Outstanding Cash Flow from Operations Drives Further Debt Reduction
Full Year 2006 Results Compared to Full Year 2005: -- Revenues increase 37
percent -- Net income increases 99 percent -- Diluted earnings per share
increase 82 percent -- Total debt decreases more than $161 million from
December 31, 2005
QUINCY, Ill., Feb. 7 /PRNewswire-FirstCall/ -- Gardner Denver, Inc.
(NYSE: GDI) announced that revenues and net income for the year ended
December 31, 2006 were $1.7 billion and $132.9 million, respectively, the
Company's highest level ever. Diluted earnings per share ("DEPS") for the
twelve months of 2006 were $2.49, 82 percent higher than the comparable
period of 2005. Total debt was reduced by $161.5 million during 2006,
driven by cash generated from operating activities of approximately $167
million and the rationalization of cash balances at a number of the
Company's non-U.S. locations. Revenues for the three months ended December
31, 2006 were $439.5 million, a 19 percent increase compared with the
fourth quarter of the previous year, primarily as a result of organic
revenue growth. Net income for the three months ended December 31, 2006 was
$37.3 million, a 47 percent increase compared to the same period last year,
reflecting the incremental flow through profitability of the organic
revenue growth and operational improvements, including the benefits from
acquisition integration activities. Diluted earnings per share for the
three months ended December 31, 2006 were $0.70, 46 percent higher than the
fourth quarter of 2005. Current and prior year DEPS and all share amounts
presented in this press release reflect the effect of the two-for-one stock
split (in the form of a stock dividend) that was completed on June 1, 2006.
CEO's Comments Regarding Results
"I am pleased to report that 2006 was another outstanding year for
Gardner Denver, achieving record results in orders, revenues, net income
and cash flow from operations," said Ross J. Centanni, Chairman, President
and CEO. "Strategic acquisitions completed during the last three years have
diversified our customer base into higher-growth end markets that are
supported with broader distribution channels on a global basis. This has
resulted in strong organic revenue growth in both of our reportable
segments. For the full-year 2006, compared to 2005, revenues increased 37
percent, reflecting the benefit of both acquisitions and strong organic
growth. For the fourth quarter of 2006, compared to the same period of
2005, revenues increased 19 percent, most of which was derived organically.
More importantly, as a result of cost reductions and leveraging our costs,
net income grew more than two times faster than revenues.
"During 2006, we used cash flow from operating activities and cash
remitted from certain of our non-U.S. locations to repay debt, reducing
debt to total capital to 32.3 percent. As a result of the Company's reduced
debt level and the progress made to date integrating previously completed
acquisitions, we believe we are well positioned to begin proactively
seeking strategic acquisitions."
Mr. Centanni continued, "Demand during the fourth quarter was strong
across nearly all end market segments and geographic regions, with the
exception of some expected slowing in orders for blowers used on Class 8
trucks in North America. However, this slowdown was more than offset by
increased orders for industrial products in Europe and Asia and for
environmental applications in the U.S. My outlook remains positive for the
first half of 2007 and cautiously optimistic for the second half of the
year. I expect continued growth from Europe and Asia and from environmental
applications in the U.S., tempered somewhat by a slowing rate of growth in
North America for general industrial applications. Orders for drilling and
well stimulation pumps remained strong in the fourth quarter of 2006 and
our production capacity for some of these products is already booked
through the end of 2007.
"Operationally, I am pleased to report that we increased our use of
low- cost country sourcing during the year, with more improvements expected
in 2007. Our integration projects are substantially on schedule. We have
begun shipping product that was previously manufactured in Nuremberg,
Germany from our facilities in China and Brazil. We continue to improve our
operating efficiencies at these latter two facilities as our workforce
gains additional experience with new product lines. By the end of the
second quarter of 2007, we expect to have achieved the full benefit of this
initiative, realizing annualized savings in excess of $3 million," said Mr.
Centanni.
