EnPro Industries Reports Results for the Third Quarter of 2013

  EnPro Industries Reports Results for the Third Quarter of 2013

  *Sales declined by 5% as increased demand for heavy-duty truck products was
    more than offset by reduced demand from U.S. government markets in the
    Engine Products and Services segment
  *Segment profit margin declined to 10.7% in the third quarter from 12.9% a
    year ago reflecting lower volumes and a less profitable mix in the Engine
    Products and Services segment
  *GAAP EPS of $0.23 in the third quarter compared to $0.53 in the third
    quarter of 2012; before selected items, third quarter EPS declined to
    $0.53 from $0.81 a year ago
  *The deconsolidated operations of GST reported third-party sales of $53.2
    million and operating income of $14.8 million or 27.8% of sales

Business Wire

CHARLOTTE, N.C. -- November 1, 2013

EnPro Industries (NYSE: NPO) today reported consolidated sales of $276.0
million in the third quarter of 2013, a 5% decrease from the third quarter of
2012 when sales were $291.7 million. The largest factor in the decline was a
significant reduction in sales at the company’s Engine Products and Services
segment, primarily because of decreased demand for parts and service from U.S.
government markets. Sales were also slightly lower in the Engineered Products
segment, but they improved in the Sealing Products segment as sales of
heavy-duty truck parts increased. Excluding the contribution of a small
acquisition and the favorable effect of foreign exchange, the company’s total
sales declined by 7% in comparison to the third quarter of 2012.

Segment profits declined 22% to $29.4 million in the third quarter of 2013.
Segment profit margins were 10.7% compared to 12.9% in the third quarter of
2012. The decline in profits and profit margins primarily reflects weak demand
from U.S. government markets for higher margin aftermarket parts and service
in the Engine Products and Services segment.

Net income in the third quarter of 2013 was $5.6 million, or $0.23 a share,
compared to net income of $11.3 million, or $0.53 a share, in the third
quarter of 2012.

Before selected items, including interest due to Garlock Sealing Technologies
LLC (GST), a deconsolidated subsidiary, and restructuring costs, net income
declined by 24% to $13.0 million, or $0.53 a share, in the third quarter of
2013. In the third quarter of 2012, net income before selected items was $17.2
million, or $0.81 a share.

Consolidated earnings before interest, income taxes, depreciation and
amortization and other selected items (adjusted EBITDA) were $36.0 million in
the third quarter of 2013, a 19% decrease over the third quarter of 2012, when
adjusted EBITDA was $44.5 million.

GST and its subsidiaries, which were deconsolidated effective June 5, 2010,
when they entered a process to reach a permanent resolution of all current and
future asbestos claims, reported third party sales of $53.2 million, about the
same as in the third quarter of 2012. GST’s operating income improved to $14.8
million or 27.8% of sales in the third quarter of 2013. In the third quarter
of 2012, operating income at GST was $11.9 million or 22.6% of sales.

Nine Months Results

Sales for the first nine months of 2013 were $868.7 million, a decrease of
$36.2 million or 4% from the first nine months of 2012. Excluding the
contribution of acquisitions, sales declined by 6% from the first nine months
of 2012. The decline reflects broad-based softness across the company’s
industrial markets, and lower completed contract engine revenues and reduced
demand for engine parts and services from the company’s U.S. government
markets.

Segment profits were $104.0 million in the first nine months of 2013, a
decline of 12% from the same period in 2012. Segment profit margins decreased
to 12.0% from 13.1% primarily because of lower volumes and a less favorable
product mix. These factors were partially offset by better pricing and lower
operating costs.

Adjusted EBITDA for the first nine months of 2013 was $120.6 million, about a
10% decrease from the comparable period of 2012 when adjusted EBITDA was
$134.0 million.

Net income for the first nine months of the year was $22.2 million, or $0.96 a
share, compared to net income of $35.3 million, or $1.64 a share, in the first
nine months of 2012. Before selected items, net income in the first nine
months of 2013 was $45.0 million, or $1.94 a share. This compares to net
income before selected items of $53.4 million, or $2.48 a share in the first
nine months of 2012.

