Compressed Air Best Practices - January 2008 - (Page 47)

Compressed Air Industry ENERGY MANAGEMENT | 01/08 | Wa l l S t re e t Wa t c h BY COMPRESSED AIR BEST PRACTICES The intent of this column is to provide industry watchers with publiclyheld information, on publicly-held companies, involved with the sub-industry of compressed air. It is not the intent of the column to provide any opinions or recommendations related to stock valuations. All information gathered, in this column, was on December 4, 2007. Gardner Denver, Inc. (NYSE: GDI) announced that revenues and net income for the three months ended September 30, 2007 were $457.2 million and $53.7 million, respectively. For the nine-month period of 2007, revenues and net income were $1.4 billion and $141.2 million, respectively. Diluted earnings per share (“DEPS”) for the three months ended September 30, 2007 were $0.99, 65 percent higher than the comparable period of 2006. For the nine-month period of 2007, DEPS were $2.62, 46 percent higher than the comparable period of the previous year. Other than the reduction in the tax provision, the Company's DEPS improvement for the three months ended September 30, 2007 was primarily attributable to the incremental flow-through profitability of organic revenue growth and operational improvements, including the benefits from acquisition integration. “I am very pleased with our results for the third quarter, which reflects the diligent efforts of Gardner Denver's employees throughout the world,” said Ross J. Centanni, Chairman, President and CEO of Gardner Denver. “Demand continued to be strong in end market segments in Europe and Asia, while growth slowed in North America. The year-over-year flowthrough profitability in both of our reportable segments was excellent in the third quarter, as we continue to realize the benefit of some of our integration activities. As a result, the company's total segment operating earnings (1) grew 21 percent when compared to the same quarter of the previous year, which was twice the rate of revenue growth for the same period. The strong flow-through profitability was achieved despite the unfavorable effect of selling fewer drilling pumps in the three-month period of 2007, than in the same period of the previous year. The solid operating performance in the third quarter and the first nine months of 2007 has resulted in more than $127 million in cash provided by operating activities. “Our Compressor and Vacuum Products segment revenues grew by 10 percent in the third quarter of 2007, when compared to the same period of 2006, due to strong demand in Europe and Asia and favorable changes in currency exchange rates. Orders increased 11 percent in the three months ended September 30, 2007, when compared with the same period of 2006, reflecting good demand for engineered products and OEM applications on a global basis, and low-pressure and vacuum applications in Europe. Order growth for this segment accelerated in the third quarter of 2007, compared to the second quarter of the current year, reflecting strong growth in end market segments, the benefit of reducing manufacturing lead-times as we integrate acquired operations, and favorable changes in currency exchange rates. “Compressor and Vacuum Products segment operating earnings as a percentage of revenues (segment operating margin) expanded to 11.8 percent in the third quarter, the highest level achieved since 2001,” said Mr. Centanni. “The improvement is the result of the segment’s strong flow-through profitability on organic revenue growth, cost reductions and the benefits of acquisition integration activities. Further improvement is expected to be realized as the manufacturing integration of the Schopfheim, Germany facilities is completed at the end of this year. In 2008, these process improvements are expected to increase productivity, while reducing lead-times and inventory, generating incremental operating earnings of approximately $6 million annually.” CLEVELAND, Nov. 1, 2007 — Parker Hannifin Corporation (NYSE: PH), announced that it has acquired Kay Pneumatics Ltd., a manufacturer of pneumatic valves, cylinders and precision electro-pneumatic control systems for transportation, semi-conductor, medical and general industrial markets. Known as KV Automation, the company is headquartered in Milton Keynes, UK, and has operations in the United States, Spain, France, Netherlands, Thailand, China and United Arab Emirates and reported sales of approximately $43 million for the fiscal year ending April 30, 2007. KV Automation will operate within Parker’s Automation Group. Sales will be reported largely within Parker’s Industrial International segment. KV will continue to leverage its unique rapid prototyping capability to design and manufacture fully integrated electro-pneumatic and electro-fluidic system solutions for customer specific applications. Some typical applications include bus door actuation, anesthesia and mobile emergency ventilator modules for medical use and pressure regulation systems used in the ultra pure semiconductor production environment. www.airbestpractices.com 47 http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - January 2008

Compressed Air Best Practices - January 2008 Contents Focus Industry Features Compressed Air Industry Articles From the Editor Real World Best Practices: Selecting A VSD Rotary Compressor Audit of the Month: Energy Savings in Peru The Low-Hanging Fruit in Pneumatic Systems Mikropor America, Inc. Wireless Sensor Networks: Improve Efficiency in Compressed Air Systems Special Report: The Chicago Pneumatic Compressor Launch in North America The Importance of Measuring Vacuum The Comp-Air Service Co. Special Report: The 2007 NAACD Wall Street Watch Advertiser Index Job Market

Compressed Air Best Practices - January 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.