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Gardner Denver Reports Fourth Quarter and Full Year 2012 Results

Gardner Denver Reports Fourth Quarter and Full Year 2012 Results 
WAYNE, PA -- (Marketwire) -- 02/22/13 --  Gardner Denver, Inc. (NYSE:
GDI) 


 
--  Fourth Quarter Diluted Earnings Per Share ("DEPS") of $1.40 and
    Adjusted DEPS of $1.49 (1)
--  Full Year 2012 DEPS of $5.28 and Record Adjusted DEPS of $5.74 (1)
--  2013 Guidance Established

  
Gardner Denver, Inc. (NYSE: GDI) today reported fourth quarter and full
year 2012 results that included record Adjusted DEPS. (1)  
Revenues for the fourth quarter ended December 31, 2012 were $589.7
million, down 4% compared with the prior year fourth quarter.
Operating income for the fourth quarter of 2012 was $95.9 million,
compared with $108.1 million in the fourth quarter of the prior year,
resulting in an operating margin decline of 130 basis points to
16.3%. Net income attributable to Gardner Denver for the fourth
quarter of 2012 was $69.1 million, or $1.40 DEPS, compared with $77.4
million, or $1.52 DEPS, in the same period of 2011. Results for the
fourth quarter of 2012 included after-tax charges of $0.09 per
diluted share primarily related to the Company's ongoing
restructuring activities, severance related costs and costs incurred
in connection with the exploration of strategic alternatives.
Ex
cluding these charges, Adjusted DEPS for the fourth quarter of 2012
was $1.49, compared with $1.54 in the same period of 2011. (1)  
For the full year ended December 31, 2012, revenues were $2.356
billion compared with $2.371 billion in the same period of 2011.
Adjusted Operating Income declined slightly to $404.3 million,
compared with $414.3 million earned in the same period of 2011. (1)
DEPS was $5.28 for 2012 and Adjusted DEPS reached a record high of
$5.74, up from $5.51 per diluted share in 2011. (1) 
"During 2012, we successfully executed our strategy in the midst of a
challenging economic environment and as a result we achieved record
Adjusted DEPS for 2012 as well as strong cash flow from operations of
$289 million," said Michael M. Larsen, Gardner Denver's President and
Chief Executive Officer. "We took decisive actions to improve
productivity and reduce structural costs and we were pleased with our
strong finish for 2012 that positions us well for 2013 performance."  
Factors affecting fourth quarter results for the Company's business
segments included: (2) 
Engineered Products Group (EPG)  
In the fourth quarter of 2012, EPG revenues decreased 10% to $263.3
million compared with the same period of 2011. On a sequential basis,
Gardner Denver grew revenues by 11% in the fourth quarter of 2012
compared with $236.7 million in the third quarter of 2012. Operating
income in the fourth quarter of 2012 decreased 20% to $57.2 million
and as a result operating margins decreased to 21.7%, down 280 basis
points from last year's fourth quarter.  
For the full year 2012, EPG revenues decreased 5% to $1.062 billion
from $1.115 billion in the same period of 2011. Adjusted Operating
Income for the full year 2012 was $244.6 million, a decrease of 8%
versus prior year, and Adjusted Operating Margins decreased 70 basis
points to 23.0%. (1) As expected, EPG Adjusted Operating Income in
the fourth quarter decreased and Adjusted Operating Margins fell due
to lower revenues in our Petroleum and Industrial Pump business.  
Industrial Products Group (IPG) 
IPG revenues increased 1% to $326.4 million for the fourth quarter of
2012 compared to the same period of 2011. Operating income in the
fourth quarter of 2012 increased 5% to $38.7 million and Adjusted
Operating Margins increased to 12.9%, up 130 basis points from the
same period of 2011. (1) 
For the full year 2012, IPG revenues increased 3% to $1.294 billion
from $1.256 billion for the full year of 2011, driven largely by the
Robuschi acquisition. Adjusted Operating Income for the full year
2012 was $159.7 million, an increase of 7% versus prior year, and
Adjusted Operating Margins increased to 12.3%, up 40 basis points
