Compared to the Second Quarter of 2005:
-- Revenues increase 66%, including 20% from organic growth
-- Net income increases 125%
-- Diluted earnings per share increases 107%, even with 11% more shares
outstanding
-- Total segment operating earnings(1) increase 151%, reaching 14.2% of
revenues
QUINCY, Ill., July 26 /PRNewswire-FirstCall/ -- Gardner Denver, Inc.
(NYSE: GDI) announced that revenues and net income for the three months
ended June 30, 2006 were $416.3 million and $33.0 million, respectively.
For the six-month period of 2006, revenues and net income were $815.6
million and $63.5 million, respectively. Diluted earnings per share (DEPS)
for the three months ended June 30, 2006 was $0.62, 107% higher than the
comparable period of 2005. For the six-month period of 2006, DEPS was
$1.19, 113% better than the comparable period of the previous year. The
improvement in financial results reflects incremental profitability
attributable to organic revenue growth, pricing, acquisitions and cost
reductions, including acquisition integration activities. 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
"The second quarter results reflect continued strength in our end
markets and my outlook remains positive," said Ross J. Centanni, Chairman,
President and CEO. "Demand for compressor and vacuum products remains
broad-based, both regionally and across product lines, and continues to
strengthen. I am very encouraged by the improvement in orders for our
compressor and vacuum products in Europe, which has exceeded our
expectations. Demand for oil and natural gas-related products continues to
be as strong as I have seen in more than twenty years. Orders and backlog
for these products increased in the second quarter of 2006, compared to the
first quarter of 2006, reflecting strong demand into the first half of 2007
when the products are scheduled to be delivered."
"I am also pleased with our operational improvements. Additional
progress was made in the second quarter to improve the performance of our
supply chain and to outsource capacity-constrained components. Through our
efforts, we have further reduced lead-times, enabling us to increase
revenues and expand segment operating margin(1) (for a reconciliation of
segment operating earnings to consolidated income before income taxes, see
"Business Segment Results."). We have also worked to decrease our
investment in working capital and excess assets. Therefore, in addition to
improving DEPS, our strategic initiatives have resulted in an improved
return on equity (defined as net income divided by average equity), which
was 18.1% (on an annualized basis) for the second quarter of 2006, compared
to 11.3% (annualized) in the second quarter of 2005."
"Our acquisition integration initiatives are progressing on plan. Our
previously announced liquid ring pump manufacturing and product
rationalization initiative, to shift production from Nuremberg, Germany to
China and Brazil, is on schedule. We expect that the facility expansion in
China will be completed this quarter and the entire production transfer
will be completed by year-end. This project is expected to generate
annualized savings in excess of $3 million beginning in the second quarter
of 2007."
"In April, we began rationalizing our European blower product lines and
manufacturing facilities. We are merging the Rietschle and Wittig
operations, which are both located in Schopfheim, Germany, and relocating
the mobile blower product line from Wittig to a Gardner Denver facility in
the U.K., where other European mobile equipment is manufactured. We also
intend to rationalize the Nash Elmo and Rietschle side channel blower
product lines and centralize production of standard products in our
manufacturing facility in Bad Neustadt, Germany. To date, we have completed
negotiations with the works councils and have begun to reduce manpower
through attrition, early retirement programs and eliminating temporary
positions. We have started the rearrangement of the manufacturing facility
in the U.K. and are installing some new machine tools required to increase
output. By the fourth quarter of 2007, when the integration project is
scheduled for completion, common manufacturing processes will have been
aligned to increase productivity, and lead-times and inventory levels
should be lower. We also expect to reduce administrative and manufacturing
overhead expenses. Once completed, this project is expected to result in
the elimination of approximately 65 positions."
"We continue to seek opportunities to reduce costs and sell excess
assets as we further streamline operations. In the second quarter of 2006,
we sold a Thomas Industries distribution facility in the U.K. and a former
Syltone manufacturing plant in the U.S., generating a total of
approximately $3.3 million of cash. We are also actively integrating the
sales companies acquired through the Syltone, Nash Elmo and Thomas
Industries acquisitions, which is expected to enable further margin
expansion in 2007."