A table attached to this press release shows the effect of selected items on
the company’s results in the third quarters and first nine months of 2013 and
2012. All per share amounts are stated on a diluted basis.

                                                                 
Sealing Products Segment
($           Quarter Ended           Change   Nine Months Ended
Millions)   9/30/2013  9/30/2012          9/30/2013  9/30/2012  Change
Sales        $ 157.9    $ 152.4     4   %    $ 470.4    $ 467.0     1   %
EBITDA       $ 31.6      $ 31.6      --       $ 95.9      $ 90.8      6   %
EBITDA         20.0  %     20.7  %              20.4  %     19.4  %   6   %
Margin
Segment      $ 24.2      $ 23.6      3   %    $ 73.2      $ 68.9
Profit
Segment      15.3  %   15.5  %          15.6  %   14.8  %  
Margin
                                                                             

Sealing Products segment sales increased by 4% in the third quarter of 2013
compared to the third quarter of 2012. Organic growth in the segment was about
2% with an additional 2% coming from the contribution of a small acquisition
and favorable foreign exchange. Sales benefited from increased demand for
Stemco products sold into North American heavy-duty truck markets; sales at
the consolidated operations of the Garlock companies and the Technetics Group
were about the same as in the third quarter of 2012.

The segment’s profits were about the same as the third quarter of 2012 and
segment profit margins of 15.3% were slightly below the third quarter of 2012,
when they were 15.5%.

The contribution of acquisitions resulted in a 4% increase in the segment’s
sales in the first nine months of the year, compared to the first nine months
of 2012. Excluding acquisitions and foreign exchange, sales declined about 3%
from the comparable period in 2012, primarily reflecting softer semiconductor
and construction markets. Segment profit margins improved to 15.6% in the
first nine months of 2013 compared to 14.8% in the first nine months of 2012.

                                                                 
Engineered Products Segment
($           Quarter Ended           Change   Nine Months Ended
Millions)   9/30/2013  9/30/2012          9/30/2013  9/30/2012  Change
Sales        $  84.1    $  87.1     -3   %   $ 271.0    $ 282.8     -4   %
EBITDA       $  8.7      $  8.9      -2   %   $ 34.3      $ 35.6      -4   %
EBITDA          10.3 %      10.2 %              12.7  %     12.6  %
Margin
Segment      $  2.9      $  3.5      -17  %   $ 17.3      $ 19.3      -10  %
Profit
Segment       3.4  %    4.0  %          6.4   %   6.8   %  
Margin
                                                                             

Sales in the Engineered Products segment declined 3% from the third quarter of
2012. Excluding a benefit from foreign exchange, sales were 5% below the third
quarter of last year. At GGB Bearing Technology sales were about the same as a
year ago as better pricing and favorable foreign exchange helped to offset
continued softness in GGB’s European automotive markets and lower demand in
North America. At Compressor Products International (CPI), sales were down as
demand from the business’ North American markets remained weak. Lower volumes
at GGB and CPI and continued restructuring costs at CPI led to a 17% decrease
in segment profits and a decline in segment profit margins to 3.4% from 4.0% a
year ago.

For the first nine months of 2013, Engineered Products segment sales declined
by 4% primarily because of weaker demand in most of the segment’s European and
North American markets. Excluding the effect of foreign exchange, sales
declined 5% from the first nine months of 2012. Lower volumes at both GGB and
CPI and cost increases at GGB related to an ERP system implementation and a
new product formulation reduced segment profits. Segment profit margins fell
to 6.4% in the first nine months of 2013 compared to 6.8% in the first nine
months of 2012.

                                                                 
Engine Products and Services Segment
($           Quarter Ended           Change   Nine Months Ended
Millions)   9/30/2013  9/30/2012          9/30/2013  9/30/2012  Change
Sales        $  34.9    $  53.1     -34  %   $ 129.3    $ 157.2     -18  %
EBITDA       $  3.3      $  11.1     -70  %   $ 16.3      $ 32.2      -49  %
EBITDA          9.5  %      20.9 %              12.6  %     20.5  %
Margin
Segment      $  2.3      $  10.4     -78  %   $ 13.5      $ 30.0      -55  %
Profit
Segment       6.6  %    19.6 %          10.4  %   19.1  %  
Margin
                                                                             

In the Engine Products and Services segment, sales were 34% below the third
quarter of 2012 because of the combination of lower engine revenues and lower
parts and service sales. In the third quarter of 2012, the segment recorded
$6.2 million of completed contract engine revenue. No engine revenues were
recorded under this method in the third quarter of 2013. Sequestration and a
reduction in planned maintenance activities on U.S. Navy ships continued to
reduce demand for parts and service in the segment.