"Additionally, we have substantially completed the relocation of the
production of mobile blowers from Germany to the U.K. and continue to work
on operational improvements as this product line is fully integrated and
rationalized," said Mr. Centanni. "We have also begun implementing
manufacturing process improvements in Germany and expect to realize cost
savings of approximately $6.4 million annually by the fourth quarter of
2007 when we complete the manufacturing integration of Thomas Industries'
non-U.S. locations. In December, we closed a small Thomas Industries
manufacturing facility in the U.S. and relocated production into previously
existing sites and expect to begin to see overhead cost savings associated
with this project in the first quarter of 2007.
"Throughout 2006, we continued to increase manufacturing output,
revenues and segment operating margin(1). As a result of improved
profitability and asset management, our return on equity (defined as net
income divided by average equity) increased to 17.6 percent for the full
year 2006, compared to 12.6 percent for the full year 2005."
In January 2007, Gardner Denver was included in Forbes magazine's list
of the "400 Best Big Companies in America". Forbes' selection process
included reviews of financial metrics, Wall Street forecasts, corporate
governance ratings and other public information. Mr. Centanni stated, "We
are honored by Forbes' recognition as a member of its "Platinum 400," which
would have not been possible without the hard work and dedication of our
employees around the world." Additionally, Gardner Denver was recognized
among Fortune magazine's "100 Fastest Growing Companies" and Forbes
magazine's list of "100 Best Mid- Cap Stocks" for 2006.
Outlook
"At present, manufacturing capacity utilization rates in the U.S., as
published by the Federal Reserve Board, remain above 80%, which has
historically indicated a good demand environment for industrial equipment
such as compressors and blowers. However, we expect the industrial
production rate of growth to slow in the U.S. throughout 2007," said Mr.
Centanni. "We continue to see growing industrial demand in Europe and
on-going strength in Asia. As a result of these growth expectations and
increasing demand anticipated in the U.S. for environmental applications,
we believe that the industrial portion of our business will continue to
grow in 2007, although at a slower rate than realized in 2006.
"We continue to have good visibility of the demand for our oil and
natural gas well drilling and servicing products. Based on input from our
customers, we anticipate demand for well servicing pumps to grow in 2007,
compared to 2006, and we have invested in key machine tools in order to
increase our production capacities accordingly. At this point, we are
uncertain about the level of drilling pump demand in the second half of
2007, but have the flexibility to reduce the levels of previously
outsourced production if demand were to decline," said Mr. Centanni.
"Based on our current economic outlook, existing backlog, and expected
operational improvements from integration projects, we are narrowing our
full- year 2007 DEPS outlook range to $2.75 to $2.85, with first quarter
DEPS expected to be $0.62 to $0.68. The midpoint of the DEPS range for the
first quarter of 2007 ($0.65) represents a 14 percent increase over the
same period of 2006. The midpoint of the DEPS range for the full-year 2007
($2.80) represents a 12 percent increase over the 2006 results. Based on
current expectations for the sources and magnitude of earnings in 2007, the
effective tax rate assumed in the DEPS guidance for 2007 is 33 percent."
Fourth Quarter Results
Revenues increased $70.3 million (19 percent) to $439.5 million for the
three months ended December 31, 2006, compared to the same period of 2005.
Compressor and Vacuum Products segment revenues increased 13 percent for
the three-month period of 2006, compared to the previous year, as a result
of higher volume in all product lines except mobile blowers sold in the
U.S., favorable changes in currency exchange rates and price increases.
Fluid Transfer Products segment revenues increased 44 percent for the three
months ended December 31, 2006, compared to the same period of 2005.
Revenue expansion occurred across all product lines, with particular growth
in drilling and well servicing pumps attributable to manufacturing and
supply chain improvements, increased outsourcing and price increases. The
acquisition of the Todo Group in January 2006 also contributed marginally
to revenue growth in this segment (See Selected Financial Data Schedule).
