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SPX Flow Inc, USA
COMPANY WATCH
SPX Flow Inc, USA
Sartorius AG, Germany Key Figures (E million) First quarter ended 31.3 2016
2015
Sales Revenue Of Which: Bioprocess Solutions Lab Products & Services
301.9
258.1
226.9 75.0
186.0 72.1
Underlying EBITDA Of Which: Bioprocess Solutions Lab Products & Services
72.3
57.5
61.0 11.4
46.5 11.0
Order Intake Of Which: Bioprocess Solutions Lab Products & Services
330.1
276.1
254.2 75.9
204.7 71.5
COMMENT Sartorius has made a strong start to fiscal 2016 with double-digit growth in sales, order intake and profitability compared with a year earlier. Sales revenue reached E301.9 million, up 17.0% on the 2015 figure or 17.9% if adjusted for the negative impact of currency effects. The company’s Bioprocess Solutions continued its impressive growth of recent quarters to post sales of E226.9 million, an increase of 22.0% or 22.8% when currency adjusted. The increase reflected growth in all product segments, with demand especially high for single-use products. The Lab Products & Services division achieved revenues of E75.0 million for the period, an increase of 4.0% on the prior year or 5.2% when adjusted. Consumables, such as lab filters, performed particularly well for the division in the quarter. Sartorius’ order intake followed a similar pattern with the overall figure for the quarter up 19.6% (20.4% adjusted) on the prior year at E330.1 million. For the Bioprocess Solutions segment orders were up 24.2%
May 2016
(24.9% adjusted) at E254.2 million, while the Lab Products division registered an increase of 6.2% (7.6% adjusted) to E75.9 million. Sartorius’ underlying EBITDA surged 25.8% on the previous year to E72.3 million. The corresponding margin was 24.0%, up from 22.3% in the fiscal 2015 comparator. For the Bioprocess division EBITDA was up 31.0% to E61.0 million, while for the Lab Products segment the upturn was 3.7% to E11.4 million. “We continue to see dynamic growth driven by both divisions and all business regions,” Sartorius CEO Dr Joachim Kreuzburg said. Kreuzburg added that based on the strong first quarter results, Sartorius remained confident of good growth throughout the year with consolidated sales expected to increase between 10–14%. He said the Bioprocess Solutions was forecast to benefit from a 13–17% lift in revenues, while the Lab Products division was expecting an increase of between 3–7%. ■ www.sartorius.com
Key Figures (US$ million) Three months ended 2.4.2016
28.3.2015
Revenues Of Which: Food and Beverage Power and Energy Industrial
505.0
571.2
184.8 149.7 170.5
210.1 173.4 187.7
Cost of Products Sold
345.8
382.9
Selling, General and Admin
134.4
142.9
16.5
11.6
Operating Income/(Loss)
(21.9)
35.6
Income/(Loss) before Income Taxes
(38.8)
34.1
Net Income/(Loss)
(32.1)
23.1
Net Income/(Loss) Attributable to SPX Flow Inc
(31.1)
23.4
Capital Expenditures
COMMENT SPX Flow Inc’s first quarter 2016 revenues decreased 11.6% on a year ago to US$505.0 million. The stronger US dollar reduced revenues by 2.4%, or US$13.5 million, and organic revenues slipped 9.2%, primarily because of lower oil and dairy prices. An operating loss of US$21.9 million in the first quarter of 2016 contrasts with operating income of US$35.6 million in the same period last year, due mainly to US$41.0 million of charges related to the previously announced realignment program and the organic revenue decline. Food and Beverage revenues fell 12.0% to US$184.8 million in the first quarter of 2016. Organic revenues declined 9.9%, or US$20.8 million, reflecting lower revenue from large systems projects as the decline in dairy pricing has delayed the placement of several large system orders. First quarter 2016 Food and Beverage income was US$17.4 million, down from US$22.4 million in 2015. Power and Energy revenues were down 13.7% to US$149.7 million. Organic revenues fell 10.9%, or US$18.8 million, due
largely to the impact of lower oil prices on backlog entering the quarter and customer related shipment delays. Power and Energy income was US$2.2 million, down from US$16.0 million a year earlier. First quarter 2016 Industrial revenues decreased 9.2% to US$170.5 million, while organic revenues declined 7.0%, or US$13.1 million, due to lower large capital project revenue and decreased sales of hydraulic technology equipment into the oil and gas market. Industrial segment income was US$19.4 million in the first quarter of 2016, compared with US$25.8 million a year earlier. “Exiting the first quarter, I am pleased with the collective effort across our enterprise to aggressively execute our realignment program. Overall, the year is progressing largely in-line with our expectations. Demand across many of our end markets is generally stable with pockets of encouraging activity developing,” said SPX Flow president and CEO Marc Michael. ■ www.spxflow.com