Segment profits decreased to $2.3 million from $10.4 million in the third
quarter of 2012, and segment profit margins fell to 6.6% from 19.6%. The
decrease in margins primarily reflects lower volume and a less attractive
product mix as parts and service sales, which carry significantly higher
margins, declined.

The segment’s sales in the first nine months of 2013 were 18% below the first
nine months of 2012, when the segment recorded higher new engine revenues,
including $24.5 million recorded under the completed contract method. All
engine revenues in the first nine months of 2013 were recorded under the
percentage of completion method. Segment profits and profit margins were lower
in the first nine months of 2013 as a result of a less profitable product mix
as sales of parts and service declined, the effect of a low-margin engine
refurbishment contract, and expenses related to an early retirement program.

                                                                 
Garlock Sealing Technologies
($           Quarter Ended           Change   Nine Months Ended
Millions)   9/30/2013  9/30/2012          9/30/2013  9/30/2012  Change
Third
Party        $  53.2    $  52.6     1   %    $ 167.9    $ 167.1     --
Sales
EBITDA-A     $  16.4     $  13.3     23  %    $ 48.9      $ 41.3      18  %
EBITDA-A        30.8 %      25.3 %              29.1  %     24.7  %
Margin
Operating    $  14.8     $  11.9     24  %    $ 44.1      $ 36.9      20  %
Profit
Operating
Profit          27.8 %      22.6 %              26.3  %     22.1  %
Margin
Adjusted    $  9.2    $  8.8    5   %   $ 29.1    $ 25.2    15  %
Net Income
                                                                             

Third party sales at the deconsolidated operations of GST and its subsidiaries
increased slightly over the third quarter of 2012 reflecting modest increases
in activity in Canada and Mexico and better pricing. Lower selling, general
and administrative expenses increased operating profits and operating profit
margins in the third quarter of 2013 compared to a year ago.

GST’s adjusted net income, which excludes intercompany interest income and
expense associated with the asbestos claims resolution process, increased to
$9.2 million. Asbestos-related expenses totaled $15.9 million in the third
quarter of 2013, an increase of $8.0 million from the third quarter of 2012.
These expenses grew as activity in relation to GST’s asbestos liability
estimation trial increased. The trial took place over 17 days between July 22
and August 22.

GST’s sales in the first nine months of 2013 were about the same as in the
first nine months of 2012, but lower operating costs led to improved operating
profits and operating profit margins. GST’s asbestos-related expenses totaled
$40.0 million for the first nine months of 2013.

Cash Flows

EnPro’s cash balance stood at $75.1 million at September 30, 2013 compared to
$42.1 million at the end of the third quarter in 2012. GST finished the first
nine months of 2013 with a cash and investment balance of $172.6 million
dollars, compared with $143.8 million at the end of the third quarter of 2012.

Outlook

“In comparison to the fourth quarter of 2012, activity in certain of our
European markets appears to be increasing modestly and demand at our
businesses that serve certain original equipment markets in North America also
appears to be slightly better than a year ago,” said Steve Macadam, president
and chief executive officer of EnPro. “In our U.S. government markets, we
expect demand for aftermarket parts and services to remain low. In this
environment, we expect our total fourth quarter sales to be about the same as
in the fourth quarter of 2012, but operating profits are likely to reflect a
higher portion of our sales into original equipment markets, where margins
tend to be lower. As a result of these factors, our segment profits may
decline in comparison to the fourth quarter of last year.”

