Compressed Air Best Practices - September 2008 - (Page 64) | 09/08 Compressed Air Industry FOOD PACKAGING & PROCESSING | WALL STREET WATCH Quincy, IL, July 23, 2008 — Gardner Denver, Inc. (NYSE: GDI) announced that revenues and net income for the three months ended June 30, 2008 were $518.1 million and $49.6 million, respectively. For the six-month period of 2008, revenues and net income were $1.0 billion and $100.4 million, respectively. Diluted earnings per share (“DEPS”) for the three-month period were $0.93, 12% higher than the comparable period of 2007. For the six-month period of 2008, DEPS were $1.87, 15% higher than the comparable period of the previous year. The Company’s DEPS improvement for the three months ended June 30, 2008 was attributable to organic revenue growth in the Compressor and Vacuum Products segment and operational improvements. Cash provided by operating activities was $52 million in the three-month period of 2008, the highest level ever posted in the second quarter by the Company. For the six-month period of 2008, cash provided by operating activities exceeded $117 million. Review of Results “Demand for standard industrial compressors in the U.S. and U.K. has continued to slow in recent months.” “I am very pleased with Gardner Denver’s performance in the second quarter of 2008, which reflects the Company’s flexibility and drive to improve results in the face of many dynamic changes,” said Barry L. Pennypacker, Gardner Denver’s President and Chief Executive Officer. “During the quarter, we achieved record shipment levels, furthered our understanding and application of lean methodologies and negotiated the Company’s most significant acquisition since 2005. The acquisition of CompAir is intended to strengthen Gardner Denver’s position as a leading global provider of compressor and vacuum products, further diversify the Company’s end market segments served and expand product technologies available to our customers. We believe the synergies between the two organizations are very compelling. “The second quarter results reflect continued strength in most of our compressor and vacuum end market segments and a slight re-acceleration in demand for drilling pumps,” said Mr. Pennypacker. “While demand for compressor and vacuum products was broad-based during the quarter, both regionally and across product lines, certain areas of our business have begun to show weakness and our outlook remains cautious for the second half of this year. In particular, demand for standard industrial compressors in the U.S. and U.K. has continued to slow in recent months. Demand for compressors tends to follow changes in industrial capacity utilization rates and when this key indicator declines below 80%, which occurred in the U.S. during the second quarter of 2008, historically orders for compressors decline six months later. Demand for compressor and vacuum products remains strong in Asia, while Europe is still growing, but at a lower rate. Demand for our engineered products continues to be robust throughout the world, including environmental and oil and gas refining applications in the U.S. On balance, the economic climate appears consistent with our expectations that orders for our compressor and vacuum products will continue to grow through the balance of the year, but at a lower rate. In response to elevated prices for oil and natural gas, demand for our petroleum products has demonstrated an improvement, although not to levels realized in 2006. 64 www.airbestpractices.com http://www.airbestpractices.com
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