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Southbank UK plc, UK
COMPANY WATCH
Roper Industries Inc, USA
Southbank UK plc, UK
Key Figures (US$ million) Three months ended 30.9 2007
Key Figures (£ million) Six months ended 30 June 2007
2006
11.6
10.2
Cost of Sales
8.9
7.4
Gross Profit
2.7
2.8
Operating Profit
0.6
1.6
Profit Retained
0.1
0.8
2006
Net Sales Of Which: Industrial Technology
532.9
427.2
161.8
140.6
Cost of Sales
261.1
209.0
Net Earnings
65.1
50.8
533.0
435.7
153.2
149.8
Nine months ended 30.9 2007
2006
Net Orders Of Which: Industrial Technology
Net Sales Of Which: Industrial Technology
1542.0
1235.3
477.7
402.2
Cost of Sales
769.6
609.7
Net Earnings
177.8
136.6
1558.8
1261.7
479.1
436.6
Net Orders Of Which: Industrial Technology
COMMENT Roper Industries Inc’s third quarter exceeded performance in any quarter in the company’s history. Net earnings were up 28% to US$65 million compared with the third quarter 2006. Third quarter net sales were US$533 million, an increase of 25% over the comparable period in 2006. Excluding acquisitions, internal sales increased 16%, including a 2% benefit from foreign exchange. Net orders were US$533 million, an increase of US$97 million over the third quarter of 2006; excluding acquisitions, internal orders were up 12%. “We continue to have exceptional internal sales and orders growth, and our recent acquisitions have performed well across the board,” said Brian Jellison,
December 2007
Roper’s chairman, president and CEO. Roper’s strong order growth was led by the RF and Energy Segments. Strong growth in the Industrial Segment was partially offset by Neptune’s comparison to third quarter 2006, when orders were up 38%; Neptune’s backlog is 8% higher at the end of the third quarter of 2007 compared to the end of the third quarter of 2006. The company says that continued strength in sales and orders in Roper’s businesses reflect the importance of its participation in many secular growth markets. Roper’s acquisition pipeline remains full and the company has taken additional steps to refine its portfolio of businesses. ■ www.roperind.com
Turnover
COMMENT For the six months ended 30 June 2007, Southbank UK plc, parent company of Hayward Tyler, saw group revenues increase 13% to £11.6 million. Southbank reports that Hayward Tyler continues to make good progress in the development of its oil and gas sub-sea capabilities. This is reflected in the company’s Project Tyrihans activity where Hayward Tyler is currently building three 2500kW subsea motors, the largest of their kind ever to be built by the company. However, the complexities of this product offering and the time invested in overcoming the technical challenges have led to other deliveries being delayed. This has reduced operating profit to £626 000. Southbank says it is encouraged by the strong growth in Hayward Tyler’s order book which is up 41% to £25.7 million, from £18.2 million at the end of 2006. For example, in Asia, Hayward Tyler has recently signed a framework agreement with Shanghai Boiler Works (worth in excess of £10 million) to supply over 50 boiler
circulating pump units over the next 12 months (see Orders & Contracts, page 12). Hayward Tyler has also set up a Hayward Tyler Renewables operation to incorporate its work on the Tidalstream project (a joint venture which includes Rolls Royce, Corus and Garrad Hussan) to develop a tidal generated electric motor. Hayward Tyler Renewables is also looking at how it can expand its market presence in the pumping of Syngas (CO2 sequestration), a market in which it has been operating for more than 20 years. Southbank says that Hayward Tyler continues to focus on driving sales and developing new product offerings for the power generation (including nuclear) and oil & gas (particularly sub-sea) markets. These markets continue to show strong medium–long term growth prospects encouraging the company to invest further in management expertise, new product development and production capabilities. ■ www.southbankplc.com and www.haywardtyler.com
Pump Industry Analyst
9
Roper Industries Inc, USA
Southbank UK plc, UK
Key Figures (US$ million) Three months ended 30.9 2007
Key Figures (£ million) Six months ended 30 June 2007
2006
11.6
10.2
Cost of Sales
8.9
7.4
Gross Profit
2.7
2.8
Operating Profit
0.6
1.6
Profit Retained
0.1
0.8
2006
Net Sales Of Which: Industrial Technology
532.9
427.2
161.8
140.6
Cost of Sales
261.1
209.0
Net Earnings
65.1
50.8
533.0
435.7
153.2
149.8
Nine months ended 30.9 2007
2006
Net Orders Of Which: Industrial Technology
Net Sales Of Which: Industrial Technology
1542.0
1235.3
477.7
402.2
Cost of Sales
769.6
609.7
Net Earnings
177.8
136.6
1558.8
1261.7
479.1
436.6
Net Orders Of Which: Industrial Technology
COMMENT Roper Industries Inc’s third quarter exceeded performance in any quarter in the company’s history. Net earnings were up 28% to US$65 million compared with the third quarter 2006. Third quarter net sales were US$533 million, an increase of 25% over the comparable period in 2006. Excluding acquisitions, internal sales increased 16%, including a 2% benefit from foreign exchange. Net orders were US$533 million, an increase of US$97 million over the third quarter of 2006; excluding acquisitions, internal orders were up 12%. “We continue to have exceptional internal sales and orders growth, and our recent acquisitions have performed well across the board,” said Brian Jellison,
December 2007
Roper’s chairman, president and CEO. Roper’s strong order growth was led by the RF and Energy Segments. Strong growth in the Industrial Segment was partially offset by Neptune’s comparison to third quarter 2006, when orders were up 38%; Neptune’s backlog is 8% higher at the end of the third quarter of 2007 compared to the end of the third quarter of 2006. The company says that continued strength in sales and orders in Roper’s businesses reflect the importance of its participation in many secular growth markets. Roper’s acquisition pipeline remains full and the company has taken additional steps to refine its portfolio of businesses. ■ www.roperind.com
Turnover
COMMENT For the six months ended 30 June 2007, Southbank UK plc, parent company of Hayward Tyler, saw group revenues increase 13% to £11.6 million. Southbank reports that Hayward Tyler continues to make good progress in the development of its oil and gas sub-sea capabilities. This is reflected in the company’s Project Tyrihans activity where Hayward Tyler is currently building three 2500kW subsea motors, the largest of their kind ever to be built by the company. However, the complexities of this product offering and the time invested in overcoming the technical challenges have led to other deliveries being delayed. This has reduced operating profit to £626 000. Southbank says it is encouraged by the strong growth in Hayward Tyler’s order book which is up 41% to £25.7 million, from £18.2 million at the end of 2006. For example, in Asia, Hayward Tyler has recently signed a framework agreement with Shanghai Boiler Works (worth in excess of £10 million) to supply over 50 boiler
circulating pump units over the next 12 months (see Orders & Contracts, page 12). Hayward Tyler has also set up a Hayward Tyler Renewables operation to incorporate its work on the Tidalstream project (a joint venture which includes Rolls Royce, Corus and Garrad Hussan) to develop a tidal generated electric motor. Hayward Tyler Renewables is also looking at how it can expand its market presence in the pumping of Syngas (CO2 sequestration), a market in which it has been operating for more than 20 years. Southbank says that Hayward Tyler continues to focus on driving sales and developing new product offerings for the power generation (including nuclear) and oil & gas (particularly sub-sea) markets. These markets continue to show strong medium–long term growth prospects encouraging the company to invest further in management expertise, new product development and production capabilities. ■ www.southbankplc.com and www.haywardtyler.com
Pump Industry Analyst
9