Conference Call and Webcast Information

EnPro will hold a conference call today, November 1, at 10:00 a.m. Eastern
Time to discuss third quarter 2013 results. Investors who wish to participate
in the call should dial 1-800-851-4704 approximately 10 minutes before the
call begins and provide conference id number 86859600. A live audio webcast of
the call and accompanying slide presentation will be accessible from the
company’s website, http://www.enproindustries.com. To access the presentation,
log on to the webcast by clicking the link on the company’s home page.

Deconsolidation of Garlock Sealing Technologies LLC

Results for the third quarters and first nine months of 2013 and 2012 reflect
the deconsolidation of Garlock Sealing Technologies LLC (GST) and its
subsidiaries, effective June 5, 2010, when GST filed a voluntary petition
under Chapter 11 of the U.S. Bankruptcy Code to begin a process in pursuit of
an efficient and permanent resolution to all current and future asbestos
claims against it. Deconsolidation is required by generally accepted
accounting principles. To aid in comparisons of year-over-year data, the
company has attached a schedule to this press release showing key operating
measures for both EnPro and GST on a pro forma basis.

Non-GAAP Financial Information

This press release contains financial measures that have not been prepared in
accordance with GAAP. They include income before asbestos-related expenses and
other selected items, EBITDA-A, EBITDA and related per share amounts. Tables
showing the effect of these non-GAAP financial measures for third quarters and
first nine months of 2013 and 2012 are attached to the release.

Forward-Looking Statements

Statements in this press release that express a belief, expectation or
intention, as well as those that are not historical fact, are forward-looking
statements under the Private Securities Litigation Reform Act of 1995. They
involve a number of risks and uncertainties that may cause actual events and
results to differ materially from such forward-looking statements. These risks
and uncertainties include, but are not limited to: general economic conditions
in the markets served by our businesses, some of which are cyclical and
experience periodic downturns; prices and availability of raw materials; and
the amount of any payments required to satisfy contingent liabilities related
to discontinued operations of our predecessors, including liabilities for
certain products, environmental matters, guaranteed debt payments, employee
benefit obligations and other matters. In addition, adverse developments could
arise in regard to voluntary petitions filed by certain of our subsidiaries in
U.S. Bankruptcy Court to establish a trust that would resolve all current and
future asbestos claims. Our filings with the Securities and Exchange
Commission, including the Form 10-K for the year ended December 31, 2012 and
Form 10-Q for the quarter ended June 30, 2013, describe these and other risks
and uncertainties in more detail. We do not undertake to update any
forward-looking statement made in this press release to reflect any change in
management's expectations or any change in the assumptions or circumstances on
which such statements are based.

About EnPro Industries

EnPro Industries, Inc. is a leader in sealing products, metal polymer and
filament wound bearings, components and service for reciprocating compressors,
diesel and dual-fuel engines and other engineered products for use in critical
applications by industries worldwide. For more information about EnPro, visit
the company’s website at http://www.enproindustries.com.

                                                             
EnPro Industries, Inc.
                                                                  
Consolidated Statements of Operations (Unaudited)
                                                                  
For the Quarters and Nine Months Ended September 30, 2013 and 2012
(Stated in Millions of Dollars, Except Per Share Data)
                                                                  
                   Quarters Ended               Nine Months Ended
                     September      September      September      September
                     30,            30,            30,            30,
                   2013          2012          2013          2012
Net sales            $  276.0       $  291.7       $  868.7       $  904.9
Cost of sales         183.9       192.9       573.2       595.9  
                                                                  
Gross profit          92.1        98.8        295.5       309.0  
                                                                  
Operating
expenses:
Selling, general        71.4           68.8           219.6          218.1
and administrative
Other                 2.4         1.2         6.1         3.5    
                                                                  
Total operating       73.8        70.0        225.7       221.6  
expenses
                                                                  
Operating income        18.3           28.8           69.8           87.4
                                                                  
Interest expense        (11.3  )       (10.9  )       (33.7  )       (32.5  )
Interest income         0.2            -              0.6            0.2
Other expense         -           (0.5   )     (6.3   )     (1.0   )
                                                                  
Income before           7.2            17.4           30.4           54.1
income taxes
Income tax expense    (1.6   )     (6.1   )     (8.2   )     (18.8  )
                                                                  
