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Parker Hannifin Corp, USA
Key Figures (US$ million) Third quarter ended 31.3 2015 2014
Pentair Inc, UK/Ireland
Net Sales Of Which: Industrial North America Industrial International
3162.3
3358.4
1441.6 1148.2
1455.2 1357.5
Cost of Sales
2373.0
2605.9
Gross Profit
789.3
752.5
Operating Income Of Which: Industrial North America Industrial International
448.3
433.9
R&D Costs
235.5 139.5
243.0 126.9
Net Income
285.5
242.4
Nine months ended 31.3 2015 2014
Key Figures (US$ million) First quarter ended 28.3.2015 29.3.2014 1475.0
1644.0
350.1
401.1
Cost of Goods Sold
964.8
1079.9
Gross Profit
510.2
564.1
Selling, General & Admin Costs
309.2
352.5
29.8
29.5
Operating Income Of Which: Flow & Filtration Solutions
171.2
182.1
29.1
34.7
Income before Taxes
153.5
166.3
Net Income
113.9
118.6
Net Sales Of Which: Flow & Filtration Solutions
Net Sales Of Which: Industrial North America Industrial International
9567.2
9690.6
4302.6 3599.1
4168.5 3905.2
COMMENT
Cost of Sales
7234.5
7502.3
Pentair has had a challenging start to fiscal 2015 with its net sales down 10.3% on the year earlier at US$1.5 billion and its net income easing 4.0% to US$113.9 million. In the company’s Flow & Filtration Solutions segment first quarter sales were US$350.1 million, a drop of 12.7% versus the comparator period. Sales were down 7% on a like-for-like basis, while negative currency effects decreased the total by a further 6%. Sales were lower in all of the segment’s business units, with the biggest drop in its Infrastructure division where they fell 14% to US$52.5 million. Elsewhere in the segment Residential & Commercial sales were down 11% to US$122.5 million, Food & Beverage revenues fell 2% to US$105.0 million and Industrial sales decreased 1% to US$52.5 million. Sales were also down across most of Pentair’s other operations. The Valves & Controls segment experienced a 19.2% year-on-year revenue drop to US$429.2 million, while sales in the Technical Solutions segment
Gross Profit
2332.8
Operating Income Of Which: Industrial North America Industrial International
1397.9
Net Income
2188.3 1278.7
726.6 465.8
677.8 434.5
832.7
740.0
COMMENT Parker Hannifin has posted third quarter fiscal 2015 sales of US$3.2 billion, a decrease of 5.8% on the year earlier. Net income, however, was up climbing17.8% to US$285.5 million. In the firm’s Industrial segment, North American sales were down 0.9% to US$1.4 billion and operating income was 3.1% easier at US$235.5 million, while International sales fell 15.4% to US$1.1 billion although operating income in the business unit was up 9.9% at US$139.5 million. For the corresponding nine month period net sales were 1.3% 8
Pump Industry Analyst
lower at US$9.6 billion, while net income strengthened 12.5% to US$832.7 million. “We performed well in the face of an increasingly challenging macro-economic environment, including weakness in key end markets, as well as the significant strengthening of the US dollar,” Tom Williams, Parker’s CEO, said. “Segment operating margins were 14.2%, reflecting the benefits of our restructuring activities and the adaptability of our businesses to changing market conditions.” n www.parker.com
were down 4.7% at US$395.8 million. Bucking the trend was the Water Quality Systems segment where sales were up 1.0% at US$306.9 million. Pentair’s operating income for the quarter was down 6.0% on the fiscal 2014 equivalent at US$171.2 million. Segment income in the Flow & Filtration Solutions sector was US$29.1 million, a 16.1% decrease on the US$34.7 million posted in the same period last year. “We started the year much slower than we had originally anticipated as a decline in oil prices and the strengthening dollar have led many of our customers to delay business in what feels like a global capital spending pause,” Randall Hogan, Pentair’s chair and CEO, said. “We believe that Pentair is in the right markets for the long term and we have detailed plans in place to work through the anticipated near term challenges.” Given the slower than expected start, Hogan said Pentair was adjusting its expectations for the full year and was getting more aggressive on cost actions. n www.pentair.com
