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Larox Corp, Finland
Filtration Industry Analyst
November 2003
Larox Corp, Finland
Fedders Corp, USA
million) Key Figures ( Eight months ended 31.8
Key Figures (US$ million) Fourth quarter ended 31.8
2002
35.8
39.5
2002
116.9
91.8
Net Sales
Cost of Sales
92.1
73.2
Operating Profit
2.9
0.6
Gross Profit
24.8
18.6
Net Financing Costs
0.6
0.6
Operating Income
9.7
3.3
Net Income before Income Taxes
5.4
(0.7)
Profit/(Loss) before Extraordinary Items, Provisions and Taxes
2.3
(0.4)
Net Income
3.7
5.5
Net Profit/(Loss)
1.3
(0.5)
Order Backlog
18.9
11.1
Average Number of Personnel
287
312
Net Sales
COMPANY WATCH
2003
2003
Year ended 31.8 2003
2002
Net Sales
421.7
373.7
Cost of Sales
329.1
290.7
Gross Profit
92.6
83.0
Operating Income
30.8
20.3
Income before Income Taxes and Accounting Change
13.0
3.0
Net Income/(Loss)
(3.1)
8.0
COMMENT Fedders posted record sales of US$421.7 million for the fiscal year, up 12.8% on the year earlier figure, with the rise attributed to increased sales of air conditioning products globally. Heating, ventilation, air conditioning and refrigeration (HVACR) sales grew 14.9% for the year to US$382.2 million, while those for the engineered products reporting segment were down 3.6% on a year earlier to US$39.5 million. The drop in the latter sector was due to weak demand in the capital equipment market for commercial and industrial air filtration products. For the full 2003 fiscal year, the gross profit was US$92.6 million (22.0% of sales) compared with US$83.0 million (22.2%) of sales in fiscal 2002. Operating
8
income increased 52% to US$30.8 million in fiscal 2003 compared with US$20.3 million a year earlier. Highlights for the year included the commencement of sales operations in China and India for commercial and industrial cleaners and air conditioners, as well as the commencement of a manufacturing joint venture with Suning Appliance, the largest retailer of split-type air conditioners in China. Sales in the fourth quarter were US$116.9 million, up 27.3% compared with a year earlier. Worldwide HVACR sales in the fourth quarter grew 31.1% to US$107.5 million from US$82.0 million in the prior-year quarter, while engineered products sales for the period were US$9.4 million compared with US$9.8 million a year ago. ■
COMMENT Larox posted net sales for the first eight months of the year totalling 35.8 million, down from 39.5 million for the same period a year ago. More than 88% of net sales came from exports and foreign operations, with Asia accounting for 31.1% of total net sales, Europe 24.7%, Africa 15.6%, South America 12.0%, Australasia 9.3%, and North and Central America 7.3%. The company’s order backlog at the end of August 2003 was 18.9 million, compared with 11.1 million at the same time in 2002. The amount of new orders for the first eight months of 2003 came in at 30.4 million compared with 21.6 million a year earlier.
Larox’s profitability for the period has improved markedly from last year. Operating profit was 2.9 million (0.6 million last year), while the result before extraordinary items, provisions and taxes reached 2.3 million (–0.4 million in 2002). The improvement has been attributed to improved relative margin levels resulting from operational efficiency initiatives. The company invested 1.2 million during the eight month period, primarily in test equipment. Larox is expecting a slight improvement in performance during the last third of the year, again as a result of the efforts to improve operational efficiency. ■
November 2003
Larox Corp, Finland
Fedders Corp, USA
million) Key Figures ( Eight months ended 31.8
Key Figures (US$ million) Fourth quarter ended 31.8
2002
35.8
39.5
2002
116.9
91.8
Net Sales
Cost of Sales
92.1
73.2
Operating Profit
2.9
0.6
Gross Profit
24.8
18.6
Net Financing Costs
0.6
0.6
Operating Income
9.7
3.3
Net Income before Income Taxes
5.4
(0.7)
Profit/(Loss) before Extraordinary Items, Provisions and Taxes
2.3
(0.4)
Net Income
3.7
5.5
Net Profit/(Loss)
1.3
(0.5)
Order Backlog
18.9
11.1
Average Number of Personnel
287
312
Net Sales
COMPANY WATCH
2003
2003
Year ended 31.8 2003
2002
Net Sales
421.7
373.7
Cost of Sales
329.1
290.7
Gross Profit
92.6
83.0
Operating Income
30.8
20.3
Income before Income Taxes and Accounting Change
13.0
3.0
Net Income/(Loss)
(3.1)
8.0
COMMENT Fedders posted record sales of US$421.7 million for the fiscal year, up 12.8% on the year earlier figure, with the rise attributed to increased sales of air conditioning products globally. Heating, ventilation, air conditioning and refrigeration (HVACR) sales grew 14.9% for the year to US$382.2 million, while those for the engineered products reporting segment were down 3.6% on a year earlier to US$39.5 million. The drop in the latter sector was due to weak demand in the capital equipment market for commercial and industrial air filtration products. For the full 2003 fiscal year, the gross profit was US$92.6 million (22.0% of sales) compared with US$83.0 million (22.2%) of sales in fiscal 2002. Operating
8
income increased 52% to US$30.8 million in fiscal 2003 compared with US$20.3 million a year earlier. Highlights for the year included the commencement of sales operations in China and India for commercial and industrial cleaners and air conditioners, as well as the commencement of a manufacturing joint venture with Suning Appliance, the largest retailer of split-type air conditioners in China. Sales in the fourth quarter were US$116.9 million, up 27.3% compared with a year earlier. Worldwide HVACR sales in the fourth quarter grew 31.1% to US$107.5 million from US$82.0 million in the prior-year quarter, while engineered products sales for the period were US$9.4 million compared with US$9.8 million a year ago. ■
COMMENT Larox posted net sales for the first eight months of the year totalling 35.8 million, down from 39.5 million for the same period a year ago. More than 88% of net sales came from exports and foreign operations, with Asia accounting for 31.1% of total net sales, Europe 24.7%, Africa 15.6%, South America 12.0%, Australasia 9.3%, and North and Central America 7.3%. The company’s order backlog at the end of August 2003 was 18.9 million, compared with 11.1 million at the same time in 2002. The amount of new orders for the first eight months of 2003 came in at 30.4 million compared with 21.6 million a year earlier.
Larox’s profitability for the period has improved markedly from last year. Operating profit was 2.9 million (0.6 million last year), while the result before extraordinary items, provisions and taxes reached 2.3 million (–0.4 million in 2002). The improvement has been attributed to improved relative margin levels resulting from operational efficiency initiatives. The company invested 1.2 million during the eight month period, primarily in test equipment. Larox is expecting a slight improvement in performance during the last third of the year, again as a result of the efforts to improve operational efficiency. ■