Compressor and Vacuum Products orders for the three-month period ended
December 31, 2006 were $21.4 million (7 percent) higher than the same
period of the previous year due to favorable changes in exchange rates and
organic growth. Backlog in this reportable segment was 20 percent higher
than at December 31, 2005.
Orders for Fluid Transfer Products for the three months ended December
31, 2006 were $14.6 million (18 percent) higher than the same period of the
previous year primarily due to pricing, organic growth and acquisitions.
Backlog for Fluid Transfer products increased 13 percent to $186.4 million
when compared to December 31, 2005.
Cost of sales (excluding depreciation and amortization) as a percentage
of revenues improved to 64.5 percent in the three-month period ended
December 31, 2006, from 66.0 percent in the same period of 2005. This
improvement was attributable to cost reduction initiatives and leveraging
fixed and semi-fixed costs over additional production volume. Favorable
sales mix also contributed to the improvement as the fourth quarter of 2006
included a higher percentage of drilling pump and replacement pump parts
shipments than the previous year and these products have cost of sales
(excluding depreciation and amortization) percentages below the Company's
average.
As a percentage of revenues, selling and administrative expenses
improved to 17.6 percent for the three-month period ended December 31,
2006, compared to 18.2 percent for the same period of 2005 as a result of
cost control initiatives and leveraging the revenue growth. Selling and
administrative expenses increased $10.2 million in the three-month period
ended December 31, 2006 to $77.3 million, as compared to the same period of
2005, primarily due to compensation and benefit expense increases.
Severance and integration costs ($3.0 million) and incremental expenses
resulting from the implementation of SFAS 123 (R) ($0.8 million) also
contributed to the increase. These increases were partially offset by cost
reductions realized through completed integration initiatives. Certain
year-end adjustments, including a reduction to pension expense to reflect
the final actuarial valuations of the benefit plans assumed in the Thomas
acquisition, reduced selling and administrative expenses approximately $2.4
million in the fourth quarter of 2005.
Segment operating earnings(1) as a percentage of revenues (segment
operating margin) for the Compressor and Vacuum Products segment were 11.1
percent in the three months ended December 31, 2006, an increase from 10.5
percent in the same period of 2005, despite the severance and integration
costs. The Fluid Transfer Products segment generated operating margin of
28.3 percent in the three months ended December 31, 2006, an increase from
21.0 percent in the fourth quarter of 2005, and a new record level for this
reportable segment. The improved results for each reportable segment
reflect the significant leveraging of selling and administrative expenses
over higher revenues and the cost reductions realized to date through
acquisition integration. Price increases and favorable mix resulting from
the increased sales of petroleum pumps also contributed to the improved
operating margin for the Fluid Transfer Products segment.
Interest expense decreased $2.0 million (18 percent) to $8.8 million
for the three months ended December 31, 2006, compared to the same period
of 2005, due to lower borrowing levels partially offset by higher
short-term interest rates.
Net income for the three months ended December 31, 2006 increased $12.0
million (47 percent) to $37.3 million, compared to $25.3 million in same
period of 2005. This improvement occurred despite the additional expense
resulting from the implementation of SFAS 123 (R) and a higher effective
tax rate (35.6 percent) than in the same period of 2005 (30.0 percent). The
increase in the effective tax rate primarily reflects higher year over year
pre-tax income generated by the Company's operations in the United States
and Germany, which is taxed at higher rates than the Company's effective
tax rate in 2005. Incremental taxes on cash repatriated from certain of the
Company's non-U.S. subsidiaries also contributed to the higher effective
tax rate in the three-month period of 2006. DEPS for the three-month period
of 2006 were $0.70, 46 percent higher than the comparable period of the
previous year as a result of the increased net income.
Twelve Month Results
Revenues increased $454.6 million (37 percent) to $1.7 billion in 2006,
compared to $1.2 billion in 2005. This increase resulted from both
acquisitions and organic growth. Incremental volume and the related benefit
of increased cost leverage over a higher revenue base, and favorable sales
mix, resulted in improved cost of sales (excluding depreciation and
amortization) as a percentage of revenues, which decreased from 67.0
percent in 2005 to 64.9 percent in 2006. Declines in productivity related
to acquisition integration efforts partially offset some of these
improvements.
