IDEX Corporation Reports 2007 Results; 18% Sales Growth, 17% Increase in Income and Record Free Cash Flow
biz.yahoo.com
Tuesday February 5, 8:30 am ET
NORTHBROOK, Ill.--(BUSINESS WIRE)--IDEX Corporation (NYSE: IEX) today announced its financial results for the three- and twelve-month periods ended December 31, 2007. From continuing operations, orders in the fourth quarter were up 11 percent, sales increased 15 percent, and income of $38.6 million rose 7 percent compared to the fourth quarter of 2006. Diluted earnings per share from continuing operations were 47 cents versus 45 cents in the year-ago quarter. Income from continuing operations was unfavorably impacted by $2.6 million or over 3 cents per share from previously announced severance-related and field service expenses as well as bad debt expense associated with the recent bankruptcy of a fire suppression customer. Adjusted for these items, diluted earnings per share from continuing operations were 50 cents, an 11 percent increase versus the fourth quarter of 2006.
Full Year 2007 Highlights (from Continuing Operations)
* Orders for 2007 were $1.38 billion, 16 percent higher than a year ago; excluding foreign currency translation and acquisitions, organic orders growth was 5 percent.
* Full year sales of $1.36 billion rose 18 percent; excluding foreign currency translation and acquisitions, organic sales growth was 6 percent.
* Operating margin of $255.1 million represented 18.8 percent of sales.
* Income increased 17 percent to $156.1 million.
* Diluted EPS at $1.90 was 25 cents, or 15 percent, ahead of last year.
* EBITDA of $296.8 million was 22 percent of sales and covered interest expense by nearly 13 times.
* Free cash flow was $180.7 million, a 25 percent increase over last year which equated to 1.2 times income.
"We are pleased with our overall performance in 2007. Growth in the Fluid and Metering Technologies segment was driven by strong global demand in the process control and infrastructure-related end markets. In the Health and Science Technologies segment, strong growth in the core health and science end markets was adversely impacted by declines in specific pneumatic and industrial OEM customers. Performance in the Dispensing Equipment segment was driven by strong demand for replenishment orders in the U.S. large retail channel market and solid performance in Europe. Despite softness in our fire suppression business, our overall Fire & Safety/Diversified Products segment performed well as a result of product innovation and international growth.
"For the full year 2008, we expect performance in the Fluid and Metering Technologies segment to be driven by continued strong global investment in the infrastructure-related markets and process control industries. Within the Health and Science Technologies segment, the strength of the core analytical instrumentation, IVD and biotechnology markets as well as new OEM platforms will continue to be offset by the residual effect of two OEM contracts, unfavorably impacting full year segment growth by approximately 400 basis points. Despite softness in the North American housing market, growth in the Dispensing Equipment segment will be fueled by anticipated replenishment programs for large U.S. retailers and continued paint channel expansion in global markets. We expect our Fire and Safety/Diversified Products segment to continue to perform well, driven by growth in demand for band clamping applications and global expansion of our rescue tools business, offset in part by continued weakness in the North American fire suppression market.
"Given these trends and current market conditions, we expect full year 2008 total revenue growth in the range of 13 to 15 percent (with organic revenue growth of 4 to 6 percent, acquisitions of 6 percent and foreign currency translation of 3 percent) and EPS in the range of $2.10 to $2.18 compared to $1.90 in the prior year. In addition, 2008 free cash flow is projected to exceed net income by 10 to 20 percent. |