Outlook
"According to the Federal Reserve Board, total industry capacity
utilization in the U.S. remained above 81% throughout the second quarter,
which tends to correlate with good demand for our industrial products. The
economic environment in Europe and Asia also remains strong. Generally,
demand for our products used in industrial applications lags economic cycle
changes by approximately six months. Therefore, we remain optimistic in our
demand outlook for industrial products through the remainder of 2006.
Demand for our drilling and well stimulation pumps also remains strong and,
given the extended visibility we have in this side of our business, we
expect demand to remain strong for these products at least through 2007. We
were successful in improving revenues in this reportable segment in the
second quarter of 2006 through price increases and additional outsourcing
of component production. Further revenue increases for oil and natural
gas-related products will depend upon our ability to identify additional
outsourcing alternatives, implement incremental price increases and expand
machining capacity through capital investment."
"As expected, integration activities negatively impacted the Compressor
and Vacuum Products segment operating earnings in the second quarter of
2006, as a result of lower productivity and increased severance expenses.
We expect the costs associated with the integration projects to further
impact financial results in the third and fourth quarter of 2006, and then
not recur in 2007. Furthermore, due to manufacturing plant shutdown
schedules and holidays, there are fewer work days at many of our facilities
in the second half of the year, than in the first. Therefore, we expect net
income in the second half of 2006 to be less than that of the first half of
2006. However, we believe lean manufacturing initiatives, further supplier
performance improvements and a focus on divesting excess facilities will
contribute to inventory and asset reductions over the remainder of the
year," noted Mr. Centanni.
"Given our current economic outlook, as well as our existing level of
backlog and operational improvements, we are increasing our DEPS outlook
for 2006 to a range of $2.20 to $2.40, with third quarter DEPS
approximating $0.47 to $0.57. The current estimate assumes that
approximately $1.0 to $2.0 million of severance and relocation expenses
($0.01 to $0.02 DEPS) are incurred in the second half as a result of
integration projects. The midpoint of the range for 2006 ($2.30) represents
a 68% increase over the 2005 results. This improvement is expected despite
the $0.07 reduction in DEPS associated with recognizing stock-based
compensation expense for the year in accordance with SFAS 123(R), a greater
number of average shares outstanding for the twelve-month period of 2006
(compared to 2005) and a higher effective tax rate. The implementation of
SFAS 123(R) is expected to reduce net income by $0.6 million ($0.01 DEPS)
in each of the remaining quarters of 2006."
"The anticipated effective tax rate for 2006 is higher than the rate
incurred in the prior year and our previous expectation for 2006. Based on
current expectations for the sources and magnitude of earnings in 2006, the
effective tax rate assumed in the DEPS guidance for 2006 is 33%. The
anticipated increase in the effective tax rate is primarily a result of
incremental pretax income generated in the U.S. and Germany in 2006, which
is taxed at higher rates than the Company's effective average for 2005
(30%). Tax planning strategies also provide decreasing rate benefits as the
Company's pretax earnings increase."
Second Quarter Results
Revenues increased $166.0 million (66%) to $416.3 million for the three
months ended June 30, 2006, compared to the same period of 2005. Compressor
and Vacuum Products segment revenues increased 65% for the three-month
period of 2006, compared to the previous year, primarily due to the
incremental effect of acquisitions, stronger demand, manufacturing and
supply chain improvements that resulted in increased production output, and
price increases. Fluid Transfer Products segment revenues increased 71% for
the three months ended June 30, 2006, compared to the same period of 2005,
primarily due to stronger demand for drilling and well servicing pumps,
manufacturing and supply chain improvements, incremental shipments as a
result of increased outsourcing and price increases. (See Selected
Financial Data Schedule.)
Orders for the three-month period ended June 30, 2006 were $181.0
million (66%) higher than the same period of the previous year, due to
acquisitions and organic growth. The year-over-year organic growth in
orders for compressor and vacuum products was 12%, which was supplemented
by incremental orders from acquisitions. The 55% organic order growth for
fluid transfer products for the three-month period of 2006 was driven by
demand for oil and natural gas-related products that are expected to ship
during the first half of 2007. Acquisitions also favorably impacted orders
for fluid transfer products. Despite the increased revenue levels in the
second quarter of 2006, orders in each reportable segment exceeded
revenues, resulting in a 10% increase in total backlog from March 31, 2006.
