- Email: [email protected]
Ebara Corp, Japan
April 2007
Pump Industry Analyst
Ebara Corp, Japan
Groupe Laperrière & Verreault, Canada
2006
Key Figures (C$ million) Third quarter ended 31.12 2005
2006
Net Sales Of Which: Fluid Machinery & Systems
317.2
289.4
169.8
151.3
Revenues Of Which: Process
Cost of Sales
263.3
246.6
Water Treatment
Gross Profit
2005
217.6
169.3
116.5
93.0
55.3
31.8
166.1
128.3
Gross Margin
51.5
41.0
53.8
42.8
(13.0)
(20.4)
(3.0)
(8.6)
(9.2)
(11.7)
Earnings before Interest and Taxes
13.6
10.9
Orders Received Of Which: Fluid Machinery & Systems
426.0
399.0
Net Earnings
10.6
9.2
216.6
209.8
Backlog of Orders Received Of Which: Fluid Machinery & Systems
391.3
413.0
196.1
176.3
Operating Income/(Loss) Of Which: Fluid Machinery & Systems Net Income/(Loss)
COMMENT In the Japanese market, sales of the Fluid Machinery & Systems (FMS) group held firm, reflecting active private capital investment in the steel, chemical and other industries. As a result, Ebara focused its efforts on meeting demand for the replacement of existing facilities and the provision of after-sales services. Overseas, FMS orders for pumps, compressors and other machinery were strong, bolstered by the continued robust conditions in the international oil and gas markets and other energy-related fields. However, the domestic public sector market continued to be challenging for FMS, reflecting the restraints
on public works investment. To cope effectively with the changing operating environment, FMS has realigned its social infrastructure and systems business and strengthened the management of a number of the group’s subsidiaries and affiliates. As a result, FMS group sales for the nine months ended 31 December 2006 came in at ¥168 363 million, which is 12.2% higher than during the same period of the previous fiscal year. While an operating loss of ¥2982 million was reported, this was an improvement of ¥5628 million from FMS’s performance a year earlier. ■
Cost of Contracts and Goods Sold
Nine months ended 31.12 2006
2005
Revenues Of Which: Process
548.2
507.9
287.7
276.4
Water Treatment
130.3
81.2
Cost of Contracts and Goods Sold
414.5
387.7
Gross Margin
133.7
120.2
Earnings before Interest and Taxes
34.8
29.0
Net Earnings
27.1
24.6
COMMENT GL&V has seen its third quarter revenues increase 28.5% year-on-year to reach C$217.6 million, in a period dominated by three acquisitions. The acquisitions have seen Copa added to GL&V’s Water Treatment Group, Krebs International become part of its Process Group and some Swedish activities and technologies integrated into its Pulp and Paper Group. GL&V posted net earnings of C$10.6 million for the quarter compared with C$9.2 million a year earlier. The growth was hindered by the additional interest expenses
associated with the period’s acquisitions. The Water Treatment and the Pulp and Paper groups saw a decline in their operating profit margins during the period. Despite a 73.7% increase in its revenues due primarily to recent acquisitions, the Water Treatment Group’s profitability was affected by the addition of Copa, whose third-quarter business volume was weaker than expected, and by cost increases resulting from delays between the booking date and delivery date of some municipal wastewater treatment contracts. ■
7
COMPANY WATCH
Key Figures (¥ billion) April–December
Pump Industry Analyst
Ebara Corp, Japan
Groupe Laperrière & Verreault, Canada
2006
Key Figures (C$ million) Third quarter ended 31.12 2005
2006
Net Sales Of Which: Fluid Machinery & Systems
317.2
289.4
169.8
151.3
Revenues Of Which: Process
Cost of Sales
263.3
246.6
Water Treatment
Gross Profit
2005
217.6
169.3
116.5
93.0
55.3
31.8
166.1
128.3
Gross Margin
51.5
41.0
53.8
42.8
(13.0)
(20.4)
(3.0)
(8.6)
(9.2)
(11.7)
Earnings before Interest and Taxes
13.6
10.9
Orders Received Of Which: Fluid Machinery & Systems
426.0
399.0
Net Earnings
10.6
9.2
216.6
209.8
Backlog of Orders Received Of Which: Fluid Machinery & Systems
391.3
413.0
196.1
176.3
Operating Income/(Loss) Of Which: Fluid Machinery & Systems Net Income/(Loss)
COMMENT In the Japanese market, sales of the Fluid Machinery & Systems (FMS) group held firm, reflecting active private capital investment in the steel, chemical and other industries. As a result, Ebara focused its efforts on meeting demand for the replacement of existing facilities and the provision of after-sales services. Overseas, FMS orders for pumps, compressors and other machinery were strong, bolstered by the continued robust conditions in the international oil and gas markets and other energy-related fields. However, the domestic public sector market continued to be challenging for FMS, reflecting the restraints
on public works investment. To cope effectively with the changing operating environment, FMS has realigned its social infrastructure and systems business and strengthened the management of a number of the group’s subsidiaries and affiliates. As a result, FMS group sales for the nine months ended 31 December 2006 came in at ¥168 363 million, which is 12.2% higher than during the same period of the previous fiscal year. While an operating loss of ¥2982 million was reported, this was an improvement of ¥5628 million from FMS’s performance a year earlier. ■
Cost of Contracts and Goods Sold
Nine months ended 31.12 2006
2005
Revenues Of Which: Process
548.2
507.9
287.7
276.4
Water Treatment
130.3
81.2
Cost of Contracts and Goods Sold
414.5
387.7
Gross Margin
133.7
120.2
Earnings before Interest and Taxes
34.8
29.0
Net Earnings
27.1
24.6
COMMENT GL&V has seen its third quarter revenues increase 28.5% year-on-year to reach C$217.6 million, in a period dominated by three acquisitions. The acquisitions have seen Copa added to GL&V’s Water Treatment Group, Krebs International become part of its Process Group and some Swedish activities and technologies integrated into its Pulp and Paper Group. GL&V posted net earnings of C$10.6 million for the quarter compared with C$9.2 million a year earlier. The growth was hindered by the additional interest expenses
associated with the period’s acquisitions. The Water Treatment and the Pulp and Paper groups saw a decline in their operating profit margins during the period. Despite a 73.7% increase in its revenues due primarily to recent acquisitions, the Water Treatment Group’s profitability was affected by the addition of Copa, whose third-quarter business volume was weaker than expected, and by cost increases resulting from delays between the booking date and delivery date of some municipal wastewater treatment contracts. ■
7
COMPANY WATCH
Key Figures (¥ billion) April–December