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ITT Industries Inc, USA
COMPANY WATCH
ITT Industries Inc, USA Key Figures (US$ million) Second quarter ended 30.6 2009
Parker Hannifin Corp, USA 2008
Sales and Revenues Of Which: Fluid Technology
2780.0 869.1
Cost of Sales and Revenues
2001.2 57.3
59.2
2472.8
2709.3
Operating Income
307.2
354.8
Net Income
201.4
221.0
Six months ended 30.6 2009
2008
R&D Expenses Total Costs and Expenses
3064.1
2211.0
3346.8
1025.6
1570.6
2547.5
2197.0
Cost of Sales
1814.1
2575.4
Gross Profit
396.9
771.3
Operating Income Of Which: Industrial
107.5
1003.8
5337.1
5870.5
1613.4
1907.0
Cost of Sales and Revenues
3889.2
4242.5
110.2
111.8
4808.4
5231.6
Total Costs and Expenses
2008
Net Sales Of Which: Industrial
Sales and Revenues Of Which: Fluid Technology R&D Expenses
Key Figures (US$ million) Fourth quarter ended 30.6 2009
Operating Income
528.7
638.9
Net Income
385.5
392.9
Net Income
Net Sales Of Which: Industrial Cost of Sales
Filtration Industry Analyst
2009
2008
10 309.0
12 145.6
7630.5
9256.2
8181.3
9339.1
Gross Profit
2127.7
2806.5
Operating Income Of Which: Industrial
1003.8
1706.8
745.6
1396.7
508.5
949.5
COMMENT
COMMENT
10
745.6 252.6
Year ended 30.6
Net Income
ITT has posted revenues of US$2.8 billion for the second quarter of fiscal 2009, down 9.3% on the previous year, while net income for the period was 8.9% easier at US$201.4 million. The company’s Fluid Technology segment reported second quarter revenue of US$869 million, down 15% overall and 7% organically compared to the prior year. ITT said weak sales in North American commercial and residential water markets were partially offset by strong shipments in the municipal, mining, oil and gas markets. On a geographic basis, relative strength in emerging markets offset slower sales in North America and Europe. Operating income for the segment for the quarter was down to US$112 million with negative impacts from vol-
48.0 49.5
ume declines, higher employee pension costs and restructuring expenses partially offset by productivity improvements. During the quarter, the segment completed the acquisition of Laing GmbH, a privately held producer of energy-efficient circulator pumps, and also entered into an alliance with Atlas Copco to sell its energyefficient blowers with its aeration and mixer technologies. “While the global economy remains weak, impacting orders in many of our commercial markets, we believe our teams have aggressively positioned the company to weather these uncertain times. This strong leadership is resulting in greater productivity and having a positive impact on income,” Steve Loranger, ITT’s chair, president and CEO, said. ■ www.itt.com
Parker Hannifin has posted fourth quarter sales down 33.9% on a year earlier at US$2.2 billion, while net income was 80.4% easier at US$49.5 million. Full year results followed a similar pattern with net sales declining 15.1% to US$10.3 billion and net income falling 46.4% to US$508.5 million. Parker’s Industrial North America segment saw sales for the quarter decline 33.3% to US$777.5 million, while operating income declined 67.0% to US$53.7 million, compared with the same period a year ago. For the full year, Industrial North America sales fell 12.1% to US$3.7 billion, and operating income was down 35.0% to US$394.9 million, compared with fiscal 2008. In its Industrial International segment, sales for the quarter plummeted 42.6% to
US$793.2 million, and reported an operating loss of US$5.7 million compared with an operating profit of US$213.0 million in the same period a year ago. For the full year, Industrial International sales dropped 22.2% to US$3.9 billion, and operating income were down 55.6% to US$350.7 million. “As we move into fiscal 2010, we will continue to manage our business for cash, while maintaining productivity levels and reducing inventories,” Parker’s chair, CEO and president, Don Washkewicz, said. “Actions to reduce our workforce to align with customer order rates, a broad-based wage freeze, reduced work weeks and significantly reduced discretionary spending are anticipated to benefit us more fully in the year ahead.” ■ www.parker.com
