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Interpump group, Italy
COMPANY WATCH
Interpump Group, Italy
KSB Group, Germany
Key Figures ( million) First quarter ended 31.3
Key Figures ( million) January–March
2007
2006
108.8
96.3
49.8
39.0
20.7 25.0 2.9
19.5 14.9 3.9
Cost of Sales
69.5
60.6
Gross Industrial Margin
39.3
35.7
EBITDA Of Which: Industrial Sector
22.2
21.3
11.6
11.1
Ordinary Profit before Financial Charges
19.7
19.2
Profit for the Period before Tax
17.4
17.3
Consolidated Profit
10.1
9.7
Net Sales Of Which: Industrial Sector Of Which: High Pressure Pumps Very High Pressure Systrems Cleaning Machinery
COMMENT Interpump Group’s net sales in the first three months of 2007 reached 108.8 million, a 13.0% increase on the same period of 2006. The Industrial Sector generated a 27.6% increase in registered first quarter sales to 49.8 million, with high pressure pumps up 6.5%. The Interpump group’s 65.3% increase in sales in the Pacific area was led by China, which saw 66.1% growth. The Rest of the World achieved a 24.5% rise, with India posting a 36.7% gain on 2006’s first quarter.
8
Pump Industry Analyst
First quarter 2007 EBITDA (gross operating margin) was 22.2 million, which is 20.4% of sales, versus 21.3 million or 22.1% of sales a year earlier. The lower percentage of sales is linked in part to delivery difficulties, mainly within Hammelmann. EBIT (earnings before interest and taxes) showed a 2.6% increase to 19.7 million, while first quarter 2007 consolidated net profit showed a 4.1% gain to 10.1 million. ■ www.interpump.it
Order Intake Sales Revenue Employees (31.3)
2007
2006
556.5
467.5
412.0
362.1
13 579
12 843
COMMENT The positive trend that KSB saw in 2006 for pumps, valves and related systems has continued into the current year. In the first three months of 2007 the most growth markets for KSB were industry and the energy, mining and waste water sectors. First quarter 2007 group order intake increased by 19.0% on the same period last year. KSB Group companies posted double-digit growth in all four regions: Europe, Middle East/Africa, Asia/Pacific and the Americas. The 45% order growth achieved by KSB companies in Asia is particularly strong. In terms of volume, however, the strongest increase was reported by KSB companies in Europe, with the parent company KSB AG improving its first quarter 2007 order intake by 17.0% on 2006 levels. Over the same period, the KSB Group increased its sales revenue by 13.8%. Once again, the strongest volume growth was reported in the European companies. KSB AG increased its sales revenue by 14.2%. These first quarter 2007 figures take into account the first-time consolidation of four small KSB companies into the group on 1 January 2007, in Belgium, Brazil, Dubai and Thailand. Without these first-time consolidations, the increase in order intake would have been 17.2% and sales revenue would have grown by 11.7%.
