CIRCOR International Inc. (CIR, Financial) filed Quarterly Report for the period ended 2009-09-27.
CIRCOR International Inc. designs manufactures and distributes valves and related products and services for use in a wide range of applicationsto optimize the efficiency or ensure the safety of fluid-control systems. The valves and related fluid-control products we manufacture are used in processing industries; oil and gas production pipeline construction and maintenance; aerospace military and commercial aircraft; pharmaceutical medical and analytical equipment; and maritime manufacturing and maintenance. Circor International Inc. has a market cap of $484.7 million; its shares were traded at around $28.56 with a P/E ratio of 8.6 and P/S ratio of 0.6. The dividend yield of Circor International Inc. stocks is 0.5%. Circor International Inc. had an annual average earning growth of 20.1% over the past 5 years.
Our net inventory balance was $150.3 million as of September 27, 2009 compared to $183.3 million as of December 31, 2008. Our inventory allowance as of September 27, 2009 was $15.6 million, compared with $12.5 million as of December 31, 2008. Our provision for excess, slow moving and obsolete inventory was $4.4 million for the first nine months of 2009 compared to $3.5 million for the same period in 2008.
The goodwill recorded on the consolidated balance sheet as of September 27, 2009 increased $0.9 million to $33.0 million compared to $32.1 million as of December 31, 2008. The increase was due to a combination of currency fluctuations and escrow release on our prior acquisition of Motor Tech.
Instrumentation and Thermal Fluid Controls Products revenues decreased $13.2 million, or 14%, for the quarter ended September 27, 2009 compared to the quarter ended September 28, 2008. This segments quarterly revenues were negatively impacted by organic declines of $13.4 million and unfavorable foreign exchange rates compared to the US dollar of $3.2 million. These declines were partially offset by $3.5 million in incremental revenues from the acquisitions of Bodet and Atlas in March 2009. This segments customer orders decreased 13% in the third quarter 2009 compared to the same period last year with weakness in most markets except semiconductor and medical, which enjoyed a significant order increase. Order backlog increased to $183.7 million as of September 27, 2009 compared to $169.6 million as of September 28, 2008 driven primarily by aerospace. Similar to our third quarter 2009, we expect market conditions to remain under pressure with low demand for most of the general industrial, commercial HVAC, power generation, and commercial aerospace end markets served by this segment for the remainder of 2009.
Energy Products revenues decreased by $51.2 million, or 46%, for the quarter ended September 27, 2009 compared to the quarter ended September 28, 2008. The decrease was the result of organic declines of $49.2 million and unfavorable $2.0 million from foreign currency fluctuations due to a lower Euro compared to the US dollar. The organic declines were primarily due to an approximately 50% decline in North American oil and gas drilling and production activities as well as fewer large international and U.S. pipeline equipment projects. Orders for this segment declined $7.6 million to $55.1 million for the three months ended September 27, 2009 compared to $62.7 million for the three months ended September 28, 2008 primarily as a result of the continued weakness in North American drilling and production activities resulting from lower oil and natural gas pricing and demand, partially offset by increased orders in large international projects. Backlog has declined by $117.9 million to $114.1 million as of September 27, 2009 compared to the same period in 2008. With the sharp declines in drilling rig counts and destocking of inventory at our distributors as well as volatile prices for gas and oil, we anticipate a continued weakness in U.S. short cycle energy orders during the remainder of 2009 compared to 2008. However, due to very low 2008 activities in large international projects, we do anticipate an increase in orders for these markets in the remainder of 2009 compared to 2008.
Gross profit for the Instrumentation and Thermal Fluid Controls Products segment decreased $3.6 million or 12% for the quarter ended September 27, 2009 compared to the quarter ended September 28, 2008. Lower organic revenues reduced gross profit by $3.0 million, primarily the result of the lower volume and associated operating leverage offset partially by reduced material costs and lower labor expenses. Labor expenses have been lower due to a reduced workforce of approximately 12%, net of acquisitions, since December of 2008. Our third quarter of 2009 also includes unfavorable foreign exchange rates which adversely impacted gross profit by $1.0 million and a positive contribution of $0.3 million from the recent acquisitions of Bodet and Atlas.
Read the The complete ReportCIR is in the portfolios of John Keeley of Keeley Fund Management, NWQ Managers of NWQ Investment Management Co.
