QUINCY, Ill., April 19 /PRNewswire/ -- Gardner Denver, Inc. (NYSE: GDI), a
leading manufacturer of compressors and blowers for industrial applications
and pumps for the petroleum and industrial markets, announced that revenues
for the three months ended March 31, 2000 were $88.3 million and earnings per
share for the same period were $0.26.
Revenues for the three month period increased $18.1 million, or 26%,
compared to the same period of 1999. Petroleum revenues for the three month
period increased approximately $4.0 million, or 60%, compared to the same
period of 1999. This increase resulted from heightened demand for petroleum
products due to higher oil prices which began in the latter half of 1999 and
were sustained through the first quarter of 2000. Compressor products
revenues increased $14.1 million, or 22%, for the three months of 2000,
compared to 1999, as a result of the incremental revenues from acquisitions
and some growth in industrial production. Excluding acquisitions, compressor
revenues increased $1.8 million, or 3%. Net income was $4.0 million for the
first three months of 2000 compared to $3.2 million in 1999. Diluted earnings
per share increased 24% to $0.26 for the first quarter compared to $0.21 for
the same period of 1999. Higher revenues, improved manufacturing efficiencies
and increased leverage of fixed costs resulted in higher net income for the
three month period of 2000.
"We are pleased with our first quarter results," stated Ross J. Centanni,
Chairman, President and CEO. "As anticipated, orders for well servicing pumps
continued to improve during the first quarter, leading to a 48% increase in
the Petroleum segment's backlog as compared to December 31, 1999. We believe
demand for these units will continue to improve throughout 2000, complemented
by increased drilling pump revenues in the second half of the year, if oil and
natural gas prices remain near current levels, and day rates and the rig count
continue to increase.
"As expected, orders for compressor products were relatively flat during
the first quarter. Because compressed air is often used as a fourth utility
in the manufacturing process, demand for compressors is correlated to
manufacturing capacity utilization rates and the rate of change of industrial
equipment production. These indicators, along with the GDP, demonstrated some
improvement in late 1999 and early 2000, which may be an indicator of a
recovery for compressor products. However, since our products tend to lag the
cycle of industrial demand in general, we do not expect significant changes in
orders for compressor products until the second half of 2000. While waiting
for a stronger industrial economy, we continue to expect additional cost
reductions and synergies for compressor products as acquisitions are
integrated and the Company realizes the benefit of our capital investments and
our European distribution," Centanni concluded.
Safe Harbor
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. Such forward-looking
statements are subject to uncertainties and factors relating to Gardner
Denver's operations and business environment, all of which are difficult to
predict and many of which are beyond the control of the Company, that could
cause actual results to differ materially from those matters expressed in or
implied by such forward-looking statements. The following factors, among
others, could affect future performance and cause actual results to differ
materially from those expressed in or implied by forward-looking statements:
the successful integration of recent acquisitions; the level of oil and
natural gas prices and oil and gas drilling and production, which affects
demand for the Company's petroleum products; pricing of Gardner Denver
products; changes in the industrial production and industrial capacity
utilization rates, which affect demand for the Company's compressed air
products; the degree to which the Company is able to penetrate niche markets;
and the continued successful implementation of cost reduction efforts.
Comparisons of the financial results for the three month periods ended
March 31, 2000 and 1999 follow.
Gardner Denver, with 1999 revenues of $324 million, is a leading
manufacturer of reciprocating, rotary and vane compressors and blowers for
various industrial applications and pumps used in the petroleum and industrial
markets. Gardner Denver's news releases are available by fax by calling
800-758-5804, extension 303875, or by visiting the Company's home page on the
Internet ( http://www.gardnerdenver.com ).
GARDNER DENVER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended
March 31,
%
2000 1999 Change
Revenues $88,303 $70,224 26
Costs and Expenses:
Cost of sales 61,278 48,360 27
Depreciation and amortization 3,891 3,519 11
Selling and administrative 15,463 11,798 31
Interest expense 1,817 1,207 51
Other (income)/expense, net (528) 123 (529)
Income before income taxes 6,382 5,217 22
Provision for income taxes 2,431 2,014 21
Net income $3,951 $3,203 23
Basic earnings per share $0.26 $0.21 24
Diluted earnings per share $0.26 $0.21 24
Basic weighted average
number of shares outstanding 15,213 15,245
Diluted weighted average
number of shares outstanding 15,464 15,577
Shares outstanding as of 3/31 15,297 14,949
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended
March 31,
%
2000 1999 Change
Compressed Air Products
Revenues $77,703 $63,590 22
Operating earnings 7,428 6,579 13
% of Revenues 9.6% 10.3%
Petroleum Products
Revenues 10,600 6,634 60
Operating earnings 846 398 113
% of Revenues 8.0% 6.0%
CONDENSED BALANCE SHEET ITEMS
(Unaudited) (Audited) %
03/31/00 12/31/99 Change
Cash and equivalents $20,598 $27,317 (25)
Receivables, net 84,355 72,272 17
Inventories, net 62,732 60,356 4
Current assets 175,408 166,379 5
Total assets 391,151 379,419 3
Short-term debt and
curr. maturities 5,292 5,289 --
Current liabilities 62,442 59,609 5
Long-term debt, excl.
curr. maturities 119,787 114,200 5
Total liabilities 234,365 226,810 3
Total stockholders' equity 156,786 152,609 3
SOURCE Gardner Denver, Inc.
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Related links:
http://www.gardnerdenver.com
Company News On-Call:
http://www.prnewswire.com/comp/303875.html or fax,
800-758-5804, ext. 303875
CONTACT:
Philip R. Roth, Vice President, Finance and
Chief Financial Officer of Gardner Denver, Inc., 217-228-8205
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