- Email: [email protected]
Roper Industries Inc, USA
February 2003
Pump Industry Analyst
Roper Industries Inc, USA Profile Roper Industries Inc designs, manufactures and distributes specialty industrial controls, fluid handling and analytical instrumentation products worldwide. The Fluid Handling segment produces industrial pumps, semiconductor production equipment and flow measurement and metering equipment. Pump operations include Roper Pump, a manufacturer of positive displacement pumps and mud motor power sections; Cornell Pump, a specialist in centrifugal pumps, Abel Pump, a manufacturer of membrane/diaphragm, high pressure piston, solids handling and marine pumps; and Fluid Metering Precision, a metering pump specialist.
COMMENT Roper Industries will be disapopinted with Fluid Handling’s performance in fiscal 2002, but there was no escaping the semiconductor downturn, and Roper’s exposure to it. Through a disciplined acquisition strategy, Roper has built up a solid portfolio of pump companies. While net sales of industrial pumps were down US$6.8 million in fiscal 2002, pumps remain a steady performer for Roper, in contrast to the more volatile semiconductor business. ■
Key Figures (US$ million) Roper Industries Inc
Year ended 31.10 2002
2001
2000
1999
1998
Net Sales Of Which: Fluid Handling Of Which: Industrial Pumps
627.0
586.5
503.8
407.3
389.2
105.4
125.4
121.4
–
–
83.5
90.3
78.9
–
–
Gross Profit
336.3
309.0
258.8
210.5
191.0
Income from Operations Of Which: Fluid Handling
114.8
98.4
88.2
78.0
66.1
21.5
27.1
29.6
–
–
Working Capital
117.4
128.8
129.5
89.6
82.3
29.9
26.3
22.6
–
–
7.8
7.5
15.2
–
–
3100
–
–
–
–
Research & Development Capital Expenditures No of Employees Contact Details Roper Industries Inc President & CEO: Address:
Brian Jellison 2160 Satellite Boulevard Suite 200 Duluth GA 30097 USA
Tel: +1 770 495 5100 Web: www.roperind.com Web: www.roperpumps.com
Recent Events • In February 2003 Roper realigned its operating structure into four market-focused segments: Instrumentation; Industrial Technology; Energy Systems and Controls; and Scientific and Industrial Imaging. Industrial Technology, which includes Abel Pump, Amot Controls, Cornell Pump, Flow Technology, Fluid Metering, Hansen and Roper Pump, will be headed up by Jim Mannebach (see News, page 16). • On 14 May 2002, Roper terminated its relationship with Arthur Andersen as its independent public accountants and engaged PricewaterhouseCoopers LLP.
5
COMPANY PROFILE
Analysis Roper’s Fluid Handing segment saw fiscal 2002 net sales fall 16% on 2001, reflecting the downturn in the semiconductor capital equipment market and weakness in industrial and oil and gas exploration markets. Fluid Handling’s gross margins fell to 46.2% in fiscal 2002 compared with 48.4% a year earlier, caused mainly by adverse volume leverage in the industrial pump businesses. The Fluid Handling segment was more exposed to poor semiconductor conditions than Roper’s other two segments in fiscal 2002. Excluding semiconductor-related sales orders, Fluid Handling’s net sales orders decreased 10% in fiscal 2002.
Pump Industry Analyst
Roper Industries Inc, USA Profile Roper Industries Inc designs, manufactures and distributes specialty industrial controls, fluid handling and analytical instrumentation products worldwide. The Fluid Handling segment produces industrial pumps, semiconductor production equipment and flow measurement and metering equipment. Pump operations include Roper Pump, a manufacturer of positive displacement pumps and mud motor power sections; Cornell Pump, a specialist in centrifugal pumps, Abel Pump, a manufacturer of membrane/diaphragm, high pressure piston, solids handling and marine pumps; and Fluid Metering Precision, a metering pump specialist.
COMMENT Roper Industries will be disapopinted with Fluid Handling’s performance in fiscal 2002, but there was no escaping the semiconductor downturn, and Roper’s exposure to it. Through a disciplined acquisition strategy, Roper has built up a solid portfolio of pump companies. While net sales of industrial pumps were down US$6.8 million in fiscal 2002, pumps remain a steady performer for Roper, in contrast to the more volatile semiconductor business. ■
Key Figures (US$ million) Roper Industries Inc
Year ended 31.10 2002
2001
2000
1999
1998
Net Sales Of Which: Fluid Handling Of Which: Industrial Pumps
627.0
586.5
503.8
407.3
389.2
105.4
125.4
121.4
–
–
83.5
90.3
78.9
–
–
Gross Profit
336.3
309.0
258.8
210.5
191.0
Income from Operations Of Which: Fluid Handling
114.8
98.4
88.2
78.0
66.1
21.5
27.1
29.6
–
–
Working Capital
117.4
128.8
129.5
89.6
82.3
29.9
26.3
22.6
–
–
7.8
7.5
15.2
–
–
3100
–
–
–
–
Research & Development Capital Expenditures No of Employees Contact Details Roper Industries Inc President & CEO: Address:
Brian Jellison 2160 Satellite Boulevard Suite 200 Duluth GA 30097 USA
Tel: +1 770 495 5100 Web: www.roperind.com Web: www.roperpumps.com
Recent Events • In February 2003 Roper realigned its operating structure into four market-focused segments: Instrumentation; Industrial Technology; Energy Systems and Controls; and Scientific and Industrial Imaging. Industrial Technology, which includes Abel Pump, Amot Controls, Cornell Pump, Flow Technology, Fluid Metering, Hansen and Roper Pump, will be headed up by Jim Mannebach (see News, page 16). • On 14 May 2002, Roper terminated its relationship with Arthur Andersen as its independent public accountants and engaged PricewaterhouseCoopers LLP.
5
COMPANY PROFILE
Analysis Roper’s Fluid Handing segment saw fiscal 2002 net sales fall 16% on 2001, reflecting the downturn in the semiconductor capital equipment market and weakness in industrial and oil and gas exploration markets. Fluid Handling’s gross margins fell to 46.2% in fiscal 2002 compared with 48.4% a year earlier, caused mainly by adverse volume leverage in the industrial pump businesses. The Fluid Handling segment was more exposed to poor semiconductor conditions than Roper’s other two segments in fiscal 2002. Excluding semiconductor-related sales orders, Fluid Handling’s net sales orders decreased 10% in fiscal 2002.