As a percentage of revenues, selling and administrative expenses
improved to 17.8 percent in 2006, from 20.0 percent in 2005, as a result of
cost control initiatives and leveraging revenue growth. Selling and
administrative expenses increased $55.5 million in 2006 to $297.8 million,
due to the incremental effect of acquisitions ($41.7 million) and higher
compensation and benefit costs, partially offset by cost reductions
realized through integration initiatives. Severance and integration costs
($4.6 million) and expenses resulting from the implementation of SFAS 123
(R) ($5.3 million) also contributed to the increase for the year.
Interest expense increased $6.9 million to $37.4 million in 2006,
compared to 2005, due to higher average borrowings and average rates during
the year. Income taxes increased in 2006, compared to the previous year,
due to higher pretax income and a higher effective tax rate in 2006 (33.8
percent) than in 2005 (30.0 percent).
Net income increased $66.0 million (99 percent) to $132.9 million,
compared to $67.0 million in 2005. Diluted earnings per share for the
twelve months of 2006 were $2.49, 82 percent higher than the previous year.
The increases in net income and DEPS were primarily attributable to organic
revenue growth, cost reductions (including those associated with
integrating previously acquired businesses) and acquisitions (net of
interest expense related to financing the purchase price). DEPS for the
twelve months ended December 31, 2006 were reduced $0.07 due to the
recognition of stock-based compensation expense in accordance with SFAS
123(R). Compared to the previous year, DEPS for 2006 were also reduced as a
result of having a greater number of average shares outstanding.
Cash provided by operating activities was approximately $167 million in
2006, 45 percent higher than $115 million generated in 2005. The
improvement in cash provided by operating activities reflects increased
earnings, partially offset by volume-related increases in working capital
and cash payments associated with integration initiatives. Days sales
outstanding for the fourth quarter of 2006 were 55, compared to 57 for the
same period of 2005. Inventory turnover was 5.0 times in the fourth quarter
of 2006 compared with 4.7 times for the same period of 2005. Opportunities
for further improvement in inventory turnover exist through the expanded
use of lean manufacturing techniques, continued supply chain improvements
and consumption of inventory previously positioned to avoid disruptions
during the recent manufacturing relocations.
The Company invested approximately $41.1 million in capital
expenditures in 2006, compared to $35.5 million in the same period of 2005.
Spending for 2006 was slightly less than previously expected, due primarily
to the timing of payments for integration activities. In 2007, capital
spending is expected to be approximately $45 million to $50 million,
reflecting carryover spending on the integration projects and ongoing
operational improvement projects. During 2006, the Company used
approximately $92 million in excess cash from its non-U.S. subsidiaries to
reduce debt. Total debt as of December 31, 2006 was $407.2 million, $161.5
million less than total debt as of December 31, 2005. As of December 31,
2006, debt to total capital was 32.3 percent, compared to 46.4 percent on
December 31, 2005.
Cautionary Statement Regarding Forward-Looking Statements
All of the statements in this release, other than historical facts, are
forward-looking statements made in reliance upon the safe harbor of the
Private Securities Litigation Reform Act of 1995, including, without
limitation, the statements made under the "CEO's Comments Regarding
Results," "Outlook," "Fourth Quarter Results" and "Twelve Month Results"
sections. As a general matter, forward-looking statements are those focused
upon anticipated events or trends, expectations, and beliefs relating to
matters that are not historical in nature. Such forward-looking statements
are subject to uncertainties and factors relating to the Company's
operations and business environment, all of which are difficult to predict
and many of which are beyond the control of the Company. These
uncertainties and factors could cause actual results to differ materially
from those matters expressed in or implied by such forward-looking
statements.
