Donaldson Co Inc, USA

Donaldson Co Inc, USA

COMPANY WATCH Clyde Process Solutions plc, UK Key Figures (£ million) Year ended 28.2 2010 2009 Revenue Of Which: Filtration 72.5 82.0 15.8 21...

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COMPANY WATCH

Clyde Process Solutions plc, UK Key Figures (£ million) Year ended 28.2 2010

2009

Revenue Of Which: Filtration

72.5

82.0

15.8

21.0

Cost of Sales

53.3

61.5

Gross Profit

19.2

20.5

Operating Profit

6.7

5.8

Profit after Taxation

4.6

5.5

Net Profit

3.1

3.8

COMMENT Clyde Process Solutions, a provider of pneumatic conveying and air filtration products for process industries, has posted revenues for fiscal 2010 of £72.5 million, a drop of 12% on a year earlier. Better news for the company was that operating profit reached a record level, climbing 16% to £6.7 million, although net profit was also down 18% on the 2009 figure at £3.1 million. Filtration revenues for the year were £15.8 million, 22% of the group total, a decline of 25% on a year earlier. The company has converted its air filtration product range developed in North America for use within the European market, and is now looking to build sales in the region. Jim McColl, chair of Clyde Process Solutions, said the company’s strategy during the year had focused on enhancing and broadening its offering by customer market, technology and geographical territory. “We have refined our focus within the food industry, defining sugar as a sub industry of this market and directing business development efforts on this market, maximising the outstanding reference secured during the financial year from a leading US sugar producer,” he said. “We have also identified petrochemi-

July 2010

Donaldson Co Inc, USA Key Figures (US$ million) Third quarter ended 30.4 2010

2009

Net Sales

497.6

413.4

Cost of Sales

320.2

282.7

Gross Margin

177.4

130.8

Operating Expenses

105.3

93.1

Operating Income

72.1

37.7

Earnings before Income Taxes

70.1

35.4

Net Earnings

49.5

26.6

Nine months ended 30.4 2010

2009

1361.8

1447.3

Cost of Sales

890.1

995.8

Gross Margin

471.7

451.8

Operating Expenses

308.1

316.3

Operating Income

163.6

135.2

Earnings before Income Taxes

157.6

129.6

Net Earnings

115.0

108.4

Net Sales

cals as a high growth market and the Group will be putting in place a team to focus solely on this industry.” McColl added that Clyde had continued to invest in a wide range of R&D projects and had established a global technology board to accelerate the process. “This has been exemplified by our North American team, where, in a three-month period, they developed a new low headroom, energy efficient filtration system called the Spacesaver,” he said. “The US patent for this new solution is pending with an international patent application in progress. We have already sold several of these new Spacesaver systems in North America.” With regards to geographic markets, McColl said the company was aiming to expand its presence in India, where it was in advanced negotiations with a partner to form a joint venture. “We believe that India can become a significant territory and contributor to growth in the near future for the Group,” he said. “Furthermore, we have grown our sales footprint in China with the addition of industry representatives and have identified several partners to support our objective of further penetrating the Middle East.” ■ www.clydeprocesssolutions.com

COMMENT Donaldson has enjoyed a strong third quarter of fiscal 2010 with sales up 20% on a year earlier at US$497.6 million and net earnings increasing 86% to US$49.5 million. Donaldson’s chair, president and CEO, Bill Cook, said the company’s sales had rebounded well from last year’s recessionary levels. “Sales in our Engine Products’ segment increased 31% as aftermarket products’ sales remained robust and build rates improved at our global off-road and onroad customers,” Cook said. “Our Industrial Products segment sales increased 8%, driven mainly by strong sales in our Special Applications Products. Our sales growth improvement was truly global as our local currency sales increased 25% in Asia, 17% in Europe, and 10% in the Americas.”

Cook reported that the higher sales levels, combined with a record operating margin, resulted in a 91% increase in Donaldson’s operating income over the prior year to reach US$72.1 million. “We benefited from better fixed cost absorption due to the higher volumes in our plants and distribution centres, our ongoing product and process cost reduction initiatives, and the savings generated by our restructuring activities,” he said. “Our sales mix also helped to increase margins as our replacement filter sales again exceeded our first-fit sales.” Cook added that Donaldson had now completed its planned restructuring activities and was not expecting to incur any significant additional charges in this area. ■ www.donaldson.com

Filtration Industry Analyst

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