Ionics Inc, USA

Ionics Inc, USA

Filtration Industry Analyst October 2000 - Ionics Inc, USA Profile Ionics Inc is a water purification company. Operating worldwide, it supplies wat...

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Filtration Industry Analyst

October 2000

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Ionics Inc, USA Profile Ionics Inc is a water purification company. Operating worldwide, it supplies water and water-treatment equipment through the use of proprietary separation technologies and systems. Analysis Ionics Inc reported a 2% increase in revenues and a 9.5% decline in net income for the financial period ended 31 December 1999. Operating results continued to be affected by weakened business conditions, which led to highly competitive equipment pricing pressures in several markets, particularly in the microelectronics industry which is served by the company’s Ultrapure Water Group (UWG), and by a decline in the financial performance of the Instrument Business Group (IBG). The decline in net income primarily reflects lower earnings before interest, taxes and minority interest (EBIT) of 49.9% and 60.3% in U W G and IBG respectively, on lower revenues of 16.0% and 6.5% respectively. IBG’s decline in 1999 is apparent through a comparison with an unusually strong performance in 1998, when the adoption of new monitoring standards by the US pharmaceutical industry resulted in very strong sales of the company’s total organic carbon (TOC) analyser. The stronger financial performance of the Equipment Business Group (EBG) partially offset the decline in the results posted by the U W G and IBG. EBG reported increases in revenues and EBIT of 8.4% and 33.4% respectively, reflecting a stronger capital equipment market, particularly for water reuse and ‘zero liquid discharge’ applications, and improved operating margins on the water supply business in the Caribbean. The Consumer Water Group (CWG) revenues increased by 19.4%, indicating continued revenue growth in Key Figures lonics Inc

(US$ million)’ For the year ended 31.12 1999

1998

1997

1996

1995

358.2

351.3

352.5

326.7

257.3

29.7

32.9

43.2

39.6

31.6

- Net Income

19.4

21.4

28.3

26.5

21.0

Total Assets

500.9

452.1

406.7

378.6

322.0

94.3

101.2

99.8

76.2

62.1

Revenues Income Before Income Taxes and Minority Interest

Working Capital

- Long-Term Debt and Notes Payable Earnings per Share

8.4 us1.20

1.5 US$i .33

0.8 US$1.78

2.1 US$1.71

0.2 US$1.45

‘Except per share data (basic)

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Contact Details

,Chairman and Chief Executive Officer: Address:

Arthur L. Goldstein 65 Grove Street Watertown Massachusetts 02472-2882

Tel: +l 617 926 2500 Fax: +l 617 926 4304 Web: www.ionics.com

Recent Events During June 2000 Ionics Inc announced that it had entered into an agreement with Norit Membrane Technology BV to market and sell its ultrafiltration technology for municipal drinking-water applications in the USA. The company also announced during June 2000 that it had joined Toray Industries Inc and Mitsui & Co (USA) Inc to form Toray Membrane America Inc (TMA). l

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