Interim Report for Howden Group, UK

January 1997

Pump Industry Analyst

Third Quarter Report for United Dominion, USA

Interim Report for Howden Group, UK Howden reports record order intake.

KEY FIGURES (£ million) Six months ended 31.10

United Dominion's business units report mixed results.

KEY FIGURES (US$ million) Quarter ended 30.9

Turnover

1996

1995

212.8

211.6

12.5

13.4

4.2

4.7

1996

1995

Sales

481.2

491.5

Total Costs and Expenses

438.8

444.6

Operating Income

42.4

47.0

Income from Continuing Operations

24.3

25.6

Turnover by Origin (£million) Six months ended 31.10

Net Income

24.3

25.6

1996

Operating Profit Retained Profit for the Period

Europe

Industrial Products Segment (US$ million) Quarter ended 30.9 1996 Sales Operating Income

1995

311

318

37.6

40.4

1995

111.5 I

109.5

North America

48.6 I

52.6

Africa

27.7 I

20.9

Pacific Basin

24.0 I

28.6

1.0 I

--

South America

<

3: Z <

Turnover by Class of Business (£million) Six months ended 31.10 United Dominion saw 1996 third quarter sales dip to 2 per cent below the level recorded for the same period in 1995. The fall in sales reflected the weakened economic conditions in Europe. Despite the strong contributions to sales made by Marley Electric Heating, Ceco/Windsor, Flair and WeilMcLain, most of United Dominion' s other units saw 1996 third quarter sales fall. Operating income of US$42.4 million was 10 per cent lower than in the same period during 1995. This could be attributed to a one-time charge associated with the costs of the company's unsuccessful bid for Commercial Intertech (see Pump Industry

Analyst July and August 1996). The takeover bid also affected net income for the quarter which was approximately 5 per cent below the figure for the same period during fiscal 1995. The Industrial Products segment's 1996 third quarter sales declined 2 per cent compared with the same period in fiscal 1995. Operating income was 7 per cent lower than in the third quarter of 1995. The declines could be attributed to several Industrial Products units, including Mafley Pump. Results at Mafley Pump were negatively impacted by lower volumes and margins, and the settlement of a prior year legal claim during the quarter. •

1996 Air and Gas Handling

1995

152.5

146.0

Drilling

25.5

35.8

Advanced Packaging and Handling

34.8

29.8

Howden Group plc, the UK-based engineering group, saw positive financial progress in the six months to October 1996. Strong demand for the company' s products saw order intake reach a record £284 million, a 17 per cent increase compared with the same period in fiscal 1995. The Air and Gas Handling Equipment Division saw orders increase 10 per cent, while turnover and operating profit increased 4 and 14 per cent respectively,

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compared with the same period in t995. The division saw good performances in Europe and North America. Howden Africa recorded a notable order worth in excess of £20 million for gas cleaning equipment and pumps for the Majuba Power Station. During the six months, Howden spent £8.9 million on acquisitions. These included the acquisition of the pump business of Murray and Roberts by Howden Africa. •

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