The following uncertainties and factors, among others, could affect
future performance and cause actual results to differ materially from those
expressed in or implied by forward-looking statements: (1) the ability to
effectively integrate acquisitions, including product and manufacturing
rationalization initiatives, and realize anticipated cost savings,
synergies and revenue enhancements; (2) the risk that the Company may incur
significant cash integration costs to achieve any such cost savings; (3)
the Company's exposure to economic downturns and market cycles,
particularly the level of oil and natural gas prices and oil and gas
drilling and production, which affect demand for the Company's petroleum
products, and industrial production and manufacturing capacity utilization
rates, which affect demand for the Company's compressor and vacuum
products; (4) the risks of large or rapid increases in raw material costs
or substantial decreases in their availability, and the Company's
dependence on particular suppliers, particularly iron casting and other
metal suppliers; (5) the risks associated with intense competition in the
Company's markets, particularly the pricing of the Company's products; (6)
the Company's ability to continue to identify and complete other strategic
acquisitions and effectively integrate such acquisitions to achieve desired
financial benefits; (7) economic, political and other risks associated with
the Company's international sales and operations, including changes in
currency exchange rates (primarily between the U.S. dollar, the Euro, the
British pound and the Chinese yuan); (8) changes in the availability or
costs of new financing to support the Company's operations and future
investments; (9) the risks associated with pending asbestos and silicosis
personal injury lawsuits, as well as other potential product liability and
warranty claims due to the nature of the Company's products; (10) the risks
associated with environmental compliance costs and liabilities; (11) the
ability to attract and retain quality management personnel; (12) the
ability to avoid employee work stoppages and other labor difficulties; (13)
the risks associated with defending against potential intellectual property
claims and enforcing intellectual property rights; (14) market performance
of pension plan assets and changes in discount rates used for actuarial
assumptions in pension and other postretirement obligation and expense
calculations; (15) the risk of possible future charges if the Company
determines that the value of goodwill or other intangible assets has been
impaired; and (16) changes in laws and regulations, including accounting
standards, tax requirements and related interpretations or guidance. The
Company does not undertake, and hereby disclaims, any duty to update these
forward-looking statements, although its situation and circumstances may
change in the future.
Comparisons of the financial results for the three and twelve-month
periods ended December 31, 2006 and 2005 follow.
Gardner Denver will broadcast a conference call to discuss fourth
quarter earnings on Thursday, February 8, 2007 at 9:30 a.m. Eastern time
through a live webcast. This free webcast will be available in listen-only
mode and can be accessed, for up to ninety days following the call, through
the Investor Relations page on the Gardner Denver website (
http://www.gardnerdenver.com ) or through Thomson StreetEvents at
http://www.earnings.com .
Gardner Denver, Inc., with 2006 revenues of $1.7 billion, is a leading
worldwide manufacturer of reciprocating, rotary and vane compressors,
liquid ring pumps and blowers for various industrial and transportation
applications, pumps used in the petroleum and industrial markets, and other
fluid transfer equipment serving chemical, petroleum, and food industries.
Gardner Denver's news releases are available by visiting the Investor
Relations page on the Company's website ( http://www.gardnerdenver.com ).
(1) Segment operating earnings (defined as revenues less cost of sales
(excluding depreciation and amortization), depreciation and
amortization, and selling and administrative expenses), and segment
operating margin (defined as segment operating earnings divided by
segment revenues) are indicative of short-term operational performance
and ongoing profitability. For a reconciliation of segment operating
earnings to consolidated income before income taxes, see "Business
Segment Results."
