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8-K - FORM 8-K - GARDNER DENVER INC | c65573e8vk.htm |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
July 21, 2011
|
Contact: Michael M. Larsen | |
Vice President and CFO | ||
(610) 249-2002 |
GARDNER DENVER DELIVERS RECORD RESULTS
| Strong second quarter 2011 orders of $637.0 million and revenues of $610.7 million, up 27% and 36%, respectively, over the same period of 2010. | ||
| Record Diluted Earnings per Share (DEPS) were $1.27 for the second quarter, an increase of 79% compared to $0.71 in the second quarter of 2010. | ||
| Updated guidance: estimated third quarter 2011 DEPS of $1.27 to $1.32 and total year DEPS of $5.05 to $5.15, including profit improvement costs and other items totaling $0.03 per diluted share for the third quarter and $0.15 per diluted share for the full year. |
WAYNE, Pa. (July 21, 2011) Gardner Denver, Inc. (NYSE: GDI) today announced second quarter 2011
results that established quarterly records for orders, revenues, operating income and DEPS. In
addition, backlog at June 30, 2011 was $681.7 million, an all-time high. Revenues and operating
income were $610.7 million and $99.2 million, respectively. Operating income improved 75% compared
to the three-month period of the prior year, increasing to $99.2 million from $56.6 million in
2010. Operating income as a percentage of revenues was 16.2% in the second quarter of 2011, up 360
basis points compared to 12.6% in last years second quarter. The increase in operating income was
largely driven by incremental profitability on the revenue growth, favorable product mix and the
benefits of operational improvements previously implemented. For the second quarter of 2011, net
income and DEPS attributable to Gardner Denver were $67.1 million and $1.27, respectively. The
three-month period ended June 30, 2011 included expenses for profit improvement initiatives and
other items totaling $5.2 million, or $0.08 DEPS.
CEOs Comments
Gardner Denver had an outstanding second quarter with strong, broad based organic growth across
our diverse portfolio of businesses and significant margin expansion, said Barry L. Pennypacker,
Gardner Denvers President and Chief Executive Officer. As evidenced by the record breaking
orders, revenue and DEPS achieved in the second quarter, we continue to progress on our strategic
priorities and improve operational execution supported by the Gardner Denver Way. Both of the
Companys reportable segments delivered strong operational performance in the quarter, resulting in
operating margins expanding by 360 basis points compared to the prior year. The Industrial
Products Group (IPG) improved margins sequentially for the ninth consecutive quarter and continued
to benefit from healthy organic growth in North America and Asia Pacific. The Engineered Products
Group (EPG) benefited from broad strength across the portfolio and especially strong demand for
petroleum pumps and related aftermarket parts and services.
1
Mr. Pennypacker continued, Cash provided by operating activities was more than $66 million in the
second quarter, a 63% improvement compared to the same period of 2010. In addition, we invested
$13.0 million in capital expenditures in the second quarter of 2011, with a sustained focus on
operational improvements and increased production output to meet customer demand. The Company
expects capital expenditures to total approximately $50 to $55 million in 2011. Our focus on cash
generation and disciplined capital allocation remains a top priority for 2011. The acquisition
pipeline is strong, and we continue to selectively evaluate appropriate opportunities as they
become available.
Outlook
Our backlog for EPG remains at record levels, yielding a very positive outlook for the remainder
of 2011. Demand for well servicing pumps and aftermarket fluid ends continues to grow sharply as
shale activity increases and we are investing in additional capacity to meet these growing needs.
Further, the demand for engineered packages and OEM compressors remains strong, commented Mr.
Pennypacker.
For the remainder of 2011, we expect continued revenue growth in IPG as a result of healthy demand
in our core end markets as well as strong growth in emerging markets such as China. We anticipate
that global capacity utilization will remain steady in 2011, resulting in sustained levels of
manufacturing spending and investment in customer plants. We remain optimistic that this steady
growth will drive demand for IPGs compressors, blowers and vacuum products as well as
opportunities for replacement parts and services.
