Imo Industries Inc, USA

R4arch I997

Pump

Sundstrand Corporation, USA

Industry

Analyst

Imo Industries Inc, USA ---__ --__

KEY FIGURES (US$ million) Fourth quarter ended 31.12

KEY FIGURES (US$ million) Four&h quarter ended 31.12 ,

1996 Net Sales Of Which: Industrial Incoming Of Which: Industrial

Orders

Operating Of Which: Industrial

ProfiV(Loss)

;

1995

1996

411

395

182

188

380

413

183

189 I

j (4) j

31

I I

43

38 )

/

Year ended 31.72 --__ 1996

Net Sales Of Which: Pumps Operating Of Which: Pumps

68

44

Net Earnings

’

Income/(Loss)

Net Income/(Loss)

1995

114.1

111.3

27.5

24.8

(3.7)

2.2

2.3

1.6

(32.9) ---__

(8.0)

Year ended 31.12 .~ Net Sales Of Which: Pumps

+ Net Sales Of Which: Industrial

1521 736

Incoming Of Which: Industrial

Orders

Operating Of Which: Industrial

Profit

t

1557

Operating Of Which: Pumps

Income

Net Income/(Loss)

735 L

222 84

Net Earnings

Sundstrand CorporaGon’s 1996 fourth quarter sales increased 6 per cent, while earnings. excluding the effects of the restructuring charge, rose 14 per cent, compared with the same period in the previous year. The company’s restructuring programme has been ongoing since J995. Sundstrand’s Industrial segment saw 1996 fourth quarter sales decline 3 per cent when compared with the same period during the previous year. This was attributed to lower sales at

Sullair, Sundstrand’s European manufacturer of compressors, and at Fluid Handling. Fourth quarter operating profit and orders also recorded declines of 10 and 3 per cent respectively, compared with the same period in 1995. Full year Industrial results saw sales increase 1 per cent. However, losses at Sullair Europe, and manufacturing inefficiencies at Milton Roy, led to an I I per cent decline in operating profit. n

Imo Industries Inc reported a 1996 fourth quarter net loss of US$32.9 million. This compares with a loss of LJS$8 million for the same period during fiscal 1995. Full year results did not bring any cheer for the New Jersey-based manufacturing company, which saw 1996 results return a net loss of LJS$58.4 million. The disappointing figures were attributed to charges related to the company’s withdrawal from sale of Roltra-Morse, Imo’s Italian subsidiary. The divestiture of Roltra-Morse was halted due to problems relating to an unsuccessful bidder.

making it impossible for Irno to receive a fair value for the business. lmo has filed a lawsuit to resolve the matter. The Pumps segment saw fourth quarter operating income increase 40 per cent compared with the same period in 1995. Sales revenue increased 1 I per cent. The positive results were attributed, in part, to lmo Pompes SA, a French licensee acquired during 1996. The outlook for lmo’s Pump segment remains positive, driven by an increase in capital spending in power generation and crude oil processing. n