camfil ab, sweden
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6Filtration Industry Analyst June 2013
Camfil AB, SwedenProfileThe Camfil Group is a global air filtration company. It operates four business units – Filters, Air Pollution Control (APC), Airborne Molecular Contamination (AMC) and Power Systems. The first of these manufactures air handling systems for residential and office buildings, the second sector provides filters and equipment for dust collection for process and engineering industries, while the AMC unit specialises in filtration for the microelectronics sector. The Power Systems division targets the gas turbine market. Its reporting segments are Filters, Power Systems and Other.
AnalysisNet sales of the Camfil Group totalled SEK4865 million in fiscal 2012, an increase of 0.3% compared with the previous year. Organic growth of 3.3% in like-for-like sales counteracted negative currency impacts of 0.2% and the loss of revenue stemming from the divestment of the company’s Railroad business unit during the year. In Camfil’s Filters business unit external sales were up 3% on the year prior at SEK3534 million. The sales result was led by a 9% uplift in the Americas where revenues reached SEK805 million, with demand particularly strong in the US market. Sales were also up in Asia and the Middle East, helping to offset a 2% fall in European sales. In Camfil’s Power Systems business unit, external sales fell 4.2% on the 2011 figure to SEK891 million. The decrease in sales was attributed to a lower level of project completion in Sweden during the year, with some compensation coming from higher deliveries to Canada and China. In Camfil’s Air Pollution Control (APC) business unit external sales rose 26% in fixed currencies to SEK349 million, with the US market accounting for the majority of the increase. In its Airborne Molecular Contamination (AMC) division external sales for 2012 totalled SEK80 million, an increase of SEK13 million in fixed currencies on the prior year. Camfil’s gross margin for 2012 was 39.1% compared with 38.7% a year earlier. The uplift was mainly due to increasing margins in its Power Systems business unit, where productivity improvement initiatives have started to have an effect. Similar work in the Filters business unit also had a positive impact on the gross margin. The company’s underlying operating income for the year was SEK492 million, down SEK1 million, compared with 2011, when excluding the capital gain from the sale of its Railroad business unit and the restructuring of its Filter business in North America.
Key Figures (SEK million)Camfil Group Year ended 31.12 2012 2011 2010 2009 2008
Net Sales 4865.3 4850.6 4575.3 4502.8 4361.0Of Which:Filters 3568.7 3469.0 3499.3 3591.6 3609.0Power Systems 897.5 950.0 779.7 729.6 752.0Other 501.7 544.1 345.9 307.6 n/a
Cost of Sales 2966.6 2973.7 2740.2 2775.3 2806.3
Gross Profit 1898.7 1876.9 1835.1 1727.5 1554.7
Operating Profit 560.7 490.1 471.2 417.4 400.2
Profit before Income Tax 469.0 400.0 434.9 376.1 356.4
Net Profit 340.9 286.3 310.6 263.8 247.8
Contact DetailsPresident and CEO: Alan O’ConnellExecutive Chairman: Jan Eric LarsonAddress: Sveavägen 56 E
SE-111 34 Stockholm Tel: +46 8 545 12 500 Sweden Web: www.camfil.com
COMMENTCamfil celebrates its 50th anniversary in fiscal 2013 and does so with a new name and a sense of optimism. Having changed its name to Camfil Farr following the 2000 acquisition of the US-based Farr Inc, the company decided earlier this year to return to its roots and change back to Camfil. The change partly reflects the company’s expansion in other parts of the world since its Farr acquisition, particularly in Asia. Camfil regards the geographic distribution of its operations as an important part of spreading its business risk. Similarly, it believes that having a large part of its sales in the aftermarket makes it less exposed to cyclical market fluctuations. Camfil is expecting a solid year in fiscal 2013 with some revenue growth and stable operating margins. Demand is forecast to increase in a number of its market sectors, primarily the electronics, pharmaceutical and laboratory segments, which should benefit the Asian market in particular. In Europe, Camfil feels it will see relatively stable conditions despite the current financial difficulties afflicting Southern Europe in particular. Replacement filter sales are expected to show continuing stable growth. In Power Systems, market growth is anticipated to remain favourable within the Oil & Gas sector, while the Power Generation market is expected to weaken slightly. The aftermarket for replacement filters for gas turbines is expected to grow further. ■