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Esco Technologies Inc, USA
JanFIA.qxd
29/01/2003
11:32
Page 6
Filtration Industry Analyst
January 2003
Ahlstrom Corp, Finland
Esco Technologies Inc, USA
million) Key Figures ( Third quarter ended 30.9 2002
2001
2002
2001
Net Sales Of Which FiberComposites
396.7 168.6
489.9 161.3
Net Sales 100.3 Of Which Filtration/Fluid Flow 49.7
87.3 49.6
Operating Income Of Which FiberComposites
19.6 15.5
12.8 9.8
Cost of Sales
68.3
59.4
EBITDA1
12.3
10.0
EBIT2
10.1 3.4
7.3 3.5
6.5
5.3
Income before Extraordinary Items and Taxes Net Income
COMPANY WATCH
Key Figures (US$ million) Fourth quarter ended 30.9
12.6
5.1
4.5
0.9
Of Which Filtration/Fluid Flow Net Earnings
Nine months ended 30.9
Year ended 30.9
2002
20011
2002
2001
Net Sales 1372.7 Of Which FiberComposites 524.1
1612.1 500.4
Net Sales 367.5 Of Which Filtration/Fluid Flow 192.5
344.9 188.2
Cost of Sales
248.5
236.5
Operating Income Of Which FiberComposites
70.6 44.7
30.4 23.2
Income before Extraordinary Items and Taxes
49.1
6.1
Net Income
31.4
3.9
1Pro
forma as a result of the split of A. Ahlstrom Corp on 30 June 2001.
EBITDA1
47.3
42.5
35.3 EBIT2 Of Which Filtration/Fluid Flow 13.1
30.7 11.5
Net Earnings
20.0
1 2
22.2
Earnings before interest, taxes, depreciation and amortization. Earnings before interest and taxes.
COMMENT Ahlstrom FiberComposites’ net sales from January to September 2002 were 524.1 million, a 4.7% increase over 500.4 million last year. The climb was mainly attributed to recently acquired businesses. The division’s operating income of 44.7 million showed a marked improvement from the 23.2 million reported for the same period of the previous year, thanks to streamlined operations and improved plant performance. This was achieved by minimizing waste and reducing downtime. The division has also successfully integrated the operations of the acquired filtration media and specialty paper producer, Papelera del Besós, Spain. Although demand for filtration products and non-
6
wovens slightly improved during this quarter, business varied. Reinforcement products’ demand remained high. But a weak dollar had a negative imact on net sales, partially offsetting the gains, as the majority of FiberComposites sales are earned in currencies other than the euro. Despite improved third-quarter volumes, Ahlstrom does not expect any major demand recovery for non-wovens and filtration media in the last quarter of 2002. “As market circumstances are not expected to improve in the short term, our focus remains on serving our customers, cost management and cash flow generation,” said Ahlstrom’s CEO, Juha Rantanen. ■
COMMENT Having moved out of the defence sector to focus on the three platforms of ultrafine filtration systems, RF shielding and test equipment, and communications systems, Esco Technologies saw sales in the filtration/fluid flow sector increase only modestly. Sales contributions from acquisitions were partially offset by softness in the aerospace and semiconductor market. CEO Victor Richey said, “In filtration, the economy clearly made it more diffficult to capitalize on the additional investments we have made. The fourth-quarter results in
filtration were somewhat below our expectations.” But, he added, a significant amount of work remains to fully exploit the cross-flow filtration and separation technology which has been acquired from North Carolina SRT, and which offers extraordinary growth potential. Esco’s latest move in early January 2003 has been a US$4 million cash purchase of Texas-based Austin Acoustics Systems Inc, noise control chamber suppliers for the test, medical and broadcast/music industries with sales of some US$8 million. ■
29/01/2003
11:32
Page 6
Filtration Industry Analyst
January 2003
Ahlstrom Corp, Finland
Esco Technologies Inc, USA
million) Key Figures ( Third quarter ended 30.9 2002
2001
2002
2001
Net Sales Of Which FiberComposites
396.7 168.6
489.9 161.3
Net Sales 100.3 Of Which Filtration/Fluid Flow 49.7
87.3 49.6
Operating Income Of Which FiberComposites
19.6 15.5
12.8 9.8
Cost of Sales
68.3
59.4
EBITDA1
12.3
10.0
EBIT2
10.1 3.4
7.3 3.5
6.5
5.3
Income before Extraordinary Items and Taxes Net Income
COMPANY WATCH
Key Figures (US$ million) Fourth quarter ended 30.9
12.6
5.1
4.5
0.9
Of Which Filtration/Fluid Flow Net Earnings
Nine months ended 30.9
Year ended 30.9
2002
20011
2002
2001
Net Sales 1372.7 Of Which FiberComposites 524.1
1612.1 500.4
Net Sales 367.5 Of Which Filtration/Fluid Flow 192.5
344.9 188.2
Cost of Sales
248.5
236.5
Operating Income Of Which FiberComposites
70.6 44.7
30.4 23.2
Income before Extraordinary Items and Taxes
49.1
6.1
Net Income
31.4
3.9
1Pro
forma as a result of the split of A. Ahlstrom Corp on 30 June 2001.
EBITDA1
47.3
42.5
35.3 EBIT2 Of Which Filtration/Fluid Flow 13.1
30.7 11.5
Net Earnings
20.0
1 2
22.2
Earnings before interest, taxes, depreciation and amortization. Earnings before interest and taxes.
COMMENT Ahlstrom FiberComposites’ net sales from January to September 2002 were 524.1 million, a 4.7% increase over 500.4 million last year. The climb was mainly attributed to recently acquired businesses. The division’s operating income of 44.7 million showed a marked improvement from the 23.2 million reported for the same period of the previous year, thanks to streamlined operations and improved plant performance. This was achieved by minimizing waste and reducing downtime. The division has also successfully integrated the operations of the acquired filtration media and specialty paper producer, Papelera del Besós, Spain. Although demand for filtration products and non-
6
wovens slightly improved during this quarter, business varied. Reinforcement products’ demand remained high. But a weak dollar had a negative imact on net sales, partially offsetting the gains, as the majority of FiberComposites sales are earned in currencies other than the euro. Despite improved third-quarter volumes, Ahlstrom does not expect any major demand recovery for non-wovens and filtration media in the last quarter of 2002. “As market circumstances are not expected to improve in the short term, our focus remains on serving our customers, cost management and cash flow generation,” said Ahlstrom’s CEO, Juha Rantanen. ■
COMMENT Having moved out of the defence sector to focus on the three platforms of ultrafine filtration systems, RF shielding and test equipment, and communications systems, Esco Technologies saw sales in the filtration/fluid flow sector increase only modestly. Sales contributions from acquisitions were partially offset by softness in the aerospace and semiconductor market. CEO Victor Richey said, “In filtration, the economy clearly made it more diffficult to capitalize on the additional investments we have made. The fourth-quarter results in
filtration were somewhat below our expectations.” But, he added, a significant amount of work remains to fully exploit the cross-flow filtration and separation technology which has been acquired from North Carolina SRT, and which offers extraordinary growth potential. Esco’s latest move in early January 2003 has been a US$4 million cash purchase of Texas-based Austin Acoustics Systems Inc, noise control chamber suppliers for the test, medical and broadcast/music industries with sales of some US$8 million. ■