Cummins Inc, USA

Cummins Inc, USA

COMPANY WATCH Cummins Inc, USA Calgon Carbon Corp, USA Key Figures (US$ million) Third quarter ended 30.9 2012 Net Sales Of Which: Activated Carbon ...

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COMPANY WATCH

Cummins Inc, USA

Calgon Carbon Corp, USA Key Figures (US$ million) Third quarter ended 30.9 2012 Net Sales Of Which: Activated Carbon and Service Equipment Consumer

Key Figures (US$ million) Third quarter ended 30.9.2012

25.9.2011

Net Sales Of Which: Components Distribution

4118

4626

938 801

1015 783

2011

135.5

143.6

115.0 18.2 2.3

130.0 11.6 2.0

Cost of Sales

3076

3438

Cost of Products Sold

98.5

95.0

Gross Margin

1042

1188

Gross Profit

37.0

48.6

Operating Income

493

639

Income/(Loss) from Operations

(3.6)

18.2

Income before Income Taxes

487

629

Net Income/(Loss)

(4.5)

14.5

Net Income

370

472

Six months ended 30.9 2012

2011

Nine months ended 30.9.2012

25.9.2011

Net Sales Of Which: Components Distribution

13 042

13 127

3073 2370

2971 2210

Cost of Sales

9592

9779

Gross Margin

3450

3348

Operating Income

1789

1936

Income before Income Taxes

1798

1913

Net Income

1340

1374

Net Sales Of Which: Activated Carbon and Service Equipment Consumer

420.5

403.3

358.6 54.2 7.7

364.4 32.4 6.5

Cost of Products Sold

294.8

268.9

Gross Profit

125.7

134.4

Income/(Loss) from Operations

25.1

49.0

Net Income

14.2

34.3

COMMENT COMMENT Carbon Corp has reported net sales of US$135.5 million for the third quarter of fiscal 2012, a decrease of 5.6% on the year earlier. Sales in its core Activated Carbon and Service segment decreased 11.6% to US$115.0 million, reflecting lower demand from drinking water, environmental air, and wastewater markets. The company also posted a net loss of US$4.5 million for the period primarily resulting from a restructuring charge of US$8.0 million that included

November 2012

US$3.7 million of severance costs and a US$3.6 million impairment charge for the closure of its manufacturing facility in Datong, China. “The results for the quarter clearly confirm the need to reduce Calgon Carbon’s cost structure and improve operating efficiencies,” Randy Dearth, Calgon’s president and CEO, said. “We are implementing additional initiatives to address those issues, and that will be our primary focus for the remainder of the year.” ■ www.calgoncarbon.com

Cummins endured a tough third quarter of fiscal 2012 with its sales down 11.0% at US$4.1 billion and net income 21.6% lower at US$370 million. The company’s Components segment, home to its filtration, turbocharger, exhaust aftertreatment and fuel systems businesses, saw sales fall 7.6% for the period to US$0.9 billion, while EBIT was down 21.1% at US$89 million. Filtration sales within the segment slipped 9.1% to US$260 million. The Distribution segment bucked the trend with sales up 2.3% on a year earlier at US$801 million, although benefiting from acquisitions.

The segment’s EBIT fell 4.8% to US$99 million. The Parts and Filtration business unit within the segment saw its sales up 15.2% at US$326 million. “Demand has dropped sharply over the last three months, reflecting a high degree of uncertainty among customers in most geographic markets,” Tom Linebarger, Cummins chair and CEO, said. “We have been responding to the conditions by delaying or cancelling projects, flexing production at some of our manufacturing plants, reducing discretionary expenses, and reducing our workforce” ■ www.cummins.com

Filtration Industry Analyst

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