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Pall sees lower Q1 earnings
Filtration Industry Analyst
STRENGTH OF STERLING HITS SCAPA
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Difficult market conditions c o m b i n e d with a strong pound to adversely impact Scapa's results for the first half of 1998/99. The industrial manufacturing group saw profit before tax fall to £24.5 million, from £29.2 million for the six months to 30 September 1997. The weakness in trading largely reflects conditions in the international markets served by Scapa companies. However the restructuring programme, announced in February this year, has produced cost savings of £3.8 million, putting Scapa well on track to achieve first year programme targets. With sales up 12.7 per cent to £49.3 million and operating profit up 52.3 per cent to £2.1 million, Specialty Materials, which includes the company's filtration operations, made further substantial progress in realigning its portfolio of businesses. During the six months, two businesses were closed and six others were restructured. These changes have been made against a background of very poor trading conditions. Apart from Asia, Scapa has seen difficulties in Australia, South Africa and South America in particular. Capacity reductions in US pulp production hit the North American filtration businesses and sterling's strength has also impacted UK exports. However Scapa remains confident about its plans and is encouraged by the improvements and cost reductions achieved in the businesses to date. With a strong pound and many of its international markets remaining soft, Scapa says it will continue to emphasise the fundamentals of improving efficiencies and cash flow. While the short term trading conditions will remain difficult, Scapa is con-
16
December 1998
fident that it will emerge strongly from this period.
PALL SEES LOWER Q1 EARNINGS S p e a k i n g at Pall Corp's annual shareholders' meeting, Eric Krasnoff, chairman and chief executive officer, disclosed details of the company's sales results and projected earnings for the first quarter that ended on 31 October 1998. For the first quarter, which is traditionally Pail's smallest, the company posted encouraging sales, but earnings are expected to lag. According to Krasnoff, sales for the quarter are within expectations at US$$250 million, compared with last year's US$237 million, an increase of 5.5 per cent. The first quarter earnings, which will be released on 1 December, will be affected by a rebate earned by the American Red Cross (ARC) under a new two-year agreement coveting its purchase of Pall filters and systems for the leukocyte reduction by filtration of blood. Pall says the continued downturn in the semiconductor industry and the general economic crisis in Asia are expected to hit earnings per share harder than previously thought. At the moment, Pall expects earnings per share for the quarter to be several cents down on last year's US$0.14. The company remains optimistic that it can make up ground in the next three quarters and post a solid 1999 performance. Pall reports encouraging sales growth in blood filters and with the exception of Microelectronics, which is down, and Industrial Hydraulics, which is flat, each of the other segments is up and the growth trends are positive. Europe showed the strongest growth, up 24 per cent including a 4 per cent gain from exchange rates and
US$8 million in Pall Rochem sales. Sales in Asia were down 7.5 per cent in local currency, reflecting continued depressed economic conditions.
STRONG ORDERS BOOST MET-PRO'S Q4 PROSPECTS In releasing third quarter results, William L Kacin, president of Met-Pro Corporation, pointed out that "despite current global economic turmoil, Met-Pro continues to grow and m o v e ahead". Kacin said that Met-Pro's large capital equipment divisions, such as Duall Division and Systems Division, continued to beat out competition in providing effective solutions for customers' emission control applications. "These large orders, combined with a steady base stream of standard product orders to our other operations, has produced a healthy and comfortable backlog for the coming quarters." As of 19 November 1998, backlog of orders on hand from operations prior to the Flex-Kleen acquisition were 38 per cent higher than one year ago. With the addition of Flex-Kleen, orders on hand are in excess of US$17 million, or 110 per cent higher than on 23 November 1997. This does not include an additional US$5 million of orders in-house, which according to Met-Pro's long-standing policy, are not included in the backlog until completed engineering drawings have been approved. These orders will be shipped during the fourth quarter of this year and the first quarter of next year• Kacin said that based on a very active quotation level, orders received, and the recent successful completion of the Flex-Kleen acquisition, MetPro prospects are bright for the fourth quarter of this year and the coming 12 months.
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........
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02207 Printed by Professional Book Supplies, Oxon, UK.
