QUINCY, Ill., April 17 /PRNewswire-FirstCall/ -- Gardner Denver, Inc.
(NYSE: GDI) announced today that, based on information currently available,
diluted earnings per share for the three months ended March 31, 2006 are
expected to be in a range of $1.13 to $1.17, compared to its previous
guidance of $0.65 to $0.75. The significant improvement in diluted earnings
per share for the three-month period is primarily attributable to increased
shipments as a result of higher than expected orders and manufacturing
improvements that resulted in increased output. Some additional outsourcing
of fluid transfer product manufacturing also contributed to the improvement
in revenues and diluted earnings per share. The Company was able to
leverage its fixed costs to realize strong flow through profitability on
the incremental revenues. This leverage, coupled with lower than expected
selling and administrative expenses, resulted in operating margin
expansion.
The Company intends to release first quarter 2006 results after the
market closes on Wednesday, April 26, 2006 and conduct a related conference
call at 9:30 a.m. Eastern time on Thursday, April 27.
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 regarding expected diluted earnings per share
for the three months ended March 31, 2006. 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 preliminary
nature of the revised guidance, which is subject to further review by our
management and our independent auditors; (2) the ability to effectively
integrate acquisitions and realize anticipated cost savings, synergies and
revenue enhancements; (3) the risk that the Company may incur significant
cash integration costs to achieve any such cost savings; (4) 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; (5) 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; (6) the risks
associated with intense competition in the Company's markets, particularly
the pricing of the Company's products; (7) the Company's ability to
continue to identify and complete other strategic acquisitions and
effectively integrate such acquisitions to achieve desired financial
benefits; (8) the risks associated with the reduced liquidity generated by
the substantial additional indebtedness incurred to complete the Thomas
Industries acquisition, including reduced liquidity for working capital and
other purposes, increased vulnerability to general economic conditions and
floating interest rates, and reduced financial and operating flexibility
due to increased covenant and other restrictions in the Company's credit
facilities and indentures; (9) 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); (10) 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; (11) the risks associated with environmental
compliance costs and liabilities; (12) the ability to attract and retain
quality management personnel; (13) the ability to avoid employee work
stoppages and other labor difficulties; (14) the risks associated with
defending against potential intellectual property claims and enforcing
intellectual property rights; (15) market performance of pension plan
assets and changes in discount rates used for actuarial assumptions in
pension and other postretirement obligation and expense calculations; (16)
the risk of possible future charges if the Company determines that the
value of goodwill or other intangible assets has been impaired; and (17)
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.
Gardner Denver, Inc., with 2005 revenues of $1.2 billion ($1.4 billion
on a pro forma basis including the acquisition of Thomas Industries, which
was completed in July 2005), 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 ).
SOURCE Gardner Denver, Inc.
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Related links:
http://www.gardnerdenver.com
http://www.prnewswire.com/comp/303875.html/
CONTACT:
Helen W. Cornell, Vice President, Finance and
CFO, of Gardner Denver, +1-217-228-8209
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