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Nederman Holding AB, Sweden
COMPANY WATCH
Pentair Inc, USA
Nederman Holding AB, Sweden Key Figures (SEK million) First quarter ended 31.3 2013
2012
Net Sales
614.5
505.9
Cost of Goods Sold
396.5
299.5
Gross Profit
218.0
206.4
Selling Expenses
156.1
133.9
5.3
5.7
(3.8)
29.8
(10.9)
24.2
(8.2)
18.7
R&D Expenses Operating Profit/(Loss) Profit/(Loss) before Taxes Net Profit/(Loss)
COMMENT Nederman has posted sales of SEK614.5 million for the first quarter of fiscal 2013, up 21.5% on the year earlier although down 10.3% when adjusted for currency and acquisition effects. Order intake followed a similar pattern with the SEK683.2 million registered for the quarter representing a 38.4% increase on the 2012 figure, but a 1.7% drop when adjusted. Profitability for the quarter was impacted by acquisition costs (SEK0.5 million) and restructuring and integration costs (SEK20 million) relating to the March 2013 agreement to purchase Industriventilation A/S and the company’s September 2012 deal to acquire Environmental Filtration Technologies (EFT). Nederman registered an operating loss for the period of SEK3.8 million, compared with the year earlier profit of SEK29.8 million. The net result was a SEK8.2 million loss compared with a profit of SEK18.7 million. Excluding the acquisition and related costs, operating profit for the quarter was SEK16.7 million compared with the year prior’s SEK36.7 million, while the adjusted 10
Filtration Industry Analyst
margin was 2.7% against 7.3%. “In quarter one we saw a continued difficult market in Europe,” Sven Kristensson, Nederman’s CEO, said. “Economic and political uncertainty means that our customers are delaying and holding back their investment decisions.” Kristensson said while Europe had continued to be challenging there had been positive development in the Americas during the quarter, although decision processes for larger investments continued to take a long time. He said Asia Pacific had also made favourable progress for incoming orders, with continued good development was expected. “The decisions we have taken – closure of the factory at Assens, starting up operations at the new factory in Thailand and the acquisition of EFT, which reduces our dependence on Europe – are intended to balance the previously described development and will strengthen Nederman’s position and competitive edge,” Kristensson said. “We will continue to focus on increasing efficiency, especially in our European organization.” ■ www.nederman.com
Key Figures (US$ million) First quarter ended 30.3.2013
31.3.2012
Net Sales Of Which: Water & Fluid Solutions
1774
858
782
587
Cost of Goods Sold
1250
577
Gross Profit
524
281
Selling, General & Admin Expenses
416
174
R&D Costs
34
21
Operating Income Of Which: Water & Fluid Solutions
74
86
75
64
Income before Taxes
74
73
Net Income
52
62
COMMENT Pentair has posted first quarter 2013 revenues of US$1.8 billion, just over double the prior year, although essentially flat when excluding the contribution of the Flow Control business acquired from Tyco International last September. Pentair chair and CEO, Randall Hogan, said there were signs of a North American residential recovery during the quarter and global energy markets remained strong, but the infrastructure and industrial sectors continued to be mixed. “Despite these varied market conditions, Pentair delivered another quarter of strong operating performance led by pricing and productivity, in addition to the benefits of integration and standardization synergies which are beginning to read through,” he said. In the company’s Water & Fluid Solutions segment sales were US$782 million compared with US$587 million a year ago. Adjusted for the Tyco acquisition, Pentair said they were up 5% excluding a 1% unfavourable impact from foreign exchange. Residential and commercial sales, which accounted for
roughly 45% of the division’s revenue, grew 10%. Pentair reported that the North American residential business continued to show signs of a recovery, offsetting ongoing declines in western Europe. Infrastructure sales, including the former Flow Control WES business and comprising around 20% of the segment’s revenue, were down 12%. North America backlog grew once again, but Europe remained challenging. Food & Beverage sales, representing nearly 20% of Water & Fluid Solutions revenue, grew 17%. Agriculture posted strong double-digit gains, while the business unit also benefited from the shipping of delayed projects from the Beverage business unit. “As the company enters its seasonally strongest quarters, we are seeing signs of top line acceleration,” Hogan said. “Based on our early success in integration and standardization, we have raised our targets on 2013 synergies, and margins in our core business should continue to expand.” ■ www.pentair.com