Mr. Pennypacker stated, Based on this outlook, our existing backlog and productivity improvement
plans, we are projecting third quarter 2011 DEPS to be in a range of $1.27 to $1.32 and are raising
our full-year 2011 DEPS range to $5.05 to $5.15. This projection includes profit improvement costs
and other items totaling $0.03
per diluted share for the third quarter of 2011 and $0.15 per diluted share for the full-year 2011.
Third quarter 2011 DEPS, as adjusted for the impact of profit improvement costs and other items
(Adjusted DEPS), are expected to be in a range of $1.30 to $1.35. The midpoint of the Adjusted
DEPS range for the third quarter of 2011 ($1.33) represents a 51% increase over the same period of
2010. Full-year 2011 Adjusted DEPS are expected to be in a range of $5.20 to $5.30. The midpoint
of the updated Adjusted DEPS range for the full-year 2011 ($5.25) represents a 55% increase over
2010 results and a 13% increase from the full-year 2011 guidance issued in April. The effective
tax rate assumed in the DEPS guidance for 2011 is unchanged at 28%.
Engineered Products Group (EPG)
EPG orders and revenues increased 43% and 56%, respectively, for the three months ended June 30,
2011, compared to the same period of 2010, reflecting sustained, strong demand for drilling and
well servicing pumps and engineered packages. In the second quarter of 2011, favorable changes in
foreign currency exchange rates increased orders and revenues for EPG by 5% and 6%, respectively.
The ILMVAC acquisition, completed in the third quarter of 2010, increased both orders and revenues
by 2%. Organically, EPG generated order and revenue growth of 36% and 48%, respectively, in the
second quarter of 2011, compared to the prior year period.
2
Segment operating income(1), as reported under generally accepted accounting principles
in the U.S. (GAAP), for EPG for the three months ended June 30, 2011 was $64.8 million and
segment operating margin(1) was 22.9%, compared to $36.4 million and 20.1%,
respectively, in the same period of 2010. Operating Income, as adjusted to exclude the net impact
of expenses incurred for profit improvement initiatives and other items (Adjusted Operating
Income), for EPG for the second quarter of 2011 was $65.9 million and segment Adjusted Operating
Income as a percentage of revenues was 23.3%. Adjusted Operating Income for EPG in the second
quarter of 2010 was $35.2 million, or 19.5% of revenues. The improvement in Adjusted Operating
Income for this segment was primarily attributable to incremental profitability on revenue growth,
favorable product mix and cost reductions. See the Selected Financial Data Schedule and the
Reconciliation of Operating Income and DEPS to Adjusted Operating Income and Adjusted DEPS at the
end of this press release.
Industrial Products Group (IPG)
Orders and revenues for IPG increased 15% and 22%, respectively, in the second quarter, compared to
the same period of 2010, reflecting on-going improvement in demand for OEM products, compressors
and aftermarket parts and services. In the second quarter of 2011, favorable changes in foreign
currency exchange rates increased orders and revenues for the Industrial Products segment by 9%.
Organically, IPG generated order and revenue growth of 6% and 13%, respectively, in the second
quarter of 2011, compared to the prior year period.
Segment operating income(1) and segment operating margin(1), as reported
under GAAP, for the Industrial Products segment for the three months ended June 30, 2011 were $34.3
million and 10.5%, respectively, compared to $20.2 million and 7.5% of revenues for the three
months ended June 30, 2010. Adjusted Operating Income for IPG in the second quarter of 2011 was
$38.5 million and Adjusted Operating Income as a percentage of revenues was 11.7%. By comparison,
Adjusted Operating Income for IPG was $23.2 million, or 8.6% of revenues, in the three-month period
of 2010. The improvement in Adjusted Operating Income for this segment was primarily attributable
to incremental profit on revenue growth and cost reductions. See the Selected Financial Data
Schedule and the Reconciliation of Operating Income and DEPS to Adjusted Operating Income and
Adjusted DEPS at the end of this press release.
