Page 16 - MetalForming March 2014

Best Practices
EBIT as a Percent of Sales
30%
25%
20%
15%
25.4%
23.2%
20.4% 19.9% 17.7%
16.2% 15.7%
14.7%
10%
5%
0%
16.2% 13.3%
5.4% 5.8% 4.5% 5.7% 5.7% 3.8%
6.0% 5.7% 5.3%
1.1%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Industry Average Most Profitable
(companies in the 90th percentile for a given metric) and the most profitable performers (those companies with the high- est average profitability).
Volumes and Repeat Participants
Are volumes up compared to the prior year? To find out, PMA tracks the results of repeat participants. A total of 60
Comparison of Total Sales Repeat Participants
2013 $2.3
2012 $2.1
companies participated in both the 2013 and 2012 surveys. These 60 companies report a combined total value of ship- ments (sales) of $2.3 billion in 2013, nearly a 10-percent climb from 2012 sales of $2.1 billion
Industry Profitability
The survey tracks profitability by measuring earnings
before interest and taxes (EBIT), viewed as an equivalent to a company’s operating income. Average EBIT consistently has ranged from 5 to 6 percent of sales for the last 10 years, with the exception of the years impacted by the economic down- turn in 2008 and 2009. The most profitable companies report average EBIT in the range of 13 to 25 percent of sales over the same 10-yr. period.
One question that comes up every year: “What kinds of companies comprise the most profitable group?” Charac- teristics of the most profitable companies in 2013 include:
• All nonunion;
• The majority had 100 to 250 employees;
• All had less than $50 million in annual sales; and
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