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GLV Inc, Canada
COMPANY WATCH
Esco Technologies Inc, USA
GLV Inc, Canada
Key Figures (US$ million) Fourth quarter ended 30.9 2012
2011
Key Figures (C$ million) Second quarter ended 30.9 2012
192.2
190.7
51.7
48.5
Net Sales Of Which: Filtration
2011
Cost of Sales
117.1
123.2
Revenues Of Which: Ovivo (Water Treatment) Pulp and Paper
Total Costs and Expenses
164.6
170.8
Cost of Sales
110.6
136.1
Earnings before Income Taxes Of Which: Filtration
27.6
19.9
Gross Profit
32.1
37.8
Operating Income/(Loss)
(1.0)
3.4
9.1
9.2
Net Earnings/(Loss)
(6.3)
4.3
Net Earnings
17.7
15.4 Six months ended 30.9 2012
2011
Year ended 30.9 2012
2011
142.8
173.9
87.3 48.6
108.4 54.6
Net Sales Of Which: Filtration
688.4
693.7
194.8
167.6
Revenues Of Which: Ovivo (Water Treatment) Pulp and Paper
Cost of Sales
418.9
424.8
Cost of Sales
224.2
254.5
Total Costs and Expenses
616.7
616.8
Gross Profit
66.1
69.8
Earnings before Income Taxes Of Which: Filtration
71.7
77.0
0.9
2.7
(11.8)
0.3
38.0
30.8
Net Earnings
46.9
52.5
Operating Income/(Loss) Net Earnings/(Loss)
290.2
324.3
172.8 102.8
197.9 105.9
COMMENT Esco Technologies Inc has posted fourth quarter sales for fiscal 2012 of US$192.2 million, an increase of just under 1% on the previous year. Net earnings rose 14.9% to US$17.7 million. The company’s Filtration segment registered a 6.6% increase in sales with revenues of US$51.7 million, although its EBIT for the quarter declined slightly to US$9.1 million. Elsewhere in the company, Esco announced during the quarter that it would be restructuring its Test segment including the closure of its Glendale Heights, Illinois facility in the US. For the corresponding full year, Esco recorded net sales of US$688.4 million, a fraction down on the fiscal 2011 equivalent, while its net earnings fell 10.7% to US$46.9 million.
January 2013
In contrast, the Filtration segment enjoyed a 16.2% upswing in sales to US$194.8 million and a 23.4% improvement in EBIT to US$38.0 million. Vic Richey, Esco’s chair and CEO, said despite the various challenges faced in 2012 the company was confident of significant growth in the new year based on its strong order backlog. “The US$752 million of orders received in 2012 resulted in a US$64 million increase in opening backlog compared to the start of last year,” he said. “The Filtration business is expected to continue its outstanding performance, with all operating units increasing sales, while delivering a group EBIT margin of approximately 20%.” ■ www.escotechnologies.com
COMMENT Industrial water and pulp treatment firm GLV Inc has posted second quarter revenues for fiscal 2013 of C$142.8 million, a 17.9% decrease on the same quarter a year earlier. The company posted a net loss for the period of C$6.3 million, compared to the year earlier gain of C$4.3 million. The results reflected GLV’s ongoing efforts to restructure its water treatment (Ovivo) operations, which continued during the quarter. “Nearly half of the planned 10% workforce reduction for the group has been achieved and the remaining half should be completed by the end of the current fiscal year, which should generate annualized savings of approximately C$7 million once
the plan is fully implemented,” GLV president and CEO, Richard Verreault, said. “These measures are expected to give rise to restructuring costs of about C$2 million, half the initially estimated cost of C$4 million, mainly for severance benefits.” GLV’s Pulp and Paper Group is now also streamlining one of its European divisions, reflecting the challenging global economic conditions. “However, the Group’s performance, particularly in North American aftermarket segment which is counter cyclical and a major recent contract win in pulp processing equipment, sustains our confidence in its outlook,” Verreault said. ■ www.glv.com
