- Email: [email protected]
Gardner Denver Inc, USA
December 1999
Pump Industry Analyst
Flowserve Corporation, USA
Gardner Denver Inc, USA
Key Figures (US$ million) Three months ended 30.9
Key Figures (US$ million) Three months ended 30.9
1999
1998
Sales
254.0
264.8
Cost of Sales
165.7
165.2
9.7
25.9
4.9
16.1
259.0
253.8
Operating
Income
Net Earnings Bookings
Revenues Of Which: Petroleum
Cost of Sales
1998
Sales
798.6
803.8
Cost of Sales
519.6
497.1
46.1
69.6
23.7
41.7
763.2
815.5
Operating
Income
Net Earnings Bookings
As expected, FlowserveCorporation produced a weak third quarter performance. Net earnings were just after US@9 million, US$3.0 million of special items for Fiowserver, the company’s global business process improvement initiative. This compares with third quarter 1998 net earnings of US$16.1 million. A 4.1% sales decline reflects the lower backlog tevel at the start of the quarter and lack of improvement in demand for quick-ship products. Third quarter bookings were US$259.0 million, the highest quarter so far this year and 2.1% above bookings of USS253.8 million reported in the third quarter of 1998. Flowserve is seeing the petrolt3um market in particular improve, as some energy customersreactivateprojects due to higher, more stable oil prices.
Flowserve’s Rotating Equipment Division (RED) had third quarter 1999 operating income of US$4.9 million, compared with US$8.4 million for the year-agoperiod. RED’s third quarter revenues were US$X2.7 million versus US$90.1 million last year. The segment’s results continued to be affected adversely by volume and an unfavorable product mix. The Flow Control Divisiou (FCD) posted third quarter operating income of L&$5.6 million, down from US$9.2 million a year ago. FCD’s d&d quarter revenues were US$71.Omillion versus US$77,0 million for the third quarter of 1998. Flowserve attributes the decline in results to increased price competition for its valves and accessories,diminished volume and an unfavorable product mix. q
77.1
96.6
6.3
21.3
52.7
64.0
4.0
8.7
1999
1998
232.7
289.9
19.4
66.5
157.8
193.6
13.2
26.0
Net Income
30.9 1999
1998
Products
Nine months Year ended
1999
Revenues Of Which: Petroleum
Products
Cost of Sales Net Income
Consistent with previous quarters of 1999, Gardner Denver’s revenues were lower in the three and nine month periods of 1999 than in 1998, due to reduced orders for petroleum products and standard industriJ compressors and replacement parts. The compressor, blower and pump manufacturer’s revenues for the three months declined US$19.5 million, or 20%. Petroleum revenuesfor the three month period de&red USSlS.0 million, or 70%. C&ml& net income was US$4.0 m&on for the third quarter, cornpared with US$8.7 million for the same period of 1998. For the nine month period, revenues declined US$57.2 million, or 20% on 1998. Revenues for petrolemn products
dtidked
US$47.1
million, or 7 1%. For the nine month period of 1999, net income was US$13.2 mil-
ended
30.9
lion, compared with US$26.0 mill& in 1998. Ross Centanni, cbairman, president and CEG, believesthat asthe industrial economy improves in the USA, benefiting from higher exports to Asia and Europe and contitled PW& domestically, ordersfor compressor products will recover. He says some recent i~~rn~t in industrial production may indicate an increase in cap&y utilisatianintheoear~,but until a stronger improvement occurs, Gardner Denver will continue expmring niche markets for its products and leveragethe benefit of acquisitians through cross-selling products. Within the petroleum segment, the significant dtxline in the price of oil in 1998 caused a r&&ion in d for driRing and well stimuwon pumps. m
Pump Industry Analyst
Flowserve Corporation, USA
Gardner Denver Inc, USA
Key Figures (US$ million) Three months ended 30.9
Key Figures (US$ million) Three months ended 30.9
1999
1998
Sales
254.0
264.8
Cost of Sales
165.7
165.2
9.7
25.9
4.9
16.1
259.0
253.8
Operating
Income
Net Earnings Bookings
Revenues Of Which: Petroleum
Cost of Sales
1998
Sales
798.6
803.8
Cost of Sales
519.6
497.1
46.1
69.6
23.7
41.7
763.2
815.5
Operating
Income
Net Earnings Bookings
As expected, FlowserveCorporation produced a weak third quarter performance. Net earnings were just after US@9 million, US$3.0 million of special items for Fiowserver, the company’s global business process improvement initiative. This compares with third quarter 1998 net earnings of US$16.1 million. A 4.1% sales decline reflects the lower backlog tevel at the start of the quarter and lack of improvement in demand for quick-ship products. Third quarter bookings were US$259.0 million, the highest quarter so far this year and 2.1% above bookings of USS253.8 million reported in the third quarter of 1998. Flowserve is seeing the petrolt3um market in particular improve, as some energy customersreactivateprojects due to higher, more stable oil prices.
Flowserve’s Rotating Equipment Division (RED) had third quarter 1999 operating income of US$4.9 million, compared with US$8.4 million for the year-agoperiod. RED’s third quarter revenues were US$X2.7 million versus US$90.1 million last year. The segment’s results continued to be affected adversely by volume and an unfavorable product mix. The Flow Control Divisiou (FCD) posted third quarter operating income of L&$5.6 million, down from US$9.2 million a year ago. FCD’s d&d quarter revenues were US$71.Omillion versus US$77,0 million for the third quarter of 1998. Flowserve attributes the decline in results to increased price competition for its valves and accessories,diminished volume and an unfavorable product mix. q
77.1
96.6
6.3
21.3
52.7
64.0
4.0
8.7
1999
1998
232.7
289.9
19.4
66.5
157.8
193.6
13.2
26.0
Net Income
30.9 1999
1998
Products
Nine months Year ended
1999
Revenues Of Which: Petroleum
Products
Cost of Sales Net Income
Consistent with previous quarters of 1999, Gardner Denver’s revenues were lower in the three and nine month periods of 1999 than in 1998, due to reduced orders for petroleum products and standard industriJ compressors and replacement parts. The compressor, blower and pump manufacturer’s revenues for the three months declined US$19.5 million, or 20%. Petroleum revenuesfor the three month period de&red USSlS.0 million, or 70%. C&ml& net income was US$4.0 m&on for the third quarter, cornpared with US$8.7 million for the same period of 1998. For the nine month period, revenues declined US$57.2 million, or 20% on 1998. Revenues for petrolemn products
dtidked
US$47.1
million, or 7 1%. For the nine month period of 1999, net income was US$13.2 mil-
ended
30.9
lion, compared with US$26.0 mill& in 1998. Ross Centanni, cbairman, president and CEG, believesthat asthe industrial economy improves in the USA, benefiting from higher exports to Asia and Europe and contitled PW& domestically, ordersfor compressor products will recover. He says some recent i~~rn~t in industrial production may indicate an increase in cap&y utilisatianintheoear~,but until a stronger improvement occurs, Gardner Denver will continue expmring niche markets for its products and leveragethe benefit of acquisitians through cross-selling products. Within the petroleum segment, the significant dtxline in the price of oil in 1998 caused a r&&ion in d for driRing and well stimuwon pumps. m