May 2013
Pentair Inc, USA
Nederman Holding AB, Sweden Key Figures (SEK million) First quarter ended 31.3 2013
2012
Net Sales
614.5
505.9
Cost of Goods Sold
396.5
299.5
Gross Profit
218.0
206.4
Selling Expenses
156.1
133.9
5.3
5.7
(3.8)
29.8
(10.9)
24.2
(8.2)
18.7
R&D Expenses Operating Profit/(Loss) Profit/(Loss) before Taxes Net Profit/(Loss)
COMMENT Nederman has posted sales of SEK614.5 million for the first quarter of fiscal 2013, up 21.5% on the year earlier although down 10.3% when adjusted for currency and acquisition effects. Order intake followed a similar pattern with the SEK683.2 million registered for the quarter representing a 38.4% increase on the 2012 figure, but a 1.7% drop when adjusted. Profitability for the quarter was impacted by acquisition costs (SEK0.5 million) and restructuring and integration costs (SEK20 million) relating to the March 2013 agreement to purchase Industriventilation A/S and the company’s September 2012 deal to acquire Environmental Filtration Technologies (EFT). Nederman registered an operating loss for the period of SEK3.8 million, compared with the year earlier profit of SEK29.8 million. The net result was a SEK8.2 million loss compared with a profit of SEK18.7 million. Excluding the acquisition and related costs, operating profit for the quarter was SEK16.7 million compared with the year prior’s SEK36.7 million, while the adjusted 10
Filtration Industry Analyst
margin was 2.7% against 7.3%. “In quarter one we saw a continued difficult market in Europe,” Sven Kristensson, Nederman’s CEO, said. “Economic and political uncertainty means that our customers are delaying and holding back their investment decisions.” Kristensson said while Europe had continued to be challenging there had been positive development in the Americas during the quarter, although decision processes for larger investments continued to take a long time. He said Asia Pacific had also made favourable progress for incoming orders, with continued good development was expected. “The decisions we have taken – closure of the factory at Assens, starting up operations at the new factory in Thailand and the acquisition of EFT, which reduces our dependence on Europe – are intended to balance the previously described development and will strengthen Nederman’s position and competitive edge,” Kristensson said. “We will continue to focus on increasing efficiency, especially in our European organization.” ■ www.nederman.com
Key Figures (US$ million) First quarter ended 30.3.2013
31.3.2012
Net Sales Of Which: Water & Fluid Solutions
1774
858
782
587
Cost of Goods Sold
1250
577
Gross Profit
524
281
Selling, General & Admin Expenses
416
174
R&D Costs
34
21
Operating Income Of Which: Water & Fluid Solutions
74
86
75
64
Income before Taxes
74
73
Net Income
52
62
COMMENT Pentair has posted first quarter 2013 revenues of US$1.8 billion, just over double the prior year, although essentially flat when excluding the contribution of the Flow Control business acquired from Tyco International last September. Pentair chair and CEO, Randall Hogan, said there were signs of a North American residential recovery during the quarter and global energy markets remained strong, but the infrastructure and industrial sectors continued to be mixed. “Despite these varied market conditions, Pentair delivered another quarter of strong operating performance led by pricing and productivity, in addition to the benefits of integration and standardization synergies which are beginning to read through,” he said. In the company’s Water & Fluid Solutions segment sales were US$782 million compared with US$587 million a year ago. Adjusted for the Tyco acquisition, Pentair said they were up 5% excluding a 1% unfavourable impact from foreign exchange. Residential and commercial sales, which accounted for
roughly 45% of the division’s revenue, grew 10%. Pentair reported that the North American residential business continued to show signs of a recovery, offsetting ongoing declines in western Europe. Infrastructure sales, including the former Flow Control WES business and comprising around 20% of the segment’s revenue, were down 12%. North America backlog grew once again, but Europe remained challenging. Food & Beverage sales, representing nearly 20% of Water & Fluid Solutions revenue, grew 17%. Agriculture posted strong double-digit gains, while the business unit also benefited from the shipping of delayed projects from the Beverage business unit. “As the company enters its seasonally strongest quarters, we are seeing signs of top line acceleration,” Hogan said. “Based on our early success in integration and standardization, we have raised our targets on 2013 synergies, and margins in our core business should continue to expand.” ■ www.pentair.com
May 2013