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Hamworthy plc, UK
COMPANY WATCH
Hamworthy plc, UK
Ebara Corp, Japan Key Figures (¥ million) Six months ended 30.9 2011
Key Figures (£ million) Six months ended 30.9 2011
2010
Net Sales Of Which: Fluid Machinery & Systems
175 972
173 111
117 415
117 424
Cost of Sales
139 531
129 675
Gross Profit
36 440
43 435
Revenue Of Which: Flow Solutions Oil & Gas Systems Water Systems Inert Gas Systems
Selling, General & Admin Expenses
33 391
33 792
3048
Operating Income Of Which: Fluid Machinery & Systems Ordinary Income Net Income/(Loss) Orders Received Of Which: Fluid Machinery & Systems Backlog of Orders Received Of Which: Fluid Machinery & Systems
2010
109.2
83.1
28.5 42.0 24.8 14.0
30.6 16.4 26.3 9.9
Cost of Sales
74.2
52.9
9643
Gross Profit
35.0
30.2
723
6766
9.0
6.4
151
7754
(333)
3885
185 669
192 728
Operating Profit Of Which: Flow Solutions Oil & Gas Systems Water Systems Inert Gas Systems
5.0 3.3 1.5 0.8
5.2 (1.6) 4.2 0.1
128 013
119 630
Profit before Taxation
9.3
6.8
280 704
263 756
Profit for the Period
7.4
4.5
168 399
170 822
COMMENT COMMENT At ¥117 124 million, Ebara’s Fluid Machinery & Systems (FMS) sales were flat in the first six months of fiscal 2011 while segment income was down 89.3% to ¥723 million on a year earlier. FMS saw demand increase in overseas markets, particularly from oil & gas as well as water infrastructure projects in the Middle East. However, the appreciation of the yen has brought tough pricing competition. In the Japanese market, public sector project budgets have been cut. Ebara describes the market as challenging, but says there have been some signs of recovery in the private-sector building equipment industry. During these six months, Ebara
8
Pump Industry Analyst
prioritised the supply of equipment for the reconstruction of pumping stations and electric power generating plants that were damaged by the March 2011 earthquake. In a difficult business environment, Ebara launched a new three-year, mediumterm management plan. E-Plan2013, which runs to 31 March 2013, is based on four policies: promoting regional production for regional supply in priority areas; entering new markets by expanding core business domains; optimising monozukuri (manufacturing) processes; and expanding the functions of corporate headquarters. ■ www.ebara.co.jp
The Pump Systems business has been renamed Flow Solutions following the acquisition of AW Flow Holdings Ltd on 3 October 2011. The acquisition was completed after the end of the first half and is therefore not included in the divisional result. Hamworthy Flow Solutions’ first half 2011 revenues were 6.9% lower than a year ago at £28.4 million. Underlying operating profit was 3.3% lower than the prior year period at £5.0 million. The outstanding order book at 30 September 2011 was £67.5 million, compared with £35.0 million at the end of September 2010 and £69.3 million at 31 March 2011. Order intake for the period was £26.6 million, up 10.7% on a year earlier. Delivery dates for the business’s pump room systems orders are second half weighted and as a result revenue was down on
the same period last year. The offshore market continues to be an increasingly important part of the Hamworthy pump business, representing 30% of divisional revenue in the period. The business secured a significant contract for the supply of deepwell cargo pumps for an FPSO ordered by Teekay Corp for operation in the Jordbær field of the North Sea. Product development continues to be focused on extending the range of pumps for this market. The business maintained its historically strong market share in deepwell pumps for the gas carrier market. The pump business also continued to benefit from a strong performance in its aftersales activities. In late 2011, Finland’s Wärtsilä Technology Oy made a £383 million recommended offer for Hamworthy. ■ www.hamworthy.com
January 2012
Hamworthy plc, UK
Ebara Corp, Japan Key Figures (¥ million) Six months ended 30.9 2011
Key Figures (£ million) Six months ended 30.9 2011
2010
Net Sales Of Which: Fluid Machinery & Systems
175 972
173 111
117 415
117 424
Cost of Sales
139 531
129 675
Gross Profit
36 440
43 435
Revenue Of Which: Flow Solutions Oil & Gas Systems Water Systems Inert Gas Systems
Selling, General & Admin Expenses
33 391
33 792
3048
Operating Income Of Which: Fluid Machinery & Systems Ordinary Income Net Income/(Loss) Orders Received Of Which: Fluid Machinery & Systems Backlog of Orders Received Of Which: Fluid Machinery & Systems
2010
109.2
83.1
28.5 42.0 24.8 14.0
30.6 16.4 26.3 9.9
Cost of Sales
74.2
52.9
9643
Gross Profit
35.0
30.2
723
6766
9.0
6.4
151
7754
(333)
3885
185 669
192 728
Operating Profit Of Which: Flow Solutions Oil & Gas Systems Water Systems Inert Gas Systems
5.0 3.3 1.5 0.8
5.2 (1.6) 4.2 0.1
128 013
119 630
Profit before Taxation
9.3
6.8
280 704
263 756
Profit for the Period
7.4
4.5
168 399
170 822
COMMENT COMMENT At ¥117 124 million, Ebara’s Fluid Machinery & Systems (FMS) sales were flat in the first six months of fiscal 2011 while segment income was down 89.3% to ¥723 million on a year earlier. FMS saw demand increase in overseas markets, particularly from oil & gas as well as water infrastructure projects in the Middle East. However, the appreciation of the yen has brought tough pricing competition. In the Japanese market, public sector project budgets have been cut. Ebara describes the market as challenging, but says there have been some signs of recovery in the private-sector building equipment industry. During these six months, Ebara
8
Pump Industry Analyst
prioritised the supply of equipment for the reconstruction of pumping stations and electric power generating plants that were damaged by the March 2011 earthquake. In a difficult business environment, Ebara launched a new three-year, mediumterm management plan. E-Plan2013, which runs to 31 March 2013, is based on four policies: promoting regional production for regional supply in priority areas; entering new markets by expanding core business domains; optimising monozukuri (manufacturing) processes; and expanding the functions of corporate headquarters. ■ www.ebara.co.jp
The Pump Systems business has been renamed Flow Solutions following the acquisition of AW Flow Holdings Ltd on 3 October 2011. The acquisition was completed after the end of the first half and is therefore not included in the divisional result. Hamworthy Flow Solutions’ first half 2011 revenues were 6.9% lower than a year ago at £28.4 million. Underlying operating profit was 3.3% lower than the prior year period at £5.0 million. The outstanding order book at 30 September 2011 was £67.5 million, compared with £35.0 million at the end of September 2010 and £69.3 million at 31 March 2011. Order intake for the period was £26.6 million, up 10.7% on a year earlier. Delivery dates for the business’s pump room systems orders are second half weighted and as a result revenue was down on
the same period last year. The offshore market continues to be an increasingly important part of the Hamworthy pump business, representing 30% of divisional revenue in the period. The business secured a significant contract for the supply of deepwell cargo pumps for an FPSO ordered by Teekay Corp for operation in the Jordbær field of the North Sea. Product development continues to be focused on extending the range of pumps for this market. The business maintained its historically strong market share in deepwell pumps for the gas carrier market. The pump business also continued to benefit from a strong performance in its aftersales activities. In late 2011, Finland’s Wärtsilä Technology Oy made a £383 million recommended offer for Hamworthy. ■ www.hamworthy.com
January 2012