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Ionics Inc, USA
Filtration Industry Analyst
May 1999
Clarcor Inc, USA
Ionics Inc, USA
Key Figures (US$ million) 1 First quarter ended
Key Figures (US$ million)' Fourth quarter ended 31.12
27.2.1999
28.2.1998
99.2
97,8
Revenues
Net Sales
1998
1997
103,2
93.1
71.8
62.4
Cost of Sales
67.8
69.0
Cost of Sales
Gross Profit
31.4
28.8
Income from Operations
8.4
11.2
Operating Profit
10.0
8.9
6.2
5.3
Income before Income Taxes and Minority Interest
8.8
11.2
Net Income
5.6
6.9
US$0.26
US$0.22
US$0.35
US$0.43
Net Earnings
Net Earnings per Common Share
Basic Earnings per Share
Twelve months ended 31.12
Net Sales by Market Segment First quarter ended 27.2.1999
28.2.1998
53.6
51.6
Engine/Mobile Filtration Industrial/Environmental Filtration
32.7
31.6
Packaging
12.9
14.5
1 Exceptper sharedata (basic).Adjustedto reflecta three-for-twostock split, effective24 April1998.
1998
1997
Revenues
351.3
352.5
Cost of Sales
236.8
237.0
Income from Operations
31.6
42.4
Income before Income Taxes and Minority Interest
32.9
43.2
Net Income
21.4
28.3
US$1.33
US$1.78
Basic Earnings per Share ' Exceptper sharedata
Clarcor lnc's first quarter of fiscal 1999 has produced a good set of financial results. Sales, operating profit and net earnings were the highest achieved in any first quarter of the company's history. Net sales for the three-month period ended 27 February 1999 rose 1.4 per cent, operating profit increased 12.9 per cent and net earnings saw an increase of 16.4 per cent. Compared with the first quarter of 1998 sales in Ctarcor's Engine/Mobile Filtration segment grew 3.8 per cent. Operating margins increased from 14.4 per cent to 16.5 per cent, mainly driyen by reduced raw materials costs and productivity programmes at its factories, Improved sales and profitability at the company's Hastings Filters operation was combined with another
strong performance from Baldwin Filters and from Clark Filter. The Industrial/Environmental Filtration segment's sales grew by 3.4 per cent. The quarter's operating profit reflected the combination of cost controls and productivity improvements, together with several small acquisitions made during 1998. As expected, the Packaging segment had lower sales and earnings during the first quarter. Throughout Clarcor, the continuing emphasis on cost reduction programmes is improving the company's profitability. For the remainder of 1999 sales growth is expected to be stronger, while operating margins are set to improve over 1998 margins, controlled by increased volume and cost reduction initiatives. •
lonics lnc's results for the year and quarter ended 3t December 1998 show a drop in profitability compared with the figures posted for 1997. This was caused by a decline in capital equipment revenue, particularly that derived from orders for the semiconductor industry. For the fourth quarter ended 31 December 1998, revenues were US$103.2 million compared with US$93.1 million a year earlier. Net income totalled US$5.6 million compared with US$6.9 million in 1997. Revenues for the year amounted to US$351.3 million, which was slightly less than the figure of US$352.5 million posted in 1997, while net income dropped from US$28.3 million to US$21.4 million. Year-end backlog increased 23.6 per cent from US$153.7 million, at the end
of 1997, to US$189.9 million. Bookings for the fourth quarter were US$96.4 million, which represents an increase of 8.4 per cent. Compared with the previous twelve-month period, bookings for fiscal 1998 rose 26.5 per cent to reach a record US$387.6 million. The recent acquisition of French company Aquarelle will provide Ionics with the perfect opportunity to capitalise on the rapidly growing demand for high-quality, five-gallon, bottled water in France and throughout Europe. Aquarelle, which is based in Paris, will become part of the forties' Consumer Water Group, which includes Aqua Cool Pure Bottled Water and point-of-use and point-of-entry household water purification products. Aqua Cool serves over 130 000 customers worldwide. •
