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Franklin Electric Co Inc, USA
COMPANY WATCH
Indutrade AB, Sweden
Franklin Electric Co Inc, USA Key Figures (US$ million) First quarter ended 31.3.2012
2.4.2011
Net Sales Of Which: Water Fueling
201.9
185.3
165.0 36.9
Cost of Sales
135.7
Key Figures (SEK million) First quarter ended 31.3 2012
2011
1982
1816
147.2 38.1
Net Sales Of Which: Flow Technology Engineering & Equipment
479 380
423 339
124.8
Cost of Goods Sold
1311
1198
671
618
Gross Profit
66.3
60.5
Gross Profit
Selling, General and Admin Expenses
45.3
44.2
Operating Profit
167
160
Operating Income Of Which: Water Fueling
21.0
16.0
192
183
26.8 5.6
21.5 5.3
EBITA Of Which: Flow Technology Engineering & Equipment
38 27
42 19
Net Income
23.2
10.9
Net Profit before Income Taxes
146
137
Net Income Attributable to Franklin Electric
Net Profit
110
101
23.0
10.7
COMMENT Franklin Electric Co Inc’s first quarter 2012 sales were US$201.9 million, an increase of 9% on the 2011 first quarter, and a record for any first quarter in the company’s history. First quarter 2012 Water Systems revenues were US$165.0 million, a 12% increase on the first quarter of 2011. In the US and Canada, Water Systems sales were up 6%, with sales of pumping systems for industrial and irrigation applications continuing to grow rapidly. Residential and light commercial groundwater sales also increased at a double digit rate. Wastewater pump sales in the US and Canada declined as the mild and dry winter weather reduced demand for sump pumps. Water Systems sales in Latin America rose by 7%, led primarily by double digit growth in Mexico, Argentina and Chile while Brazil experienced low single digit growth. In the Asia Pacific region, Water Systems
8
Pump Industry Analyst
sales increased by 20%, with sales growth strong across the entire geographic region. Water Systems sales in EMENA (Europe, the Middle East and North Africa) were up 17% but down 10% in Southern Africa. At US$36.9 million, Fueling Systems first quarter 2012 sales decreased by about 3%. Fueling Systems sales increased in the US and Canada, Latin America, and China but declined in Europe, the Middle East and Africa. While general economic conditions contributed to the Fueling Systems sales decrease in Europe, a major factor was the timing of orders between the first quarter and the second quarter by a few large distributors in Africa and the Middle East. As a result, the company anticipates that Fueling Systems sales will grow by 9–11% in the second quarter compared to the second quarter of 2011. ■ www.franklin-electric.com
COMMENT Swedish industrial manufacturer Indutrade has reported a 9.1% year-on-year increase in first quarter sales to SEK1982 million, while net profit was up 8.9% to SEK110 million. The Flow Technology segment, which includes much of Indutrade’s pump activity, saw sales increase 13% on the year earlier at SEK479 million. In the company’s Engineering & Equipment division, which also includes pumps, revenues grew 12.1% to SEK380 million. “Earnings rose during the first quarter even though we have not yet begun delivering the large orders we received from the energy sector last year,” Johnny Alvarsson, Indutrade’s president and CEO, said. “Order intake during the quarter was volatile, with a strong start and weaker finish. The market is showing a divergent demand situation.”
Indutrade made four acquisitions during the quarter, including Dasa Control in Sweden and Geotrim in Finland. In addition, soon after quarter’s end, the company acquired Rubin Medical in Sweden, with the new additions bringing combined annual sales of nearly SEK300 million to the company. Looking ahead, Alvarsson said it was difficult to predict performance for the rest of the year. “While the energy sector remains strong and the Finnish market is showing continued growth, customers in general have grown more cautious and are more uncertain about the future compared with a year ago,” he said. “However, several major customers anticipate a stronger second half of 2012.” ■ www.indutrade.com
June 2012
Indutrade AB, Sweden
Franklin Electric Co Inc, USA Key Figures (US$ million) First quarter ended 31.3.2012
2.4.2011
Net Sales Of Which: Water Fueling
201.9
185.3
165.0 36.9
Cost of Sales
135.7
Key Figures (SEK million) First quarter ended 31.3 2012
2011
1982
1816
147.2 38.1
Net Sales Of Which: Flow Technology Engineering & Equipment
479 380
423 339
124.8
Cost of Goods Sold
1311
1198
671
618
Gross Profit
66.3
60.5
Gross Profit
Selling, General and Admin Expenses
45.3
44.2
Operating Profit
167
160
Operating Income Of Which: Water Fueling
21.0
16.0
192
183
26.8 5.6
21.5 5.3
EBITA Of Which: Flow Technology Engineering & Equipment
38 27
42 19
Net Income
23.2
10.9
Net Profit before Income Taxes
146
137
Net Income Attributable to Franklin Electric
Net Profit
110
101
23.0
10.7
COMMENT Franklin Electric Co Inc’s first quarter 2012 sales were US$201.9 million, an increase of 9% on the 2011 first quarter, and a record for any first quarter in the company’s history. First quarter 2012 Water Systems revenues were US$165.0 million, a 12% increase on the first quarter of 2011. In the US and Canada, Water Systems sales were up 6%, with sales of pumping systems for industrial and irrigation applications continuing to grow rapidly. Residential and light commercial groundwater sales also increased at a double digit rate. Wastewater pump sales in the US and Canada declined as the mild and dry winter weather reduced demand for sump pumps. Water Systems sales in Latin America rose by 7%, led primarily by double digit growth in Mexico, Argentina and Chile while Brazil experienced low single digit growth. In the Asia Pacific region, Water Systems
8
Pump Industry Analyst
sales increased by 20%, with sales growth strong across the entire geographic region. Water Systems sales in EMENA (Europe, the Middle East and North Africa) were up 17% but down 10% in Southern Africa. At US$36.9 million, Fueling Systems first quarter 2012 sales decreased by about 3%. Fueling Systems sales increased in the US and Canada, Latin America, and China but declined in Europe, the Middle East and Africa. While general economic conditions contributed to the Fueling Systems sales decrease in Europe, a major factor was the timing of orders between the first quarter and the second quarter by a few large distributors in Africa and the Middle East. As a result, the company anticipates that Fueling Systems sales will grow by 9–11% in the second quarter compared to the second quarter of 2011. ■ www.franklin-electric.com
COMMENT Swedish industrial manufacturer Indutrade has reported a 9.1% year-on-year increase in first quarter sales to SEK1982 million, while net profit was up 8.9% to SEK110 million. The Flow Technology segment, which includes much of Indutrade’s pump activity, saw sales increase 13% on the year earlier at SEK479 million. In the company’s Engineering & Equipment division, which also includes pumps, revenues grew 12.1% to SEK380 million. “Earnings rose during the first quarter even though we have not yet begun delivering the large orders we received from the energy sector last year,” Johnny Alvarsson, Indutrade’s president and CEO, said. “Order intake during the quarter was volatile, with a strong start and weaker finish. The market is showing a divergent demand situation.”
Indutrade made four acquisitions during the quarter, including Dasa Control in Sweden and Geotrim in Finland. In addition, soon after quarter’s end, the company acquired Rubin Medical in Sweden, with the new additions bringing combined annual sales of nearly SEK300 million to the company. Looking ahead, Alvarsson said it was difficult to predict performance for the rest of the year. “While the energy sector remains strong and the Finnish market is showing continued growth, customers in general have grown more cautious and are more uncertain about the future compared with a year ago,” he said. “However, several major customers anticipate a stronger second half of 2012.” ■ www.indutrade.com
June 2012