from the same period of 2011. (1)  
"Our IPG group executed well on our margin expansion initiatives
supported by the principles of the Gardner Denver Way," said Mr.
Larsen. "We are implementing decisive cost control actions, such as
our previously announced European restructuring plan, and will
continue to opportunistically right-size and restructure our
operations as needed. We will also continue to execute our strategy
with a distinct focus on expanding our sales presence and capturing
the aftermarket opportunity, which we believe will help us to
mitigate the challenging environment for Petroleum and Industrial
Pumps. We believe these actions position Gardner Denver to achieve
continued margin expansion and long-term profitable growth," said Mr.
Larsen. 
Outlook 
"We remain focused on executing our proven strategy that has allowed
Gardner Denver to achieve sustainable, profitable growth over the
past 4 years," said Mr. Larsen. "Our dynamic plan reflects the
current macroeconomic challenges as well as our commitment to driving
growth and value for our shareholders. We are confident that Gardner
Denver is taking the st
eps necessary to position the Company to
capitalize on favorable long-term industry trends, including recovery
in the global markets, particularly energy. In the near-term, we are
encouraged by recent improvements in economic indicators and order
rates, and we believe the Company is poised to benefit from improving
trends should they occur faster than expected. At the same time, we
believe we are being appropriately cautious in our 2013 outlook."  
Earnings for the full year of 2013 are expected to be in the range of
$4.25 to $4.50 per diluted share. First quarter 2013 DEPS are
expected to range between $0.90 and $1.00. These projections include
profit improvement costs and other items totaling $0.04 per diluted
share for the first quarter and $0.75 per diluted share for the full
year 2013. Based upon this, first quarter 2013 Adjusted DEPS are
expected to range between $0.94 and $1.04 and full year 2013 Adjusted
DEPS are expected to range between $5.00 and $5.25. (1) 
Conference Call Today 
As previously announced, Gardner Denver will host a conference call
to discuss results for the fourth quarter of 2012 today, Friday,
February 22, 2013 at 8:30 a.m. EDT through a live webcast. This
webcast will be available in listen-only mode and can be accessed,
for up to ninety days following the call, through the Investors
section on the Gardner Denver website at www.GardnerDenver.com or
through Thomson Reuters StreetEvents at www.earnings.com. 
Corporate Profile 
Gardner Denver, Inc., with 2012 revenues of approximately $2.4
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 Denver's news releases are available by visiting
the Investors section on the Company's website
(www.GardnerDenver.com). 
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: the
exploration of strategic alternatives to enhance shareholder value,
execution of restructuring plans, senior management turnover,
changing economic conditions; pricing of the Company's 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 Company's current and future
litigation; and the other risks detailed from time to time in the
Company's SEC filings, including but not limited to, its Annual
Report on Form 10-K for the fiscal year ended December 31, 2011, and
its subsequent quarterly reports on Form 10-Q for the 2012 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. 
(1) Adjusted Operating Income and Adjusted Operating Margin, on a
consolidated and segment basis, and Adjusted DEPS are financial
measures that are not in accordance with GAAP. For reconciliation to
the comparable GAAP number for reported historical periods please 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, Adjusted Operating Margin 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. 
(2) Segment 
operating income (defined as income before interest
expense, other 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. 


