COMPANY WATCH

June 2013 Filtration Industry Analyst9

BluMetric Environmental Inc, CanadaKey Figures (C$ thousand)

Second quarter ended 28.2.2013 29.2.2012

Revenue 6023.8 4486.4

Cost of Sales 4944.6 3851.7

Gross Profit 1079.2 634.7

R&D Costs 128.2 64.7

Operating Expenses 1496.7 1008.2

Net Income/(Loss) (490.2) (394.7)

Six months ended 28.2.2013 29.2.2012

Revenue 12 363.7 11 426.2

Cost of Sales 9874.5 9476.6

Gross Profit 2489.2 1949.6

R&D Costs 371.9 97.1

Operating Expenses 2621.3 2727.8

Net Income/(Loss) (240.7) (821.8)

COMMENTBluMetric Environmental, formerly Seprotech Systems, has posted sales for the second quarter of fiscal 2013 of C$6.0 million, an increase of 34.3% on a year earlier.

Gross profit for the period was up 70.0% at C$1.1 million, while a net loss of C$0.5 million compared with a deficit of C$0.4 million 12 months ago.

The gains in revenue and gross profit for the quarter reflected the expanded operations of the company following its amalgamation with WESA Group in November 2012.

Operating expenses for the quarter were up 48.5% year on year at C$1.5 million resulting from the inclusion of expenses attributable to the former Seprotech Systems, the incremental costs associated with being a public company, and non-recurring expenses arising in connection with the amalgamation, such as

re-branding and communication costs.

R&D costs for the quarter were essentially double those of the prior year at C$128.2 million.

“The small loss for the period is consistent with historical trends, which reflect a degree of seasonality in the Professional Services business over the holiday season and through the winter months,” William Touzel, BluMetric’s CEO, said. “We are pleased with the progress being made in integrating the two companies following their amalgamation last November, and we anticipate continuing growth through the coming quarters.”

For the corresponding six-month period, revenue was up 8.2% on the year earlier at C$12.4 million, while the bottom line was a loss of C$0.2 million compared to a deficit of C$0.8 million in 2012. ■www.blumetric.ca

Esco Technologies Inc, USA

Key Figures (US$ million)Second quarter ended 31.3

2013 2012

Net Sales 166.2 173.9Of Which:Filtration 53.6 48.9

Cost of Sales 110.7 106.0

Total Costs and Expenses 162.6 157.3

Earnings before Income Taxes 3.5 16.6Of Which:Filtration 10.9 9.5

Net Earnings 1.6 10.2

Six months ended 31.3 2013 2012

Net Sales 311.4 326.8Of Which:Filtration 100.0 92.1

Cost of Sales 204.7 198.7

Total Costs and Expenses 307.6 301.8

Earnings before Income Taxes 3.8 24.9Of Which:Filtration 19.7 17.7

Net Earnings 1.8 15.4

COMMENTEsco Technologies has posted second quarter sales for fiscal 2013 of US$166.2 million, a decrease of 4.4% on the previous year. Net earnings fell 84.7% to US$1.6 million.

The sales decline was primarily due to a US$10.7 million drop in revenues for Esco’s Test segment, which the company attributed to the timing of major projects within the comparable periods. The earnings decline reflected restructuring costs related to the closure of its Doble-Lemke facility in Germany and the Aclara plant.

In contrast to the overall pattern, Esco’s Filtration division had a good quarter with sales up 9.6% on the 2012 comparator at US$53.6 million and EBIT 14.7% stronger at US$10.9 million. The division’s sales increase for the quarter came on the back of a US$3.5 million

increase in sales at VACCO due to higher shipments of its space products and defence spares, a US$1.0 million increase in sales at Crissair from higher aerospace product shipments and a US$0.6 million lift in revenues at TEQ due to higher shipments of its thermoscan probe cover product. These gains offset a US$0.4 million decrease in net sales at PTI driven by lower shipments of aerospace couplings.

“Operationally, the quarter was a bit softer than originally planned, but I’m pleased that our shortfall is contained within one of our operating segments, and is not a broad indication of an overall market downturn across our operating platforms,” Vic Richey, Esco’s chair and CEO, said. ■www.escotechnologies.com