STRENGTH OF STERLING HITS SCAPA
3: Z <
Z
Difficult market conditions c o m b i n e d with a strong pound to adversely impact Scapa's results for the first half of 1998/99. The industrial manufacturing group saw profit before tax fall to £24.5 million, from £29.2 million for the six months to 30 September 1997. The weakness in trading largely reflects conditions in the international markets served by Scapa companies. However the restructuring programme, announced in February this year, has produced cost savings of £3.8 million, putting Scapa well on track to achieve first year programme targets. With sales up 12.7 per cent to £49.3 million and operating profit up 52.3 per cent to £2.1 million, Specialty Materials, which includes the company's filtration operations, made further substantial progress in realigning its portfolio of businesses. During the six months, two businesses were closed and six others were restructured. These changes have been made against a background of very poor trading conditions. Apart from Asia, Scapa has seen difficulties in Australia, South Africa and South America in particular. Capacity reductions in US pulp production hit the North American filtration businesses and sterling's strength has also impacted UK exports. However Scapa remains confident about its plans and is encouraged by the improvements and cost reductions achieved in the businesses to date. With a strong pound and many of its international markets remaining soft, Scapa says it will continue to emphasise the fundamentals of improving efficiencies and cash flow. While the short term trading conditions will remain difficult, Scapa is con-
16
December 1998
fident that it will emerge strongly from this period.
PALL SEES LOWER Q1 EARNINGS S p e a k i n g at Pall Corp's annual shareholders' meeting, Eric Krasnoff, chairman and chief executive officer, disclosed details of the company's sales results and projected earnings for the first quarter that ended on 31 October 1998. For the first quarter, which is traditionally Pail's smallest, the company posted encouraging sales, but earnings are expected to lag. According to Krasnoff, sales for the quarter are within expectations at US$$250 million, compared with last year's US$237 million, an increase of 5.5 per cent. The first quarter earnings, which will be released on 1 December, will be affected by a rebate earned by the American Red Cross (ARC) under a new two-year agreement coveting its purchase of Pall filters and systems for the leukocyte reduction by filtration of blood. Pall says the continued downturn in the semiconductor industry and the general economic crisis in Asia are expected to hit earnings per share harder than previously thought. At the moment, Pall expects earnings per share for the quarter to be several cents down on last year's US$0.14. The company remains optimistic that it can make up ground in the next three quarters and post a solid 1999 performance. Pall reports encouraging sales growth in blood filters and with the exception of Microelectronics, which is down, and Industrial Hydraulics, which is flat, each of the other segments is up and the growth trends are positive. Europe showed the strongest growth, up 24 per cent including a 4 per cent gain from exchange rates and
US$8 million in Pall Rochem sales. Sales in Asia were down 7.5 per cent in local currency, reflecting continued depressed economic conditions.
STRONG ORDERS BOOST MET-PRO'S Q4 PROSPECTS In releasing third quarter results, William L Kacin, president of Met-Pro Corporation, pointed out that "despite current global economic turmoil, Met-Pro continues to grow and m o v e ahead". Kacin said that Met-Pro's large capital equipment divisions, such as Duall Division and Systems Division, continued to beat out competition in providing effective solutions for customers' emission control applications. "These large orders, combined with a steady base stream of standard product orders to our other operations, has produced a healthy and comfortable backlog for the coming quarters." As of 19 November 1998, backlog of orders on hand from operations prior to the Flex-Kleen acquisition were 38 per cent higher than one year ago. With the addition of Flex-Kleen, orders on hand are in excess of US$17 million, or 110 per cent higher than on 23 November 1997. This does not include an additional US$5 million of orders in-house, which according to Met-Pro's long-standing policy, are not included in the backlog until completed engineering drawings have been approved. These orders will be shipped during the fourth quarter of this year and the first quarter of next year• Kacin said that based on a very active quotation level, orders received, and the recent successful completion of the Flex-Kleen acquisition, MetPro prospects are bright for the fourth quarter of this year and the coming 12 months.
!
........
,s
~,
,
02207 Printed by Professional Book Supplies, Oxon, UK.