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,
% %
2006 2005 Change 2006 2005 Change
Revenues $ 439,542 $ 369,287 19 $1,669,176 $ 1,214,552 37
Costs and
expenses:
Cost of sales
(excluding
depreciation
and
amortization) 283,619 243,778 16 1,084,057 813,227 33
Depreciation
and
amortization 12,682 12,506 1 52,209 38,322 36
Selling and
administrative
expenses 77,306 67,123 15 297,837 242,368 23
Interest
expense 8,805 10,791 (18) 37,379 30,433 23
Other income,
net (766) (1,104) (31) (2,921) (5,442) (46)
Total costs and
expenses 381,646 333,094 15 1,468,561 1,118,908 31
Income before
income taxes 57,896 36,193 60 200,615 95,644 110
Provision for
income taxes 20,601 10,858 90 67,707 28,693 136
Net income $ 37,295 $ 25,335 47 $ 132,908 $ 66,951 99
Basic earnings
per share (1) $ 0.71 $ 0.49 45 $ 2.54 $ 1.40 81
Diluted earnings
per share (1) $ 0.70 $ 0.48 46 $ 2.49 $ 1.37 82
Basic weighted
average number
of shares
outstanding (1) 52,547 51,951 52,330 47,828
Diluted weighted
average number
of shares
outstanding (1) 53,641 53,045 53,460 48,910
Shares outstanding
as of
September 30 (1) 52,626 51,999
(1) Current and prior year amounts reflect the effect of a two-for-one
stock split (in the form of a stock dividend) completed
on June 1, 2006.
GARDNER DENVER, INC.
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
(Unaudited)
%
12/31/2006 9/30/2006 Change 12/31/2005
Cash and equivalents $62,331 $86,024 $(28) $110,906
Accounts receivable, net 261,115 271,677 (4) 229,467
Inventories, net 225,067 228,555 (2) 207,326
Total current assets 579,718 630,070 (8) 586,267
Total assets 1,750,231 1,794,931 (2) 1,715,060
Short-term debt and current
maturities
of long-term debt 23,789 32,034 (26) 26,081
Accounts payable and accrued
liabilities 302,555 300,985 1 287,763
Total current liabilities 326,344 333,019 (2) 313,844
Long-term debt, less current
maturities 383,459 459,197 (16) 542,641
Total liabilities 897,701 997,278 (10) 1,056,771
Total stockholders' equity $852,530 $797,653 $7 $658,289
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
% %
2006 2005 Change 2006 2005 Change
Compressor and
Vacuum Products
Revenues $ 340,576 $ 300,793 13 $ 1,310,505 $ 982,476 33
Operating
earnings 37,914 31,476 20 140,805 83,093 69
% of revenues 11.1% 10.5% 10.7% 8.5%
Orders 330,675 309,257 7 1,348,521 1,026,903 31
Backlog 354,266 295,997 20 354,266 295,997 20
Fluid Transfer
Products
Revenues 98,966 68,494 44 358,671 232,076 55
Operating
earnings 28,021 14,404 95 94,268 37,542 151
% of revenues 28.3% 21.0% 26.3% 16.2%
Orders 94,812 80,260 18 377,127 344,100 10
Backlog 186,353 164,446 13 186,353 164,446 13
Reconciliation of
Segment Results
to Consolidated
Results
Compressor and
Vacuum Products
operating
earnings $ 37,914 $ 31,476 $ 140,805 $ 83,093
Fluid Transfer
Products
operating
earnings 28,021 14,404 94,268 37,542
Total segment
operating
earnings 65,935 45,880 235,073 120,635
Interest expense 8,805 10,791 37,379 30,433
Other income, net (766) (1,104) (2,921) (5,442)
Income before
income taxes $ 57,896 $ 36,193 $ 200,615 $ 95,644
Income before
income taxes
as a
percentage of
revenues 13.2% 9.8% 12.0% 7.9%
The Company has determined its reportable segments in accordance with
Statement of Financial Accounting Standards No. 131, "Disclosures about
Segments of an Enterprise and Related Information." The Company evaluates
the performance of its reportable segments based on income before interest
expense, other income, net, and income taxes. Reportable segment operating