Gardner Denver Consolidated Results
Adjusted Operating income, which excludes the net impact of expenses incurred for profit
improvement initiatives and other items ($5.2 million), for the three-month period ended June 30,
2011 was $104.4 million, compared to $58.4 million in the prior year period. Adjusted Operating
Income as a percentage of revenues improved to 17.1% from 13.0% in the second quarter of 2010.
Adjusted DEPS for the three-month period ended June 30, 2011, were $1.35, compared to $0.73 in the
three-month period of 2010. Adjusted Operating Income, on a consolidated and segment basis, and
Adjusted DEPS are both financial measures that are not in accordance with GAAP. See
Reconciliation of Operating Income and DEPS to Adjusted Operating Income and Adjusted DEPS at the
end of this press release. Gardner Denver believes the non-GAAP financial measures of Adjusted
Operating Income and Adjusted DEPS provide important supplemental information to both management
and investors regarding financial and business trends used in assessing its results of operations.
Gardner Denver believes excluding the specified items from operating income and DEPS provides a
more meaningful comparison to the corresponding reported periods and internal budgets and
forecasts, assists investors in performing analysis that is consistent with financial models
developed by investors and research analysts, provides management with a more relevant measurement
of operating performance and is more useful in assessing management performance.
3
Forward-Looking Information
This press release contains forward-looking statements that involve risks and uncertainties.
Forward-looking statements generally can be identified by the use of forward-looking terminology
such as could, should, anticipate, expect, believe, will, project, lead, or the
negative thereof or variations thereon or similar terminology. The actual future performance of
the Company could differ materially from such statements. Factors that could cause or contribute
to such
differences include, but are not limited to: changing economic conditions; pricing of the Companys
products and other competitive market pressures; the costs and availability of raw materials;
fluctuations in foreign currency exchange rates and energy prices; risks associated with the
Companys current and future litigation; and the other risks detailed from time to time in the
Companys SEC filings, including but not limited to, its Annual Report on Form 10-K for the fiscal
year ending December 31, 2010, and its subsequent quarterly reports on Form 10-Q for the 2011
fiscal year. You are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. The Company does not undertake, and hereby
disclaims, any duty to update these forward-looking statements, although its situation and
circumstances may change in the future.
Comparisons of the financial results for the three and six-month periods ended June 30, 2011 and
2010 follow.
Gardner Denver will broadcast a conference call to discuss results for the second quarter of 2011
on Friday, July 22, 2011 at 9:30 a.m. Eastern Time through a live webcast. This free webcast will
be available in listen-only mode and can be accessed, for up to ninety days following the call,
through the Investor Center on the Gardner Denver website at www.GardnerDenver.com or through
Thomson StreetEvents at www.earnings.com.
Corporate Profile
Gardner Denver, Inc., with 2010 revenues of approximately $1.9 billion, is a leading worldwide
manufacturer of highly engineered products, including compressors, liquid ring pumps and blowers
for various industrial, medical, environmental, transportation and process applications, pumps used
in the petroleum and industrial market segments and other fluid transfer equipment, such as loading
arms and dry break couplers, serving chemical, petroleum and food industries. Gardner Denvers
news releases are available by visiting the Investors section on the Companys website
(www.GardnerDenver.com).
