IDEX Corporation Reports Third Quarter Results; Will Take $5 Million Restructuring Charge in Fourth Quarter; Fourth Quarter Performance Dependent on Order Pace
NORTHBROOK, Ill., Oct. 16 /PRNewswire/ -- IDEX Corporation (NYSE: IEX),
today reported higher sales and lower earnings for the third quarter and nine
months ended September 30, 2001, compared with the same periods last year.
Third Quarter Highlights
-- Orders increased 4 percent to $171 million but September orders were
only $52 million.
-- Total sales rose 1 percent to $178 million while base business
activity was down 11 percent.
-- Operating margins declined to 10.5 percent from 17.4 percent last
year.
-- Net income was $8 million, down 51 percent, and diluted EPS were 26
cents versus 54 cents.
-- Strong cash flow from operations led to $24 million of debt reduction.
-- Six Sigma, global sourcing and eBusiness initiatives on track.
-- An estimated $5 million restructuring charge, or 10 cents per diluted
share, will be taken in the fourth quarter to further size operations
to current business conditions.
-- Fourth quarter performance will be dependent on pace of new orders.
"It is very difficult to predict how long the September order weakness
will persist. For the short term, we are resizing our structure and
further tightening expense controls to reflect the reduced business
conditions. For the long term, we continue to drive our initiatives,
which we believe will give us sustainable long-term growth. The company
continues to generate cash flows in excess of net income and is well
positioned to make acquisitions and to see results rebound quickly once
conditions improve."
Dennis K. Williams
Chairman, President and CEO
Source: IDEX Corporation