 
                                                                            
                            GARDNER DENVER, INC.                            
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
          (in thousands, except per share amounts and percentages)          
                                (Unaudited)                                 
                                                                            
                   Three Months Ended           Twelve Months Ended         
                      December 31,                 December 31,             
                   ------------------         ----------------------        
                                         %                              %   
                     2012      2011   Change     2012        2011    Change 
                   --------  -------- ------  ----------  ---------- ------ 
                                                                            
Revenues           $589,671  $613,675     (4) $2,355,525  $2,370,903     (1)
  Cost of sales     387,643   406,030     (5)  1,551,138   1,563,049     (1)
                   --------  --------         ----------  ----------        
Gross profit        202,028   207,645     (3)    804,387     807,854      - 
  Selling and                                                               
   administrative                                                           
   expenses          98,424    99,560     (1)    402,745     394,769      2 
  Other operating                                                           
   expense                                                                  
   (income), net      7,739       (51)   N/A      28,898      12,374    134 
                   --------  --------         ----------  ----------        
Operating income     95,865   108,136    (11)    372,744     400,711     (7)
  Interest expense    3,166     3,218     (2)     14,706      15,397     (4)
  Other income,                                                             
   net                 (692)     (846)   (18)     (3,524)     (1,667)   111 
                   --------  --------         ----------  ----------        
Income before                                                               
 income taxes        93,391   105,764    (12)    361,562     386,981     (7)
  Provision for                                                             
   income taxes      23,987    28,094    (15)     97,069     107,439    (10)
                   --------  --------         ----------  ----------        
Net income           69,404    77,670    (11)    264,493     279,542     (5)
Less: Net income                                                            
 attributable to                                                            
 noncontrolling                                                             
 interests              340       289     18       1,227       1,979    (38)
                   --------  --------         ----------  ----------        
Net income                                                                  
 attributable to                                                            
 Gardner Denver    $ 69,064  $ 77,381    (11) $  263,266  $  277,563     (5)
                   ========  ========         ==========  ==========        
                                                                            
Earnings per share                                                          
 attributable to                                                            
 Gardner Denver                                                             
 common                                                                     
 stockholders:                                                              
  Basic earnings                                                            
   per share       $   1.41  $   1.53     (8) $     5.31  $     5.37     (1)
                   ========  ========         ==========  ==========        
  Diluted earnings                                                          
   per share       $   1.40  $   1.52     (8) $     5.28  $     5.33     (1)
                   ========  ========         ==========  ==========        
                                                                            
Cash dividends                                                              
 declared per                                                               
 common share      $   0.05  $   0.05      -  $     0.20  $     0.20      - 
                   ========  ========         ==========  ==========        
                                                                            
Basic weighted                                                              
 average number of                                                          
 shares                                                                     
 outstanding         49,125    50,612             49,591      51,669        
                   ========  ========         ==========  ==========        
Diluted weighted                                                            
 average number of                                                          
 shares                                                                     
 outstanding         49,316    50,953             49,816      52,054        
                   ========  ========         ==========  ==========        
                                               
                             
Shares outstanding                                                          
 as of December 31   49,144    50,651                                       
                   --------  --------                                       
                                                                            
                                                                            
                            GARDNER DENVER, INC.                            
                        CONDENSED BALANCE SHEET ITEMS                       
                     (in thousands, except percentages)                     
                                 (Unaudited)                                
                                                                            
                                                            %               
                                   12/31/2012  9/30/2012 Change   12/31/2011
                                  ----------- ---------- ------  -----------
                                                                            
                                                                            
Cash and cash equivalents         $   254,000 $  248,933      2  $   155,259
Accounts receivable, net              444,815    451,132     (1)     477,505
Inventories, net                      343,197    353,371     (3)     311,679
Total current assets                1,105,377  1,117,095     (1)   1,015,734
                                                                            
Total assets                        2,490,192  2,457,229      1    2,365,568
                                                                            
                                                                            
Short-term borrowings and current                                           
 maturities of long-term debt         359,433    108,255    232       77,692
Accounts payable and accrued                                                
 liabilities                          391,461    406,835     (4)     428,062
Total current liabilities             762,481    515,090     48      505,754
Long-term debt, less current                                                
 maturities                             9,727    331,764    (97)     326,133
                                                                            
Total liabilities                   1,036,029  1,089,413     (5)   1,085,937
                                                                            
Total stockholders' equity        $ 1,454,163 $1,367,816      6  $ 1,279,631
                                                                            
                                                                            
                                                                            
                            GARDNER DENVER, INC.                            
                          BUSINESS SEGMENT RESULTS                          
                     (in thousands, except percentages)                     
                                (Unaudited)                                 
                                                                            