earnings (defined as revenues less cost of sales (excluding depreciation
and amortization), depreciation and amortization, and selling and
administrative expenses) and segment operating margin (defined as segment
operating earnings divided by revenues) are indicative of short-term
operating performance and ongoing profitability. Management closely
monitors the operating earnings of its reportable segments to evaluate past
performance, management performance and compensation, and 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
Compressor and Vacuum Products
2005 Revenues 300.8 982.5
Incremental effect of
acquisitions - - 218.2 22
Effect of currency exchange
rates 14.6 5 15.1 1
Organic growth 25.2 8 94.7 10
2006 Revenues 340.6 13 1,310.5 33
2005 Orders 309.3 1,026.9
Incremental effect of
acquisitions - - 218.9 21
Effect of currency exchange rates 13.0 4 13.5 1
Organic growth 8.4 3 89.2 9
2006 Orders 330.7 7 1,348.5 31
Backlog as of 12/31/05 296.0
Incremental effect of
acquisitions - -
Effect of currency exchange
rates 20.0 7
Organic growth 38.3 13
Backlog as of 12/31/06 354.3 20
Fluid Transfer Products
2005 Revenues 68.5 232.1
Incremental effect of
acquisitions 3.1 4 14.3 6
Effect of currency exchange
rates 1.3 2 1.2 1
Organic growth 26.1 38 111.1 48
2006 Revenues 99.0 44 358.7 55
2005 Orders 80.3 344.1
Incremental effect of
acquisitions 3.3 4 14.7 4
Effect of currency exchange
rates 0.8 1 (0.1) -
Organic growth 10.4 13 18.4 6
2006 Orders 94.8 18 377.1 10
Backlog as of 12/31/05 164.4
Incremental effect of
acquisitions 1.3 1
Effect of currency exchange
rates 1.9 1
Organic growth 18.8 11
Backlog as of 12/31/06 186.4 13
Consolidated Revenues
2005 369.3 1,214.6
Incremental effect of
acquisitions 3.1 1 232.5 19
Effect of currency exchange
rates 15.9 4 16.3 1
Organic growth 51.2 14 205.8 17
2006 439.5 19 1,669.2 37
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
$ % % of $ % % of
Millions Change Revenues Millions Change Revenue
Segment
Operating
Earnings
2005 Compressor
and Vacuum
Operating
Earnings 31.5 10.5 83.1 8.5
Incremental
effect of
acquisitions - - - 23.0 28 10.5
Other changes 6.4 20 34.7 41
2006 Compressor
and Vacuum
Operating
Earnings 37.9 20 11.1 140.8 69 10.7
2005 Fluid
Transfer
Operating
Earnings 14.4 21.0 37.5 16.2
Incremental
effect of
acquisitions 0.8 6 25.8 2.7 7 18.9
Other changes 12.8 89 54.1 144
2006 Fluid
Transfer
Operating
Earnings 28.0 95 28.3 94.3 151 26.3
Depreciation &
Amortization
2005 12.5 3.4 38.3 3.2
Incremental
effect of
acquisitions - - - 12.4 32 5.3
Other changes 0.2 1 1.5 4
2006 12.7 1 2.9 52.2 36 3.1
Selling &
Administrative
Expenses
2005 67.1 18.2 242.4 20.0
Incremental
effect of
acquisitions 0.5 1 16.1 41.7 17 17.9
Other changes 9.7 14 13.7 6
2006 77.3 15 17.6 297.8 23 17.8
Total Segment
Operating
Earnings
2005 45.9 12.4 120.6 9.9
Incremental
effect of
acquisitions 0.8 2 25.8 25.7 21 11.1
Other changes 19.2 42 88.8 74
2006 65.9 44 15.0 235.1 95 14.1
Net Income
2005 25.3 6.9 67.0 5.5
Incremental
effect of
acquisitions 0.3 1 9.7 6.3 10 2.7
Other changes 11.7 46 59.6 89
2006 37.3 47 8.5 132.9 99 8.0
SOURCE Gardner Denver, Inc.
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Related links:
http://www.gardnerdenver.com/
http://www.prnewswire.com/comp/303875.html/
CONTACT:
Christian E. Rothe, Director, Strategic
Planning and Development of Gardner Denver, Inc., +1-217-228-8224
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