Compressed Air Best Practices - April 2008 - (Page 46)

| 04/08 Compressed Air Industry PLASTICS BLOW-MOLDING O MOL G | The intent of this column is to provide industry watchers with publicly held 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 for this column was gathered on March 4, 2008. Quincy, IL, February 7, 2008 — Gardner Denver, Inc. (NYSE: GDI) announced that revenues and net income for the three months ending December 31, 2007 were $510.3 million and $63.9 million, respectively. For the 12-month period of 2007, revenues and net income were $1.9 billion and $205.1 million, respectively. Diluted earnings per share (“DEPS”) for the three months endeing December 31, 2007 were $1.18, 69% higher than the comparable period of 2006. For the 12-month period of 2007, DEPS were $3.80, 53% higher than the comparable period of the previous year. Results for the three-month period of 2007 included an approximately $8.4 million ($0.16 DEPS) reduction to the company's tax provision, primarily due to foreign tax credits. Other than the reduction in the tax provision, the company's DEPS improvement for the three months ending December 31, 2007 was primarily attributable to the incremental flow-through profitability of organic revenue growth, operational improvements, including benefits from cost reduction efforts, favorable changes in foreign currency exchange rates and lower interest expense. “As a result, our company has diversified into higher-growth end market segments and expanded our global presence. I remain cautious about the global repercussions of the current economic situation in the U.S. but believe that our diversification strategy will mitigate slowing growth in the industrial end market segment that is expected to occur in the United States in 2008.” “For the full-year 2007, compared to 2006, revenues increased 12%, reflecting the benefit of strong organic growth in Europe and Asia and the favorable impact of foreign currency exchange rates. For the fourth quarter of 2007, compared to the same period of 2006, revenues increased 16%,” said Mr. Centanni. “We have realized accelerating organic revenue growth in the Compressor and Vacuum Products segment in each quarter of 2007. As we completed our manufacturing integration projects, production throughput improved, past due backlog declined and revenues grew.” “As a result of operational improvements and leveraging our costs, operating income grew nearly twice as fast as revenues in the fourth quarter of 2007, a 31% increase over the same period of 2006. For the full-year 2007, operating income grew 24% compared to 2006 or twice the rate of revenue growth for the year. “Our Compressor and Vacuum Products segment revenues grew by 14% in the fourth quarter of 2007, compared to the same period of 2006. Orders increased 19% in the three months ending December 31, 2007 when compared with the same period of 2006, reflecting continued 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 sequentially in the final two quarters of 2007, reflecting strong demand in end market segments, the benefit of reducing manufacturing lead times as we completed the integration of acquired operations and favorable changes in foreign currency exchange rates.” Chairman’s Comments Regarding Results “Gardner Denver achieved a new level of performance in 2007, attaining record results for both revenues and earnings in the fourth quarter and full year. This accomplishment reflects the company’s ongoing commitment to executing our core strategies and the unwavering dedication of our employees throughout the world,” said Ross J. Centanni, Gardner Denver’s Executive Chairman of the Board. 46 6 www .airbestp ractices.com w t http://www.airbestpractices.com

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

Compressed Air Best Practices - April 2008 Contents From the Editor Utility-Air News The Compressed Air Audit of the Month: Minimizing Blow-Molding Pressure Fluctuations AF Compressors: Focused on 40 Bar, Oil-Free Air for the PET Industry Real World Best Practices: PET Plants Using Boosters for High-Pressure Air Guaranteeing Audit ROI for Blow-Molders Managing Vacuum Pressure Differential Are You Taking Full Advantage of Pneumatic Valve Technology? Are You Strategic? Resources for Energy Engineers: Training Calendar & Product Picks Wall Street Watch Advertiser Index Job Market

Compressed Air Best Practices - April 2008

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