                   Three Months Ended           Twelve Months Ended         
                      December 31,                 December 31,             
                   ------------------         ----------------------        
                                         %                              %   
                     2012      2011   Change     2012        2011    Change 
                   --------  -------- ------  ----------  ---------- ------ 
Industrial                                                                  
 Products Group                                                             
  Revenues         $326,369  $321,783      1  $1,293,685  $1,256,010      3 
  Operating income   38,666    36,723      5     134,431     140,457     (4)
  % of revenues        11.8%     11.4%              10.4%       11.2%       
    Orders          308,913   308,974      -   1,281,549   1,283,398      - 
    Backlog         246,466   254,406     (3)    246,466     254,406     (3)
                                                                            
Engineered                                                                  
 Products Group                                                             
  Revenues          263,302   291,892    (10)  1,061,840   1,114,893     (5)
  Operating income   57,199    71,413    (20)    238,313     260,254     (8)
  % of revenues        21.7%     24.5%              22.4%       23.3%       
    Orders          206,503   288,666    (28)    922,964   1,190,894    (22)
    Backlog         279,274   415,623    (33)    279,274     415,623    (33)
                                                                            
Reconciliation of                                                           
 Segment Results                                                            
 to Consolidated                                                            
 Results                                                                    
                                                                            
Industrial                                                                  
 Products Group                                                             
 operating income  $ 38,666  $ 36,723         $  134,431  $  140,457        
Engineered                                                                  
 Products Group                                                             
 operating income    57,199    71,413            238,313     260,254        
                   --------  --------         ----------  ----------        
Consolidated                                                                
 operating income    95,865   108,136            372,744     400,711        
  % of revenues        16.3%     17.6%              15.8%       16.9%       
Interest expense      3,166     3,218             14,706      15,397        
Other income, net      (692)     (846)            (3,524)     (1,667)       
                   --------  --------         ----------  ----------        
Income before                                                               
 income taxes      $ 93,391  $105,764         $  361,562  $  386,981        
                   ========  ========         ==========  ==========        
  % of revenues        15.8%     17.2%              15.3%       16.3%       
                   ========  ========         ==========  ==========        
                                                                            
The Company evaluates the performance of its reportable segments based on   
 operating income, which is defined as income before interest expense,      
 other 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.        
                                                                         
   
                                                                            
                            GARDNER DENVER, INC.                            
                      SELECTED FINANCIAL DATA SCHEDULE                      
                     (in millions, except percentages)                      
                                (Unaudited)                                 
                                                                            
                                    Three Months Ended  Twelve Months Ended 
                                       December 31,         December 31,    
                                   -------------------  ------------------- 
                                                  %                    %    
                                   $ Millions   Change  $ Millions   Change 
                                   ----------  -------  ----------  ------- 
Industrial Products Group                                                   
2011 Revenues                           321.8              1,256.0          
Incremental effect of acquisitions       19.8        6        89.2        7 
Effect of currency exchange rates        (2.4)      (1)      (40.9)      (3)
Organic growth                          (12.8)      (4)      (10.6)      (1)
                                   ----------  -------  ----------  ------- 
2012 Revenues                           326.4        1     1,293.7        3 
                                                                            
2011 Orders                             309.0              1,283.4          
Incremental effect of acquisitions       17.0        6        88.0        7 
Effect of currency exchange rates        (2.9)      (1)      (40.4)      (3)
Organic growth                          (14.2)      (5)      (49.5)      (4)
                                   ----------  -------  ----------  ------- 
2012 Orders                             308.9        -     1,281.5        - 
                                                                            
Backlog as of 12/31/11                  254.4                               
Effect of currency exchange rates         4.0        2                      
Organic growth                          (11.9)      (5)                     
                                   ----------  -------                      
Backlog as of 12/31/12                  246.5       (3)                     
                                                                            
