1
8 September 2006 COMPANY WATCH Pump Industry Analyst GUD Holdings has reported a 32% increase in net profit after tax for fiscal 2006 to A$40.2 million compared with the A$30.4 million posted in 2005. The prior year’s result included an A$8.8 million after tax charge for restructur- ing the company’s Ryco filtra- tion business. Sales revenue increased 17.2% to A$462.4 million on the A$394.4 million of a year earlier, reflecting contribu- tions from acquisitions made in late fiscal 2005 and early fiscal 2006, as well as a recov- ery in its Victa subsidiary. “The profit and dividend increases are very pleasing given the tough trading condi- tions throughout fiscal 2006,” Ian Campbell, GUD’s manag- ing director, said. “Consumer Products, Water Products and Automotive Products all gen- erated increased contributions. This is a solid result given price increases from suppliers have put downward pressure on our margins.” Campbell said that higher raw material prices, particular- ly metals and plastic, and higher freight costs had been a challenge, especially as con- sumer sentiment had been essentially flat in Australia. In the group’s Automotive Products division, home to most of its filtration business, the trading EBITA figure rose 1% to A$17.9 million. Profit improved due to the success of restructuring in 2005 despite difficult conditions in automo- tive aftermarkets and higher raw material prices, particular- ly tinplate steel. Campbell said the outsourced filtration prod- ucts selling under the Ryco brand were meeting quality expectations and the branch network operated by Wesfil had been further expanded with the opening of an opera- tion in Townsville. In the Water Products division, the trading EBITA figure rose 26% to A$14.3 million. Growth in the unit was driven by the acquisitions of Spa Quip and Contam- ination Control and new prod- ucts in its traditional Davey pump business. The recent acquisition of Monarch Pool Systems is expected to drive continued growth within the division. GUD Holdings Ltd, Australia Key Figures (A$ million) Year ended 30.6 2006 2005 Sales Revenue 462.4 394.4 Of Which: Automotive Products 70.4 78.6 Water Products 96.7 87.5 Trading EBITA* 68.2 62.8 Of Which: Automotive Products 17.9 17.7 Water Products 14.3 11.3 Net Profit before Tax 56.9 43.7 Net Profit after Tax 40.2 30.4 * EBITA: Earnings Before Interest, Taxes, and Amortization COMMENT ITT Industries Inc, USA Key Figures (US$ million) Second quarter ended 30.6 2006 2005 Sales and Revenues 2067.9 1863.9 Of Which: Fluid Technology 765.3 742.7 Cost of Sales and Revenues 1491.9 1353.0 R&D Expenses 43.7 44.6 Operating Income 226.8 198.1 Net Income 140.9 137.7 Six months ended 30.6 2006 2005 Sales and Revenues 3954.6 3629.8 Of Which: Fluid Technology 1451.0 1372.8 Cost of Sales and Revenues 2875.4 2649.4 R&D Expenses 86.4 88.9 Operating Income 401.9 342.0 Net Income 296.8 254.2 ITT continues to grow its Fluid Technology business, with its second quarter 2006 revenues reaching US$765.3 million, up 6% on a year earli- er. Organic revenues for the period grew 4% on the compa- rable 2005 figure, led by the Water/Wastewater Handling and Building Trades segments. Operating income in the Fluid Technology division was US$101.3 million for the quarter, including the impact of restructuring. Excluding restructuring, the result was up 9% on a year earlier. Total orders for the Fluid Technology division for the second quarter were up 7%, and organic orders were up 5% compared with the second quarter of 2005. ITT announced the acqui- sition of FB Leopold during the quarter, an acquisition expected to add a valuable pre-treatment component to ITT’s already wide range of filtration and treatment capabilities. Steve Loranger, ITT’s chairman, president and CEO, is expecting continued strong performance for the division in the second half of the year. “As always, we are close- ly watching the current eco- nomic climate and its potential effects on our business,” Loranger said. “We believe we are partic- ularly well positioned in our Fluid Technology markets to benefit from the growing demand for water-related products and services,” he said. “We have well-estab- lished product brands, a large installed base and a growing position in developing markets like China.” COMMENT

ITT Industries Inc, USA

  • View
    220

  • Download
    0

Embed Size (px)

Citation preview

8

September 2006

CO

MPA

NY

WA

TC

HPump Industry Analyst

GUD Holdings has reported a32% increase in net profit aftertax for fiscal 2006 to A$40.2million compared with theA$30.4 million posted in2005. The prior year’s resultincluded an A$8.8 millionafter tax charge for restructur-ing the company’s Ryco filtra-tion business.