May 1999
Clarcor Inc, USA
Ionics Inc, USA
Key Figures (US$ million) 1 First quarter ended
Key Figures (US$ million)' Fourth quarter ended 31.12
27.2.1999
28.2.1998
99.2
97,8
Revenues
Net Sales
1998
1997
103,2
93.1
71.8
62.4
Cost of Sales
67.8
69.0
Cost of Sales
Gross Profit
31.4
28.8
Income from Operations
8.4
11.2
Operating Profit
10.0
8.9
6.2
5.3
Income before Income Taxes and Minority Interest
8.8
11.2
Net Income
5.6
6.9
US$0.26
US$0.22
US$0.35
US$0.43
Net Earnings
Net Earnings per Common Share
Basic Earnings per Share
Twelve months ended 31.12
Net Sales by Market Segment First quarter ended 27.2.1999
28.2.1998
53.6
51.6
Engine/Mobile Filtration Industrial/Environmental Filtration
32.7
31.6
Packaging
12.9
14.5
1 Exceptper sharedata (basic).Adjustedto reflecta three-for-twostock split, effective24 April1998.
1998
1997
Revenues
351.3
352.5
Cost of Sales
236.8
237.0
Income from Operations
31.6
42.4
Income before Income Taxes and Minority Interest
32.9
43.2
Net Income
21.4
28.3
US$1.33
US$1.78
Basic Earnings per Share ' Exceptper sharedata
Clarcor lnc's first quarter of fiscal 1999 has produced a good set of financial results. Sales, operating profit and net earnings were the highest achieved in any first quarter of the company's history. Net sales for the three-month period ended 27 February 1999 rose 1.4 per cent, operating profit increased 12.9 per cent and net earnings saw an increase of 16.4 per cent. Compared with the first quarter of 1998 sales in Ctarcor's Engine/Mobile Filtration segment grew 3.8 per cent. Operating margins increased from 14.4 per cent to 16.5 per cent, mainly driyen by reduced raw materials costs and productivity programmes at its factories, Improved sales and profitability at the company's Hastings Filters operation was combined with another
strong performance from Baldwin Filters and from Clark Filter. The Industrial/Environmental Filtration segment's sales grew by 3.4 per cent. The quarter's operating profit reflected the combination of cost controls and productivity improvements, together with several small acquisitions made during 1998. As expected, the Packaging segment had lower sales and earnings during the first quarter. Throughout Clarcor, the continuing emphasis on cost reduction programmes is improving the company's profitability. For the remainder of 1999 sales growth is expected to be stronger, while operating margins are set to improve over 1998 margins, controlled by increased volume and cost reduction initiatives. •
lonics lnc's results for the year and quarter ended 3t December 1998 show a drop in profitability compared with the figures posted for 1997. This was caused by a decline in capital equipment revenue, particularly that derived from orders for the semiconductor industry. For the fourth quarter ended 31 December 1998, revenues were US$103.2 million compared with US$93.1 million a year earlier. Net income totalled US$5.6 million compared with US$6.9 million in 1997. Revenues for the year amounted to US$351.3 million, which was slightly less than the figure of US$352.5 million posted in 1997, while net income dropped from US$28.3 million to US$21.4 million. Year-end backlog increased 23.6 per cent from US$153.7 million, at the end
of 1997, to US$189.9 million. Bookings for the fourth quarter were US$96.4 million, which represents an increase of 8.4 per cent. Compared with the previous twelve-month period, bookings for fiscal 1998 rose 26.5 per cent to reach a record US$387.6 million. The recent acquisition of French company Aquarelle will provide Ionics with the perfect opportunity to capitalise on the rapidly growing demand for high-quality, five-gallon, bottled water in France and throughout Europe. Aquarelle, which is based in Paris, will become part of the forties' Consumer Water Group, which includes Aqua Cool Pure Bottled Water and point-of-use and point-of-entry household water purification products. Aqua Cool serves over 130 000 customers worldwide. •