Cost of sales (excluding depreciation and amortization) as a percentage
of revenues decreased to 64.8% in the three-month period ended June 30,
2006, from 67.1% 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 lower cost of sales (excluding depreciation and
amortization) as a percentage of revenues. The second 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. Declines in productivity related to acquisition integration
efforts partially offset some of these improvements.
Depreciation and amortization increased $7.3 million (102%) to $14.5
million, primarily due to the incremental effect of acquisitions. In the
three months ended June 30, 2006, the Company substantially completed the
allocation of the Thomas Industries purchase price to the assets acquired.
The finalization of the fair market value of this business's tangible and
amortizable intangible assets resulted in a $1.7 million increase in
depreciation and amortization expense in the three-month period of 2006
that is not expected to recur.
As a percentage of revenues, selling and administrative expenses
decreased to 17.5% for the three-month period ended June 30, 2006, compared
to 20.7% for the same period of 2005. Selling and administrative expenses
increased $21.3 million in the three-month period ended June 30, 2006 to
$73.0 million, primarily due to the incremental effect of acquisitions
($20.7 million) and stock-based compensation expense ($0.8 million). These
increases were partially offset by cost reductions, net of inflationary
factors such as salary increases.
As a result of the improved cost of sales (excluding depreciation and
amortization) percentage and leveraging selling and administrative expenses
over higher revenues, operating earnings(1) (for a reconciliation of
segment operating earnings to consolidated income before income taxes, see
"Business Segment Results.") as a percentage of revenues (operating margin)
for each reportable segment improved for the three-month period ended June
30, 2006, compared to the same period of 2005. Compressor and Vacuum
Products segment operating margin was 10.4% in the three months ended June
30, 2006, compared to 8.1% in the same period of 2005. Fluid Transfer
Products segment operating margin increased to 27.8% for the three months
ended June 30, 2006, a new record level for this reportable segment,
compared to 14.2% in the same period of 2005. The primary causes for the
sequential decline in operating margin for the Compressor and Vacuum
Products segment from the first quarter of 2006 (11.2%) to the second
quarter of 2006 (10.4%) were the productivity decreases,
integration-related severance expenses ($0.5 million) and the adjustment to
depreciation and amortization that were discussed previously.
Incremental borrowings necessary to complete acquisitions and higher
short-term interest rates resulted in increased interest expense for the
three months ended June 30, 2006, compared to the same period of 2005.
Other income, net, in the three-month period of 2005 included approximately
$0.7 million of interest income earned on the investment of financing
proceeds, prior to their use to complete the Thomas acquisition, and
proceeds from litigation-related settlements ($1.6 million).
Net income for the three months ended June 30, 2006 increased $18.3
million (125%) to $33.0 million, compared to $14.7 million in same period
of 2005, despite the inclusion of stock-based compensation expense and the
higher effective tax rate in 2006 (33.9%) than in 2005 (30.0%). The results
for 2006 include approximately $1.5 million of net income from
acquisitions. Diluted earnings per share for the three-month period of 2006
was $0.62, 107% higher than comparable period of the previous year as a
result of the increased net income. The improvement in DEPS is after the
dilutive effect of the issuance of 11.3 million shares in May 2005
(adjusted for the stock dividend completed in June 2006).
Six Month Results
Revenues for the first half of 2006 increased $326.4 million (67%) to
$815.6 million, compared to the same period of 2005, due to acquisitions,
organic growth and pricing. Unfavorable changes in currency exchange rates
partially offset this improvement. (See Selected Financial Data Schedule.)
Net income for the six months ended June 30, 2006 increased $38.5
million (154%) to $63.5 million ($1.19 DEPS), compared to $25.0 million
($0.56 DEPS) in same period of 2005. This increase was primarily
attributable to organic revenue growth and price increases, 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 six months ended June 30, 2006 was
reduced $0.05 due to the recognition of stock-based compensation expense in
accordance with SFAS 123(R). Compared to the previous year, DEPS for 2006
was also reduced as a result of having a greater number of average shares
outstanding and a higher effective tax rate.