Net income          $  5.6       $  11.3      $  22.2      $  35.3   
                                                                  
                                                                  
Basic earnings per  $  0.27      $  0.54      $  1.06      $  1.71   
share
Average common
shares outstanding    20.9        20.7        20.9        20.6   
(millions)
                                                                  
Diluted earnings    $  0.23      $  0.53      $  0.96      $  1.64   
per share
Average common
shares outstanding    24.3        21.3        23.2        21.5   
(millions)
                                                                            

                                                               
EnPro Industries, Inc.
                                                                             
Consolidated Statements of Cash Flows (Unaudited)
                                                                             
For the Nine Months Ended September 30, 2013 and 2012
(Stated in Millions of Dollars)
                                                                             
                                                     2013        2012
Operating activities
Net income                                           $ 22.2       $ 35.3
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation                                           22.3         21.0
Amortization                                           20.4         19.6
Accretion of debt discount                             5.6          5.1
Deferred income taxes                                  (5.8   )     3.5
Stock-based compensation                               (1.2   )     4.6
Excess tax benefits from stock-based compensation      (2.0   )     -
Change in assets and liabilities, net of effects
of acquisitions of businesses:
Accounts receivable                                    (15.3  )     (12.5  )
Inventories                                            (5.8   )     (14.2  )
Accounts payable                                       (8.4   )     (7.6   )
Other current assets and liabilities                   11.9         3.2
Other non-current assets and liabilities             (5.8   )   (2.1   )
Net cash provided by operating activities            38.1      55.9   
                                                                             
Investing activities
Purchases of property, plant and equipment             (21.9  )     (20.4  )
Payments for capitalized internal-use software         (6.4   )     (3.6   )
Acquisitions, net of cash acquired                     (2.0   )     (85.3  )
Other                                                0.3       0.1    
Net cash used in investing activities                (30.0  )   (109.2 )
                                                                             
Financing activities
Net proceeds from (repayments of) short-term           10.8         (0.5   )
borrowings
Proceeds from debt                                     143.9        226.4
Repayments of debt                                     (143.9 )     (162.2 )
Other                                                2.0       0.2    
Net cash provided by financing activities            12.8      63.9   
                                                                             
Effect of exchange rate changes on cash and cash     0.3       0.8    
equivalents
                                                                             
Net increase in cash and cash equivalents              21.2         11.4
Cash and cash equivalents at beginning of period     53.9      30.7   
Cash and cash equivalents at end of period          $ 75.1     $ 42.1   
                                                                             
                                                                             
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest                                             $ 21.2       $ 20.6
Income taxes                                         $ 14.0       $ 15.3
                                                                             

                                                      
EnPro Industries, Inc.
                                                         
Consolidated Balance Sheets (Unaudited)
                                                         
As of September 30, 2013 and December 31, 2012
(Stated in Millions of Dollars)
                                                         
                                         September 30,   December 31,
                                         2013           2012
Current assets
Cash and cash equivalents                $  75.1         $  53.9
Accounts receivable                         203.0           187.2
Inventories                                 137.2           130.8
Other current assets                      28.8         22.3    
Total current assets                        444.1           394.2
                                                         
Property, plant and equipment               185.5           185.5
Goodwill                                    219.5           220.4
Other intangible assets                     205.6           222.5
Investment in GST                           236.9           236.9
Other assets                              130.7        111.4   
Total assets                            $  1,422.3    $  1,370.9 
                                                         
Current liabilities
Short-term borrowings from GST           $  20.2         $  10.1
Notes payable to GST                        11.2            10.7
Current maturities of long-term debt        154.6           1.0
Accounts payable                            75.7            83.9
Accrued expenses                          139.5        121.8   
Total current liabilities                   401.2           227.5
                                                         
Long-term debt                              36.3            184.3
Notes payable to GST                        248.1           237.4
Pension liability                           98.8            112.7
Other liabilities                         64.5         61.9    
Total liabilities                         848.9        823.8   
                                                         
