COMPANY WATCH
Andritz Group, Austria
DXP Enterprises Inc, USA
Key Figures (E million) Second quarter ended 30.6 2013
Key Figures (US$ million) Three months ended 30.6 2013
2012
Order Intake Of Which: Hydro
1237.7
1193.2
280.1
515.7
Sales Of Which: Hydro
1446.3
1252.1
469.4
403.6
EBITA Of Which: Hydro
82.7
83.1
34.7
30.1
Operating Income for Reportable Segments Of Which: Innovative Pumping Solutions
Earnings before Interest and Taxes
62.8
76.4
Net Income
43.0
57.1
Six months ended 30.6 2013
2012
Order Intake Of Which: Hydro
2526.0
2554.4
854.3
Sales Of Which: Hydro
2012
Sales Of Which: Innovative Pumping Solutions
307.9
261.9
53.0
35.2
Cost of Sales
216.4
185.3
Gross Profit
91.5
76.6
34.6
33.3
8.1
6.9
Operating Income
23.3
20.8
Net Income
13.7
12.2
Six months ended 30.6 2013
2012
598.0
1113.2
Sales Of Which: Innovative Pumping Solutions
94.5
74.6
2610.1
2437.8
Cost of Sales
417.4
366.1
850.6
807.0
Gross Profit
180.6
148.1
EBITA Of Which: Hydro
96.9
155.6
70.0
63.0
61.3
60.3
Earnings before Interest and Taxes
65.9
143.1
Operating Income for Reportable Segments Of Which: Innovative Pumping Solutions
15.2
15.2
Net Income
44.8
107.5
Operating Income
46.0
40.8
Net Income
27.0
23.8
COMMENT
COMMENT Andritz has posted sales for the second quarter of fiscal 2013 of E1446.3 million, an increase of 15.5% on the previous year. The increase came primarily from the consolidation of the Schuler Group from 1 March 2013, without which sales would have declined 5.7%. Sales in the Hydro business area increased 16.3% on the 2012 figure to E469.4 million. “In view of the very difficult overall economic environment, we must be satisfied with the business development of the Andritz Group,” company president and CEO, Wolfgang Leitner, said. “For the remaining months of the 2013 business
September 2013
514.2
year, we expect investment activity in our key customer industries to remain subdued worldwide.” Based on its first half performance, order backlog, and the consolidation of the Schuler Group, Andritz is expecting a rise in sales in the 2013 business year compared to the previous year. However, due to the sharp earnings decline in its Pulp & Paper and Separation business areas, as well as amortization of intangible assets related to its acquisition of Schuler, net income is forecast to be significantly lower than fiscal 2012. ■ www.andritz.com
DXP Enterprises Inc chairman and CEO David Little was pleased with the second quarter results and sees positive momentum in parts of the business. “DXP’s Service Centers, Supply Chain Services and Innovative Pumping Solutions are focused on battling for market share in today’s choppy environment while not losing sight of profitability and cash flow generation. As we look to the second half of the year, we maintain a conservative macro outlook, while remaining confident in our ability to grow organically and via acquisitions. We will continue to fund
growth and initiatives that we believe will strengthen DXP’s presence in North America,” said Little. Mac McConnell, DXP Enterprises senior vice president and CFO, added: “We are pleased to report sequential sales and earnings growth. While we experienced organic sequential growth, we were impacted by one-time acquisition costs and seasonality in Canada.” DXP Enterprises completed two acquisitions during the second quarter, Natpro and Tucker Tool, and two more subsequent to the quarter end, Alaska Pump and Tool-Tech. ■ www.dxpe.com
Pump Industry Analyst
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