PVF Firms Report Robust Second Quarter
September 1, 2006
The red-hot industrial building boom has resulted in quite a few record second-quarter and first-half sales and earnings for several PVF firms. Here is a summary of some of the reports from public PVF companies.
Crane Fluid Handling: This division's second-quarter sales increased 3% to $253.8 million while operating profit increased 50% to $30.0 million, compared to the second quarter of 2005. Valve Group sales were $180.7 million in the second quarter of 2006 compared with $178.3 million in the second quarter of 2005. Crane Pumps & Systems sales of $26.5 million increased $1.9 million, or 8%, over the second quarter of 2005. Sales increased across most of the served markets. Profit margin of 10.1% was up from 5.6% in the prior year due to productivity gains from facilities consolidation, and customer price increases. The Fluid Handling segment backlog was $204 million at June 30, 2006, compared with $206 million at March 31, 2006, and $189 million at December 31, 2005.
IPSCO Inc. reported record net income for the second quarter of 2006 of $156.4 million compared to $126.9 million for the second quarter of 2005. For the first six months of 2006 net income was $307.1 million as compared to $281.6 million for the prior year. Sales also were a second quarter record $893.6 million, an increase of 29.9% or $205.9 million over the same quarter last year and down only 1.0% or $9.3 million from the record first quarter. Total shipments for the quarter were 1.001 million tons, the company's second highest quarterly shipment level.
NS Group Inc. reported net sales for the second quarter were a record $192.3 million, a 1% increase over the $190.5 million of sales in the first quarter of 2006. Net income for the quarter was $32.0 million, compared to net income of $34.5 million in the first quarter of 2006, and $37.2 million in the second quarter of 2005. Net sales for the six months ended June 30, 2006, were $382.8 million, compared to $306.8 million for the six months ended June 30, 2005. Net income for the six months of 2006 was $66.5 million, compared to net income of $56.6 million in the prior year period.
SPX Corp.'s Flow Technology segment reported revenues in the second quarter of 2006 were $239.0 million compared to $223.5 million in the second quarter of 2005, an increase of 6.9%. The increase was related primarily to strong demand in the power, mining, oil and gas, and dehydration markets, as well as pricing improvements and new product introductions. Currency fluctuations increased revenues by 1.0% from the year-ago quarter. Segment income was $34.6 million, or 14.5% of revenues, in the second quarter of 2006 compared to $24.1 million, or 10.8% of revenues, in the second quarter of 2005.
Flowserve Corp. said that second quarter 2006 reported bookings increased to $912 million, a second quarter record, while backlog increased to a record $1.39 billion. The increases in bookings and backlog were primarily due to strong pump project business, including oil-related business in the Middle East, and robust global markets in general for the company's products.
Maverick Tube Corp. reported net income for the second quarter of $53.7 million, compared to net income for the same quarter last year of $38.7 million, and net income of $70.9 million, for the first quarter 2006. Net revenues were $484.0 million for the quarter ended June 30, 2006, up from net revenues of $400.6 million for the second quarter 2005. Net revenues were down from $543.1 million for the first quarter 2006 due primarily to the typical seasonal slowdown in Canada.
CE Franklin Ltd. reported net income of $3.9 million for the second quarter ended June 30, 2006, as compared to net income of $2.5 million for the quarter ended June 30, 2005. Sales increased 25.6% to $115.5 million for the quarter ended June 30, 2006 as compared to $91.9 million for the quarter ended June 30, 2005. The 25.6% improvement in sales reflects strong commodity prices and improved industry economics resulting in an increase in spending by existing and new customers.