment for buildings is showing moderate recovery, and since the 2011 earthquake and tsunami demand from the public sector, which had been stagnant, is also showing signs of recovery. ■ www.ebara.co.jp
Pump Industry Analyst
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