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ITT Industries Inc, USA
COMPANY WATCH
Colfax Corp, USA
ITT Industries Inc, USA
Key Figures (US$ million) Three months ended 26.9.2008
28.9.2007
153.5
125.4
Cost of Sales
99.0
80.8
Gross Profit
54.5
44.5
Selling, General and Admin Expenses
33.2
26.8
Research and Development Expenses
1.5
1.0
Operating Income
20.9
44.6
Net Income
13.7
25.0
Nine months ended 26.9.2008
28.9.2007
Net Sales
445.5
362.6
Cost of Sales
286.1
236.2
Gross Profit
159.4
126.4
Selling, General and Admin Expenses
97.5
75.3
Research and Development Expenses
4.4
3.1
(5.0)
71.7
Total Costs and Expenses
(11.0)
35.9
Net Sales
Operating Income/(Loss) Net Income/(Loss)
Key Figures (US$ million) Third quarter ended 30.9 2008
2007
Sales and Revenues Of Which: Fluid Technology
2879.3 949.3
858.4
Cost of Sales and Revenues
2068.6
1540.1
60.7
46.8
2551.3
1921.7
Operating Income
328.0
259.5
Net Income
216.3
230.1
Nine months ended 30.9 2008
2007
R&D Expenses Total Costs and Expenses
2181.2
Sales and Revenues Of Which: Fluid Technology
8749.8
6474.6
2856.3
2523.9
Cost of Sales and Revenues
6311.1
4606.9
172.5
129.9
7782.9
5746.4
Operating Income
966.9
728.2
Net Income
609.2
583.8
R&D Expenses
COMMENT COMMENT Colfax Corp’s third quarter ended 26 September 2008 saw net sales increase 22.4% to US$153.5 million, while net income of US$13.7 million was down from US$25.0 million a year earlier. Third quarter orders of US$173.8 million were up 13.2% on last year, while organic order growth was 5.7%. Backlog at the end of the quarter was US$383.1 million. For the first nine months of 2008, Colfax recorded a 22.9% rise in net sales to US$445.5 million, and a net loss of US$10.9 million. Record orders for the nine month period came in at US$542.9 million, an increase of 27.7%. “We are pleased with our third quarter performance,”
8
Pump Industry Analyst
said John Young, president and CEO of Colfax. “We experienced organic sales growth across all of our end markets, most notably in commercial marine and power generation. With our recent order activity and current backlog, we are on target to meet our low doubledigit organic sales growth goal for the year and expect to have a strong fourth quarter. Longer term, we believe we are well positioned as we enter 2009 with a diverse backlog and a strong balance sheet. The activity levels in our end markets remain sound; however, we’re closely monitoring the impact of the recent economic uncertainty on our businesses.” ■ www.colfaxcorp.com
ITT’s Fluid Technology sector saw good growth in the third quarter of fiscal 2008, with its sales up 11% on a year earlier to US$949 million. The revenue increase in the segment was driven by organic revenue growth of 8% compared with the third quarter of 2007, with balanced global contributions from North American and international markets. Order growth for the period was 6%, led by a strong performance from its Industrial Process sector. Fluid Technology’s operating income for the quarter was up 19% year-on-year, at US$132 million. Operating margins in the segment continued to improve, up 100 basis points to 13.9% on a comparable basis with price increases, productivity improvements and
favourable foreign currency effects more than offsetting higher material expenses. Among the quarter’s highlights for the business unit was a contract valued at US$41 million to supply a wide range of ITT products to Fluor China for a project to produce multicrystalline solar wafers, the principal raw materials used to produce solar cells. Overall, ITT saw its second quarter revenue increase 32% on the year earlier to US$2.9 billion, with organic revenue up 8% and order volume 13% stronger. In response to anticipated difficult global market conditions in 2009, ITT plans to accelerate restructuring activities across its business during the fourth quarter. ■ www.itt.com
November 2008
Colfax Corp, USA
ITT Industries Inc, USA
Key Figures (US$ million) Three months ended 26.9.2008
28.9.2007
153.5
125.4
Cost of Sales
99.0
80.8
Gross Profit
54.5
44.5
Selling, General and Admin Expenses
33.2
26.8
Research and Development Expenses
1.5
1.0
Operating Income
20.9
44.6
Net Income
13.7
25.0
Nine months ended 26.9.2008
28.9.2007
Net Sales
445.5
362.6
Cost of Sales
286.1
236.2
Gross Profit
159.4
126.4
Selling, General and Admin Expenses
97.5
75.3
Research and Development Expenses
4.4
3.1
(5.0)
71.7
Total Costs and Expenses
(11.0)
35.9
Net Sales
Operating Income/(Loss) Net Income/(Loss)
Key Figures (US$ million) Third quarter ended 30.9 2008
2007
Sales and Revenues Of Which: Fluid Technology
2879.3 949.3
858.4
Cost of Sales and Revenues
2068.6
1540.1
60.7
46.8
2551.3
1921.7
Operating Income
328.0
259.5
Net Income
216.3
230.1
Nine months ended 30.9 2008
2007
R&D Expenses Total Costs and Expenses
2181.2
Sales and Revenues Of Which: Fluid Technology
8749.8
6474.6
2856.3
2523.9
Cost of Sales and Revenues
6311.1
4606.9
172.5
129.9
7782.9
5746.4
Operating Income
966.9
728.2
Net Income
609.2
583.8
R&D Expenses
COMMENT COMMENT Colfax Corp’s third quarter ended 26 September 2008 saw net sales increase 22.4% to US$153.5 million, while net income of US$13.7 million was down from US$25.0 million a year earlier. Third quarter orders of US$173.8 million were up 13.2% on last year, while organic order growth was 5.7%. Backlog at the end of the quarter was US$383.1 million. For the first nine months of 2008, Colfax recorded a 22.9% rise in net sales to US$445.5 million, and a net loss of US$10.9 million. Record orders for the nine month period came in at US$542.9 million, an increase of 27.7%. “We are pleased with our third quarter performance,”
8
Pump Industry Analyst
said John Young, president and CEO of Colfax. “We experienced organic sales growth across all of our end markets, most notably in commercial marine and power generation. With our recent order activity and current backlog, we are on target to meet our low doubledigit organic sales growth goal for the year and expect to have a strong fourth quarter. Longer term, we believe we are well positioned as we enter 2009 with a diverse backlog and a strong balance sheet. The activity levels in our end markets remain sound; however, we’re closely monitoring the impact of the recent economic uncertainty on our businesses.” ■ www.colfaxcorp.com
ITT’s Fluid Technology sector saw good growth in the third quarter of fiscal 2008, with its sales up 11% on a year earlier to US$949 million. The revenue increase in the segment was driven by organic revenue growth of 8% compared with the third quarter of 2007, with balanced global contributions from North American and international markets. Order growth for the period was 6%, led by a strong performance from its Industrial Process sector. Fluid Technology’s operating income for the quarter was up 19% year-on-year, at US$132 million. Operating margins in the segment continued to improve, up 100 basis points to 13.9% on a comparable basis with price increases, productivity improvements and
favourable foreign currency effects more than offsetting higher material expenses. Among the quarter’s highlights for the business unit was a contract valued at US$41 million to supply a wide range of ITT products to Fluor China for a project to produce multicrystalline solar wafers, the principal raw materials used to produce solar cells. Overall, ITT saw its second quarter revenue increase 32% on the year earlier to US$2.9 billion, with organic revenue up 8% and order volume 13% stronger. In response to anticipated difficult global market conditions in 2009, ITT plans to accelerate restructuring activities across its business during the fourth quarter. ■ www.itt.com
November 2008