IDEX Corporation Reports Improved Third Quarter Results
IDEX Corporation reported that orders, sales and earnings for the three months ended September 30, 2002, significantly improved from the same quarter last year but were slightly below this year's second quarter levels. Diluted earnings per share for the just completed quarter were 45 cents.
Sales in the third quarter were $189.1 million, a 6 percent improvement from last year's third quarter and 1 percent lower than in the second quarter. Compared with the 2001 third quarter, acquisitions accounted for a 4 percent sales improvement, and foreign currency translation added another 2 percent, while base business shipments were unchanged. Domestic sales increased 3 percent and international sales - net of foreign currency translation -- were 5 percent higher. Sales to international customers were 43 percent of the total, up from 41 percent last year.
Third quarter operating margins were 14.2 percent. Compared on the same accounting basis (excluding goodwill amortization in accordance with new accounting rules effective January 1, 2002), margins showed 1.6 percentage points of improvement from last year's third quarter but were 0.6 of a percentage point below this year's second quarter. The margin increase over last year is due primarily to higher sales plus savings realized from both IDEX's operational excellence initiatives and last year's restructuring. The sequential decline from this year's second quarter primarily reflects lower sales and profitability in the Dispensing Equipment Group. Of IDEX's three segments, this group is the most dependent on the European market. Vacation shutdowns in Europe and the lower sales volumes that typically occur there during the third quarter have a direct impact on this group's operating results.
Net income for the current quarter was $14.8 million. This represented a 35 percent improvement from the third quarter of last year (after 2001 results are adjusted to exclude goodwill amortization) and a 5 percent decline from this year's second quarter. Comparing diluted earnings per share on this same basis shows the current quarter's 45 cents exceeded last year's third quarter by 10 cents, but was lower than the second quarter by 3 cents. On an as reported basis, diluted earnings per share for last year's third quarter were 26 cents.
New orders for the latest three months totaled $188.0 million, 10 percent higher than the same period last year, but were unchanged from this year's second quarter. Excluding the impact of the Versa-Matic (June 2001), Halox (April 2002), and Rheodyne (July 2002) acquisitions and foreign currency translation, orders were 4 percent higher than in the third quarter of 2001. During the first nine months of this year, IDEX built $6.3 million of backlog. At September 30, the company had a typical unfilled order backlog of slightly over one month's sales.
Source: IDEX Corporation