QUINCY, Ill., Oct. 11 /PRNewswire/ -- Gardner Denver, Inc. (NYSE: GDI), a
leading manufacturer of compressors and blowers for industrial applications
and pumps for petroleum and industrial markets, announced preliminary results
for the third quarter of 1999. Diluted earnings per share is expected to be
in the range of $0.24 to $0.28 for the third quarter.
Ross Centanni, Chairman, President and Chief Executive Officer of Gardner
Denver said "Revenues for compressor products were below our expectations in
the third quarter, primarily as a result of lower orders, particularly for
compressors and replacement parts, and the timing of shipments from backlog.
Despite increasing industrial production in the U.S. economy, orders for
factory equipment are at their lowest level since October 1997. This decline
most severely impacted demand for our more standard units and replacement
parts. Expense levels were on plan, but as a result of lower revenues,
operating margin as a percentage of revenues for this segment fell to levels
comparable to those realized in the first quarter. Financial results for the
petroleum segment were essentially as expected, with some improvement in
operating income, compared to the second quarter results, due to an increased
proportion of revenues coming from replacement parts which generate higher
margin."
"Our cash flows remain strong and we continue to actively seek synergistic
acquisitions, consistent with our strategy for growth. Capital investments to
reduce costs, improve efficiency and expand machining capacity continue, as do
our programs to improve manufacturing productivity and further integrate
acquisitions. Although the third quarter financial results fell below our
expectations, we remain optimistic that some recovery will occur in 2000 for
both the industrial and petroleum markets, as a result of improved economic
conditions in Asia stimulating industrial demand in the U.S. and Europe and
elevated oil prices spurring incremental well drilling and servicing,"
Centanni concluded.
Gardner Denver plans to release its final third quarter earnings report,
including additional analysis of historical results and further information
regarding its outlook, on Oct. 20.
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 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; the successful implementation of
cost reduction efforts; and the extent to which the Company is able to operate
without disruption due to Year 2000 Issues.
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 ).
SOURCE Gardner Denver
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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:
Helen W. Cornell, Vice President, Corporate
Secretary, and Treasurer of Gardner Denver, 217-228-8209
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