COMPANY WATCH

10Filtration Industry Analyst September 2013

Hyflux Ltd, SingaporeKey Figures (S$ million)

Second quarter ended 30.6 2013 2012

Revenue 138.4 183.6

Other Income 4.9 1.7

Materials/Consumables Expenses 79.8 122.1

Personnel Expenses 18.1 18.8

Profit before Taxation 20.4 21.5

Net Profit 17.2 18.5

Six months ended 30.6 2013 2012

Revenue 262.9 318.9

Other Income 6.4 3.3

Materials/Consumables Expenses 156.4 205.1

Personnel Expenses 34.8 36.4

Profit before Taxation 30.4 31.9

Net Profit 25.2 27.8

COMMENTMembrane systems manufacturer Hyflux saw both sales and profit dip in the second quarter of fiscal 2013 with its revenues down 24.6% on the year earlier at S$138.4 million and its net profit 7.0% lower at S$17.2 million.

The corresponding six-month period followed a similar pattern with sales falling 17.6% to S$262.9 million and net profit 9.4% easier at S$25.2 million.

The municipal sector continued to be the major contributor to revenues accounting for 91% and 92% of the total for the quarter and half-year, respectively, similar to the previous year. The Industrial sector contributed 8% and 7% of sales, respectively,

In terms of geography, Hyflux reported that Asia markets (excluding China) continued to account for the bulk of revenues

contributions, making up 86% of the Group’s total sales in the second quarter and 87% in the first six months of fiscal 2013.

Hyflux noted that the market had slowed in China, but was beginning to revive in the Middle East and North Africa (MENA) region.

The company said that one positive feature of the quarter was improvements in cost management that saw the gross margin for the period reach 42% compared with 33% a year earlier.

Hyflux added that its order book remained healthy, standing at S$2.7 billion at the end of the quarter comprised of S$1.9 billion for operations and maintenance contracts and S$792 million for engineering, procurement and construction contracts. ■www.hyflux.com

Outotec Oyj, Finland

Key Figures (E million)Second quarter ended 30.6

2013 2012

Net Sales 511.4 524.4

Cost of Sales 404.7 417.3

Gross Profit 106.7 107.1

R&D Expenses 12.3 9.7

Operating Profit 39.9 40.8

Profit before Income Taxes 37.8 40.1

Net Profit 26.9 28.0

Six months ended 30.6 2013 2012

Net Sales 1014.3 934.8

Cost of Sales 811.6 739.9

Gross Profit 202.7 194.9

R&D Expenses 23.9 18.8

Operating Profit 71.5 68.4

Profit before Income Taxes 67.7 67.9

Net Profit 48.2 47.3

COMMENTOutotec, the Finland-based supplier of equipment and services to the minerals and metal industries, has posted second quarter sales of E511.4 million, down 2.5% on a year earlier. Net profit followed a similar trajectory falling 3.9% to E26.9 million.

The corresponding six month period showed a more positive pattern with net sales up 8.5% at E1.0 billion and net profit 1.9% stronger at E48.2 million.

Order intake, however, was down significantly on the 2012 comparator falling 50.3% to E365.6 million for the quarter and 26.2% for the corresponding half year to E856.7 million.

“The uncertainty about global economy and declined metal prices slowed down our

customers’ investment decision making and we experienced delays in closing large orders,” the company’s president and CEO, Pertti Korhonen, said. “Due to these delays, and the fact that the comparison period’s order intake was unusually high attributable to the Cristal Global order for E350 million, our total order intake in the second quarter was clearly lower.”

Korhonen added that despite the order decline Outotec had not lost any large prospects, while its sales had grown in line with its plans.

“Going forward, our focus is on growing the order intake to secure a strong order backlog and to continue to grow our sales,” he said. ■www.outotec.com