In other news below:
-- Mueller offers preliminary restatement, updates accounting investigation
-- IDEXX Laboratories' 4Q net income up 37%
-- Franklin Electric reports record income, sales for 4Q, FY2004
-- CalWater suffers 50% 4Q net drop, FY sales gain of 14%
ITT Q4 revenues up 28%, FY2004 revenue up to $6.8 billion
WHITE PLAINS, NY, Jan. 28, 2005 -- ITT Industries Inc. reported fourth quarter 2004 net income of $121.6 million, up $13.5 million or 12% over the period in 2003. Fourth quarter revenues grew to $1.94 billion, attributable to organic sales growth in all segments, the impact of recent acquisitions in Defense and Fluid Technology, and the positive impact of foreign currency translation. Excluding acquisitions and foreign currency translation, sales grew 13% in the quarter.
Reported net income for 2004 was $432.3 million, up 7% over 2003. Full year revenues were $6.76 billion, up 21% from the prior year driven by increased sales in all four segments, recent acquisitions and the positive impact of foreign currency translation. Excluding acquisitions and currency translation, organic revenue growth was 12% in 2004.
The company anticipates $7.15-7.43 billion in FY2005 revenue, while reducing costs by an additional $25 million per year.
In Fluid Technology, fourth quarter 2004 revenues rose 23% to $749.1 million, helped by increased demand for water/wastewater treatment systems, the impact of the WEDECO acquisition and the positive impact of foreign currency translation. Organic revenue grew by 9% over the fourth quarter 2003.
ITT's water and wastewater businesses continue their growth pattern, with 15% organic growth in fourth quarter orders, and 13% organic revenue growth. The Advanced Water Treatment unit grew organic revenue by 27%. In October, ITT was selected to provide the world's largest UV disinfection system in British Columbia, Canada, and was also selected to construct a 30-million gallon a day desalination plant in the Middle East.
Various business units within Fluid Technology have accelerated their cross-selling activities in order to better leverage the breadth of the company's expertise in fluid management. In the fourth quarter, a joint effort between Goulds and Flygt resulted in ITT capturing one of its largest pump orders to date -- a $7 million order to supply vertical turbine pumps in California.
ITT Industries Inc. (www.itt.com) supplies advanced technology products and services in key markets including: fluid and water management including water treatment; defense communication, opto-electronics, information technology and services; electronic interconnects and switches; and other specialty products. Headquartered in White Plains, NY, the company generated $6.8 billion in 2004 sales.
With preliminary FY2004 results, Mueller updates accounting investigation
DECATUR, IL, Jan. 28, 225 (PRNewswire) -- With conclusion of an investigation into prior period financial statements, Mueller Water Products Inc. (www.muellercompany.com) announced that restated net sales for the fiscal year ended Sept. 30, 2004, are estimated at about $1,040 million, an increase of over $100 million compared to net sales for FY2003. The increase in net sales was driven primarily by continued strength and stability in the U.S. residential construction market and increased spending by municipalities on water infrastructure, replacement, repairs and upgrades for our water and infrastructure products segment, and by improved economic conditions in the U.S. non-residential construction market for our piping components segment.
Net income was $35 million on earnings (EBITDA) of $200 million in restated figures for FY2004.
The investigation report did not identify any fraud or intentional misconduct by Mueller or any of its employees, but identified deficiencies in the company's internal controls.
As part of the company response, Tom Fish, who served since August 1999 as president of Anvil International Inc.'s piping systems product segment, has been appointed interim CFO of Mueller. Before that, Fish was vice president of finance and administration for a predecessor of the company from 1992 to 1996. He replaces Darrell Jean, who's engaged in discussions about alternative management positions at Mueller.
Mueller Group will seek a waiver until March 31 under its credit facility with regard to the delay in providing its lenders with Mueller Group's 2004 audited financial statements and the restatement.
IDEXX Laboratories' 4Q net income up 37%
WESTBROOK, ME, Jan. 28, 2005 (PRNewswire-FirstCall) -- IDEXX Laboratories Inc. (www.idexx.com) reported that net income increased to $16.9 million, up 37% for the fourth quarter ended Dec. 31, 2004, from $12.4 million for the same period in the prior year. Revenue for the quarter increased 16% to $144.3 million from $124.8 million a year earlier.
The company's annual net income increased 37% to $78.3 million for FY2004, from $57.1 million a year earlier. Revenue for the year increased 15% to $549.2 million from $476.0 million for 2003.