May 2015
Parker Hannifin Corp, USA
Key Figures (US$ million) Third quarter ended 31.3 2015 2014
Pentair Inc, UK/Ireland
Net Sales Of Which: Industrial North America Industrial International
3162.3
3358.4
1441.6 1148.2
1455.2 1357.5
Cost of Sales
2373.0
2605.9
Gross Profit
789.3
752.5
Operating Income Of Which: Industrial North America Industrial International
448.3
433.9
R&D Costs
235.5 139.5
243.0 126.9
Net Income
285.5
242.4
Nine months ended 31.3 2015 2014
Key Figures (US$ million) First quarter ended 28.3.2015 29.3.2014 1475.0
1644.0
350.1
401.1
Cost of Goods Sold
964.8
1079.9
Gross Profit
510.2
564.1
Selling, General & Admin Costs
309.2
352.5
29.8
29.5
Operating Income Of Which: Flow & Filtration Solutions
171.2
182.1
29.1
34.7
Income before Taxes
153.5
166.3
Net Income
113.9
118.6
Net Sales Of Which: Flow & Filtration Solutions
Net Sales Of Which: Industrial North America Industrial International
9567.2
9690.6
4302.6 3599.1
4168.5 3905.2
COMMENT
Cost of Sales
7234.5
7502.3
Pentair has had a challenging start to fiscal 2015 with its net sales down 10.3% on the year earlier at US$1.5 billion and its net income easing 4.0% to US$113.9 million. In the company’s Flow & Filtration Solutions segment first quarter sales were US$350.1 million, a drop of 12.7% versus the comparator period. Sales were down 7% on a like-for-like basis, while negative currency effects decreased the total by a further 6%. Sales were lower in all of the segment’s business units, with the biggest drop in its Infrastructure division where they fell 14% to US$52.5 million. Elsewhere in the segment Residential & Commercial sales were down 11% to US$122.5 million, Food & Beverage revenues fell 2% to US$105.0 million and Industrial sales decreased 1% to US$52.5 million. Sales were also down across most of Pentair’s other operations. The Valves & Controls segment experienced a 19.2% year-on-year revenue drop to US$429.2 million, while sales in the Technical Solutions segment
Gross Profit
2332.8
Operating Income Of Which: Industrial North America Industrial International
1397.9
Net Income
2188.3 1278.7
726.6 465.8
677.8 434.5
832.7
740.0
COMMENT Parker Hannifin has posted third quarter fiscal 2015 sales of US$3.2 billion, a decrease of 5.8% on the year earlier. Net income, however, was up climbing17.8% to US$285.5 million. In the firm’s Industrial segment, North American sales were down 0.9% to US$1.4 billion and operating income was 3.1% easier at US$235.5 million, while International sales fell 15.4% to US$1.1 billion although operating income in the business unit was up 9.9% at US$139.5 million. For the corresponding nine month period net sales were 1.3% 8
Pump Industry Analyst
lower at US$9.6 billion, while net income strengthened 12.5% to US$832.7 million. “We performed well in the face of an increasingly challenging macro-economic environment, including weakness in key end markets, as well as the significant strengthening of the US dollar,” Tom Williams, Parker’s CEO, said. “Segment operating margins were 14.2%, reflecting the benefits of our restructuring activities and the adaptability of our businesses to changing market conditions.” n www.parker.com
were down 4.7% at US$395.8 million. Bucking the trend was the Water Quality Systems segment where sales were up 1.0% at US$306.9 million. Pentair’s operating income for the quarter was down 6.0% on the fiscal 2014 equivalent at US$171.2 million. Segment income in the Flow & Filtration Solutions sector was US$29.1 million, a 16.1% decrease on the US$34.7 million posted in the same period last year. “We started the year much slower than we had originally anticipated as a decline in oil prices and the strengthening dollar have led many of our customers to delay business in what feels like a global capital spending pause,” Randall Hogan, Pentair’s chair and CEO, said. “We believe that Pentair is in the right markets for the long term and we have detailed plans in place to work through the anticipated near term challenges.” Given the slower than expected start, Hogan said Pentair was adjusting its expectations for the full year and was getting more aggressive on cost actions. n www.pentair.com
May 2015