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Ionics Inc, USA
October 2002
Filtration Industry Analyst
Ionics Inc, USA
Bekaert Group, Belgium million) Key Figures ( Six months ended 30.6
Key Figures (US$ million) Second quarter ended 30.6
2002
2001
Sales Of Which Advanced Materials
986.1
931.3
111.0
61.0
Cost of Sales
793.1
761.9
Gross Profit
193.0
169.4
Research and Development
18.9
15.5
Result from Operations
20.8
53.4
Result from Ordinary Activities before Taxes
0.1
31.5
Result from Ordinary Activities after Taxes
0.8
24.1
Net Result
9.4
30.8
2001
Revenue Of Which: Equipment Business Ultrapure Water Consumer Water1
79.3
113.7
38.6 25.2 8.7
46.2 30.8 30.2
Income from Operations
2.0
5.8
Net Income
2.1
4.2
2002
2001
159.7
236.6
76.9 50.2 19.2
91.1 71.7 59.6
Income from Operations
4.0
11.4
Net Income
4.0
7.2
Revenue Of Which: Equipment Business Ultrapure Water Consumer Water1
1
Cash flow was strong, with operating activities generating 128.8 million compared with 107.2 million in the first half of 2001. Capital expenditure of the consolidated companies reached 37 million during the first half of 2002 versus 59 million during the same period last year. Combined capital expenditure equalled 63 million. Bekaert has been actively developing its filtration portfolio this year. The company acquired a majority stake in a San Diego based reverse osmosis vessel manufacturer in May (see Filtration Industry Analyst, July 2002). In July, it formed an alliance with Mott Corp to boost sales of its metal-based filtration products (see Filtration Industry Analyst, August 2002). Bekaert says it will focus on unlocking all possible synergies of acquisitions to push organic growth and profitability of its Advanced Materials materials unit. ■
2002 operations do not include Ionics’ bottled water business, which was sold on 31 December 2001.
COMMENT Ionics’ results for the second quarter and six months ended 30 June 2002, though not spectacular, were in line with expectations considering the sale of the Aqua Cool Pure Bottled Water business at the end of 2001. For the second quarter of 2002, revenues fell 30% from the same period of 2001 to US$79.3 million. Excluding the 2001 Aqua Cool sales of US$19.2 million, second quarter revenues were down US$15.2 million, or 16%, from the comparable period of 2001. Net income for the quarter dropped 50% to US$2.1 million. Second-quarter revenues were down in all parts of the business with the exception of the Instrument Business Group. The 18% drop in the Ultrapure Water Group’s revenues was put down to con-
tinued softness in the microelectronics industry. Excluding bottled water sales, the Consumer Water Group reported a 22% decrease in revenues as the result of lower demand for automobile windshield wash solution and consumer bleach products of the company’s Elite Consumer Products business, and by lower demand for home water treatment equipment. Arthur Goldstein, Ionics’ chairman and CEO, noted that bookings in the quarter reached a record level of US$200 million. This amount includes US$130 million relating to the signing of contracts for the world’s largest membranebased water reclamation and reuse facility in Kuwait in June (see Filtration Industry Analyst, August 2002). ■
7
COMPANY WATCH
Six months ended 30.6
COMMENT A 48 million nonrecurring restructuring charge ate into Bekaert’s profits in the first half of 2002. The company, a leader in advanced metal transformation and coating technologies, reported a net result of 9.4 million compared with 30.8 million last year. The result from operations before restructuring provisions increased by 26% to 68.3 million from 54.2 million the previous year. Combined sales, which include joint ventures and associates, increased by 3% from the same period a year ago. Consolidated sales increased by 6% in 2002, while sales of the joint ventures and associates declined by 1%. Combined sales of Bekaert Advanced Materials, the business unit that incorporates the company’s filtration interests, increased by more than 50% as a result of both solid organic growth and the acquisition of a specialized films business.
2002
Filtration Industry Analyst
Ionics Inc, USA
Bekaert Group, Belgium million) Key Figures ( Six months ended 30.6
Key Figures (US$ million) Second quarter ended 30.6
2002
2001
Sales Of Which Advanced Materials
986.1
931.3
111.0
61.0
Cost of Sales
793.1
761.9
Gross Profit
193.0
169.4
Research and Development
18.9
15.5
Result from Operations
20.8
53.4
Result from Ordinary Activities before Taxes
0.1
31.5
Result from Ordinary Activities after Taxes
0.8
24.1
Net Result
9.4
30.8
2001
Revenue Of Which: Equipment Business Ultrapure Water Consumer Water1
79.3
113.7
38.6 25.2 8.7
46.2 30.8 30.2
Income from Operations
2.0
5.8
Net Income
2.1
4.2
2002
2001
159.7
236.6
76.9 50.2 19.2
91.1 71.7 59.6
Income from Operations
4.0
11.4
Net Income
4.0
7.2
Revenue Of Which: Equipment Business Ultrapure Water Consumer Water1
1
Cash flow was strong, with operating activities generating 128.8 million compared with 107.2 million in the first half of 2001. Capital expenditure of the consolidated companies reached 37 million during the first half of 2002 versus 59 million during the same period last year. Combined capital expenditure equalled 63 million. Bekaert has been actively developing its filtration portfolio this year. The company acquired a majority stake in a San Diego based reverse osmosis vessel manufacturer in May (see Filtration Industry Analyst, July 2002). In July, it formed an alliance with Mott Corp to boost sales of its metal-based filtration products (see Filtration Industry Analyst, August 2002). Bekaert says it will focus on unlocking all possible synergies of acquisitions to push organic growth and profitability of its Advanced Materials materials unit. ■
2002 operations do not include Ionics’ bottled water business, which was sold on 31 December 2001.
COMMENT Ionics’ results for the second quarter and six months ended 30 June 2002, though not spectacular, were in line with expectations considering the sale of the Aqua Cool Pure Bottled Water business at the end of 2001. For the second quarter of 2002, revenues fell 30% from the same period of 2001 to US$79.3 million. Excluding the 2001 Aqua Cool sales of US$19.2 million, second quarter revenues were down US$15.2 million, or 16%, from the comparable period of 2001. Net income for the quarter dropped 50% to US$2.1 million. Second-quarter revenues were down in all parts of the business with the exception of the Instrument Business Group. The 18% drop in the Ultrapure Water Group’s revenues was put down to con-
tinued softness in the microelectronics industry. Excluding bottled water sales, the Consumer Water Group reported a 22% decrease in revenues as the result of lower demand for automobile windshield wash solution and consumer bleach products of the company’s Elite Consumer Products business, and by lower demand for home water treatment equipment. Arthur Goldstein, Ionics’ chairman and CEO, noted that bookings in the quarter reached a record level of US$200 million. This amount includes US$130 million relating to the signing of contracts for the world’s largest membranebased water reclamation and reuse facility in Kuwait in June (see Filtration Industry Analyst, August 2002). ■
7
COMPANY WATCH
Six months ended 30.6
COMMENT A 48 million nonrecurring restructuring charge ate into Bekaert’s profits in the first half of 2002. The company, a leader in advanced metal transformation and coating technologies, reported a net result of 9.4 million compared with 30.8 million last year. The result from operations before restructuring provisions increased by 26% to 68.3 million from 54.2 million the previous year. Combined sales, which include joint ventures and associates, increased by 3% from the same period a year ago. Consolidated sales increased by 6% in 2002, while sales of the joint ventures and associates declined by 1%. Combined sales of Bekaert Advanced Materials, the business unit that incorporates the company’s filtration interests, increased by more than 50% as a result of both solid organic growth and the acquisition of a specialized films business.
2002