IDEX Corporation Issues Outlook for Fourth Quarter Financial Results
IDEX Corporation (NYSE: IEX) announced that it expects fourth quarter 2002 sales and orders each to be approximately $190 million and net income to be in the range of $11.5 to $12.5 million, or 35-38 cents per diluted share.
In the same 2001 period, sales and orders were $169 million and $161 million, respectively, and net income was $4.3 million, or 14 cents per diluted share. Net income in the fourth quarter of 2001 was unfavorably affected by two items on an after tax basis - $3.0 million in goodwill amortization (which is not currently subject to amortization under U.S. GAAP) and $3.6 million of restructuring charges. In the third quarter of 2002, sales and orders each totaled approximately $189 million and net income was $14.8 million, or 45 cents per diluted share. IDEX will announce its actual 2002 fourth quarter and full-year financial results on January 23.
Dennis K. Williams, chairman, president and chief executive officer, said, "While the pace of incoming orders and sales has not substantially changed from the third quarter, the mix of our business has, with sales from certain higher margin base businesses in the Pump Products Group being lower than the prior quarter. In addition, the estimated lower net income reflects investments we are making to generate future top- and bottom-line growth, and certain higher-than-normal expenses incurred in the quarter that are not expected to continue in the future. The comparison of anticipated fourth quarter results with the same 2001 period is expected to show that higher operating income from increased sales volume will be largely offset by our investments in the businesses and certain higher expenses.
"While the anticipated fourth quarter performance will show a sequential decline in earnings, we believe the investments being made are sensible for the future of the business. We remain committed to the operational excellence and global sourcing initiatives. In addition, we will continue to fine-tune the resource levels in all of our operations based on the current operating environment," Williams concluded.
About IDEX
IDEX Corporation is a manufacturer of pumps and metering products, dispensing equipment, and other engineered products. Its products are sold to a wide range of industries throughout the world. IDEX shares are traded on the New York Stock Exchange and Chicago Stock Exchange under the symbol "IEX."
Source: IDEX Corporation