September 2009
ITT Industries Inc, USA Key Figures (US$ million) Second quarter ended 30.6 2009
Parker Hannifin Corp, USA 2008
Sales and Revenues Of Which: Fluid Technology
2780.0 869.1
Cost of Sales and Revenues
2001.2 57.3
59.2
2472.8
2709.3
Operating Income
307.2
354.8
Net Income
201.4
221.0
Six months ended 30.6 2009
2008
R&D Expenses Total Costs and Expenses
3064.1
2211.0
3346.8
1025.6
1570.6
2547.5
2197.0
Cost of Sales
1814.1
2575.4
Gross Profit
396.9
771.3
Operating Income Of Which: Industrial
107.5
1003.8
5337.1
5870.5
1613.4
1907.0
Cost of Sales and Revenues
3889.2
4242.5
110.2
111.8
4808.4
5231.6
Total Costs and Expenses
2008
Net Sales Of Which: Industrial
Sales and Revenues Of Which: Fluid Technology R&D Expenses
Key Figures (US$ million) Fourth quarter ended 30.6 2009
Operating Income
528.7
638.9
Net Income
385.5
392.9
Net Income
Net Sales Of Which: Industrial Cost of Sales
Filtration Industry Analyst
2009
2008
10 309.0
12 145.6
7630.5
9256.2
8181.3
9339.1
Gross Profit
2127.7
2806.5
Operating Income Of Which: Industrial
1003.8
1706.8
745.6
1396.7
508.5
949.5
COMMENT
COMMENT
10
745.6 252.6
Year ended 30.6
Net Income
ITT has posted revenues of US$2.8 billion for the second quarter of fiscal 2009, down 9.3% on the previous year, while net income for the period was 8.9% easier at US$201.4 million. The company’s Fluid Technology segment reported second quarter revenue of US$869 million, down 15% overall and 7% organically compared to the prior year. ITT said weak sales in North American commercial and residential water markets were partially offset by strong shipments in the municipal, mining, oil and gas markets. On a geographic basis, relative strength in emerging markets offset slower sales in North America and Europe. Operating income for the segment for the quarter was down to US$112 million with negative impacts from vol-
48.0 49.5
ume declines, higher employee pension costs and restructuring expenses partially offset by productivity improvements. During the quarter, the segment completed the acquisition of Laing GmbH, a privately held producer of energy-efficient circulator pumps, and also entered into an alliance with Atlas Copco to sell its energyefficient blowers with its aeration and mixer technologies. “While the global economy remains weak, impacting orders in many of our commercial markets, we believe our teams have aggressively positioned the company to weather these uncertain times. This strong leadership is resulting in greater productivity and having a positive impact on income,” Steve Loranger, ITT’s chair, president and CEO, said. ■ www.itt.com
Parker Hannifin has posted fourth quarter sales down 33.9% on a year earlier at US$2.2 billion, while net income was 80.4% easier at US$49.5 million. Full year results followed a similar pattern with net sales declining 15.1% to US$10.3 billion and net income falling 46.4% to US$508.5 million. Parker’s Industrial North America segment saw sales for the quarter decline 33.3% to US$777.5 million, while operating income declined 67.0% to US$53.7 million, compared with the same period a year ago. For the full year, Industrial North America sales fell 12.1% to US$3.7 billion, and operating income was down 35.0% to US$394.9 million, compared with fiscal 2008. In its Industrial International segment, sales for the quarter plummeted 42.6% to
US$793.2 million, and reported an operating loss of US$5.7 million compared with an operating profit of US$213.0 million in the same period a year ago. For the full year, Industrial International sales dropped 22.2% to US$3.9 billion, and operating income were down 55.6% to US$350.7 million. “As we move into fiscal 2010, we will continue to manage our business for cash, while maintaining productivity levels and reducing inventories,” Parker’s chair, CEO and president, Don Washkewicz, said. “Actions to reduce our workforce to align with customer order rates, a broad-based wage freeze, reduced work weeks and significantly reduced discretionary spending are anticipated to benefit us more fully in the year ahead.” ■ www.parker.com
September 2009