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Robbins & Myers Inc, USA
November
1999
Pump industry
Johnson Pump International AB, Sweden
Robbins & Myers Inc, USA
Key Figures (SKr million) Six months ended 30.6
Net Sales Cost of Goods Sold
-
Gross Profit Selling, Administration costs Operating
Profit after Financial
Key Figures (US$ million) Three months ended 31.8
1999
1998
328.8
318.7
Net Sales
189.1
189.7
139.7
129.0
and R&D
Profit Items
Net Profit Current Assets Current Liabilities
130.2
121.2
7.5
8.5
3.5
4.2
0.1
I_5
319.8 120.2
1999
1998
103.2
111.2
Cost of Sales
67.0
71.8
Gross Profit
36.1
39.5
Operating
13.0
15.0
3.7
7.0
74.3
96.0 ____
Income
Net Income Backlog
Twelve months ended 31.8
339.0 121.4
across Europe next year. Features of the new system will include capital rationalisatiun and a more streamlined ordering process. Development and design work on Johnson Ptunp’s second family of rotary lobe pump prodtrcts is now largely complete. Market launch took place in June and the new TopWing pump has been well received. Work in &ebro on the new patented industrial Vision Pump, is going to plan, and market launch is set for the end of the year. During the second quarter, Johnson Pump purchased a minority holding in the company’s Malaysian agent. This move should provide access to neighbouring markets, For 1999 as a whole, the Johnson Rump board of directors expects profits to exceed those of 1998, despite the fact that the market for industrial pumps in Europe is not expected to show any significant improvement. ??
1999
1998
Net Sales
400.1
436.5
Cost of Sales
264.0
277.8
Gross Profit
136.2
159.0
46.8
65.6
Net Income
11.8
31.2
Backlog
74.3
96.0
Operating
Europe’s weak industrial market and the implementation of the new business systern af&cted Johnson Fump’s interhn pro&s. Net S&S reached SKr329 million during the first half of the year, down from SKr319 millicm a year earlier. Grders received, at SKr332 million, were 1.5% lower than in 1998. Poor European demand hit sales and orders received in what is the group’s main market for industrial pumps. The Indian operatians maintained a positive performance, while the marine u&s in Sweden and the USA are contimring to perform we& with sales significantly up on 1998 and the aftermarket share also increasing. Group operating were profits SKr9.5 million, up from SKr8.5 million a year ago. The introduction of the new SKr30 million business system is continuing according to schedule and should enable significant cost savings to be achieved when it comes into full operation
Analyst
Income
L
Unfriendly markets presented a real challenge for Robbins & Myers during fiscal 1999. The company reported sales and earnings declines from 1998 levels, which Gerald Connelly, president and CEO, described as “clearly disappointing.” However, ConneIly believes that his management team reacted proactively to a very adverse year, by sigmficantly reducing its cost stnrcture and addressing productivity improvements, while continuing to maintain new product introductions and strategic investments in the business. According to Connelly, the most significant external influence was the dramatic drop in crude oil prices, which resulted in nearly a 50% drop in the Energy Systems business. Lack of confidence in the durability of
crude prices continues to delay recovery of oilfield activity. Fourth quarter sales were US$103.2 million, down 7.2% from US$l 11.2 million reported for the same period last fiscal year. Income before income tax (IBlT) was US$9.6 million after US$1.2 miltion in severance costs incurred in the quarter due to staff reductions. This compares with US$l3.5 million for the fourth quarter of fiscal 1998. Robbins & Myers’ net income for the quarter was US$3.7 million, 47.1% below the US$7.0 million for the same period in fiscal i998. Year to date sales were US$400.1 million for fiscal 1999 and US!&4365 million for fiscal 1998. 1999 IBIT of US$33.3 million compares with US$60.1 million last year. ??
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1999
Pump industry
Johnson Pump International AB, Sweden
Robbins & Myers Inc, USA
Key Figures (SKr million) Six months ended 30.6
Net Sales Cost of Goods Sold
-
Gross Profit Selling, Administration costs Operating
Profit after Financial
Key Figures (US$ million) Three months ended 31.8
1999
1998
328.8
318.7
Net Sales
189.1
189.7
139.7
129.0
and R&D
Profit Items
Net Profit Current Assets Current Liabilities
130.2
121.2
7.5
8.5
3.5
4.2
0.1
I_5
319.8 120.2
1999
1998
103.2
111.2
Cost of Sales
67.0
71.8
Gross Profit
36.1
39.5
Operating
13.0
15.0
3.7
7.0
74.3
96.0 ____
Income
Net Income Backlog
Twelve months ended 31.8
339.0 121.4
across Europe next year. Features of the new system will include capital rationalisatiun and a more streamlined ordering process. Development and design work on Johnson Ptunp’s second family of rotary lobe pump prodtrcts is now largely complete. Market launch took place in June and the new TopWing pump has been well received. Work in &ebro on the new patented industrial Vision Pump, is going to plan, and market launch is set for the end of the year. During the second quarter, Johnson Pump purchased a minority holding in the company’s Malaysian agent. This move should provide access to neighbouring markets, For 1999 as a whole, the Johnson Rump board of directors expects profits to exceed those of 1998, despite the fact that the market for industrial pumps in Europe is not expected to show any significant improvement. ??
1999
1998
Net Sales
400.1
436.5
Cost of Sales
264.0
277.8
Gross Profit
136.2
159.0
46.8
65.6
Net Income
11.8
31.2
Backlog
74.3
96.0
Operating
Europe’s weak industrial market and the implementation of the new business systern af&cted Johnson Fump’s interhn pro&s. Net S&S reached SKr329 million during the first half of the year, down from SKr319 millicm a year earlier. Grders received, at SKr332 million, were 1.5% lower than in 1998. Poor European demand hit sales and orders received in what is the group’s main market for industrial pumps. The Indian operatians maintained a positive performance, while the marine u&s in Sweden and the USA are contimring to perform we& with sales significantly up on 1998 and the aftermarket share also increasing. Group operating were profits SKr9.5 million, up from SKr8.5 million a year ago. The introduction of the new SKr30 million business system is continuing according to schedule and should enable significant cost savings to be achieved when it comes into full operation
Analyst
Income
L
Unfriendly markets presented a real challenge for Robbins & Myers during fiscal 1999. The company reported sales and earnings declines from 1998 levels, which Gerald Connelly, president and CEO, described as “clearly disappointing.” However, ConneIly believes that his management team reacted proactively to a very adverse year, by sigmficantly reducing its cost stnrcture and addressing productivity improvements, while continuing to maintain new product introductions and strategic investments in the business. According to Connelly, the most significant external influence was the dramatic drop in crude oil prices, which resulted in nearly a 50% drop in the Energy Systems business. Lack of confidence in the durability of
crude prices continues to delay recovery of oilfield activity. Fourth quarter sales were US$103.2 million, down 7.2% from US$l 11.2 million reported for the same period last fiscal year. Income before income tax (IBlT) was US$9.6 million after US$1.2 miltion in severance costs incurred in the quarter due to staff reductions. This compares with US$l3.5 million for the fourth quarter of fiscal 1998. Robbins & Myers’ net income for the quarter was US$3.7 million, 47.1% below the US$7.0 million for the same period in fiscal i998. Year to date sales were US$400.1 million for fiscal 1999 and US!&4365 million for fiscal 1998. 1999 IBIT of US$33.3 million compares with US$60.1 million last year. ??
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