Cash provided by operating activities was approximately $23.3 million
in the six-month period of 2006, 24% more than $18.8 million generated in
the same period of 2005. Incremental production volume and revenues have
resulted in increased investments in inventories and receivables since
December 31, 2005. However, inventory turnover and days sales outstanding
in the second quarter of 2006 are comparable to the levels of the fourth
quarter of 2005.
The Company invested approximately $16.1 million in capital
expenditures in the six-month period of 2006, compared to $10.5 million in
the same period of 2005. The higher spending in 2006 reflects incremental
investments in acquisition integration, cost reductions and capital
spending at Thomas Industries' operations. Capital spending is currently
expected to be approximately $45 million to $50 million in 2006, and will
be used primarily to integrate businesses, introduce new products and
improve operations. In addition to capital expenditures, cash provided by
operations was used for acquisition payments and to repay debt. At the end
of June 2006, debt to total capital was 42.0%, compared to 46.4% 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" and "Outlook" 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 six-month
periods ended June 30, 2006 and 2005 follow.
Gardner Denver will broadcast a conference call to discuss second
quarter earnings on Thursday, July 27, 2006 at 9:00 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 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 ).
(1) Total 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. See "Business Segment Results."
GARDNER DENVER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
% %
2006 2005 Change 2006 2005 Change
Revenues $416,312 $250,346 66 $815,606 $489,170 67
Costs and
expenses:
Cost of sales
(excluding
depreciation
and
amortization) 269,714 167,900 61 528,889 328,914 61
Depreciation and
amortization 14,529 7,199 102 26,527 14,481 83
Selling and
administrative
expenses 73,043 51,739 41 146,748 104,163 41
Interest
expense 9,580 5,251 82 19,812 9,284 113
Other income,
net (453) (2,690) (83) (1,140) (3,322) (66)
Total costs and
expenses 366,413 229,399 60 720,836 453,520 59
Income before
income taxes 49,899 20,947 138 94,770 35,650 166
Provision for
income taxes 16,915 6,284 169 31,274 10,695 192
Net income $32,984 $14,663 125 $63,496 $24,955 154
Basic earnings
per share (1) $0.63 $0.31 103 $1.22 $0.57 114
Diluted earnings
per share (1) $0.62 $0.30 107 $1.19 $0.56 113
Basic weighted
average number of
shares
outstanding (1) 52,388 47,362 52,249 43,744
Diluted weighted
average number of
shares
outstanding (1) 53,579 48,444 53,420 44,866
Shares outstanding
as of
June 30 (1) 52,490 51,598
(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)
%
6/30/2006 3/31/2006 Change 12/31/2005
(Unaudited) (Unaudited)
Cash and equivalents $88,600 $100,914 (12) $110,906
Receivables, net 266,959 262,502 2 229,467
Inventories, net 231,728 226,562 2 207,326
Total current assets 626,059 630,859 (1) 586,267
Total assets 1,793,289 1,772,614 1 1,715,060
Short-term debt and current
maturities of long-term debt 20,907 24,490 (15) 26,081
Accounts payable and accrued
liabilities 286,454 280,157 2 287,763
Total current liabilities 307,361 304,647 1 313,844
Long-term debt, less current
maturities 527,588 558,321 (6) 542,641
Total liabilities 1,035,335 1,068,818 (3) 1,056,771
Total stockholders' equity $757,954 $703,796 8 $658,289
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
% %
2006 2005 Change 2006 2005 Change
Compressor and Vacuum
Products
Revenues $325,402 $197,325 65 $643,835 $386,498 67
Operating earnings 33,751 15,955 112 69,559 28,673 143