(1) Segment operating income (defined as income before interest expense, other expense (income), net, and income taxes) and segment operating margin (defined as segment operating income divided by segment revenues) are indicative of short-term operational performance and ongoing profitability. For a reconciliation of segment operating income to consolidated operating income and consolidated income before income taxes, see Business Segment Results at the end of this press release. |
4
GARDNER DENVER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Revenues |
$ | 610,693 | $ | 449,519 | 36 | $ | 1,142,546 | $ | 871,683 | 31 | ||||||||||||||
Cost of sales |
400,425 | 297,919 | 34 | 747,822 | 586,276 | 28 | ||||||||||||||||||
Gross profit |
210,268 | 151,600 | 39 | 394,724 | 285,407 | 38 | ||||||||||||||||||
Selling and administrative expenses |
105,009 | 91,745 | 14 | 201,030 | 179,439 | 12 | ||||||||||||||||||
Other operating expense, net |
6,087 | 3,268 | 86 | 7,699 | 1,917 | 302 | ||||||||||||||||||
Operating income |
99,172 | 56,587 | 75 | 185,995 | 104,051 | 79 | ||||||||||||||||||
Interest expense |
3,934 | 6,062 | (35 | ) | 9,281 | 12,178 | (24 | ) | ||||||||||||||||
Other expense (income), net |
279 | (2 | ) | NM | (683 | ) | (637 | ) | 7 | |||||||||||||||
Income before income taxes |
94,959 | 50,527 | 88 | 177,397 | 92,510 | 92 | ||||||||||||||||||
Provision for income taxes |
27,263 | 12,603 | 116 | 49,802 | 22,333 | 123 | ||||||||||||||||||
Net income |
67,696 | 37,924 | 79 | 127,595 | 70,177 | 82 | ||||||||||||||||||
Less: Net income attributable to
noncontrolling interests |
575 | 590 | (3 | ) | 996 | 885 | 13 | |||||||||||||||||
Net income attributable to Gardner Denver |
$ | 67,121 | $ | 37,334 | 80 | $ | 126,599 | $ | 69,292 | 83 | ||||||||||||||
Earnings per share attributable to
Gardner Denver common stockholders: |
||||||||||||||||||||||||
Basic earnings per share |
$ | 1.28 | $ | 0.71 | 80 | $ | 2.42 | $ | 1.33 | 82 | ||||||||||||||
Diluted earnings per share |
$ | 1.27 | $ | 0.71 | 79 | $ | 2.40 | $ | 1.31 | 83 | ||||||||||||||
Cash dividends declared per common share |
$ | 0.05 | $ | 0.05 | - | $ | 0.10 | $ | 0.10 | - | ||||||||||||||
Basic weighted average number of shares outstanding |
52,285 | 52,399 | 52,246 | 52,275 | ||||||||||||||||||||
Diluted weighted average
number of shares outstanding |
52,684 | 52,802 | 52,662 | 52,696 | ||||||||||||||||||||
Shares outstanding as of June 30 |
52,316 | 52,248 | ||||||||||||||||||||||
5
GARDNER DENVER, INC.
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
(Unaudited)
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
(Unaudited)
% | ||||||||||||||||
6/30/2011 | 3/31/2011 | Change | 12/31/2010 | |||||||||||||
Cash and cash equivalents |
$ | 121,347 | $ | 185,305 | (35 | ) | $ | 157,029 | ||||||||
Accounts receivable, net |
445,812 | 398,736 | 12 | 369,860 | ||||||||||||
Inventories, net |
299,470 | 295,586 | 1 | 241,485 | ||||||||||||