Temporary equity                            17.9            -
                                                         
Shareholders' equity
Common stock                                0.2             0.2
Additional paid-in capital                  406.3           425.4
Retained earnings                           168.1           145.9
Accumulated other comprehensive loss        (17.7    )      (23.0   )
Common stock held in treasury, at cost    (1.4     )    (1.4    )
Total shareholders' equity                555.5        547.1   
Total liabilities and equity            $  1,422.3    $  1,370.9 
                                                         

                                                            
EnPro
Industries,
Inc.
                                                                  
Segment Information (Unaudited)
                                                                  
For the Quarters and Nine Months Ended September 30, 2013 and 2012
(Stated in Millions of Dollars)
                                                                  
                                                                  
Sales
                  Quarters Ended                  Nine Months Ended
                  September 30,                   September 30,
                  2013           2012            2013           2012
                                                                  
Sealing           $  157.9        $  152.4        $  470.4        $  467.0
Products
Engineered           84.1            87.1            271.0           282.8
Products
Engine
Products and       34.9         53.1         129.3        157.2  
Services
                     276.9           292.6           870.7           907.0
Less
intersegment       (0.9   )      (0.9   )      (2.0   )      (2.1   )
sales
                $  276.0      $  291.7      $  868.7      $  904.9  
                                                                  
                                                                  
Segment Profit
                  Quarters Ended                  Nine Months Ended
                  September 30,                   September 30,
                  2013           2012            2013           2012
                                                                  
Sealing           $  24.2         $  23.6         $  73.2         $  68.9
Products
Engineered           2.9             3.5             17.3            19.3
Products
Engine
Products and       2.3          10.4         13.5         30.0   
Services
                $  29.4       $  37.5       $  104.0      $  118.2  
                                                                  
                                                                  
Segment Margin
                  Quarters Ended                  Nine Months Ended
                  September 30,                   September 30,
                  2013           2012            2013           2012
Sealing              15.3   %        15.5   %        15.6   %        14.8   %
Products
Engineered           3.4    %        4.0    %        6.4    %        6.8    %
Products
Engine
Products and       6.6    %      19.6   %      10.4   %      19.1   %
Services
                  10.7   %      12.9   %      12.0   %      13.1   %
                                                                  
                                                                  
Reconciliation of Segment Profit to Net Income
                  Quarters Ended                  Nine Months Ended
                  September 30,                   September 30,
                  2013           2012            2013           2012
                                                                  
Segment profit    $  29.4         $  37.5         $  104.0        $  118.2
Corporate            (7.6   )        (6.9   )        (25.2  )        (25.1  )
expenses
Interest             (11.1  )        (10.9  )        (33.1  )        (32.3  )
expense, net
Other expense,     (3.5   )      (2.3   )      (15.3  )      (6.7   )
net
                                                                  
Income before        7.2             17.4            30.4            54.1
income taxes
Income tax         (1.6   )      (6.1   )      (8.2   )      (18.8  )
expense
Net income       $  5.6        $  11.3       $  22.2       $  35.3   
                                                                  
Segment profit is total segment revenue reduced by operating expenses and
restructuring and other costs identifiable with the segment.Corporate
expenses include general corporate administrative costs.Expenses not
directly attributable to the segments, corporate expenses, net interest
expense, gains/losses related to the sale of assets, impairments and income
taxes are not included in the computation of segment profit.The accounting
policies of the reportable segments are the same as those for the Company.
                                                                  

                                                                             
EnPro Industries, Inc.
                                                            
Reconciliation of Income Before Selected Items to Net Income (Unaudited)
                                                                             
For the Quarters and Nine Months Ended September 30, 2013 and 2012
(Stated in Millions of Dollars, Except Per Share Data)
                                                                             
                                                                             
                  Quarters Ended September 30,
                  2013                            2012
                  $              Per share       $              Per share
                                                                             
Income before     $  13.0         $  0.53         $  17.2         $  0.81
selected items
                                                                             
Adjustments
(net of tax):
                                                                             
Restructuring        (0.8   )        (0.03  )        (0.7   )        (0.03 )
costs
                                                                             
Environmental
reserve              -               -               (0.3   )        (0.02 )
adjustment
                                                                             
Interest
expense and          (5.1   )        (0.21  )        (4.6   )        (0.21 )
royalties with
GST
                                                                             
