IDEX Corporation Reports Third Quarter Results; 16% Sales Growth, 15% Increase in Diluted EPS and Strong Free Cash Flow
biz.yahoo.com
Thursday October 18, 8:30 am ET
NORTHBROOK, Ill.--(BUSINESS WIRE)--IDEX Corporation (NYSE: IEX) today announced its financial results for the quarter ended September 30, 2007. From continuing operations, orders in the third quarter were up 15 percent, sales increased 16 percent, and income rose 16 percent to $38.8 million compared to the third quarter of 2006. Diluted earnings per share from continuing operations were 47 cents versus 41 cents in the year-ago quarter.
Third Quarter 2007 Highlights (from Continuing Operations)
* Orders in the third quarter of 2007 were $327.5 million, 15 percent higher than a year ago; excluding foreign currency translation and acquisitions, organic orders growth was 3 percent.
* Third quarter sales of $334.9 million rose 16 percent; excluding foreign currency translation and acquisitions, organic sales growth was 5 percent.
* Operating margin at 18.9 percent was 10 basis points higher than a year ago.
* Income increased 16 percent to $38.8 million.
* Diluted EPS at 47 cents was 6 cents or 15 percent ahead of last year.
* EBITDA of $73.3 million was 22 percent of sales and covered interest expense by 13 times.
* Third quarter free cash flow was $52.2 million.
"In the third quarter, we continued to experience strong global demand in our process controls, infrastructure and core health and science end markets. However, our third quarter results were unfavorably impacted by lower demand in the Dispensing Equipment and Fire & Safety/Diversified Products segments. In the Dispensing Equipment segment, we experienced softer than expected demand in the North American small retail channel as well as lower operating margins primarily due to reduced volume, in-quarter operational issues and unfavorable mix. In the Fire & Safety/Diversified Products segment, the results were impacted by lower OEM demand for fire suppression equipment.
"For the fourth quarter of 2007, projected organic growth rates in the Fluid & Metering Technologies and Health & Science Technologies segments are 6-8 percent and 3-5 percent, respectively. In the Dispensing Equipment segment, the projected fourth quarter organic growth rate of 4-6 percent reflects improvement from the third quarter due to planned replenishment orders in the North American large retail channel. The projected fourth quarter organic growth rate in the Fire & Safety/Diversified Products segment of 4-5 percent is consistent with third quarter performance, as we anticipate continued softness in the North American fire suppression market.
"Given these trends, current market conditions and the impact from currency and recent acquisitions, we expect fourth quarter sales growth of 12 to 15 percent and EPS of 46 to 49 cents per diluted share. The EPS estimate range as stated includes a projected unfavorable impact of one to two cents from estimated severance and field service expenses in the fourth quarter." |
