Results
Camfil Farr recorded another successful year of higher sales and earnings – the 48th consecutive year of profitability since the company was founded in 1963. Net sales amounted to SEK 4,851 M (4,575), an increase of SEK 275 M, compared with 2010. Underlying operating profit, excluding restructuring costs and items affecting comparability, was SEK 493 M (478), an increase of SEK 15 M and corresponding to an operating margin of 10.2% (10.4).
Redemption of minority shareholding
The Camfil Farr Group once again became a 100 percent, family-owned business when the Parent Company, Camfil AB, redeemed all shares previously held by the private equity company Ratos during more than 10 years of close cooperation. Ratos became shareholder in the Camfil Farr Group in 2000 in connection with the acquisition of Farr in the U.S.
New subsidiary in Dubai
At the end of 2011, Camfil Farr established a new Middle Eastern base and subsidiary in the Jebel Ali Free Trade Zone in Dubai. As the Group grows more strongly in the region, the Dubai subsidiary will help expand the Group’s footprint. Middle East business will be conducted primarily through independent distributors. Camfil Farr International previously covered the Middle East sales region.
Expanding in India
Three years ago the Camfil Farr Group acquired a 76% share of Anfilco in India, forming Camfil Farr Air Filtration India Ltd as a joint venture with Anand International Pte Ltd. Over the years, Camfil Farr India has been gradually integrated into the Camfil Farr family, more than doubled its sales and quadrupled its profit. In 2011, the remaining shares (24%) were acquired, making Camfil Farr India a wholly owned subsidiary.
As a move forward, Camfil Farr India also set up fabrication facilities in Trichy, 300 km south of Chennai. The facility has the potential to become a major fabrication hub for Power Systems, meeting the requirements of major global OEM customers for power equipment. The workshop, with a total area of approximately 32,000 square metres, houses two covered fabrication bays with various machinery, and exclusive blasting and painting booths to handle carbon and stainless steel fabrication.
Expansion of North American sales organization
In the first quarter of 2011, the Camfil Farr Group acquired Exfil, a former distributor of Camfil Farr. The acquired business is expected to increase Camfil Farr’s presence in the Michigan market. During the quarter, Camfil Farr also acquired Solution Air in Beauport, in the province of Quebec, Canada. The two acquisitions are expected to contribute approximately SEK 57 M to consolidated sales.
Divestment of Railroad business
At year-end 2011, an agreement was reached to divest the Railroad business unit to Parker Hannafin Corporation during the first quarter of 2012. The Railroad business unit had sales of SEK 141 M in 2011, with operations primarily in Canada, India and Australia. The divestment is part of Camfil Farr’s strategic plan to focus exclusively on core air filtration business.