Filtration Industry Analyst
9
Esco Technologies Inc, USA
GLV Inc, Canada
Key Figures (US$ million) Fourth quarter ended 30.9 2012
2011
Key Figures (C$ million) Second quarter ended 30.9 2012
192.2
190.7
51.7
48.5
Net Sales Of Which: Filtration
2011
Cost of Sales
117.1
123.2
Revenues Of Which: Ovivo (Water Treatment) Pulp and Paper
Total Costs and Expenses
164.6
170.8
Cost of Sales
110.6
136.1
Earnings before Income Taxes Of Which: Filtration
27.6
19.9
Gross Profit
32.1
37.8
Operating Income/(Loss)
(1.0)
3.4
9.1
9.2
Net Earnings/(Loss)
(6.3)
4.3
Net Earnings
17.7
15.4 Six months ended 30.9 2012
2011
Year ended 30.9 2012
2011
142.8
173.9
87.3 48.6
108.4 54.6
Net Sales Of Which: Filtration
688.4
693.7
194.8
167.6
Revenues Of Which: Ovivo (Water Treatment) Pulp and Paper
Cost of Sales
418.9
424.8
Cost of Sales
224.2
254.5
Total Costs and Expenses
616.7
616.8
Gross Profit
66.1
69.8
Earnings before Income Taxes Of Which: Filtration
71.7
77.0
0.9
2.7
(11.8)
0.3
38.0
30.8
Net Earnings
46.9
52.5
Operating Income/(Loss) Net Earnings/(Loss)
290.2
324.3
172.8 102.8
197.9 105.9
COMMENT Esco Technologies Inc has posted fourth quarter sales for fiscal 2012 of US$192.2 million, an increase of just under 1% on the previous year. Net earnings rose 14.9% to US$17.7 million. The company’s Filtration segment registered a 6.6% increase in sales with revenues of US$51.7 million, although its EBIT for the quarter declined slightly to US$9.1 million. Elsewhere in the company, Esco announced during the quarter that it would be restructuring its Test segment including the closure of its Glendale Heights, Illinois facility in the US. For the corresponding full year, Esco recorded net sales of US$688.4 million, a fraction down on the fiscal 2011 equivalent, while its net earnings fell 10.7% to US$46.9 million.
January 2013
In contrast, the Filtration segment enjoyed a 16.2% upswing in sales to US$194.8 million and a 23.4% improvement in EBIT to US$38.0 million. Vic Richey, Esco’s chair and CEO, said despite the various challenges faced in 2012 the company was confident of significant growth in the new year based on its strong order backlog. “The US$752 million of orders received in 2012 resulted in a US$64 million increase in opening backlog compared to the start of last year,” he said. “The Filtration business is expected to continue its outstanding performance, with all operating units increasing sales, while delivering a group EBIT margin of approximately 20%.” ■ www.escotechnologies.com
COMMENT Industrial water and pulp treatment firm GLV Inc has posted second quarter revenues for fiscal 2013 of C$142.8 million, a 17.9% decrease on the same quarter a year earlier. The company posted a net loss for the period of C$6.3 million, compared to the year earlier gain of C$4.3 million. The results reflected GLV’s ongoing efforts to restructure its water treatment (Ovivo) operations, which continued during the quarter. “Nearly half of the planned 10% workforce reduction for the group has been achieved and the remaining half should be completed by the end of the current fiscal year, which should generate annualized savings of approximately C$7 million once
the plan is fully implemented,” GLV president and CEO, Richard Verreault, said. “These measures are expected to give rise to restructuring costs of about C$2 million, half the initially estimated cost of C$4 million, mainly for severance benefits.” GLV’s Pulp and Paper Group is now also streamlining one of its European divisions, reflecting the challenging global economic conditions. “However, the Group’s performance, particularly in North American aftermarket segment which is counter cyclical and a major recent contract win in pulp processing equipment, sustains our confidence in its outlook,” Verreault said. ■ www.glv.com
Filtration Industry Analyst
9