Compressed Air Best Practices - January 2009 - (Page 46)

| 01/09 | ENERGY REBATES WALL STREET WATCH Gardner Denver, Inc. (NYSE:GDI) announced that revenues and net income for the three months ended September 30, 2008 were $480.3 million and $34.6 million, respectively. For the nine-month period of 2008, revenues and net income were $1.5 billion and $135.1 million, respectively. Operating income for the three and nine-month periods ending September 30, 2008 was $55.5 million and $205 million, respectively. Diluted earnings per share (“DEPS”) for the three months ended September 30, 2008 were $0.65 and $2.52 for the nine-month period of 2008. “Despite the challenging and uncertain economic environment, our core businesses continue to perform well and I am optimistic about the future of the Company.” CEO’s Comments Regarding Results “I am very pleased with the performance of the Gardner Denver team in the third quarter of 2008 and the operational improvements we have begun to achieve,” said Barry L. Pennypacker, Gardner Denver’s President and Chief Executive Officer. “Despite the challenging and uncertain economic environment, our core businesses continue to perform well and I am optimistic about the future of the Company. Many milestones were reached during the quarter, including the announcement of the CompAir transaction, one of the largest and most strategic acquisitions in the Company’s history. In addition, we negotiated and closed new $650 million multicurrency senior secured loan facilities, which were oversubscribed despite an incredibly difficult credit environment. “While the Gardner Denver team is progressing on our externally-focused objectives, we are also executing on our planned operational improvements,” said Mr. Pennypacker. “The Company’s lean transformation continues to build momentum, with most of our plants throughout the world implementing programs to improve operational efficiencies. An implementation of lean programs typically results in near-term pressure on gross profit and operating margins as production levels, lead times and inventory are reduced. However, in the long-term, lean initiatives are expected to provide greater benefits through lead-time reduction and operating margin improvements. Typically, the immediate benefit of lean efforts is realized in incremental cash provided by operating activities as inventory decreases. In the third quarter, Gardner Denver’s inventory turnover improved to 5.6 times, the highest recorded amount in the Company’s history, and inventory reductions contributed approximately $14 million to the Company’s record cash provided by operating activities in the third quarter of 2008, which exceeded $87 million. For the nine-month period of 2008, cash provided from operating activities exceeded $204 million, compared to $127 million in the same period of 2007. I am very proud of the efforts of our employees throughout the world and look forward to achieving our next milestones.” “I am also very excited about the opportunities that will be created by the integration of CompAir with Gardner Denver’s existing compressor operations throughout the world. The combined businesses will significantly enhance our channels of distribution to serve the global market. Our integration team has already begun to implement their plans, with the goal of blending the complementary product lines and geographic reach of CompAir and Gardner Denver in order to take advantage of future growth opportunities for our products, services and employees.” 46 www.airbestpractices.com http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - January 2009

Compressed Air Best Practices - January 2009 Contents From the Editor Utility-Air News Compressed Air Audit of the Month: A Nitrogen Audit at Boeing Air Standards: New ASME & ISO Standards for Compressed Air System Assessments Energy Rebates Assist Industrial Sustainability Initiatives Seven Sustainability Projects for Industrial Energy Savings: Project #1: Lighting Optimization Minimum Supply Wire Size Recommendations for Compressor Packages Utilizing Variable Frequency Drives The Pneumatic Advantage: Pneumatics Bring Precision and Reliability to Furniture Industry Specialist Personal Productivity: Is Afternoon Fatigue Influencing Your Job Performance? The Explanation and Some Solutions. Resources for Energy Engineers: Training Calendar & Product Picks Wall Street Watch Advertiser Index Classifieds

Compressed Air Best Practices - January 2009

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