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Hyflux Ltd, Singapore
COMPANY WATCH
Cummins Inc, USA
Hyflux Ltd, Singapore
Key Figures (US$ million) Second quarter ended 28.6.2009
29.6.2008
Net Sales Of Which: Components
2431
3887
502
530
Cost of Sales
1983
3008
Gross Margin
448
879
Operating Income
121
468
Earnings/(Loss) before Interest and Taxes 109 Of Which: Components (10)
469
Net Income
56
293
Six months ended 28.6.2009
29.6.2008
77
Net Sales Of Which: Components
4870
7361
1032
1675
Cost of Sales
3977
5775
Gross Margin
893
1586
Operating Income
150
787
Earnings/(Loss) before Interest and Taxes 137 Of Which: Components (9)
784 114
Net Income
512
84
COMMENT Cummins had a challenging second quarter of fiscal 2009 with net sales down 37% on the year earlier at US$2.43 billion and net income 80.9% lower at US$56 million. The Components segment, home to its filtration operations, recorded some of the most severe reductions. The unit’s overall sales were down 41% on the year earlier to US$502 million, with filtration revenues 37% lower. The unit recorded a US$10 million loss for the period compared with a year earlier, with the decline attributed to a large drop in demand from OEM customers in North America and Europe.
September 2009
Cummins chair and CEO Tim Solso said the company had improved its profitability and cash flow from the first quarter of the year, but the remainder of the year would continue to be difficult. “The economic climate continues to be extremely challenging, and we are managing our business under the assumption that we won’t see any recovery in our markets in 2009,” Solso said. “Still, our aggressive efforts to reduce costs and align manufacturing capacity with demand have allowed us to perform well under the circumstances and to position ourselves to emerge from the downturn an even stronger company.” ■ www.cummins.com
Key Figures (S$ million) Second quarter ended 30.6 2009
2008
134.5
108.1
Materials/Consumables Expenses
72.5
55.7
Personnel Expenses
14.3
13.9
Revenue
Profit before Taxation
28.5
27.1
Profit after Taxation
24.5
23.9
Six months ended 30.6 2009
2008
Revenue
222.7
197.7
Materials/Consumables Expenses
132.4
121.6
Personnel Expenses
27.3
24.2
Profit before Taxation
35.4
32.7
Profit after Taxation
31.6
30.6
COMMENT Membrane systems manufacturer Hyflux continued to enjoy good growth in the second quarter of fiscal 2009, with revenues up 24% compared with the year earlier at S$134.5 million. The company’s municipal division accounted for the bulk of revenues, growing 34% on the 2008 comparator to total S$116.3 million. The Industrial segment, which accounted for 13% of the Group’s revenue, reversed a contraction in the first quarter to record sales of S$17.7million. Hyflux’s net profit for the quarter increased 11% on the year earlier to reach S$26.5 million, with the better performance attributed to higher-valued projects, especially from the Middle East and North African customers. “We consistently focus on project execution including cost management and quality delivery,” Olivia Lum, Hyflux’s CEO, president and managing director said. “This has boosted our bottom line, and will put
us in a good position, especially as we continue to broaden our global reach.” Lum said to further strengthen the company’s competitive edge, Hyflux remains committed to investing in both R&D and its human resources. “With these initiatives, we believe we are positioned to take advantage of the long term growth potential in the water industry,” Lum said. Lum added that Hyflux’s prospects looked solid for the remainder of fiscal 2009. “We remain confident of the fundamental strength of the global water sector, particularly in the membrane-based seawater desalination segment where we believe that we can compete effectively,” she said. “In addition, the outlook for the municipal sector remains encouraging as governments across the regions where we operate have continued to invest in environmental and water infrastructure.” ■ www.hyflux.com
Filtration Industry Analyst
9
Cummins Inc, USA
Hyflux Ltd, Singapore
Key Figures (US$ million) Second quarter ended 28.6.2009
29.6.2008
Net Sales Of Which: Components
2431
3887
502
530
Cost of Sales
1983
3008
Gross Margin
448
879
Operating Income
121
468
Earnings/(Loss) before Interest and Taxes 109 Of Which: Components (10)
469
Net Income
56
293
Six months ended 28.6.2009
29.6.2008
77
Net Sales Of Which: Components
4870
7361
1032
1675
Cost of Sales
3977
5775
Gross Margin
893
1586
Operating Income
150
787
Earnings/(Loss) before Interest and Taxes 137 Of Which: Components (9)
784 114
Net Income
512
84
COMMENT Cummins had a challenging second quarter of fiscal 2009 with net sales down 37% on the year earlier at US$2.43 billion and net income 80.9% lower at US$56 million. The Components segment, home to its filtration operations, recorded some of the most severe reductions. The unit’s overall sales were down 41% on the year earlier to US$502 million, with filtration revenues 37% lower. The unit recorded a US$10 million loss for the period compared with a year earlier, with the decline attributed to a large drop in demand from OEM customers in North America and Europe.
September 2009
Cummins chair and CEO Tim Solso said the company had improved its profitability and cash flow from the first quarter of the year, but the remainder of the year would continue to be difficult. “The economic climate continues to be extremely challenging, and we are managing our business under the assumption that we won’t see any recovery in our markets in 2009,” Solso said. “Still, our aggressive efforts to reduce costs and align manufacturing capacity with demand have allowed us to perform well under the circumstances and to position ourselves to emerge from the downturn an even stronger company.” ■ www.cummins.com
Key Figures (S$ million) Second quarter ended 30.6 2009
2008
134.5
108.1
Materials/Consumables Expenses
72.5
55.7
Personnel Expenses
14.3
13.9
Revenue
Profit before Taxation
28.5
27.1
Profit after Taxation
24.5
23.9
Six months ended 30.6 2009
2008
Revenue
222.7
197.7
Materials/Consumables Expenses
132.4
121.6
Personnel Expenses
27.3
24.2
Profit before Taxation
35.4
32.7
Profit after Taxation
31.6
30.6
COMMENT Membrane systems manufacturer Hyflux continued to enjoy good growth in the second quarter of fiscal 2009, with revenues up 24% compared with the year earlier at S$134.5 million. The company’s municipal division accounted for the bulk of revenues, growing 34% on the 2008 comparator to total S$116.3 million. The Industrial segment, which accounted for 13% of the Group’s revenue, reversed a contraction in the first quarter to record sales of S$17.7million. Hyflux’s net profit for the quarter increased 11% on the year earlier to reach S$26.5 million, with the better performance attributed to higher-valued projects, especially from the Middle East and North African customers. “We consistently focus on project execution including cost management and quality delivery,” Olivia Lum, Hyflux’s CEO, president and managing director said. “This has boosted our bottom line, and will put
us in a good position, especially as we continue to broaden our global reach.” Lum said to further strengthen the company’s competitive edge, Hyflux remains committed to investing in both R&D and its human resources. “With these initiatives, we believe we are positioned to take advantage of the long term growth potential in the water industry,” Lum said. Lum added that Hyflux’s prospects looked solid for the remainder of fiscal 2009. “We remain confident of the fundamental strength of the global water sector, particularly in the membrane-based seawater desalination segment where we believe that we can compete effectively,” she said. “In addition, the outlook for the municipal sector remains encouraging as governments across the regions where we operate have continued to invest in environmental and water infrastructure.” ■ www.hyflux.com
Filtration Industry Analyst
9