DXP Enterprises Inc, USA

DXP Enterprises Inc, USA

COMPANY WATCH Andritz Group, Austria DXP Enterprises Inc, USA Key Figures (E million) Second quarter ended 30.6 2013 Key Figures (US$ million) Thr...

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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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