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SPX Corp, USA
COMPANY WATCH
Pentair Inc, USA
SPX Corp, USA
Key Figures (US$ million) Three months ended 1.10.2011
2.10.2010
Key Figures (US$ million) Three months ended 1.10.2011
Net Sales Of Which: Water
890.5
773.7
614.6
512.6
Revenues Of Which: Flow Technologies
Cost of Goods Sold
618.5
537.2
Research and Development
20.1
16.9
Operating Income Of Which: Water
92.9
2.10.2010
1387.2
1288.4
527.9
438.6
Cost of Products Sold
996.1
910.4
156.4
157.7
90.8
Segment Income Of Which: Flow Technologies
70.1
58.2
59.6
58.5
Operating Income
107.1
108.6
Net Income Attributable to Pentair Inc 51.1
55.1
Net Income
62.3
39.7
Nine months ended 1.10.2011
2.10.2010
Nine months ended 1.10.2011
2.10.2010
3970.2
3561.8
1476.6
1176.0
Net Sales Of Which: Water
2591.0
2276.9
1761.9
1539.9
Revenues Of Which: Flow Technologies
Cost of Goods Sold
1782.1
1578.5
Cost of Products Sold
58.1
51.1
Operating Income Of Which: Water
288.5
Net Income Attributable to Pentair Inc
Research and Development
2846.5
2517.6
403.2
399.9
254.6
Segment Income Of Which: Flow Technologies
183.1
144.7
200.7
176.5
Operating Income
217.4
248.2
168.3
151.5
Net Income
122.1
139.0
COMMENT The 15% increase in Pentair Inc’s third quarter 2011 sales of US$891 million reflected growth across its Water and Technical Products segments, including 11 percentage points from the acquisition of Norit’s Clean Process Technologies (CPT) and 2 percentage points from favourable foreign currency. Water sales were up 20% year-on-year to US$615 million, including 17 percentage points from the CPT acquisition. Sales growth was negatively impacted by approximately 6 percentage points due to sales in 2010 related to the Gulf Intracoastal Waterway (GIWW) project. Residential Flow sales were up 15% on the prior year quarter, led by double-digit growth in US residential de-watering products
December 2011
and the agricultural business. Residential Filtration sales were up 5%, as the benefit from new products and increased penetration in fast growth regions offset softness in the US market. Pool sales were up 14% driven by strong demand for energy efficient pool products and expanded distribution. Engineered Flow sales were down 32% due to lower US municipal sales while commercial and industrial pump sales increased year-over-year. Filtration Solutions sales increased 141% year-over-year, reflecting a 133-percentage point or US$89 million benefit from the CPT acquisition. The remaining 8 percentage points of growth mainly reflected increased sales in foodservice and desalination. ■ www.pentair.com
COMMENT During the third quarter, SPX Corp saw continued strong demand in its Flow Technology segment across all key geographies and end markets. Flow Technology, which includes pump brands APV, Bran+Luebbe, Gerstenberg Schröder, Johnson Pump and Waukesha Cherry-Burrell, delivered third quarter 2011 revenues of US$527.9 million compared with US$438.6 million in the third quarter of 2010, an increase of US$89.3 million, or 20.4%. Organic revenues increased 16.3%, reflecting increased sales of large-scale systems and components for the food and beverage market and components for the power and energy and general industrial end markets. Acquisitions increased reported revenues
by 0.5%, while the impact of currency fluctuations increased reported revenues by 3.6%. Segment income was US$70.1 million, or 13.3% of revenues, in the third quarter of 2011 compared with US$58.2 million, or 13.3% of revenues, in the third quarter of 2010. The increase in segment income was due primarily to the impact of the organic revenue growth. In August 2011, SPX entered into an agreement to purchase ClydeUnion Pumps. Once completed, this acquisition will significantly expand SPX’s products and solution offerings serving the global oil and gas industry, and is consistent with the company’s long-term strategy of expanding its Flow Technology segment. ■ www.spx.com
