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Parker Hannifin Corp, USA
COMPANY WATCH
Mahle International GmbH, Germany Key Figures (E million) Year ended 31.12 2010 Revenue Of Which: Filtration & Engine Peripherals Of Which: Europe North and South America Asia Pacific
Parker Hannifin Corp, USA Key Figures (US$ million) Third quarter ended 31.3 2011
2009
5261
3864
1522
1131
2487 1693 1081
Income from Ordinary Activities
2010
Net Sales Of Which: Industrial North America Industrial International
3240.1
2614.8
1178.7 1293.0
958.6 995.2
1960 1188 716
Cost of Sales
2463.1
2062.5
Gross Profit
777.0
552.4
252
(165)
Income before Taxes
108.1
52.0
R&D Expenditure
310
246
Net Income
281.6
154.4
EBITDA
641
264
EBIT
287
(100)
Nine months ended 31.3 2011
2010
Extraordinary Expenses and Income
(35)
(150)
Net Income/(Loss)
177
(379)
47 457
43 489
15.6
(9.5)
Employees at Year-end Return on Capital Employed (%)
COMMENT Mahle International exceeded its expectations in fiscal 2010 by posting record sales of E5.3 billion, an increase of 36% on the previous year. Net income also surged with a year earlier loss of E379 million converted to a gain of E177 million. The company said that all of its business units and profit centres had contributed to the upturn, with sales in its Filtration & Engine Peripherals segment enjoying a 34.6% lift on the 2009 figure. Mahle added that the recovery from the impact of the recession had, however, resulted in a noticeable shift in the regional distribution of its sales. While Europe had accounted for 54% of its sales in fiscal 2008, this proportion had fallen to 48% in 2010. In contrast, the proportion of sales achieved in Asia and South America rose from 29 to 35% for the same period. North America’s proportion remained almost unchanged at around 17%.
May 2011
Net Sales Of Which: Industrial North America Industrial International
8936.0
7206.7
3289.1 3533.3
2588.9 2777.5
Cost of Sales
6796.7
5732.9
Gross Profit
2139.4
1473.8
Income before Taxes
1032.3
462.7
762.5
333.3
Net Income
Mahle said a 5.1% year-on-year improvement in capacity utilisation had been key to a significant reduction in production costs during fiscal 2010, helping contribute to the lift in profitability. Among the significant events for the year for Mahle was its acquisition of 60% of the shares of Behr Industry GmbH, a manufacturer of cooling and air conditioning systems. Mahle has combined the activities of the new firm with its existing expertise in large engines and industrial filtration to form the Industry business unit. This new unit is aiming to produce systems such as HVACs with integrated cabin air filters and liquid filtration modules with integrated cooling and heating functions. Mahle expects further growth in fiscal 2011, with its initial forecast estimating that sales will increase in the order of 4-5% to around E5.5 billion. The strongest growth is again expected to come from its newer markets such as Asia and South America. ■ www.mahle.com
COMMENT Parker Hannifin Corp had a strong third quarter of fiscal 2011 with net sales up 23.9% on a year earlier at US$3.2 billion and net income 82.4% higher at US$281.6 million. In the company’s Industrial North America segment, third quarter sales were up 23.0% to US$1.2 billion, and operating income increased 41.8% on the 2010 figure to US$189.5 million. In the Industrial International segment, sales were up 29.9% to US$1.3 billion, and operating income strengthened 82.8% to US$199.8 million. “Our third quarter performance reflects the continued strength that we see across our end markets and regions and our
ability to leverage that strength into higher operating margins and record quarterly earnings per share,” Parker’s chair, CEO and president Don Washkewicz said. “Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21% in the quarter with acquisitions contributing 1% and currency contributing 2%.” Washkewicz added that Parker had good prospects going forward with the company expecting to deliver record earnings in fiscal 2011, as well as a strong order backlog for fiscal 2012. ■ www.parker.com