Total current assets |
932,401 | 941,685 | (1 | ) | 828,537 | |||||||||||
Total assets |
2,185,553 | 2,164,153 | 1 | 2,027,098 | ||||||||||||
Short-term borrowings and current maturities of long-term debt |
38,010 | 37,622 | 1 | 37,228 | ||||||||||||
Accounts payable and accrued liabilities |
410,485 | 377,513 | 9 | 322,372 | ||||||||||||
Total current liabilities |
448,495 | 415,135 | 8 | 359,600 | ||||||||||||
Long-term debt, less current maturities |
148,308 | 245,721 | (40 | ) | 250,682 | |||||||||||
Total liabilities |
819,966 | 886,092 | (7 | ) | 837,425 | |||||||||||
Total stockholders equity |
$ | 1,365,587 | $ | 1,278,061 | 7 | $ | 1,189,673 |
6
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Industrial Products Group |
||||||||||||||||||||||||
Revenues |
$ | 327,846 | $ | 268,650 | 22 | $ | 614,056 | $ | 515,044 | 19 | ||||||||||||||
Operating income |
34,325 | 20,157 | 70 | 65,127 | 39,710 | 64 | ||||||||||||||||||
% of revenues |
10.5% | 7.5% | 10.6% | 7.7% | ||||||||||||||||||||
Orders |
323,687 | 281,904 | 15 | 647,198 | 559,704 | 16 | ||||||||||||||||||
Backlog |
254,490 | 213,107 | 19 | 254,490 | 213,107 | 19 | ||||||||||||||||||
Engineered Products Group |
||||||||||||||||||||||||
Revenues |
282,847 | 180,869 | 56 | 528,490 | 356,639 | 48 | ||||||||||||||||||
Operating income |
64,847 | 36,430 | 78 | 120,868 | 64,341 | 88 | ||||||||||||||||||
% of revenues |
22.9% | 20.1% | 22.9% | 18.0% | ||||||||||||||||||||
Orders |
313,264 | 218,420 | 43 | 601,679 | 425,885 | 41 | ||||||||||||||||||
Backlog |
427,168 | 259,322 | 65 | 427,168 | 259,322 | 65 | ||||||||||||||||||
Reconciliation of Segment Results to Consolidated Results |
||||||||||||||||||||||||
Industrial Products Group
operating income |
$ | 34,325 | $ | 20,157 | $ | 65,127 | $ | 39,710 | ||||||||||||||||
Engineered Products Group
operating income |
64,847 | 36,430 | 120,868 | 64,341 | ||||||||||||||||||||
Consolidated operating income |
99,172 | 56,587 | 185,995 | 104,051 | ||||||||||||||||||||
% of revenues |
16.2% | 12.6% | 16.3% | 11.9% | ||||||||||||||||||||
Interest expense |
3,934 | 6,062 | 9,281 | 12,178 | ||||||||||||||||||||
Other expense (income), net |
279 | (2 | ) | (683 | ) | (637 | ) | |||||||||||||||||
Income before income taxes |
$ | 94,959 | $ | 50,527 | $ | 177,397 | $ | 92,510 | ||||||||||||||||
% of revenues |
15.5% | 11.2% | 15.5% | 10.6% | ||||||||||||||||||||
The Company evaluates the performance of its reportable segments based on operating income, which
is defined as income before interest expense, other expense (income), net, and income taxes.
Reportable segment operating income and segment operating margin (defined as segment operating
income divided by segment revenues) are indicative of short-term operating performance and ongoing
profitability. Management closely monitors the operating income and operating margin of each
business segment to evaluate past performance and identify actions required to improve
profitability.
