COMPANY WATCH
Alfa Laval AB, Sweden
DXP Enterprises Inc, USA
Key Figures (SEK million) Third quarter ended 30.9 2014
2013
9708
7415
Order Intake
Key Figures (US$ million) Three months ended 30.9 2014
2013
Sales Of Which: Innovative Pumping Solutions
387.1
329.7
88.6
61.1
Cost of Sales
273.6
232.6
Gross Profit
113.4
97.1
81.6
70.2
48.1
39.8
15.0
9.1
Net Sales
9272
7172
Cost of Goods Sold
6284
4686
Gross Profit
2988
2486
180
172
1001
1055
697
822
Nine months ended 30.9 2014
2013
EBITDA
39.8
32.6
26 151
22 069
Operating Income
31.8
26.9
Net Income
17.6
16.4
R&D Costs Operating Income Net Income
Order Intake Net Sales
24 292
21 192
Cost of Goods Sold
15 987
13 645
8305
7547
569
520
Gross Profit R&D Costs Operating Income
3009
3083
Net Income
2057
2169
Selling, General and Admin Expense Operating Income for Reportable Segments Of Which: Innovative Pumping Solutions
Nine months ended 30.9 2014 Sales Of Which: Innovative Pumping Solutions Cost of Sales
Sweden’s Alfa Laval has posted third quarter sales for fiscal 2014 of SEK9.3 billion, up 29.3% on the previous year, while order intake rose 30.9% to a record SEK9.7 billion. Both results were boosted by the April acquisition of Frank Mohn AS, a manufacturer of pumping systems for marine and offshore applications. The new addition saw sales in Alfa Laval’s Marine & Diesel division surge 105.5% on the 2013 comparator to SEK3.1 billion, while orders increased 138.7% to SEK3.7 billion. Elsewhere performance was more subdued, but still showed gains on the prior year. In the Process Technology segment revenues increased 12.7% to SEK3.6 billion, while
November 2014
new orders edged up 1.8% to - ΰÈÊL°Ê>ÀÃÊ,iÃÌÀ]Ê Alfa Laval’s president and CEO, said demand within the segment’s oil and gas extraction developed very well, especially in North America. In the Equipment division net sales were up 3.6% to SEK2.5 billion on the year prior, with order intake 4.3% higher at SEK2.4 billion. For the corresponding nine months, sales rose 14.6% to SEK24.3 billion, with order intake up 18.5% at SEK26.2 billion. “We expect that demand during the fourth quarter 2014 will be on about the same level as in the third quarter,” ,iÃÌÀÊ>``i`°Ê■ www.alfalaval.com
927.8
259.1
155.6
791.0
650.0
Gross Profit
326.2
277.7
Selling, General and Admin Expense
243.8
204.9
130.1
109.8
40.3
24.3
105.7
89.0
Operating Income
82.4
72.9
Net Income
44.8
43.3
Operating Income for Reportable Segments Of Which: Innovative Pumping Solutions
COMMENT
2013
1117.2
EBITDA
COMMENT DXP Enterprises Inc’s third quarter 2014 sales were up 17.4% to US$387.1 million, with organic sales increased US$11 million or 3.33% and acquisitions positively impacting sales by US$46.4 million. Innovative Pumping Solutions third quarter 2014 revenue was up 45.0% year over year with a 16.9% operating income margin, while organic revenue slipped 3.5%. Company chairman and CEO David Little said the DXP team continues to improve and execute well in an inconsistent market
environment. “As we close out the year and begin planning for 2015, we remain mindful of the challenging macroeconomic environment including the impact of lower oil prices on our markets; nevertheless, our focus more on oil & gas production activity, on our other end markets, our diverse product and service offering, our terrific team of DXPeople and our ability to produce free cash flow, all give us confidence in the bright longterm prospects for DXP.” ■ www.dxpe.com
Pump Industry Analyst
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