QUINCY, Ill., Oct. 18 /PRNewswire/ -- Gardner Denver, Inc. (NYSE: GDI), a
leading manufacturer of compressors and blowers for industrial applications
and pumps for petroleum and industrial markets, announced that revenues for
the three months ended September 30, 2000 were $90.7 million and diluted
earnings per share for the same period were $0.26.
Revenues increased by 18% over the third quarter of 1999. Petroleum
products revenues were up 128%, driven by strong well-stimulation pump sales.
Compressed air products revenues increased by 8% due to acquisitions.
Excluding acquisitions, compressed air products were relatively flat with
prior year quarter despite an unfavorable foreign currency exchange rate
impact of $1.9 million.
Gross profit margins (defined as revenues less cost of sales) as a percent
of revenues were approximately three percentage points lower in the third
quarter of 2000 compared to the same period of 1999. This decrease was due to
significantly unfavorable sales mix in the petroleum segment (including an
increased proportion of well stimulation pumps as opposed to higher margin
replacement parts). Increased manufacturing overhead spending (including
engineering, product development and lean manufacturing initiatives) and
increased manufacturing variances on well servicing pumps also contributed to
the decline in the gross profit margin percentage.
Net income for the quarter was $4.0 million, which was flat compared to
the prior year. This was primarily due to the lower gross profit margins
discussed above plus higher levels of depreciation and amortization and
interest expense due to capital spending, acquisitions and higher interest
rate levels offsetting the higher revenues.
Ross J. Centanni, Chairman, President and CEO said, "As expected, order
levels in the compressed air segment were relatively flat compared to the
previous quarter as the actions taken by the Federal Reserve to increase
interest rates in the first half of the year continue to have a negative
impact on the sectors of the manufacturing economy served by this segment.
Fortunately, as anticipated, we are experiencing a resurgence in the petroleum
products segment. In the latter part of the third quarter, and so far in the
fourth quarter, order activity for our petroleum drilling pumps has picked up
significantly. We expect this long awaited turn around to benefit our results
in 2001.
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 and nine month periods
ended September 30, 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 Nine Months Ended
September 30, September 30,
% %
2000 1999 Change 2000 1999 Change
Revenues $90,708 $77,103 18 $272,974 $232,737 17
Costs and Expenses:
Cost of sales 64,519 52,672 22 191,038 157,758 21
Depreciation and
amortization 4,007 3,439 17 11,929 10,349 15
Selling and
administrative 13,624 12,897 6 44,372 38,662 15
Interest expense 1,882 1,465 28 5,657 4,141 37
Other (income)/
expense, net 173 118 47 (417) 344 (221)
Income before
income taxes 6,503 6,512 -- 20,395 21,483 (5)
Provision for
income taxes 2,477 2,513 (1) 7,770 8,292 (6)
Net income $4,026 $3,999 1 $12,625 $13,191 (4)
Basic earnings
per share $0.26 $0.27 (4) $0.83 $0.88 (6)
Diluted earnings
per share $0.26 $0.26 -- $0.82 $0.86 (5)
Basic weighted
average number
of shares
outstanding 15,321 14,922 3 15,281 15,021 2
Diluted weighted
average number
of shares
outstanding 15,467 15,292 1 15,477 15,385 1
Shares outstanding
as of 9/30 15,339 14,942 3
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
% %
2000 1999 Change 2000 1999 Change
Compressed Air Products
Revenues 76,282 $70,781 8 $234,960 $213,331 10
Operating
earnings 7,640 7,402 3 24,015 25,663 (6)
% of Revenues 10.0% 10.5% 10.2% 12.0%
Petroleum Products
Revenues 14,426 6,322 128 38,014 19,406 96
Operating earnings 1,391 1,136 22 3,304 1,736 90
% of Revenues 9.6% 18.0% 8.7% 8.9%
CONDENSED BALANCE SHEET ITEMS
(Unaudited) % (Audited)
09/30/00 06/30/00 Change 12/31/99
Cash and equivalents $18,291 $20,318 (10) $27,317
Receivables, net 81,102 79,526 2 72,272
Inventories, net 62,571 62,157 1 60,356
Current assets 171,462 169,809 1 166,379
Total assets 393,363 384,916 2 379,419
Short-term debt and
cur. maturities 5,298 5,295 -- 5,289
Current liabilities 62,501 63,131 (1) 59,609
Long-term debt, excl.
cur. maturities 116,426 109,286 7 114,200
Total liabilities 228,434 223,639 2 226,810
Total stockholders'
equity 164,929 161,277 2 152,609
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,
Chief Financial Officer of Gardner Denver, 217-228-8205
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