Filtration Industry Analyst
11
Mahle International GmbH, Germany Key Figures (E million) Year ended 31.12 2010 Revenue Of Which: Filtration & Engine Peripherals Of Which: Europe North and South America Asia Pacific
Parker Hannifin Corp, USA Key Figures (US$ million) Third quarter ended 31.3 2011
2009
5261
3864
1522
1131
2487 1693 1081
Income from Ordinary Activities
2010
Net Sales Of Which: Industrial North America Industrial International
3240.1
2614.8
1178.7 1293.0
958.6 995.2
1960 1188 716
Cost of Sales
2463.1
2062.5
Gross Profit
777.0
552.4
252
(165)
Income before Taxes
108.1
52.0
R&D Expenditure
310
246
Net Income
281.6
154.4
EBITDA
641
264
EBIT
287
(100)
Nine months ended 31.3 2011
2010
Extraordinary Expenses and Income
(35)
(150)
Net Income/(Loss)
177
(379)
47 457
43 489
15.6
(9.5)
Employees at Year-end Return on Capital Employed (%)
COMMENT Mahle International exceeded its expectations in fiscal 2010 by posting record sales of E5.3 billion, an increase of 36% on the previous year. Net income also surged with a year earlier loss of E379 million converted to a gain of E177 million. The company said that all of its business units and profit centres had contributed to the upturn, with sales in its Filtration & Engine Peripherals segment enjoying a 34.6% lift on the 2009 figure. Mahle added that the recovery from the impact of the recession had, however, resulted in a noticeable shift in the regional distribution of its sales. While Europe had accounted for 54% of its sales in fiscal 2008, this proportion had fallen to 48% in 2010. In contrast, the proportion of sales achieved in Asia and South America rose from 29 to 35% for the same period. North America’s proportion remained almost unchanged at around 17%.
May 2011
Net Sales Of Which: Industrial North America Industrial International
8936.0
7206.7
3289.1 3533.3
2588.9 2777.5
Cost of Sales
6796.7
5732.9
Gross Profit
2139.4
1473.8
Income before Taxes
1032.3
462.7
762.5
333.3
Net Income
Mahle said a 5.1% year-on-year improvement in capacity utilisation had been key to a significant reduction in production costs during fiscal 2010, helping contribute to the lift in profitability. Among the significant events for the year for Mahle was its acquisition of 60% of the shares of Behr Industry GmbH, a manufacturer of cooling and air conditioning systems. Mahle has combined the activities of the new firm with its existing expertise in large engines and industrial filtration to form the Industry business unit. This new unit is aiming to produce systems such as HVACs with integrated cabin air filters and liquid filtration modules with integrated cooling and heating functions. Mahle expects further growth in fiscal 2011, with its initial forecast estimating that sales will increase in the order of 4-5% to around E5.5 billion. The strongest growth is again expected to come from its newer markets such as Asia and South America. ■ www.mahle.com
COMMENT Parker Hannifin Corp had a strong third quarter of fiscal 2011 with net sales up 23.9% on a year earlier at US$3.2 billion and net income 82.4% higher at US$281.6 million. In the company’s Industrial North America segment, third quarter sales were up 23.0% to US$1.2 billion, and operating income increased 41.8% on the 2010 figure to US$189.5 million. In the Industrial International segment, sales were up 29.9% to US$1.3 billion, and operating income strengthened 82.8% to US$199.8 million. “Our third quarter performance reflects the continued strength that we see across our end markets and regions and our
ability to leverage that strength into higher operating margins and record quarterly earnings per share,” Parker’s chair, CEO and president Don Washkewicz said. “Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels. Total organic sales increased 21% in the quarter with acquisitions contributing 1% and currency contributing 2%.” Washkewicz added that Parker had good prospects going forward with the company expecting to deliver record earnings in fiscal 2011, as well as a strong order backlog for fiscal 2012. ■ www.parker.com
Filtration Industry Analyst
11