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Metso Corp, Finland
COMPANY WATCH
Metso Corp, Finland
Esco Technologies Inc, USA Key Figures (US$ million) Three months ended 30.6 2015
2014
134.2
130.5
60.4
57.7
Cost of Sales
83.0
79.6
Selling, General and Admin Expenses
32.8
33.5
Earnings before Income Taxes Of Which: Filtration
15.6
15.3
12.3
Net Earnings
Net Sales Of Which: Filtration
Key Figures (E million) Second quarter ended 30.6 2015
2014
Order Intake
823
947
Net Sales
756
962
Cost of Goods Sold
521
679
Gross Profit
235
283
Selling, General & Admin Expenses
147
172
Operating Profit
347
102
10.3
Profit before Taxes
338
79
11.9
11.6
Net Profit
310
53
Nine months ended 30.6 2015
2014
Six months ended 30.6 2015
2014
Order Intake
1622
1822
171.6
Net Sales
1543
1779
233.5
231.3
Cost of Goods Sold
1072
1261
99.2
99.2
Gross Profit
471
518
Selling, General & Admin Expenses
317
333
Operating Profit
412
178
Profit before Taxes
393
95
Net Profit
347
95
Net Sales Of Which: Filtration
383.7
379.7
166.3
Cost of Sales Selling, General and Admin Expenses Earnings before Income Taxes Of Which: Filtration
44.1
42.2
31.4
29.9
Net Earnings/(Loss)
31.0
10.9
COMMENT Esco Technologies Inc’s third quarter Filtration sales increased US$3 million or 5% despite the decrease in expected Space program sales at VACCO. Filtration gross margins increased significantly as a result of the increased sales volumes coupled with a strong and favourable product mix. Year to date 2015 Filtration orders were US$180 million (book-to-bill of 1.08x) and included significant orders from KAZ, and significant commercial aerospace (A-350, other new platform wins, etc.) and Space orders at PTI and VACCO, respectively. “Filtration’s Q3 and YTD EBIT continued to run well ahead of expectations led by the strength of PTI’s commercial aerospace business. YTD EBIT dollars are up 5% on lower sales, driven by improved manufacturing
August 2015
efficiency. The positive industry communications surrounding the growth in new OEM aircraft continues to present an exciting outlook for the foreseeable future,” said Vic Richey, Esco Technologies chairman and CEO. “As we entered the year, Filtration sales and EBIT were projected to be lower compared to last year, resulting from the previously communicated delays on the SLS program at VACCO and the KAZ program at TEQ. As we stand today, we expect to see additional sales and EBIT momentum resulting from our substantial increase in entered orders and the conversion of these orders into profitable sales. We remain on track to meet or exceed our commitments in Filtration,” added Richey. ■ www.escotechnologies.com
COMMENT Metso Corp has posted second quarter net sales for fiscal 2015 of E756 million, down 21.4% on a year earlier. New orders were also lower, slipping 13.1% to E823 million. The lower figures reflected continuing soft demand from the company’s mining customers for capital investment, with Metso’s services revenues remaining relatively stable. Also impacting orders and revenue was Metso’s divestment during the quarter of its Process Automation Systems (PAS) business to Valmet. An upside of that disposal, however, was the booking of a E258 million gain in the quarter, which swelled profits for the period to E310 million compared with E53 million a
year earlier. Metso’s president and CEO, Matti Kähkönen, said the company continued to face difficult conditions. “The demand and outlook in our customer industries remained unchanged in the second quarter compared to the first months of the year,” he said. “Our like-for-like order intake in the second quarter was one percent behind the comparison period, even though the situation in our end markets is more challenging. This was thanks to the few large mining equipment orders we booked during the quarter. While we are happy having received these it should not be read as a sign of recovery.” ■ www.metso.com
Filtration Industry Analyst
9
Metso Corp, Finland
Esco Technologies Inc, USA Key Figures (US$ million) Three months ended 30.6 2015
2014
134.2
130.5
60.4
57.7
Cost of Sales
83.0
79.6
Selling, General and Admin Expenses
32.8
33.5
Earnings before Income Taxes Of Which: Filtration
15.6
15.3
12.3
Net Earnings
Net Sales Of Which: Filtration
Key Figures (E million) Second quarter ended 30.6 2015
2014
Order Intake
823
947
Net Sales
756
962
Cost of Goods Sold
521
679
Gross Profit
235
283
Selling, General & Admin Expenses
147
172
Operating Profit
347
102
10.3
Profit before Taxes
338
79
11.9
11.6
Net Profit
310
53
Nine months ended 30.6 2015
2014
Six months ended 30.6 2015
2014
Order Intake
1622
1822
171.6
Net Sales
1543
1779
233.5
231.3
Cost of Goods Sold
1072
1261
99.2
99.2
Gross Profit
471
518
Selling, General & Admin Expenses
317
333
Operating Profit
412
178
Profit before Taxes
393
95
Net Profit
347
95
Net Sales Of Which: Filtration
383.7
379.7
166.3
Cost of Sales Selling, General and Admin Expenses Earnings before Income Taxes Of Which: Filtration
44.1
42.2
31.4
29.9
Net Earnings/(Loss)
31.0
10.9
COMMENT Esco Technologies Inc’s third quarter Filtration sales increased US$3 million or 5% despite the decrease in expected Space program sales at VACCO. Filtration gross margins increased significantly as a result of the increased sales volumes coupled with a strong and favourable product mix. Year to date 2015 Filtration orders were US$180 million (book-to-bill of 1.08x) and included significant orders from KAZ, and significant commercial aerospace (A-350, other new platform wins, etc.) and Space orders at PTI and VACCO, respectively. “Filtration’s Q3 and YTD EBIT continued to run well ahead of expectations led by the strength of PTI’s commercial aerospace business. YTD EBIT dollars are up 5% on lower sales, driven by improved manufacturing
August 2015
efficiency. The positive industry communications surrounding the growth in new OEM aircraft continues to present an exciting outlook for the foreseeable future,” said Vic Richey, Esco Technologies chairman and CEO. “As we entered the year, Filtration sales and EBIT were projected to be lower compared to last year, resulting from the previously communicated delays on the SLS program at VACCO and the KAZ program at TEQ. As we stand today, we expect to see additional sales and EBIT momentum resulting from our substantial increase in entered orders and the conversion of these orders into profitable sales. We remain on track to meet or exceed our commitments in Filtration,” added Richey. ■ www.escotechnologies.com
COMMENT Metso Corp has posted second quarter net sales for fiscal 2015 of E756 million, down 21.4% on a year earlier. New orders were also lower, slipping 13.1% to E823 million. The lower figures reflected continuing soft demand from the company’s mining customers for capital investment, with Metso’s services revenues remaining relatively stable. Also impacting orders and revenue was Metso’s divestment during the quarter of its Process Automation Systems (PAS) business to Valmet. An upside of that disposal, however, was the booking of a E258 million gain in the quarter, which swelled profits for the period to E310 million compared with E53 million a
year earlier. Metso’s president and CEO, Matti Kähkönen, said the company continued to face difficult conditions. “The demand and outlook in our customer industries remained unchanged in the second quarter compared to the first months of the year,” he said. “Our like-for-like order intake in the second quarter was one percent behind the comparison period, even though the situation in our end markets is more challenging. This was thanks to the few large mining equipment orders we booked during the quarter. While we are happy having received these it should not be read as a sign of recovery.” ■ www.metso.com
Filtration Industry Analyst
9