Attached files
| file | filename |
|---|---|
| 8-K - 8-K - IDEX CORP /DE/ | d385638d8k.htm |
| EX-99.2 - EX-99.2 - IDEX CORP /DE/ | d385638dex992.htm |
 Second Quarter
2012 Earnings Release July 24, 2012
Exhibit 99.1 |
 Agenda
2
•
IDEX Mid Year Assessment
•
Q2 2012 Summary
•
2012 Segment Performance
Fluid & Metering
Health & Science
Fire & Safety / Diversified
•
2012 Guidance Update
•
Q&A |
 IDEX
Proprietary & Confidential Replay Information
Dial toll–free: 855.859.2056
International: 404.537.3406
Conference ID: #40917655
Log on to: www.idexcorp.com
3 |
 IDEX
Proprietary & Confidential Cautionary Statement
Under the Private Securities
Litigation Reform Act
This presentation and discussion will include forward-looking statements.
Our actual performance may differ materially from that indicated
or
suggested
by any such statements. There are a number of factors that could cause those
differences, including those presented in our most recent annual
report
and
other company filings with the SEC.
4 |
 IDEX
Proprietary & Confidential IDEX Mid-Year Assessment
5
Solid performance in spite of global economic uncertainty
Operational
Excellence
Growth
Conversion
Innovation
New Products
New Markets
Acquisitions
Commercial
Excellence
Global Deceleration
Strong first quarter followed by slowing second quarter
North America remains strong for industrial and infrastructure-related markets
Weak demand in Europe and slowing growth in China
Growth rates in 2H will slow modestly
Exceptional Operating Performance in Attractive Market Segments
Defensible diversified business with strong global teams delivering exceptional value
Execution: operating margin expansion with laser focus on cash conversion
Strong balance sheet and disciplined approach to deployment of capital
IOP Challenged HST Performance
Uncertainty in several OEM end markets
CVI restructuring continues through year-end |
 IDEX
Proprietary & Confidential Total Revenue
Operating Margin*
Free Cash Flow
EPS*
IDEX Q2 2012 Financial Performance
Continued growth, margin expansion and strong cash generation
6
* EPS / Op Margin data adjusted for $2.6M restructuring expense (2012) and $3M CVI inventory
step-up expense (2011) Organic: 6% Growth
8% Growth
30 bps expansion
54% Growth |
 IDEX
Proprietary & Confidential Fluid & Metering
Productivity and strong execution generated margin expansion of 220 bps
7
Q2 Sales Mix:
Organic
+3%
Acquisition
-%
Fx
-2%
Total
+1%
Q2
Summary:
Order softness experienced in Europe and China
Energy, Chemical, Ag strong in NA and emerging markets
Water / Waste water outlook improving in NA, while still challenged
internationally
2H market environment will be volatile; expecting continued slower markets
in Europe
Total Orders
Total Revenue
Operating Margin*
Organic: 3% Growth
220 bps expansion
Organic: 2% Decline
* Op Margin data adjusted for restructuring expense (2012)
$0
$100
$200
$300
Q2
$209
$211
2011
2012
10%
15%
20%
25%
Q2
19.9%
22.1%
2011
2012
$0
$100
$200
$300
Q2
$211
$202
2011
2012 |
 IDEX
Proprietary & Confidential Health & Science
8
Q2 Sales Mix:
Organic
+3%
Acquisition
+19%
Fx
-1%
Total
+21%
Q2
Summary:
Acquired Matcon LTD (Material Process Technology “MPT”
Platform)
MPT platform performed well, driven by strong demand for food and pharma
processing equipment (particularly in Asia)
Scientific Fluidics experiencing market softness on inconsistent OEM demand
Optics end markets challenged; right-sizing the business for the bottom of
the cycle
Excluding acquisitions, Op margins expanded modestly
* Op Margin data adjusted for restructuring expense (2012) and $3M CVI inventory step-up expense
(2011) Total Orders
Operating Margin*
$0
$100
$200
$300
Q2
$132
$166
2011
2012
$0
$100
$200
$300
Q2
$140
$171
2011
2012
10%
15%
20%
25%
Q2
21.3%
16.6%
2011
2012
Total Revenue
Right-sizing
Optics
platform
and
global
positioning
are
key
to
segment
recovery
Organic: 7% Growth
Organic: 3% Growth
470 bps contraction
|
 IDEX
Proprietary & Confidential Fire & Safety/Diversified
Great performance across diversified businesses
9
Q2 Sales Mix:
Organic
+15%
Acquisition
-
Fx
-5%
Total
+10%
Q2
Summary:
North American Fire markets stabilized, now growing through adjacencies
Fire restructuring activities will begin to provide benefit in FY13
Rescue continues to win internationally despite headline challenges
Dispensing initiated delivery on large replenishment order; domestic markets
improving while European markets are uncertain
Op margins are up 50 bps excluding PY gain on sale of property
* Op Margin data adjusted for restructuring expense (2012)
Total Orders
Total Revenue
Operating Margin*
Organic: 15% Growth
210 bps contraction
Organic: 3% Growth
$0
$50
$100
$150
10%
20%
30%
Q2
25.5%
23.4%
2011
2012
$0
$50
$100
$150
Q2
$104
$102
2011
2012
2011
2012
Q2
$105
$116 |
 IDEX
Proprietary & Confidential Outlook: Revised Guidance
10
FY12
Revenue
Adjusted EPS
April 2012 - Prior Guidance
~$2.0 B
$2.80 - $2.85
Q2 miss (Compared to midpoint of prior guidance)
(15)
(0.04) Slower 2H Organic / Cost actions
(30)
(0.06) Optics (Challenging end markets)
(10)
(0.04) Fx impact
(20)
(0.03) ERC acquisition impact
15
0.02 July 2012 - Revised Guidance
~$1.94 B
$2.65 - $2.70 |
 IDEX
Proprietary & Confidential Outlook: 2012 Guidance Summary
Q3 2012
Adjusted EPS estimate range: $0.62 –
$0.64
Organic revenue growth of ~ 3%
Negative Fx impact of ~3% to sales (at June 30 rates)
FY 2012
Adjusted EPS estimate range: $2.65 –
$2.70
Organic revenue growth ~ 4-5%
Positive impact of 4% from acquisitions
Operating margin of ~18.5%
Negative Fx impact of ~2% to sales (at June 30 rates)
Other modeling items
Tax rate = ~30%
Cap Ex ~$40M
Free Cash Flow will exceed net income
Continued selective share repurchase
EPS estimate excludes future restructuring, acquisitions and acquisition–related costs and
charges 11 |
 IDEX
Proprietary & Confidential Q&A
12 |