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Indutrade AB, Sweden
COMPANY WATCH
FLSmidth & Co, Denmark
Indutrade AB, Sweden
Key Figures (DKK million) Third quarter ended 30.9 2013
2012
Order Intake
4642
7956
Revenue
6730
Cost of Goods Sold Gross Profit
Key Figures (SEK million) Third quarter ended 30.9 2013
2012
Net Sales
2148
1988
6708
Cost of Goods Sold
1438
1326
5476
4996
Gross Profit
710
662
1254
1742
Operating Profit
219
192
324
757
Net Profit before Income Taxes
193
171
EBIT
(802)
529
Net Profit
145
127
Net Income
(783)
377 Nine months ended 30.9 2013
2012
Net Sales
6479
6117
EBITDA
Nine months ended 30.9 2013
2012
Order Intake
15 295
21 623
Cost of Goods Sold
4296
4053
Revenue
19 503
17 889
Gross Profit
2183
2064
Cost of Goods Sold
15 674
13 338
Operating Profit
608
566
Gross Profit
3829
4551
Net Profit before Income Taxes
534
502
EBITDA
1018
1896
Net Profit
409
376
EBIT
(510)
1201
Net Income
(605)
841
COMMENT FLSmidth, the Denmark-based provider of equipment and services for the cement and mineral industries, has seen its revenue for the third quarter of fiscal 2013 remain essentially unchanged on a year earlier at DKK6730 million, while its net income plummeted to a loss of DKK783 million. Organic sales growth was 7% for the quarter, however, it was offset by a similar sized negative impact from currency fluctuations. Organic growth was particularly strong in the company’s cement and mineral processing markets, but negative in its customer services and material handling sectors. The company’s order intake for the quarter fell 42% on the 2012 comparator to DKK4642 million, impacted by a cyclical downturn in mining investment.
December 2013
COMMENT FLSmidth’s profitability for the quarter was impacted by a number of special items precipitating the sharp decline from the previous year’s net income of DKK377 million to the loss of DKK783 million. These included an inventory write-down of DKK203 million, a DKK880 million impairment charge on its 2012 acquisition of Ludowici and DKK167 million in one-off costs related to an efficiency programme launched in August. The efficiency programme is aimed at creating sustainable improvements and is targeting annual EBITA improvements of DKK750 million from 2015. One-off restructuring costs stemming from the programme will total around DKK500 million, with a headcount reduction of around 7%. ■ www.flsmidth.com
Swedish industrial manufacturer Indutrade has reported third quarter fiscal 2013 sales of SEK2148 million, up 8.0% on a year ago. Net profit rose 14.2% to SEK145 million. In the company’s Engineering & Equipment segment, home to much of its pump activity, however, revenues fell 6% on the 2012 figure to SEK301 million. In the Flow Technology segment, which also includes pumps, sales fell 5% on the year earlier to SEK471 million. Indutrade made two acquisitions during the quarter, AMAB and the operations of Micro Joining KB, while it has subsequently also added Medexa in Sweden and the Dutch company Kin Pompentechniek to its holdings. AMAB and Medexa work in the medical technology field, Micro Joining
is active in chemical technology and Kin Pompentechniek in flow technology. “Thanks to Indutrade’s broad product offering, the Group posted organic growth in order intake of 11% during the past quarter, despite several weak segments,” said Johnny Alvarsson, Indutrade’s president and CEO. “The segments that have had favourable growth have more than adequately compensated for the weaker areas. This growth is being generated by a business upswing in a number of areas as well as by gains in market share by companies.” For the corresponding nine month period, Indutrade saw its sales increase 5.9% on the prior year to SEK6479 million and its net income climb 8.8% to SEK409 million. ■ www.indutrade.com
Pump Industry Analyst
9
FLSmidth & Co, Denmark
Indutrade AB, Sweden
Key Figures (DKK million) Third quarter ended 30.9 2013
2012
Order Intake
4642
7956
Revenue
6730
Cost of Goods Sold Gross Profit
Key Figures (SEK million) Third quarter ended 30.9 2013
2012
Net Sales
2148
1988
6708
Cost of Goods Sold
1438
1326
5476
4996
Gross Profit
710
662
1254
1742
Operating Profit
219
192
324
757
Net Profit before Income Taxes
193
171
EBIT
(802)
529
Net Profit
145
127
Net Income
(783)
377 Nine months ended 30.9 2013
2012
Net Sales
6479
6117
EBITDA
Nine months ended 30.9 2013
2012
Order Intake
15 295
21 623
Cost of Goods Sold
4296
4053
Revenue
19 503
17 889
Gross Profit
2183
2064
Cost of Goods Sold
15 674
13 338
Operating Profit
608
566
Gross Profit
3829
4551
Net Profit before Income Taxes
534
502
EBITDA
1018
1896
Net Profit
409
376
EBIT
(510)
1201
Net Income
(605)
841
COMMENT FLSmidth, the Denmark-based provider of equipment and services for the cement and mineral industries, has seen its revenue for the third quarter of fiscal 2013 remain essentially unchanged on a year earlier at DKK6730 million, while its net income plummeted to a loss of DKK783 million. Organic sales growth was 7% for the quarter, however, it was offset by a similar sized negative impact from currency fluctuations. Organic growth was particularly strong in the company’s cement and mineral processing markets, but negative in its customer services and material handling sectors. The company’s order intake for the quarter fell 42% on the 2012 comparator to DKK4642 million, impacted by a cyclical downturn in mining investment.
December 2013
COMMENT FLSmidth’s profitability for the quarter was impacted by a number of special items precipitating the sharp decline from the previous year’s net income of DKK377 million to the loss of DKK783 million. These included an inventory write-down of DKK203 million, a DKK880 million impairment charge on its 2012 acquisition of Ludowici and DKK167 million in one-off costs related to an efficiency programme launched in August. The efficiency programme is aimed at creating sustainable improvements and is targeting annual EBITA improvements of DKK750 million from 2015. One-off restructuring costs stemming from the programme will total around DKK500 million, with a headcount reduction of around 7%. ■ www.flsmidth.com
Swedish industrial manufacturer Indutrade has reported third quarter fiscal 2013 sales of SEK2148 million, up 8.0% on a year ago. Net profit rose 14.2% to SEK145 million. In the company’s Engineering & Equipment segment, home to much of its pump activity, however, revenues fell 6% on the 2012 figure to SEK301 million. In the Flow Technology segment, which also includes pumps, sales fell 5% on the year earlier to SEK471 million. Indutrade made two acquisitions during the quarter, AMAB and the operations of Micro Joining KB, while it has subsequently also added Medexa in Sweden and the Dutch company Kin Pompentechniek to its holdings. AMAB and Medexa work in the medical technology field, Micro Joining
is active in chemical technology and Kin Pompentechniek in flow technology. “Thanks to Indutrade’s broad product offering, the Group posted organic growth in order intake of 11% during the past quarter, despite several weak segments,” said Johnny Alvarsson, Indutrade’s president and CEO. “The segments that have had favourable growth have more than adequately compensated for the weaker areas. This growth is being generated by a business upswing in a number of areas as well as by gains in market share by companies.” For the corresponding nine month period, Indutrade saw its sales increase 5.9% on the prior year to SEK6479 million and its net income climb 8.8% to SEK409 million. ■ www.indutrade.com
Pump Industry Analyst
9