Engineered Products Group                                                   
2011 Revenues                           291.9              1,114.9          
Effect of currency exchange rates        (1.9)      (1)      (18.3)      (2)
Organic growth                          (26.7)      (9)      (34.8)      (3)
                                   ----------  -------  ----------  ------- 
2012 Revenues                           263.3      (10)    1,061.8       (5)
                                                                            
2011 Orders                             288.7              1,190.9          
Effect of currency exchange rates        (1.1)       -       (16.8)      (1)
Organic growth                          (81.1)     (28)     (251.1)     (21)
                                   ----------  -------  ----------  ------- 
2012 Orders                             206.5      (28)      923.0      (22)
                                                                            
Backlog as of 12/31/11                  415.6                               
Effect of currency exchange rates         2.9        1                      
Organic growth                         (139.2)     (34)                     
                                   ----------  -------                      
Backlog as of 12/31/12                  279.3      (33)                     
                                                                            
Consolidated                                                                
2011 Revenues                           613.7              2,370.9          
Incremental effect of acquisitions       19.8        3        89.2        4 
Effect of currency exchange rates        (4.3)      (1)      (59.2)      (2)
Organic growth                          (39.5)      (6)      (45.4)      (3)
                                   ----------  -------  ----------  ------- 
2012 Revenues                           589.7       (4)    2,355.5       (1)
                                                                            
2011 Orders                             597.7              2,474.3          
Incremental effect of acquisitions       17.0        3        88.0        4 
Effect of currency exchange rates        (4.0)      (1)      (57.2)      (2)
Organic growth                          (95.3)     (16)     (300.6)     (13)
                                   ----------  -------  ----------  ------- 
2012 Orders                             515.4      (14)    2,204.5      (11)
                                                                            
Backlog as of 12/31/11                  670.0                               
Effect of currency exchange rates         6.9        1                      
Organic growth                         (151.1)     (23)                     
                                   ----------  -------                      
Backlog as of 12/31/12                  525.8      (22)                     

 
                                                                            
                                                                            
                            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)                                 
                                                                            
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 financia
l 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             Twelve Months Ended      
                     December 31, 2012              December 31, 2012       
              ------------------------------ ------------------------------ 
              Industrial Engineered          Industrial Engineered          
               Products   Products  Consoli-  Products   Products  Consoli- 
                 Group      Group    dated      Group      Group    dated   
              ---------- ---------- -------- ---------- ---------- -------- 
                                                                            
Operating                                                                   
 income       $   38,666 $   57,199 $ 95,865 $  134,431 $  238,313 $372,744 
 % of revenues      11.8%      21.7%    16.3%      10.4%      22.4%    15.8%
                                                                            
Adjustments to                                                              
 operating                                                                  
 income:                                                                    
 Profit                                                                     
  improvement                                                               
  initiatives                                                               
  (3)              2,168        696    2,864     14,659      3,815   18,474 
 Robuschi                                                                   
  backlog and                                                               
  inventory                                                                 
  amortization                                                              
  (5)                  -          -        -      7,391          -    7,391 
 Other, net                                                                 
  (6)              1,145      1,709    2,854      3,245      2,439    5,684 
              ---------- ---------- -------- ---------- ---------- -------- 
Total                                                                       
 adjustments                                                                
 to operating                                                               
 income            3,313      2,405    5,718     25,295      6,254   31,549 
                                                                            
Adjusted                                                                    
 operating                                                                  
 income       $   41,979 $   59,604 $101,583 $  159,726 $  244,567 $404,293 
 % of                                                                       
  revenues, as                                                              
  adjusted          12.9%      22.6%    17.2%      12.3%      23.0%    17.2%
                                                                            
                    Three Months Ended             Twelve Months Ended      
                     December 31, 2011              December 31, 2011       
              ------------------------------ ------------------------------ 
              Industrial Engineered          Industrial Engineered          
               Products   Products  Consoli-  Products   Products  Consoli- 
                 Group      Group    dated      Group      Group    dated   
              ---------- ---------- -------- ---------- ---------- -------- 
                                                                            