Other                (0.8   )        (0.03  )        -               -
                                                                             
Tax accrual        (0.7   )      (0.03  )      (0.3   )      (0.02 )
adjustments
                                                                             
Impact             (7.4   )      (0.30  )      (5.9   )      (0.28 )
                                                                             
Net income       $  5.6        $  0.23       $  11.3       $  0.53  
                                                                             
                                                                             
                  Nine Months Ended September 30,
                  2013                            2012
                  $              Per share       $              Per share
                                                                             
Income before     $  45.0         $  1.94         $  53.4         $  2.48
selected items
                                                                             
Adjustments
(net of tax):
                                                                             
Restructuring        (2.6   )        (0.11  )        (1.9   )        (0.09 )
costs
                                                                             
Environmental
reserve              (4.0   )        (0.17  )        (0.6   )        (0.03 )
adjustment
                                                                             
Interest
expense and          (14.8  )        (0.64  )        (13.7  )        (0.64 )
royalties with
GST
                                                                             
Other                (1.2   )        (0.05  )        (1.1   )        (0.05 )
                                                                             
Tax accrual        (0.2   )      (0.01  )      (0.8   )      (0.03 )
adjustments
                                                                             
Impact             (22.8  )      (0.98  )      (18.1  )      (0.84 )
                                                                             
Net income       $  22.2       $  0.96       $  35.3       $  1.64  
                                                                             
Management of the Company believes that it would be helpful to the readers
of the financial statements to understand the impact of certain selected
items on the Company's reported net income and earnings per share, including
items that may recur from time to time.This presentation enables readers
to better compare EnPro Industries, Inc. to other diversified industrial
manufacturing companies that do not incur the sporadic impact of
restructuring activities or other selected items. Management acknowledges
that there are many items that impact a company's reported results and this
list is not intended to present all items that may have impacted these
results.
                                                                             
The amounts above, which may be considered non-GAAP financial measures, are
shown on an after-tax basis and have been calculated by applying the
Company's tax rate to the pre-tax amount. The interest expense with GST is
included in interest expense, and the restructuring costs, environmental
reserve adjustment and other are included as part of other operating expense
and other expense.Per share amounts were calculated by dividing by the
weighted-average shares of diluted common stock outstanding during the
periods.
                                                                             

                                                               
EnPro Industries, Inc.
                                                                             
Reconciliation of EBITDA to Segment Profit (Unaudited)
                                                                             
For the Quarters and Nine Months Ended September 30, 2013 and 2012
(Stated in Millions of Dollars)
                                                                             
                                                                             
                               Quarter Ended September 30, 2013
                                                       Engine
                               Sealing    Engineered   Prods. and   Total
                               Products  Products    Services    Segments
                                                                             
Earnings before interest,
income taxes, depreciation     $ 31.6     $ 8.7        $ 3.3        $ 43.6
and amortization (EBITDA)
                                                                             
Deduct depreciation and        (7.4)     (5.8)       (1.0)       (14.2)
amortization expense
                                                                             
Segment profit                 $ 24.2    $ 2.9       $ 2.3       $ 29.4
EBITDA margin                  20.0%     10.3%       9.5%        15.8%
                                                                             
                               Quarter Ended September 30, 2012
                                                       Engine
                               Sealing    Engineered   Prods. and   Total
                               Products  Products    Services    Segments
                                                                             
Earnings before interest,
income taxes, depreciation     $ 31.6     $ 8.9        $ 11.1       $ 51.6
and amortization (EBITDA)
                                                                             
Deduct depreciation and        (8.0)     (5.4)       (0.7)       (14.1)
amortization expense
                                                                             
Segment profit                 $ 23.6    $ 3.5       $ 10.4      $ 37.5
EBITDA margin                  20.7%     10.2%       20.9%       17.7%
                                                                             
                               Nine Months Ended September 30, 2013
                                                       Engine
                               Sealing    Engineered   Prods. and   Total
                               Products  Products    Services    Segments
                                                                             
Earnings before interest,
income taxes, depreciation     $ 95.9     $ 34.3       $ 16.3       $ 146.5
and amortization (EBITDA)
                                                                             