7
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
% | % | |||||||||||||||
$ Millions | Change | $ Millions | Change | |||||||||||||
Industrial Products Group |
||||||||||||||||
2010 Revenues |
268.7 | 515.0 | ||||||||||||||
Effect of currency exchange rates |
24.3 | 9 | 28.5 | 5 | ||||||||||||
Organic growth |
34.8 | 13 | 70.6 | 14 | ||||||||||||
2011 Revenues |
327.8 | 22 | 614.1 | 19 | ||||||||||||
2010 Orders |
281.9 | 559.7 | ||||||||||||||
Effect of currency exchange rates |
24.2 | 9 | 28.6 | 5 | ||||||||||||
Organic growth |
17.6 | 6 | 58.9 | 11 | ||||||||||||
2011 Orders |
323.7 | 15 | 647.2 | 16 | ||||||||||||
Backlog as of 6/30/10 |
213.1 | |||||||||||||||
Effect of currency exchange rates |
23.6 | 11 | ||||||||||||||
Organic growth |
17.8 | 8 | ||||||||||||||
Backlog as of 6/30/11 |
254.5 | 19 | ||||||||||||||
Engineered Products Group |
||||||||||||||||
2010 Revenues |
180.9 | 356.6 | ||||||||||||||
Incremental effect of acquisitions |
4.1 | 2 | 8.5 | 2 | ||||||||||||
Effect of currency exchange rates |
11.7 | 6 | 14.2 | 4 | ||||||||||||
Organic growth |
86.1 | 48 | 149.2 | 42 | ||||||||||||
2011 Revenues |
282.8 | 56 | 528.5 | 48 | ||||||||||||
2010 Orders |
218.4 | 425.9 | ||||||||||||||
Incremental effect of acquisitions |
3.8 | 2 | 7.6 | 2 | ||||||||||||
Effect of currency exchange rates |
10.3 | 5 | 13.0 | 3 | ||||||||||||
Organic growth |
80.8 | 36 | 155.2 | 36 | ||||||||||||
2011 Orders |
313.3 | 43 | 601.7 | 41 | ||||||||||||
Backlog as of 6/30/10 |
259.3 | |||||||||||||||
Incremental effect of acquisitions |
1.4 | 1 | ||||||||||||||
Effect of currency exchange rates |
24.6 | 9 | ||||||||||||||
Organic growth |
141.9 | 55 | ||||||||||||||
Backlog as of 6/30/11 |
427.2 | 65 | ||||||||||||||
Consolidated |
||||||||||||||||
2010 Revenues |
449.5 | 871.7 | ||||||||||||||
Incremental effect of acquisitions |
4.1 | 1 | 8.5 | 1 | ||||||||||||
Effect of currency exchange rates |
36.0 | 8 | 42.7 | 5 | ||||||||||||
Organic growth |
121.1 | 27 | 219.6 | 25 | ||||||||||||
2011 Revenues |
610.7 | 36 | 1,142.5 | 31 | ||||||||||||
2010 Orders |
500.3 | 985.6 | ||||||||||||||
Incremental effect of acquisitions |
3.8 | 1 | 7.6 | 1 | ||||||||||||
Effect of currency exchange rates |
34.5 | 7 | 41.6 | 4 | ||||||||||||
Organic growth |
98.4 | 19 | 214.1 | 22 | ||||||||||||
2011 Orders |
637.0 | 27 | 1,248.9 | 27 | ||||||||||||
Backlog as of 6/30/10 |
472.4 | |||||||||||||||
Incremental effect of acquisitions |
1.4 | - | ||||||||||||||
Effect of currency exchange rates |
48.2 | 10 | ||||||||||||||
Organic growth |
159.7 | 34 | ||||||||||||||
Backlog as of 6/30/11 |
681.7 | 44 |
8
GARDNER DENVER, INC.
RECONCILIATION OF OPERATING INCOME AND DEPS TO
ADJUSTED OPERATING INCOME AND ADJUSTED DEPS
(in thousands, except per share amounts and percentages)
(Unaudited)
RECONCILIATION OF OPERATING INCOME AND DEPS TO
ADJUSTED OPERATING INCOME AND ADJUSTED DEPS
(in thousands, except per share amounts and percentages)
(Unaudited)
While Gardner Denver, Inc. reports financial results in accordance with accounting principles
generally accepted in the U.S. (GAAP), this press release includes non-GAAP measures. These
non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.
Gardner Denver, Inc. believes the non-GAAP financial measures of Adjusted Operating Income and
Adjusted DEPS provide important supplemental information to both management and investors regarding
financial and business trends used in assessing its results of operations. Gardner Denver believes
excluding the specified items from operating income and DEPS provides management a more meaningful
comparison to the corresponding reported periods and internal budgets and forecasts, assists
investors in performing analysis that is consistent with financial models developed by investors
and research analysts, provides management with a more relevant measurement of operating
performance, and is more useful in assessing management performance.
