August 1997 Pump Industry Analyst

Gardner Denver Machinery Inc, USA

KEY F IGURES (US$ million) 1 Three months ended 30.6

1997 1996

Revenues 69.4 48.9

Cost of Sales 45.7 33.9

Net Income 6.8 3.7

Earnings per Share US$0.65 US$0.36

Six months ended 30.6 1997

Revenues 135.5

Cost of Sales 90.2

Net Income 12.1

Eamings per Share US$1.16

Environment One Corporation, USA

1Except per share data.

Gardner Denver Machinery

lnc has reported a US$3.1

million or 85 per cent in-

crease in net income for the

three months ended 30 June

1997, compared with the

same period of 1996. Net in-

come for the six month pe-

riod ended 30 June 1997

increased US$4.6 million, or

61 per cent.

For the three months ended

30 June 1997, revenues in-

creased US$20.5 million to

US$69.4 million, compared

with US$48.9 million in the

same period of 1996. Ap-

proximately US$13.6 mil-

lion of this increase is

attributable to the acquisi-

tions of NORAMPTCO lnc

and TCM Investments Inc,

which the company com-

pleted in August 1996.

Compared with the first

quarter of 1997, the com-

pany's revenues increased

US$3.3 million in the three

month period ended 30 June

1997. Petroleum products

KEY FIGURES (US$) Three months ended 30.6

Revenue

Costs of Sales

Net Earnings before Taxes

Net Earnings

1997

5 703 003

3 758 257

711 047

438 347

1996

5 328 145

3 703 526

598 295

371 195

Six months ended 30.6 1996 1997 1996

97.5 Revenue 10 250 728 9 273 381

67.5 Costs of Sales 6 692 690 6 !569 901

7.6 Net Earnings before Taxes 944 591 900 838

US$0.75 Net Earnings 583 291 !560 038

segment revenues increased

US$1.5 million in the second

quarter of 1997, compared

with the first quarter of 1997,

due to continued growth in

oil and gas drilling activity.

Compressor products reve-

nues increased US$1.8 mil-

lion or 3 per cent due to

stronger shipments of spe-

cially-engineered compres-

sor packages.

Revenues increased 39 per

cent to US$135.5 million for

the six months ended 30 June

1997, compared with the

same period in 1996. Reve-

nues from NORAMPTCO

and TCM contributed

US$28.0 million of this in-

crease. For the six months

ended 30 June 1997, com-

pressor products revenues

increased 25 per cent to

US$106.6 million. On 30

June 1997, the company an-

nounced its acquisition of Oy

Tamrotor Ab, a Finnish

manufacturer of lubricated

screw compressors. •

Environment One Corpora-

tion has achieved record sec-

ond quarter sales of US$5.7

million, a 7 per cent increase

in sales compared with

1996's second quarter sales

of US$5.3 million.

Record second quarter op-

erational earnings were

US$438 347, up 17 per cent

t¥om 1996's US$374 595.

Revenues were US$10.3

million for the first six

months of 1997, up from

US$9.3 million reported for

the corresponding period a

year ago.

Steve Ardia, president and

chief executive officer, said

that these results mark the

10th consecutive quarter of

comparable earnings im-

provements and that they set

the stage for an accelerated

growth period through 1997

and well into 1998. Earnings

growth is expected to be at

least 40 per cent in 11997.

Second quarter revenues

were below trend in annual

revenue goals, which was at-

tributable to a delay in the

release of several major

Sewer Systems project or-

ders either already received

or still pending. The com-

pany remains confident that

these orders along with new

Environment One Detection

Systems contracts are on

track to enable the company

to achieve its year-end goals.

Order backlog has increased

21 per cent from 30 June

1996.

Ardia is encouraged by im-

provements in both the mar-

ket for Environment One's

product lines and the com-

pany's market posiLtion, •

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