Deduct depreciation and        (22.7)    (17.0)      (2.8)       (42.5)
amortization expense
                                                                             
Segment profit                 $ 73.2    $ 17.3      $ 13.5      $ 104.0
EBITDA margin                  20.4%     12.7%       12.6%       16.9%
                                                                             
                               Nine Months Ended September 30, 2012
                                                       Engine
                               Sealing    Engineered   Prods. and   Total
                               Products  Products    Services    Segments
                                                                             
Earnings before interest,
income taxes, depreciation     $ 90.8     $ 35.6       $ 32.2       $ 158.6
and amortization (EBITDA)
                                                                             
Deduct depreciation and        (21.9)    (16.3)      (2.2)       (40.4)
amortization expense
                                                                             
Segment profit                 $ 68.9    $ 19.3      $ 30.0      $ 118.2
EBITDA margin                  19.4%     12.6%       20.5%       17.5%
                                                                             
For a reconciliation of segment profit to net income, please refer to the
Segment Information (Unaudited) schedule.
                                                                             

                                                              
EnPro Industries, Inc.
                                                                             
Reconciliation of Adjusted EBITDA to Net Income (Unaudited)
                                                                             
For the Quarters and Nine Months Ended September 30, 2013 and 2012
(Stated in Millions of Dollars)
                                                                             
                               Quarters Ended          Nine Months Ended
                               September 30,           September 30,
                               2013       2012        2013       2012
                                                                             
Earnings before interest,
income taxes, depreciation,
amortization, and other        $ 36.0      $ 44.5      $ 120.6     $ 134.0
selected items (adjusted
EBITDA)
                                                                             
Adjustments:
                                                                             
Interest expense, net            (11.1 )     (10.9 )     (33.1 )     (32.3 )
                                                                             
Income tax expense               (1.6  )     (6.1  )     (8.2  )     (18.8 )
                                                                             
Depreciation and                 (14.3 )     (14.3 )     (42.7 )     (40.7 )
amortization expense
                                                                             
Restructuring costs              (1.3  )     (1.0  )     (4.2  )     (3.0  )
                                                                             
Environmental reserve            -           (0.5  )     (6.3  )     (1.0  )
adjustment
                                                                             
Other                           (2.1  )   (0.4  )    (3.9  )   (2.9  )
                                                                             
Impact                          (30.4 )   (33.2 )    (98.4 )   (98.7 )
                                                                             
Net income                     $ 5.6     $ 11.3     $ 22.2    $ 35.3  
                                                                             

                                                             
EnPro Industries, Inc.
                                                                             
Selected Results Reflecting Deconsolidation of GST (Unaudited)
                                                                             
(Stated in Millions
of Dollars)
                          Quarter Ended               Quarter Ended
                          September 30, 2013          September 30, 2012
                          EnPro          GST          EnPro        GST
                                                                             
Adjusted net sales *      $   270.1      $  53.2      $  286.2     $  52.6
                                                                             
Segment
profit/operating          $   29.4       $  14.8      $  37.5      $  11.9
profit
                                                                             
Adjusted EBITDA           $   36.0       $  16.4      $  44.5      $  13.3
                                                                             
Income before             $   13.0       $  9.2       $  17.2      $  8.8
selected items
                                                                             
                                                                             
                                                                             
                          Nine Months Ended           Nine Months Ended
                          September 30, 2013          September 30, 2012
                          EnPro          GST          EnPro        GST
                                                                             
Adjusted net sales *      $   850.4      $  167.9     $  887.3     $  167.1
                                                                             
Segment
profit/operating          $   104.0      $  44.1      $  118.2     $  36.9
profit
                                                                             
Adjusted EBITDA           $   120.6      $  48.9      $  134.0     $  41.3
                                                                             
Income before             $   45.0       $  29.1      $  53.4      $  25.2
selected items
                                                                             
*Adjusted net sales reflect third party sales only, which differ from the
sales reported on the accompanying consolidated statements of operations
which include intercompany sales from EnPro to GST.
                                                                             

Contact:

EnPro Industries
Don Washington, 704-731-1527
Director, Investor Relations and
Corporate Communications
don.washington@enproindustries.com