% of revenues 10.4% 8.1% 10.8% 7.4%
Orders 344,260 205,257 68 677,957 423,173 60
Backlog 342,866 198,998 72 342,866 198,998 72
Fluid Transfer Products
Revenues 90,910 53,021 71 171,771 102,672 67
Operating earnings 25,275 7,553 235 43,883 12,939 239
% of revenues 27.8% 14.2% 25.5% 12.6%
Orders 110,437 68,402 61 198,531 147,050 35
Backlog 193,140 96,836 99 193,140 96,836 99
Reconciliation of
Segment Results
to Consolidated Results
Compressor and Vacuum
Products operating
earnings $33,751 $15,955 $69,559 $28,673
Fluid Transfer
Products operating
earnings 25,275 7,553 43,883 12,939
Total segment
operating earnings 59,026 23,508 113,442 41,612
Interest expense 9,580 5,251 19,812 9,284
Other income, net (453) (2,690) (1,140) (3,322)
Income before income
taxes $49,899 $20,947 $94,770 $35,650
Income before income
taxes as a percentage
of revenues 12.0% 8.4% 11.6% 7.3%
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 Six Months
Ended Ended
June 30, June 30,
% %
$ Millions Change $ Millions Change
Compressor and Vacuum Products
2005 Revenues 197.3 386.5
Incremental effect of acquisitions 109.8 56 218.2 57
Effect of currency exchange rates 0.2 - (7.1) (2)
Organic growth 18.1 9 46.2 12
2006 Revenues 325.4 65 643.8 67
2005 Orders 205.3 423.2
Incremental effect of acquisitions 114.6 56 218.9 52
Effect of currency exchange rates 0.4 - (7.7) (2)
Organic growth 24.0 12 43.6 10
2006 Orders 344.3 68 678.0 60
Backlog as of 06/30/05 199.0
Incremental effect of acquisitions 94.2 47
Effect of currency exchange rates 7.0 4
Organic growth 42.7 21
Backlog as of 06/30/06 342.9 72
Fluid Transfer Products
2005 Revenues 53.0 102.7
Incremental effect of acquisitions 4.4 8 8.9 9
Effect of currency exchange rates 0.3 1 (1.0) (1)
Organic growth 33.2 62 61.2 59
2006 Revenues 90.9 71 171.8 67
2005 Orders 68.4 147.1
Incremental effect of acquisitions 4.0 6 9.9 7
Effect of currency exchange rates 0.3 - (1.5) (1)
Organic growth 37.7 55 43.0 29
2006 Orders 110.4 61 198.5 35
Backlog as of 06/30/05 96.8
Incremental effect of acquisitions 1.9 2
Effect of currency exchange rates 1.7 2
Organic growth 92.7 95
Backlog as of 06/30/06 193.1 99
Consolidated Revenues
2005 250.3 489.2
Incremental effect of acquisitions 114.2 46 227.1 47
Effect of currency exchange rates 0.5 - (8.1) (2)
Organic growth 51.3 20 107.4 22
2006 416.3 66 815.6 67
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
% of % of
$ % Rev- $ % Rev-
Millions Change enues Millions Change enues
2005 Compressor and Vacuum
Operating Earnings 15.9 8.1 28.7 7.4
Incremental effect of
acquisitions 9.3 58 8.5 23.0 80 10.5
Other changes 8.5 54 17.8 63
2006 Compressor and Vacuum
Operating Earnings 33.7 112 10.4 69.5 143 10.8
2005 Fluid Transfer
Operating Earnings 7.6 14.2 12.9 12.6
Incremental effect of
acquisitions 0.7 9 15.9 1.5 12 16.9
Other changes 17.0 226 29.5 227
2006 Fluid Transfer
Operating Earnings 25.3 235 27.8 43.9 239 25.5
Depreciation & Amortization
2005 7.2 2.9 14.5 3.0
Incremental effect of
acquisitions 7.4 103 6.5 12.4 86 5.5
Other changes (0.1) (1) (0.4) (3)
2006 14.5 102 3.5 26.5 83 3.2
Selling & Administrative
Expenses
2005 51.7 20.7 104.2 21.3
Incremental effect of
acquisitions 20.7 40 18.1 40.7 39 17.9
Other changes 0.6 1 1.8 2
2006 73.0 41 17.5 146.7 41 18.0
Total Segment Operating
Earnings
2005 23.5 9.4 41.6 8.5
Incremental effect of
acquisitions 10.0 43 8.8 24.5 59 10.8
Other changes 25.5 108 47.3 114
2006 59.0 151 14.2 113.4 173 13.9
Net Income
2005 14.7 5.9 25.0 5.1
Incremental effect of
acquisitions 1.6 11 1.4 5.9 24 2.6
Other changes 16.7 114 32.6 130
2006 33.0 125 7.9 63.5 154 7.8
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, Inc., +1-217-228-8209
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