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FINANCIALS

For Sandler, 2011 was another very successful year. The company achieved a 37-million year-on-year increase in turnover, reaching a total of 240 million Euros. This represents a continuation of the positive development over the past five years, during which the turnover of previously 112 million Euros was more than doubled.

In the past five years, the workforce increased from 460 to 550 employees.

Investments, mostly in manufacturing lines, were the main driver of this development, as was the opening up of new markets and fields of application. During the past five years, the nonwovens producer invested more than 60 million Euros. Early last year, a new nonwovens production line was commissioned in the newly built "plant 4". Sandler AG runs the largest nonwovens manufacturing location in Europe. Based on the 2010 sales figures, Sandler AG now ranks 10th among the world’s largest nonwovens producers. The company supplies a very wide range of different nonwoven materials, utilised in diverse applications in the hygiene, wipes, automotive, filtration, engineering, and home textiles markets. Each of these market segments also saw a rise in turnover during the past year.

Sandler AG is planning further investments in new, innovative production lines, information and communications technology as well as the development of new markets in the years to come. With an export ratio of 60 percent the company already supplies high-quality nonwovens to buyers around the globe and is currently opening up the Indian market. Owing to the Bavarian-Indian Centre for Business and University Cooperation at the University Hof Sandler was able to quickly forge the necessary contacts.

Porvair plc, the specialist filtration and environmental technology group, recently announced its results for the year ended 30 November 2011.

• Revenues up 7% to £68.1m (2010: £63.6m)
• Profit before tax up 44% to £4.5m (2010: £3.1m).
• Cash generated from operations was £8.1m (2010: £8.1m).
• Net debt reduced by 47% to £5.1m (2010: £9.7m; 2009: £13.9m).
• Net debt to EBITDA ratio was 0.6 times (2010: 1.6 times).

Microfiltration division:

• Revenues up 4%. Strong performance in aviation and energy markets.
• Several large contract wins, record order intake.
• Finished year with record opening order book for 2012.

Metals Filtration division:

• Revenues up 15% in constant currency (12% as reported).
• Margin enhancement and market share gains from patented products continues.
• Further transfer of un-patented products to China on track.

2012 has started well:

• $25m contract won to supply filters onto the Boeing 787 over the next 15 years.
• Acquisition of the Block Digester product line from Aim Laboratories expected to be immediately earnings enhancing.

Commenting on the results and outlook, Ben Stocks, Chief Executive, said, "2011 was a good year with progress towards strategic objectives achieved across the business. Porvair’s strategy and operating objectives have remained consistent for several years.  Since 2007, Porvair has achieved 50% revenue growth (11% CAGR); generated over £30m in cash from operations; and this year posted a 21% operating profit return on capital.

"2012 has started well, with revenues in December and January ahead of the prior year.  Order books are at record levels, boosted by the large POSCO order that is expected to be mostly delivered early in 2013. Leaving this order aside, underlying demand is also currently healthy. Porvair holds attractive niche positions in growing markets and has a clear strategy for growth. Provided the macro economic situation remains stable, the Board sees plenty of opportunity for 2012 and beyond".

• 2Q Net sales up 8% versus Year-Ago Quarter

• Gross Margin of 24.0% up from 21.2% in Year Ago Quarter

• Announced Closure of Cotton Linter Pulp Production Line in Americana, Brazil

• Announced Sale of Non-Core King, N.C. Converting Business

Buckeye Technologies Inc. (NYSE:BKI) recently announced second quarter adjusted net income of $27.9 million, which excludes after-tax non-cash asset impairment charges of $29.7 million related to the announced closure of the cotton linter pulp production line in Brazil and sale of our converting business in North Carolina, and income tax expense of $3.6 million related to cellulosic biofuel credits. Adjusted net income rose 37% as compared to the prior year period’s $20.3 million which excluded after tax costs of $3.2 million from early extinguishment of debt, restructuring and accrued interest related to cellulosic biofuel credits.

Net sales of $227 million were up 8% versus last year’s second quarter sales of $210 million. Sales benefited from higher selling prices and increased specialty wood fibers shipment volume.

Chairman and Chief Executive Officer John B. Crowe said, "We were pleased with our second quarter fiscal 2012 financial results, which exceeded the expectations we shared during our last earnings call in October. The key drivers of year over year improvements continue to be strong markets and selling prices, better capacity utilization at our Memphis specialty cotton fibers plant, and benefits from our cost improvement initiatives.

