Product category:
Motors and Variable speed drives
News Release from: Vacon
Edited by the Processingtalk Editorial
Team on 28 April 2008
Good first quarter results from Vacon
Vacon has released their interim report covering the period 1 January - 31 March 2008, showing that the AC drive market has continued to grow
Demand for speed control solutions for electric motors that utilise energy efficiently and for applications for use in renewable power generation is strong at the moment The value of the orders received by Vacon exceeded EUR78 million, and revenues were almost EUR 66 million, for the first quarter of 2008
This article was originally published on Processingtalk on 27 Oct 2005 at 8.00am (UK)
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These figures are proof not only of the growth of the market but also of the effective product development and of the expansion of Vacon operations around the world: they also show the effect of the purchase of the TB Wood AC drives business.
Excluding the impact of the purchase of the TB Wood business, Vacon order intake increased 24.4%, revenues 15% and operating profit 23.8% from the corresponding period in the previous year.
Revenues rose on all continents.
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The relative increase in revenues was highest in the Asia and Pacific region, but growth was also strong in North and South America.
Growth in revenues in the Europe, Middle East and Africa region also clearly surpassed market growth.
The operating profit margin in the first quarter was 11.5%, compared to 12% in the corresponding period of 2007.
The profitability of business operations remained at the same level as in the first quarter of 2007.
Integrating the AC drives business of TB Wood into Vacon Group has progressed according to plan.
It is estimated that the final acquisition price will be USD29.2 million.
According to initial calculations, the acquisition of TB Wood generates goodwill of EUR6.4million, which is based on the anticipated opportunities for expansion and synergy benefits.
Initial calculations for the goodwill and for allocating the acquisition price of the business acquired are presented later in the tables to this report.
Orders received by the Group were 39.4% higher than in the previous year.
Orders in North America and Asia and for renewable energy production applications in Europe were the biggest factors in the strong growth.
The order book for the acquired business at the start of the year together with the orders received during the first quarter totalled EUR8.4 million.
Excluding the impact of the purchase of the TB Wood business, the volume of orders increased 24.4%.
Revenues increased 26% from the corresponding period in the previous year.
Growth in revenues excluding the acquisition of the TB Wood business was 15%.
The first quarter operating profit was 20.6% higher than one year before.
The operating profit for comparable figures was EUR7.8 million, growth from the previous year of 23.8%.
Market position.
During the first quarter of 2008 Vacon strengthened its position in all its main market areas.
Based on market surveys, the company estimates that it has about four per cent of the global market.
Vacon revenues by region increased as follows: Europe, Middle East and Africa in total 16%, North and South America 60%, and Asia and Pacific 66%.
Breakdown of Vacon Group revenues by distribution channel.
Group revenues by distribution channel increased as follows: OEM31%, direct sales 28%, distributors 18% and brand label customers 20%.
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