Filtration Industry Analyst
11
SPX Flow Inc, USA
Sartorius AG, Germany Key Figures (E million) First quarter ended 31.3 2016
2015
Sales Revenue Of Which: Bioprocess Solutions Lab Products & Services
301.9
258.1
226.9 75.0
186.0 72.1
Underlying EBITDA Of Which: Bioprocess Solutions Lab Products & Services
72.3
57.5
61.0 11.4
46.5 11.0
Order Intake Of Which: Bioprocess Solutions Lab Products & Services
330.1
276.1
254.2 75.9
204.7 71.5
COMMENT Sartorius has made a strong start to fiscal 2016 with double-digit growth in sales, order intake and profitability compared with a year earlier. Sales revenue reached E301.9 million, up 17.0% on the 2015 figure or 17.9% if adjusted for the negative impact of currency effects. The company’s Bioprocess Solutions continued its impressive growth of recent quarters to post sales of E226.9 million, an increase of 22.0% or 22.8% when currency adjusted. The increase reflected growth in all product segments, with demand especially high for single-use products. The Lab Products & Services division achieved revenues of E75.0 million for the period, an increase of 4.0% on the prior year or 5.2% when adjusted. Consumables, such as lab filters, performed particularly well for the division in the quarter. Sartorius’ order intake followed a similar pattern with the overall figure for the quarter up 19.6% (20.4% adjusted) on the prior year at E330.1 million. For the Bioprocess Solutions segment orders were up 24.2%
May 2016
(24.9% adjusted) at E254.2 million, while the Lab Products division registered an increase of 6.2% (7.6% adjusted) to E75.9 million. Sartorius’ underlying EBITDA surged 25.8% on the previous year to E72.3 million. The corresponding margin was 24.0%, up from 22.3% in the fiscal 2015 comparator. For the Bioprocess division EBITDA was up 31.0% to E61.0 million, while for the Lab Products segment the upturn was 3.7% to E11.4 million. “We continue to see dynamic growth driven by both divisions and all business regions,” Sartorius CEO Dr Joachim Kreuzburg said. Kreuzburg added that based on the strong first quarter results, Sartorius remained confident of good growth throughout the year with consolidated sales expected to increase between 10–14%. He said the Bioprocess Solutions was forecast to benefit from a 13–17% lift in revenues, while the Lab Products division was expecting an increase of between 3–7%. ■ www.sartorius.com
Key Figures (US$ million) Three months ended 2.4.2016
28.3.2015
Revenues Of Which: Food and Beverage Power and Energy Industrial
505.0
571.2
184.8 149.7 170.5
210.1 173.4 187.7
Cost of Products Sold
345.8
382.9
Selling, General and Admin
134.4
142.9
16.5
11.6
Operating Income/(Loss)
(21.9)
35.6
Income/(Loss) before Income Taxes
(38.8)
34.1
Net Income/(Loss)
(32.1)
23.1
Net Income/(Loss) Attributable to SPX Flow Inc
(31.1)
23.4
Capital Expenditures
COMMENT SPX Flow Inc’s first quarter 2016 revenues decreased 11.6% on a year ago to US$505.0 million. The stronger US dollar reduced revenues by 2.4%, or US$13.5 million, and organic revenues slipped 9.2%, primarily because of lower oil and dairy prices. An operating loss of US$21.9 million in the first quarter of 2016 contrasts with operating income of US$35.6 million in the same period last year, due mainly to US$41.0 million of charges related to the previously announced realignment program and the organic revenue decline. Food and Beverage revenues fell 12.0% to US$184.8 million in the first quarter of 2016. Organic revenues declined 9.9%, or US$20.8 million, reflecting lower revenue from large systems projects as the decline in dairy pricing has delayed the placement of several large system orders. First quarter 2016 Food and Beverage income was US$17.4 million, down from US$22.4 million in 2015. Power and Energy revenues were down 13.7% to US$149.7 million. Organic revenues fell 10.9%, or US$18.8 million, due
largely to the impact of lower oil prices on backlog entering the quarter and customer related shipment delays. Power and Energy income was US$2.2 million, down from US$16.0 million a year earlier. First quarter 2016 Industrial revenues decreased 9.2% to US$170.5 million, while organic revenues declined 7.0%, or US$13.1 million, due to lower large capital project revenue and decreased sales of hydraulic technology equipment into the oil and gas market. Industrial segment income was US$19.4 million in the first quarter of 2016, compared with US$25.8 million a year earlier. “Exiting the first quarter, I am pleased with the collective effort across our enterprise to aggressively execute our realignment program. Overall, the year is progressing largely in-line with our expectations. Demand across many of our end markets is generally stable with pockets of encouraging activity developing,” said SPX Flow president and CEO Marc Michael. ■ www.spxflow.com
Filtration Industry Analyst
11