"We continue to focus on generating free cash flow and returns on investment above our cost of capital which we did again in the quarter. One aspect of this focus is our restructuring efforts. In January, we announced the closure of our cotton linter pulp production line in Brazil and continued discussions with multiple parties for the potential sale of this facility. Also in January, we announced the sale of our non-core Merfin Systems converting business in North Carolina. These moves will allow us to redirect cash and management focus from under-performing or non-core businesses into strategic investment and growth opportunities. Key examples of that are our Foley energy project, which we expect to complete in the third quarter of fiscal year 2012, and the Foley specialty wood pulp expansion project, which is on track for completion at the end of calendar year 2012. Overall our business has good momentum."

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, announced worldwide sales of semiconductors were $25.1 billion for the month of November 2011, a decrease of 2.4 percent from the prior month when sales were $25.7 billion. On a year-to-date basis, worldwide semiconductor sales were 0.8 percent higher compared to the same period in 2010. All monthly sales numbers represent a three-month moving average.

"Supply chain disruptions resulting from the floods in Thailand have impacted semiconductor sales in the near term, however, OEMs are expected to recover production losses over the course of the next few months," said Brian Toohey, President, Semiconductor Industry Association. "November sales were additionally affected by the continuing European financial crisis which is having a broad impact on other economies and global demand."

Despite the near-term supply chain and global economic challenges, the industry was still poised to close 2011 with growth and looks towards 2012 for further improvement.

Chip inventories held by semiconductor suppliers declined in the 3rd quarter of 2011, putting a halt to the steady expansion of the previous seven quarters, as the industry cut production in order to reduce oversupply.

As calculated by the days of inventory (DOI) measure, semiconductor stockpiles in the 3rd quarter stood at 81 days, down a modest 2.5 percent from 83 days in the 2nd quarter, according to an IHS iSuppli Inventory insider report from information and analysis provider IHS.

The DOI level has been on the rise since the 3rd quarter of 2009 when it stood at just 65 days — a time when stockpiles were low because production had been reduced during the dark days of the recession.

Since then, inventory DOI had been creeping up, partly to make up for depleted stocks, and also to cope with growing demand as strength returned to the supply chain. However, amid signs of weakening growth in the semiconductor market, the rise in inventory had generated concerns.

Global semiconductor revenue in 2011 is estimated to have risen by a scant 1.9 percent, compared to a forecast of 7 percent growth issued early in the year.

Despite the inventory cutback, DOI in the 3rd quarter remained elevated in absolute items — the highest of the last 10 quarters, dating all the way back to the 4th quarter of 2008 — suggesting that stockpiles are still quite high. Moreover, the percentage of oversupply during the period rose to 12.1 percent, exceeding the 11.1 percent spike in oversupply during the 4th quarter of 2008. As a result, expectations are that inventories will be trimmed further in the 4th quarter of 2012.

Among the various semiconductor sectors, inventory levels rose for handset original equipment manufacturers, distributors and analog companies — all of which posted percentage gains in DOI. Stockpiles, however, fell for fabless semiconductor makers, memory suppliers, foundries, PC original equipment manufacturers, storage gear companies and electronic manufacturing services providers.

For mobile handset manufacturers, inventories increased in the 3rd quarter as suppliers prepared for their seasonally busy end-of-year period. In comparison, inventory at pure-play foundries declined more strongly than expected — the result of a reduction in utilization rates.

Total DOI is estimated to have declined another 2.5 percent in the fourth quarter to 79.3 days, IHS predicts.

Taiwan captured the distinction of being the country/region with the largest share of installed wafer capacity in 2011 according to IC Insights’ recently-released "Global Wafer Capacity 2011-12" report. As of mid-2011, Taiwan held 21 percent of global capacity, surpassing Japan (19.7 percent) and Korea (16.8 percent) to take over the top spot for the first time. The Americas region with 14.7 percent share and China with 8.9 percent of capacity rounded out the top five. Also worth noting is that China accounts for more wafer capacity than Europe.

To clarify what the data represents, each regional number is the total installed monthly capacity of fabs located in that region regardless of the headquarters location for the companies that own the fabs. For example, the wafer capacity that Korea-based Samsung has installed in the U.S. is counted in the Americas capacity total, not the Korea capacity total.

The new "Global Wafer Capacity report also notes that Taiwan has the industry’s largest share of capacity for the biggest wafer size (i.e., 300 mm). In 2011, Taiwan held 25.4 percent share of worldwide 300-mm wafer capacity, 18.7 percent of 200-mm wafer capacity, and 11.4 percent of 150-mm wafer capacity. In 2011, 300-mm wafers represented 64.6 percent of the country’s installed capacity, 200-mm wafers, 29.2 percent, and 150-mm wafers accounted for 6.1 percent.

Taiwan also holds the industry’s largest share of capacity dedicated to "not so leading-edge" 40 nm- 60 nm process geometries. This is to be expected, given Taiwan’s focus on providing foundry services to a large variety of fabless IC suppliers, "fab-lite" IDMs, and electronic system producers.

