PVF Manufacturers Enjoy Soaring 1st Quarter Financials
FlowserveFlowserve Corp. reported record bookings and backlog for the first quarter of 2006. First quarter 2006 bookings increased to about $879 million, which represents a record for any quarter. The $879 million record includes the impact of a negative currency effect of $37.5 million, or 5.5%.Excluding divestitures and currency impact, core bookings increased 34% compared with the prior year period.
Flowserve's backlog at the end of the first quarter of 2006 increased about 39% compared with the prior year period to $1.23 billion, a record for any quarter, including positive currency effects of about 1%. This compares with a backlog of approximately $884 million at the end of the first quarter of 2005 and $994 million at the end of 2005, excluding 2005 divestitures in both cases. The company said that the increase was due to a combination of a larger volume of project orders, stronger aftermarket business and longer negotiated product delivery lead times that are typical of robust markets.
Maverick TubeMaverick Tube Corp. reported record net income for the first quarter of $70.9 million, compared to net income for the same quarter last year of $31.2 million, and net income of $63.2 million for the fourth quarter 2005. Net revenues were a record $543.1 million for the quarter ended March 31, 2006, up from net revenues of $410.8 million for the first quarter 2005, and $484.7 million for the fourth quarter 2005.
NS GroupNS Group, Inc. announced net sales for the quarter ended March 31, 2006, were a record $190.5 million, a 24% increase over the $154.2 million of sales in the fourth quarter of 2005. Net income for the quarter was $34.5 million, compared to net income of $39.8 million in the fourth quarter of 2005.
Northwest PipeNorthwest Pipe Co. reported sales of $78.8 million and net income of $2.6 million for the first quarter of 2006. Both sales and net income were consistent with results from the first quarter last year.
Sales in the Water Transmission Group were $56.0 million for the quarter. The gross profit for this Group was $10.2 million, or 18.2% of sales, compared to $10.3 million, or 18.4% of sales, last year.
“Volume was very close to expectations for the quarter,” said Brian W. Dunham, president and chief executive officer. “Margins, however, were somewhat lower than we had hoped. This was due both to mix and some production inefficiencies. Neither of these issues is expected to have a long-term effect.”
The Tubular Products Group's sales were $18.9 million for the first quarter of 2006, compared to $19.6 million for the same period last year. Gross profit was $1.9 million compared to $1.8 million in the first quarter of 2005. Gross profit as a percent of sales was 10.1% in the first quarter of 2006, compared to 9.0% in 2005.
“Sales decreased compared to the same period last year, but improved from the $17.7 million in the fourth quarter of 2005, while the gross margin continued to improve sequentially. The sequential improvement in sales and profitability is a result of the shift by this Group to focus on more profitable product lines,” Dunham reported. “As we move into spring and summer, we expect sales to improve further as a result of normal seasonality.”
SPX Flow TechnologyRevenues in the first quarter of 2006 were $218.0 million compared to $202.0 million in the first quarter of 2005, an increase of 7.9%. The increase was due to organic revenue growth of 10.8%, related primarily to strong demand in the power, mining, oil and gas, and dehydration markets. The impact of currency fluctuations decreased revenues by 2.9% from the year-ago quarter.
Segment income was $28.0 million, or 12.8% of revenues, in the first quarter of 2006 compared to $18.4 million, or 9.1% of revenues, in the first quarter of 2005. The increase in segment income and margins was due to the strong level of organic growth, improved pricing, and lean manufacturing initiatives.