Water segment 4Q revenue increased 7% to $14.0 million from $13.0 million for the same quarter of 2003. The favorable impact of foreign currency contributed 3% to water revenue growth. For the year, water segment revenue increased 13% to $53.1 million from $46.9 million for 2003 primarily due to increased sales in Europe and North America. The favorable impact of foreign currency contributed 4% to water revenue growth.
Franklin Electric reports record income, sales for 4Q, FY2004
BLUFFTON, IN, Jan. 27, 2005 (PRNewswire-FirstCall) -- Franklin Electric Co. Inc. (www.fele.com) FY2004 net income was a record $38.1 million, an increase of 10% compared to last year's $34.5 million. Fourth quarter 2004 net income was a record $11.0 million, an increase of 4% from $10.6 million for the same period a year ago.
Sales for the year were a record $404.3 million, an increase of $44.8 million or 12% compared to 2003 sales of $359.5 million. Global sales volume increases were realized across all markets served for fiscal 2004. The most significant volume increases were in residential water well submersible motors. Fourth quarter sales were a record $107.6 million, an increase of $11.4 million for the same quarter of 2003.
Sales for the fiscal year and quarter related to the acquisition of the assets of JBD Inc. (the former Jacuzzi Brand) pump company were $5.7 million or 2% of prior year sales.
In the third quarter of 2003, the Company announced its global manufacturing realignment program. A program that -- when substantially complete by the third quarter of 2005 -- will result in moving a significant amount of production to lower cost regions of the world as well as consolidating certain manufacturing operations.
The company has completed the consolidation of FE Petro, EBW and APT operations into its new manufacturing and distribution facility in Madison, Wis. The consolidation of the operations of its Motta di Livenza, Italy, factory into the existing Wittlich, Germany, and expanding Brno, Czech Republic, factories has been completed. The ramp up of its new Linares, Mexico motor manufacturing plant continues on schedule and on budget.
SSWM FY 2004 Operations Strengthen Balance Sheet; Increased Assets, Working Capital and Shareholder Equity Overshadow Operating Losses
CARLSBAD, CA, Jan. 27, 2005 (BUSINESS WIRE) -- Revenues for the fiscal year ended Sept. 30, 2004, at Sub-Surface Waste Management of Delaware Inc., a subsidiary of U.S. Microbics (www.bugsatwork.com), fell 45.9% with operating expenses up 159%. Still, financing activities caused net working capital to increase by $485,173 and total shareholder equity increased by $519,134, yielding a positive net worth for the company.
The company incurred a net loss of $3,316,635 for the year, compared to $1,178,447 for the year ended Sept. 30, 2003. The company had negative cash flows from operations of $1,251,172 in 2004, compared to negative cash flows from operations of $629,638 for 2003.
SSWM revenues for FY2004 were $234,018 compared to $432,754 in 2003. Revenues for the year consisted primarily of bio-remediation of hydro-carbons in contaminated soil for the state of South Carolina. The company incurred a gross loss for the year of $39,213, compared to $80,492 gross profit for 2003.
Part of the loss had to do with expenses associates with a failed acquisition. The company continues to search for viable M&A candidates that fit in with its strategic plan.
CalWater suffers 50% 4Q net drop, FY sales gain of 14%
SAN JOSE, CA, Jan. 26, 2005 (BUSINESS WIRE) -- California Water Service Group (www.calwater.com) announced fourth quarter 2004 net income was $3.7 million, compared to $7.0 million in the same period in 2003. Primary factors contributing to the decrease were lower gains from property sales, weather and additional shares outstanding.
Revenue for the quarter decreased slightly to $69.4 million. Usage by existing customers dropped significantly due to weather, decreasing revenue by $4.3 million. Partially offsetting the decrease in sales was $3.3 million in revenues from authorized rate increases. The company received approval to increase rates on an annual basis by $4.1 million for step rate increases effective in January 2005.
Also, in the past three months, the company received approval to collect $9.2 million related to balancing accounts with collection periods that vary by district and range from one to three years. Pending applications to the California Public Utilities Commission (CPUC) include 2004 general rate case filings totaling over $26 million for eight districts and corporate headquarters.
For the year, net income increased $6.6 million to $26.0 million. Annual revenues, which increased 14% to $315.6 million, were boosted by $29.8 million from rate relief granted by the CPUC, $5.4 million from sales to new customers, and $3.2 million from increased sales to existing customers.
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