CIRCOR International Inc. designs manufactures and distributes valves and related products and services for use in a wide range of applicationsto optimize the efficiency or ensure the safety of fluid-control systems. The valves and related fluid-control products we manufacture are used in processing industries; oil and gas production pipeline construction and maintenance; aerospace military and commercial aircraft; pharmaceutical medical and analytical equipment; and maritime manufacturing and maintenance. Circor International Inc. has a market cap of $484.7 million; its shares were traded at around $28.56 with a P/E ratio of 8.6 and P/S ratio of 0.6. The dividend yield of Circor International Inc. stocks is 0.5%. Circor International Inc. had an annual average earning growth of 20.1% over the past 5 years.
Highlight of Business Operations:
expanding our low cost operations in emerging markets. During the first three quarters of 2009, excluding acquisitions, we have reduced our total workforce by approximately 17%. During our fourth quarter 2009, we expect to continue to rationalize our cost structure and will be consolidating facilities, relocating certain of our manufacturing operations, and continuing to expand our global sourcing initiatives. We expect these activities to result in termination and other costs of approximately $2.0 to $2.5 million of which $0.1 million was recognized as of September 27, 2009.Our net inventory balance was $150.3 million as of September 27, 2009 compared to $183.3 million as of December 31, 2008. Our inventory allowance as of September 27, 2009 was $15.6 million, compared with $12.5 million as of December 31, 2008. Our provision for excess, slow moving and obsolete inventory was $4.4 million for the first nine months of 2009 compared to $3.5 million for the same period in 2008.
The goodwill recorded on the consolidated balance sheet as of September 27, 2009 increased $0.9 million to $33.0 million compared to $32.1 million as of December 31, 2008. The increase was due to a combination of currency fluctuations and escrow release on our prior acquisition of Motor Tech.
Instrumentation and Thermal Fluid Controls Products revenues decreased $13.2 million, or 14%, for the quarter ended September 27, 2009 compared to the quarter ended September 28, 2008. This segments quarterly revenues were negatively impacted by organic declines of $13.4 million and unfavorable foreign exchange rates compared to the US dollar of $3.2 million. These declines were partially offset by $3.5 million in incremental revenues from the acquisitions of Bodet and Atlas in March 2009. This segments customer orders decreased 13% in the third quarter 2009 compared to the same period last year with weakness in most markets except semiconductor and medical, which enjoyed a significant order increase. Order backlog increased to $183.7 million as of September 27, 2009 compared to $169.6 million as of September 28, 2008 driven primarily by aerospace. Similar to our third quarter 2009, we expect market conditions to remain under pressure with low demand for most of the general industrial, commercial HVAC, power generation, and commercial aerospace end markets served by this segment for the remainder of 2009.
Energy Products revenues decreased by $51.2 million, or 46%, for the quarter ended September 27, 2009 compared to the quarter ended September 28, 2008. The decrease was the result of organic declines of $49.2 million and unfavorable $2.0 million from foreign currency fluctuations due to a lower Euro compared to the US dollar. The organic declines were primarily due to an approximately 50% decline in North American oil and gas drilling and production activities as well as fewer large international and U.S. pipeline equipment projects. Orders for this segment declined $7.6 million to $55.1 million for the three months ended September 27, 2009 compared to $62.7 million for the three months ended September 28, 2008 primarily as a result of the continued weakness in North American drilling and production activities resulting from lower oil and natural gas pricing and demand, partially offset by increased orders in large international projects. Backlog has declined by $117.9 million to $114.1 million as of September 27, 2009 compared to the same period in 2008. With the sharp declines in drilling rig counts and destocking of inventory at our distributors as well as volatile prices for gas and oil, we anticipate a continued weakness in U.S. short cycle energy orders during the remainder of 2009 compared to 2008. However, due to very low 2008 activities in large international projects, we do anticipate an increase in orders for these markets in the remainder of 2009 compared to 2008.
Gross profit for the Instrumentation and Thermal Fluid Controls Products segment decreased $3.6 million or 12% for the quarter ended September 27, 2009 compared to the quarter ended September 28, 2008. Lower organic revenues reduced gross profit by $3.0 million, primarily the result of the lower volume and associated operating leverage offset partially by reduced material costs and lower labor expenses. Labor expenses have been lower due to a reduced workforce of approximately 12%, net of acquisitions, since December of 2008. Our third quarter of 2009 also includes unfavorable foreign exchange rates which adversely impacted gross profit by $1.0 million and a positive contribution of $0.3 million from the recent acquisitions of Bodet and Atlas.
Read the The complete ReportCIR is in the portfolios of John Keeley of Keeley Fund Management, NWQ Managers of NWQ Investment Management Co.