Detailed analysis and a forecast of the IC industry’s wafer fab capacity through 2016 are provided in the 2011-12 edition of "IC Insights’ Global Wafer Capacity" report.

North America-based manufacturers of semiconductor equipment posted $973.3 million in orders in November 2011 (three-month average basis) and a book-to-bill ratio of 0.83, according to the November Book-to-Bill Report published by SEMI. A book-to-bill of 0.83 means that $83 worth or orders were received for every $100 of product billed for the month.

The three-month average of worldwide bookings in November 2011 was $973.3 million. The bookings figure is 5.0 percent more than the final October 2011 level of $926.8 million, and is 35.7 percent below the $1.51 billion in orders posted in November 2010.

The three-month average of worldwide billings in November 2011 was $1.17 billion. The billings figure is 6.7 percent less than the final October 2011 level of $1.26 billion, and is 25.1 percent less than the November 2010 billings level of $1.57 billion.

Semiconductor fab equipment spending is expected to decline by approximately 11 percent in 2012, according to preliminary data from the SEMI World Fab Forecast report. Spending on fab equipment is expected to drop in the first half of 2012, but will sharply increase in the second half of the year to approach $10 billion by the 4th quarter.

The current forecast of about 11 percent decline in fab equipment spending for 2012 depends largely on the investment plans of the largest spenders. While some companies have published their plans for 2012, others — including Samsung, Hynix, Intel and TSMC — could announce higher investment plans than anticipated, so fab spending for 2012 could improve, with the overall spending decline at about 4 percent according to their analysis.

The SEMI World Fab Forecast tracks installed capacity by fab, showing changes when fabs close and when product type or wafer size change. Despite the economic situation, 300-mm installed capacity is expected to grow at a steady pace in 2012. In 2011, the installed capacity for 300 mm grew by about 13 percent (year over year). The forecast anticipates a small slowdown to about 11 percent in 2012 and increasing to about 12-14 percent in 2013.

Compared to three years ago, spending and capacity are much higher. After a dip in the first half of 2012, the industry spending should pick up by mid-2012.

The SEMI World Fab Forecast uses a bottom-up approach methodology, providing high-level summaries and graphs, and in-depth analyses of capital expenditures, capacities, technology and products by fab. Additionally, the database provides forecasts for the next 18 months by quarter. These tools are invaluable for understanding how the semiconductor manufacturing will look in 2011, 2012 and 2013, and for learning more about capex for construction projects, fab equipping, technology levels, and products.

TSMC announced its net sales for December 2011. On an unconsolidated basis, net sales were approximately NT$30.57 billion, a decrease of 13.2 percent over November 2011 and a decrease of 9.4 percent over December 2010. Full-year sales for 2011 totaled NT$418.25 billion, an increase of 2.8 percent compared to 2010.

On a consolidated basis, net sales for December 2011 were approximately NT$31.24 billion, a decrease of 12.9 percent over November 2011 and a decrease of 10.4 percent over December 2010. Full-year sales for 2011 totaled NT$427.08 billion, an increase of 1.8 percent compared to 2010.

State and local officials joined executives of Donaldson Company (NYSE:DCI) recently to cut the ribbon on a new manufacturing plant in Aguascalientes, Mexico. The new plant is located near Donaldson’s existing plant, which is the headquarters for its Latin American and Caribbean regions.

The new 150,000 square foot, state-of-the-art facility is fully operational, and significantly expands Donaldson’s capabilities for producing air filtration products including PowerCore®, RadialSeal™ and Axial Seal air cleaners and ancillary products. Additionally, the Company will utilize its existing plant to increase liquid filtration manufacturing for products such as those designed with Donaldson’s patented Synteq™ and Synteq XP™ media for fuel, lube and hydraulics applications.

"The demand for air filtration products to support our OEM and aftermarket customers in Latin America has increased to the stage where more direct access to products is required," said Guillermo Briseño, managing director for Donaldson Latin America. "Expanding our air filtration manufacturing capabilities in Aguascalientes aligns with our strategy of locating facilities close to customers. This ensures the highest level of customer service as we manufacture and ship our filtration products in the most efficient and cost-effective manner possible."

"As we relocate our existing air filtration manufacturing capacity into the new plant, our existing facility is being reconfigured to double our liquid manufacturing capability in Mexico," continued Briseño. "Similar to the need for air filtration products, our Latin American OEM partners are also experiencing increased demand for liquid filtration products for diesel-powered engines and hydraulic equipment. Manufacturing crucial liquid filtration products within the region, such as those designed with our Synteq and Synteq XP media, will allow our customers the flexibility to source products to meet a wide range of filtration efficiency and capacity requirements."

The new Aguascalientes plant, which employs 260 people, is pursuing LEED (Leadership in Energy and Environmental Design) certification – an internationally recognized mark of excellence. LEED provides a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions.