Pump Industry Analyst
9
Pentair Inc, USA
SPX Corp, USA
Key Figures (US$ million) Three months ended 1.10.2011
2.10.2010
Key Figures (US$ million) Three months ended 1.10.2011
Net Sales Of Which: Water
890.5
773.7
614.6
512.6
Revenues Of Which: Flow Technologies
Cost of Goods Sold
618.5
537.2
Research and Development
20.1
16.9
Operating Income Of Which: Water
92.9
2.10.2010
1387.2
1288.4
527.9
438.6
Cost of Products Sold
996.1
910.4
156.4
157.7
90.8
Segment Income Of Which: Flow Technologies
70.1
58.2
59.6
58.5
Operating Income
107.1
108.6
Net Income Attributable to Pentair Inc 51.1
55.1
Net Income
62.3
39.7
Nine months ended 1.10.2011
2.10.2010
Nine months ended 1.10.2011
2.10.2010
3970.2
3561.8
1476.6
1176.0
Net Sales Of Which: Water
2591.0
2276.9
1761.9
1539.9
Revenues Of Which: Flow Technologies
Cost of Goods Sold
1782.1
1578.5
Cost of Products Sold
58.1
51.1
Operating Income Of Which: Water
288.5
Net Income Attributable to Pentair Inc
Research and Development
2846.5
2517.6
403.2
399.9
254.6
Segment Income Of Which: Flow Technologies
183.1
144.7
200.7
176.5
Operating Income
217.4
248.2
168.3
151.5
Net Income
122.1
139.0
COMMENT The 15% increase in Pentair Inc’s third quarter 2011 sales of US$891 million reflected growth across its Water and Technical Products segments, including 11 percentage points from the acquisition of Norit’s Clean Process Technologies (CPT) and 2 percentage points from favourable foreign currency. Water sales were up 20% year-on-year to US$615 million, including 17 percentage points from the CPT acquisition. Sales growth was negatively impacted by approximately 6 percentage points due to sales in 2010 related to the Gulf Intracoastal Waterway (GIWW) project. Residential Flow sales were up 15% on the prior year quarter, led by double-digit growth in US residential de-watering products
December 2011
and the agricultural business. Residential Filtration sales were up 5%, as the benefit from new products and increased penetration in fast growth regions offset softness in the US market. Pool sales were up 14% driven by strong demand for energy efficient pool products and expanded distribution. Engineered Flow sales were down 32% due to lower US municipal sales while commercial and industrial pump sales increased year-over-year. Filtration Solutions sales increased 141% year-over-year, reflecting a 133-percentage point or US$89 million benefit from the CPT acquisition. The remaining 8 percentage points of growth mainly reflected increased sales in foodservice and desalination. ■ www.pentair.com
COMMENT During the third quarter, SPX Corp saw continued strong demand in its Flow Technology segment across all key geographies and end markets. Flow Technology, which includes pump brands APV, Bran+Luebbe, Gerstenberg Schröder, Johnson Pump and Waukesha Cherry-Burrell, delivered third quarter 2011 revenues of US$527.9 million compared with US$438.6 million in the third quarter of 2010, an increase of US$89.3 million, or 20.4%. Organic revenues increased 16.3%, reflecting increased sales of large-scale systems and components for the food and beverage market and components for the power and energy and general industrial end markets. Acquisitions increased reported revenues
by 0.5%, while the impact of currency fluctuations increased reported revenues by 3.6%. Segment income was US$70.1 million, or 13.3% of revenues, in the third quarter of 2011 compared with US$58.2 million, or 13.3% of revenues, in the third quarter of 2010. The increase in segment income was due primarily to the impact of the organic revenue growth. In August 2011, SPX entered into an agreement to purchase ClydeUnion Pumps. Once completed, this acquisition will significantly expand SPX’s products and solution offerings serving the global oil and gas industry, and is consistent with the company’s long-term strategy of expanding its Flow Technology segment. ■ www.spx.com
Pump Industry Analyst
9