Sales revenue increased17.2% to A$462.4 million onthe A$394.4 million of a yearearlier, reflecting contribu-tions from acquisitions madein late fiscal 2005 and earlyfiscal 2006, as well as a recov-ery in its Victa subsidiary.

“The profit and dividendincreases are very pleasinggiven the tough trading condi-tions throughout fiscal 2006,”Ian Campbell, GUD’s manag-ing director, said. “ConsumerProducts, Water Products andAutomotive Products all gen-erated increased contributions.This is a solid result givenprice increases from suppliershave put downward pressureon our margins.”

Campbell said that higherraw material prices, particular-ly metals and plastic, andhigher freight costs had been a

challenge, especially as con-sumer sentiment had beenessentially flat in Australia.

In the group’s AutomotiveProducts division, home tomost of its filtration business,the trading EBITA figure rose1% to A$17.9 million. Profitimproved due to the success ofrestructuring in 2005 despitedifficult conditions in automo-tive aftermarkets and higherraw material prices, particular-ly tinplate steel. Campbell saidthe outsourced filtration prod-ucts selling under the Rycobrand were meeting qualityexpectations and the branchnetwork operated by Wesfilhad been further expandedwith the opening of an opera-tion in Townsville.

In the Water Productsdivision, the trading EBITAfigure rose 26% to A$14.3million. Growth in the unitwas driven by the acquisitionsof Spa Quip and Contam-ination Control and new prod-ucts in its traditional Daveypump business. The recentacquisition of Monarch PoolSystems is expected to drivecontinued growth within thedivision. ■

GUD Holdings Ltd,Australia

Key Figures (A$ million)Year ended 30.6

2006 2005

Sales Revenue 462.4 394.4 Of Which:Automotive Products 70.4 78.6Water Products 96.7 87.5

Trading EBITA* 68.2 62.8Of Which:Automotive Products 17.9 17.7Water Products 14.3 11.3

Net Profit before Tax 56.9 43.7

Net Profit after Tax 40.2 30.4

* EBITA: Earnings Before Interest, Taxes, and Amortization

COMMENT

ITT Industries Inc,USA

Key Figures (US$ million)Second quarter ended 30.6

2006 2005

Sales and Revenues 2067.9 1863.9Of Which:Fluid Technology 765.3 742.7

Cost of Sales and Revenues 1491.9 1353.0

R&D Expenses 43.7 44.6

Operating Income 226.8 198.1

Net Income 140.9 137.7

Six months ended 30.6

2006 2005

Sales and Revenues 3954.6 3629.8Of Which:Fluid Technology 1451.0 1372.8

Cost of Sales and Revenues 2875.4 2649.4

R&D Expenses 86.4 88.9

Operating Income 401.9 342.0

Net Income 296.8 254.2

ITT continues to grow itsFluid Technology business,with its second quarter 2006revenues reaching US$765.3million, up 6% on a year earli-er. Organic revenues for theperiod grew 4% on the compa-rable 2005 figure, led by theWater/Wastewater Handlingand Building Trades segments.Operating income in the FluidTechnology division wasUS$101.3 million for thequarter, including the impactof restructuring. Excludingrestructuring, the result was up9% on a year earlier.

Total orders for the FluidTechnology division for thesecond quarter were up 7%,and organic orders were up5% compared with the secondquarter of 2005.

ITT announced the acqui-sition of FB Leopold duringthe quarter, an acquisition

expected to add a valuable pre-treatment component toITT’s already wide range offiltration and treatment capabilities.

Steve Loranger, ITT’schairman, president and CEO,is expecting continued strongperformance for the divisionin the second half of the year.

“As always, we are close-ly watching the current eco-nomic climate and its potentialeffects on our business,”Loranger said.

“We believe we are partic-ularly well positioned in ourFluid Technology markets tobenefit from the growingdemand for water-relatedproducts and services,” hesaid. “We have well-estab-lished product brands, a largeinstalled base and a growingposition in developing marketslike China.” ■

COMMENT