"Donaldson strives to be a good corporate citizen – particularly in the regions where we operate facilities," shared Joe Lehman, Donaldson’s Vice President of Global Operations. "In addition to being LEED certified, the new facility is pursuing ISO certifications for environmental and quality standards."

In addition to the two manufacturing facilities, Donaldson also operates a distribution center in Aguascalientes, and has other sales, manufacturing and distribution sites in Monterrey, Mexico; Sao Paulo, Brazil; and Santiago, Chile.

National Nonwovens announces the installation of a 2.4 meter air-laid needlepunch nonwoven line strategically located in a contained, clean-room environment. Production on the line is currently focused on, but is not limited to, the manufacturing of medical products. It is fully equipped with state-of-the-art electronics to effectively control temperature, humidity, dusting, and contamination; which are necessary for advanced wound care, medical devices, and patient-care products.

The air-laid line has the support of process engineers and quality control, including complete chemical profiling of all materials. It is capable of processing synthetic and various natural fibers. Products can be produced in the range 1.5 oz/yd(2) to 10 oz/yd(2), supported or unsupported. The line has in-line slitting with slit widths up to 90 inches with future expansion including the installation of a three-roll press with laminating capabilities.

This 2.4 meter air-laid line is in addition to National Nonwovens' existing air-laid lines and increases capacity in excess of 2 million pounds of fiber per year. When combined with National Nonwovens' other production lines, total processing capacity is in excess of 15 million pounds per year. The company's manufacturing and technical capabilities include both air-laid and carded cross-laid web forming with chemical bond, felted wool, needlepunch, lamination, and thermo-bond constructions. National Nonwovens will continue to expand its breath of technology as a commitment to customers' present and future requirements to meet the needs of global markets.

Based in Easthampton, Massachusetts, National Nonwovens manufactures of needlepunched nonwovens and superior quality felt for a number of markets such as Aerospace, Ballistics, Craft, Home Furnishings, Filtration, and Medical.

Advantec, a manufacturer of filters for laboratory, research and process applications, has partnered with Cole-Parmer to distribute these products in the United Kingdom.

Advantec’s products are used in a variety of scientific capacities and applications such as microbiological analysis, air/gas filtration, and environmental monitoring in the pharmaceutical, public health, food and beverage, water analysis, healthcare, life sciences, and electronics industries.

"Advantec’s range of filtration products fits comfortably within Cole-Parmer’s own product range," commented Andy Waldes, Cole-Parmer’s director of operations. "It offers our customers an additional and valuable range of unique quality products that will enhance their processes and research."

Pall Corporation (NYSE:PLL) recently announced a major advance in nuclear power plant filtration with the launch of a filter that reduces radioactive particulate exposure for plant personnel and equipment. The new Ultipor® GF Fine filter is the only disposable filter in the world to be rated at 0.05 microns at 99.98 percent efficiency and that can be used for all key nuclear steam supply system applications. These include reactor coolant letdown, seal water injection, fuel pool, and radioactive waste (radwaste). The rating redefines the lowest reasonably achievable exposure level.

In nuclear plants, radioactive particulate can contaminate equipment and increase exposure to plant workers. The new Ultipor® GF Fine elements build on Pall's proven nuclear filtration capabilities and exhibit a high dirt-holding capacity, low pressure drop, and improved particulate removal performance in the fine sub-micron range. As a result, they reduce maintenance costs and enhance the service life of primary components as well as a plant operator’s ability to control worker exposure.

"Pall’s Ultipor GF Fine filters will enable customers to further reduce contamination in their plants by removing nuclear particles as small as 0.05 microns," said Greg Collins, president, Energy and Water. "These advanced filters will enable the reduction of low level radwaste and associated storage and labor costs while improving plant safety and equipment reliability."

Through a joint project, the University of Fukui, in Japan, and Kuraray, have successfully developed a special nonwoven fabric that selectively absorbs and separates metal ions from solution. The joint effort used advanced fiber processing technology, specifically, electron beam-induced graft polymerization, to develop the nonwoven.

Once activated, the fibers have a structure that more easily absorbs metal ions. Following this treatment, when the fibers are immersed in either sea water or industrial wastewater, they are effective in collecting metal ions. Then Ph adjustment separates the metal ions.

According to reports, the project came to being after researchers at the university determined that Kuraray’s Felibendy nonwoven fabric was particularly appropriate for this study because of its porous fiber structure. Felibendy uses Sophista, Kuraray’s core-sheath construction-type fiber, which can be easily modified and offers maximized fiber surface area.

Together, the university and Kuraray will now establish a metal ion collection business and will work together to ensure appropriate materials collaboration for the electron beam-induced graft polymerization. They have also applied for a joint patent.

Website: www.mcilvainecompany.com