The integration of these four KSB companies has also had an impact on the number of employees in the Group. On 31 March 2007, employee numbers had increased by 736 to 13 579 on last year. Of these employees, 359 belonged to the newly consolidated companies. In addition, KSB companies in Brazil, the USA and South Africa have increased their staffing levels to cope with the rising volume of orders. KSB AG has appointed all of its apprentices and trainees to permanent positions and is recruiting further new people in the current year. In order to develop the business in South Africa, in February this year KSB acquired its former joint venture partner’s 50% share in KSB Pumps (SA) (Pty) Ltd, based in Germiston (see Pump Industry Analyst, February 2007). KSB has now transferred the operative business of KSB Pumps (SA) (Pty) Ltd to a newly established subsidiary of that company, Germiston-based KSB Pumps and Valves (Pty) Ltd. KSB now holds 74.9% of the subsidiary’s share capital. The remaining 25.1% has been acquired by a South-African financial investor. First quarter 2007 earnings showed a further positive trend. Both in the Group and in KSB AG, the results in the first quarter exceeded the previous year’s. According to KSB the financial position has also further improved compared with the year-end figure for 2006. ■ www.ksb.com
July 2007
Interpump Group, Italy
KSB Group, Germany
Key Figures ( million) First quarter ended 31.3
Key Figures ( million) January–March
2007
2006
108.8
96.3
49.8
39.0
20.7 25.0 2.9
19.5 14.9 3.9
Cost of Sales
69.5
60.6
Gross Industrial Margin
39.3
35.7
EBITDA Of Which: Industrial Sector
22.2
21.3
11.6
11.1
Ordinary Profit before Financial Charges
19.7
19.2
Profit for the Period before Tax
17.4
17.3
Consolidated Profit
10.1
9.7
Net Sales Of Which: Industrial Sector Of Which: High Pressure Pumps Very High Pressure Systrems Cleaning Machinery
COMMENT Interpump Group’s net sales in the first three months of 2007 reached 108.8 million, a 13.0% increase on the same period of 2006. The Industrial Sector generated a 27.6% increase in registered first quarter sales to 49.8 million, with high pressure pumps up 6.5%. The Interpump group’s 65.3% increase in sales in the Pacific area was led by China, which saw 66.1% growth. The Rest of the World achieved a 24.5% rise, with India posting a 36.7% gain on 2006’s first quarter.
8
Pump Industry Analyst
First quarter 2007 EBITDA (gross operating margin) was 22.2 million, which is 20.4% of sales, versus 21.3 million or 22.1% of sales a year earlier. The lower percentage of sales is linked in part to delivery difficulties, mainly within Hammelmann. EBIT (earnings before interest and taxes) showed a 2.6% increase to 19.7 million, while first quarter 2007 consolidated net profit showed a 4.1% gain to 10.1 million. ■ www.interpump.it
Order Intake Sales Revenue Employees (31.3)
2007
2006
556.5
467.5
412.0
362.1
13 579
12 843
COMMENT The positive trend that KSB saw in 2006 for pumps, valves and related systems has continued into the current year. In the first three months of 2007 the most growth markets for KSB were industry and the energy, mining and waste water sectors. First quarter 2007 group order intake increased by 19.0% on the same period last year. KSB Group companies posted double-digit growth in all four regions: Europe, Middle East/Africa, Asia/Pacific and the Americas. The 45% order growth achieved by KSB companies in Asia is particularly strong. In terms of volume, however, the strongest increase was reported by KSB companies in Europe, with the parent company KSB AG improving its first quarter 2007 order intake by 17.0% on 2006 levels. Over the same period, the KSB Group increased its sales revenue by 13.8%. Once again, the strongest volume growth was reported in the European companies. KSB AG increased its sales revenue by 14.2%. These first quarter 2007 figures take into account the first-time consolidation of four small KSB companies into the group on 1 January 2007, in Belgium, Brazil, Dubai and Thailand. Without these first-time consolidations, the increase in order intake would have been 17.2% and sales revenue would have grown by 11.7%.
The integration of these four KSB companies has also had an impact on the number of employees in the Group. On 31 March 2007, employee numbers had increased by 736 to 13 579 on last year. Of these employees, 359 belonged to the newly consolidated companies. In addition, KSB companies in Brazil, the USA and South Africa have increased their staffing levels to cope with the rising volume of orders. KSB AG has appointed all of its apprentices and trainees to permanent positions and is recruiting further new people in the current year. In order to develop the business in South Africa, in February this year KSB acquired its former joint venture partner’s 50% share in KSB Pumps (SA) (Pty) Ltd, based in Germiston (see Pump Industry Analyst, February 2007). KSB has now transferred the operative business of KSB Pumps (SA) (Pty) Ltd to a newly established subsidiary of that company, Germiston-based KSB Pumps and Valves (Pty) Ltd. KSB now holds 74.9% of the subsidiary’s share capital. The remaining 25.1% has been acquired by a South-African financial investor. First quarter 2007 earnings showed a further positive trend. Both in the Group and in KSB AG, the results in the first quarter exceeded the previous year’s. According to KSB the financial position has also further improved compared with the year-end figure for 2006. ■ www.ksb.com
July 2007