Operating                                                                   
 income       $   36,723 $   71,413 $108,136 $  140,457 $  260,254 $400,711 
 % of revenues      11.4%      24.5%    17.6%      11.2%      23.3%    16.9%
                                                                            
Adjustments to                                                              
 operating                                                                  
 income:                                                                    
 Profit                                                                     
  improvement                                                               
  initiatives                                                               
  (3)              1,360        637    1,997      6,621      1,963    8,584 
 Mark to                                                                    
  market                                                                    
  currency                                                                  
  adjustments                                                               
  (4)             (3,439)         -   (3,439)    (3,439)         -   (3,439)
 Robuschi                                                                   
  backlog and                                                               
  inventory                                                                 
  amortization                                                              
  (5)              1,651          -    1,651      1,651          -    1,651 
 Other, net                                                                 
  (6)                925        678    1,603      4,440      2,335    6,775 
              ---------- ---------- -------- ---------- ---------- -------- 
Total                                                                       
 adjustments                                                                
 to operating                                                               
 income              497      1,315    1,812      9,273      4,298   13,571 
                                                                            
Adjusted                                                                    
 operating                                                                  
 income       $   37,220 $   72,728 $109,948 $  149,730 $  264,552 $414,282 
 % of                                                                       
  revenues, as                                                              
  adjusted          11.6%      24.9%    17.9%      11.9%      23.7%    17.5%
                                                                            
                    Three Months Ended             Twelve Months Ended      
                       December 31,                   December 31,          
              ------------------------------ ------------------------------ 
                                        %                              %    
                 2012       2011     Change     2012       2011     Change  
              ---------- ---------- -------- ---------- ---------- -------- 
                                                                            
Diluted                                                                     
 earnings per                                                               
 share        $     1.40 $     1.52       (8)$     5.28 $     5.33       (1)
                                                                            
Adjustments to                                                              
 diluted             
                                                       
 earnings per                                                               
 share:                                                                     
 Profit                                                                     
  improvement                                                               
  initiatives                                                               
  (3)               0.05       0.03                0.27       0.12          
 Mark to                                                                    
  market                                                                    
  currency                                                                  
  adjustments                                                               
  (4)                  -      (0.07)                  -      (0.07)         
 Robuschi                                                                   
  backlog and                                                               
  inventory                                                                 
  amortization                                                              
  (5)                  -       0.02                0.11       0.02          
 Other, net                                                                 
  (6)               0.04       0.03                0.08       0.10          
              ---------- ----------          ---------- ----------          
Total                                                                       
 adjustments                                                                
 to diluted                                                                 
 earnings per                                                               
 share              0.09       0.02                0.46       0.18          
                                                                            
Adjusted                                                                    
 diluted                                                                    
 earnings per                                                               
 share        $     1.49 $     1.54       (3)$     5.74 $     5.51        4 
                                                                            
(3) Charges in both years reflect costs, including employee termination     
 benefits, to streamline operations and reduce overhead costs.              
                                                                            
(4) Benefit in 2011 reflects a net foreign currency gain associated with    
 the financing of the acquisition of Robuschi SpA.                          
(5) Relates to amortization of the fair market value adjustments to backlog 
 and inventory acquired as part of the acquisition of Robuschi SpA.         
                                                                            
(6) Net charges in 2012 consist primarily of fair value adjustments related 
 to the exit of a business, costs associated with the closure of certain    
 manufacturing facilities, certain severance payments, acquisition due      
 diligence and other costs incurred in conjunction with the exploration of  
 strategic alternatives to enhance shareholder value, and the reversal of   
 liabilities under long-term incentive plans and share-based awards which   
 will not eventually vest due to the resignation of the Company's former    
 President and Chief Executive Officer, Barry L. Pennypacker. Charges in    
 2011 include costs associated with certain severance payments, the closure 
 of a manufacturing facility, acquisition due diligence, and corporate      
 relocation.                                                                

  
Contact: 
Vikram U. Kini
VP, Investor Relations
Tel. (610) 249-2009 
 
 
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