COMPANY WATCH
Pentair Inc, USA Key Figures (US$ million) Second quarter ended 30.6.2012 Net Sales Of Which: Water & Fluid Solutions
ProSep Inc, Canada
941.5
910.2
675.5
632.0
629.4
622.4
Gross Profit
312.1
287.7
20.9
19.9
Operating Income Of Which: Water & Fluid Solutions
117.8
109.4
92.0
84.5
Income before Taxes
102.3
95.5
71.8
66.7
Six months ended 30.6.2012
2.7.2011
Net Income
Net Sales Of Which: Water & Fluid Solutions
1799.7
1700.4
1262.5
1147.4
Cost of Goods Sold
1206.9
1163.7
592.8
536.8
Gross Profit R&D Costs
41.6
38.0
Operating Income Of Which: Water & Fluid Solutions
202.7
195.6
155.7
141.0
Income before Taxes
173.6
172.6
Net Income
132.6
117.3
COMMENT Pentair has posted second quarter 2012 sales of US$942 million, an increase of 3.4% on a year earlier, while net income grew 7.6% to US$71.8 million. “Pentair delivered another strong quarter of margin expansion led by pricing and productivity, which demonstrates the power of the Pentair Integrated Management System and our strong brands and market positions,” said Randall J. Hogan, Pentair’s chair and CEO. “While the global macro environment remains challenging, we continue to see pockets of growth in several verticals, including North American industrial, agriculture, 10
Filtration Industry Analyst
2011
Revenue
13.9
9.6
EBITDA
(0.7)
(1.8)
Loss for the Period
(1.6)
(2.4)
Six months ended 30.6 2012
2011
2.7.2011
Cost of Goods Sold R&D Costs
Key Figures (C$ million) Three months ended 30.6 2012
pool, aquaculture, water reuse, and energy.” Pentair’s Water & Fluid Solutions division saw sales lift 6.9% year-over-year to US$675.5 million, with its 2011 filtration acquisition Clean Process Technologies adding six percentage points and a negative three-percentage point impact from foreign exchange. For the corresponding half year consolidated sales were up 5.8% at US$1.8 billion, with Water & Fluid Solutions revenues climbing 10.0% to US$1.3 billion. ■ www.pentair.com
Revenue
22.2
19.5
EBITDA
(2.9)
(4.1)
Loss for the Period
(3.1)
(5.4)
COMMENT ProSep Inc’s revenues were up 45% during the second quarter of 2012, reaching C$13.9 million, compared with C$9.6 million during the corresponding period of 2011. Significant revenue growth was achieved on the advancement of a large number of projects awarded since the second half of 2011. Year-to-date, ProSep reported consolidated revenues of C$22.2 million, up 14% from C$19.5 million generated during the equivalent period of 2011. Significant revenue growth at the Asia Pacific operation offset declines at the company’s US business. For the three-month period ended 30 June 2012, ProSep reported a loss of C$1.6 million, which was an improvement on the loss of C$2.4 million for the second quarter of 2011. Year-todate, the company delivered a loss of C$3.1 million compared with a loss of C$5.4 million in the corresponding period of 2011. The loss for both periods improved on higher revenue, gross margins (on a yearto-date basis) and lower total expense levels than last year, when significant investments in human resources and sales & marketing were made to position the company for growth.
ProSep says that its decision to invest in expanding its business development and engineering teams is starting to show results. During the first half of 2012, ProSep received more than C$32 million in new purchase orders including C$6 million awarded to ProSep Kolon. At the end of the second quarter of 2012, ProSep’s backlog stood at C$27.2 million, up 15% from the start of the year and 106% year-over-year. “With second quarter revenues up almost 50% yearover-year, we are on track to deliver a record year. Since the introduction of our new strategy, our backlog has grown significantly along with interest for our proprietary technologies,” said Jacques Drouin, ProSep president and CEO. “We are currently entertaining several promising commercial discussions with new and existing customers that could lead to significant orders for our proprietary technologies. With a growing population of systems in operation, we are now able to demonstrate significant cost savings and process improvements that are resulting in important benefits to our customers.” ■ www.prosep.com
August 2012