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2011 | June 30, 2011 | |||||||||||||||||||||||
Industrial | Engineered | Industrial | Engineered | |||||||||||||||||||||
Products | Products | Products | Products | |||||||||||||||||||||
Group | Group | Consolidated | Group | Group | Consolidated | |||||||||||||||||||
Operating income |
$ | 34,325 | $ | 64,847 | $ | 99,172 | $ | 65,127 | $ | 120,868 | $ | 185,995 | ||||||||||||
% of revenues |
10.5% | 22.9% | 16.2% | 10.6% | 22.9% | 16.3% | ||||||||||||||||||
Adjustments to operating income: |
||||||||||||||||||||||||
Profit improvement initiatives (2) |
2,680 | 303 | 2,983 | 3,571 | 392 | 3,963 | ||||||||||||||||||
Other, net (3) |
1,463 | 766 | 2,229 | 1,976 | 944 | 2,920 | ||||||||||||||||||
Total adjustments to operating income |
4,143 | 1,069 | 5,212 | 5,547 | 1,336 | 6,883 | ||||||||||||||||||
Adjusted Operating Income |
$ | 38,468 | $ | 65,916 | $ | 104,384 | $ | 70,674 | $ | 122,204 | $ | 192,878 | ||||||||||||
% of revenues, as adjusted |
11.7% | 23.3% | 17.1% | 11.5% | 23.1% | 16.9% |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, 2010 | June 30, 2010 | ||||||||||||||||||||||||
Industrial | Engineered | Industrial | Engineered | ||||||||||||||||||||||
Products | Products | Products | Products | ||||||||||||||||||||||
Group | Group | Consolidated | Group | Group | Consolidated | ||||||||||||||||||||
Operating income |
$ | 20,157 | $ | 36,430 | $ | 56,587 | $ | 39,710 | $ | 64,341 | $ | 104,051 | |||||||||||||
% of revenues |
7.5% | 20.1% | 12.6% | 7.7% | 18.0% | 11.9% | |||||||||||||||||||
Adjustments to operating income: |
|||||||||||||||||||||||||
Profit improvement initiatives (2) |
2,761 | (1,419 | ) | 1,342 | 3,960 | (1,264 | ) | 2,696 | |||||||||||||||||
Other, net (3) |
262 | 181 | 443 | (21 | ) | 161 | 140 | ||||||||||||||||||
Total adjustments to operating income |
3,023 | (1,238 | ) | 1,785 | 3,939 | (1,103 | ) | 2,836 | |||||||||||||||||
Adjusted Operating Income |
$ | 23,180 | $ | 35,192 | $ | 58,372 | $ | 43,649 | $ | 63,238 | $ | 106,887 | |||||||||||||
% of revenues, as adjusted |
8.6% | 19.5% | 13.0% | 8.5% | 17.7% | 12.3% |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Diluted earnings per share |
$ | 1.27 | $ | 0.71 | 79 | $ | 2.40 | $ | 1.31 | 83 | ||||||||||||||
Adjustments to diluted earnings per share: |
||||||||||||||||||||||||
Profit improvement initiatives (2) |
0.05 | 0.02 | 0.06 | 0.04 | ||||||||||||||||||||
Other, net (3) |
0.03 | - | 0.04 | - | ||||||||||||||||||||
Total adjustments to diluted earnings per share |
0.08 | 0.02 | 0.10 | 0.04 | ||||||||||||||||||||
Adjusted Diluted Earnings Per Share |
$ | 1.35 | $ | 0.73 | 85 | $ | 2.50 | $ | 1.35 | 85 |
(2) | Charges in both years reflect costs, including employee termination benefits, to streamline operations and reduce overhead costs. | |
(3) | Charges in 2011 include costs associated with certain severance payments, the closure of a manufacturing facility, acquisition due diligence and corporate relocation. Charges in 2010 include certain retirement expenses and acquisition due diligence costs, partially offset by the gain on the sale of a foundry. |
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