IDEX Corporation Revises Earnings Outlook for Third and Fourth Quarters
NORTHBROOK, Ill., Sept. 10 /PRNewswire/ -- IDEX Corporation (NYSE: IEX),today announced that it expects earnings per diluted share for the third quarter to be in the range of 25 to 30 cents.
In the same period last year,
IDEX earned 54 cents; in the second quarter of this year, the company earned
42 cents; and in the first quarter, earnings were 35 cents before
restructuring charges. The decline in profits is primarily attributable to
weaker-than-expected business conditions in the U.S. and some international
Dennis K. Williams, chairman, president and chief executive officer, said,
"Our July 17 earnings guidance for the third quarter was based on the
expectation that orders and sales levels would remain at the rate we achieved
in the first half of the year. Unfortunately, this has not occurred. Orders
received in July were the lowest this year. While August orders increased
somewhat, they still were below the first-half average. As a result, it is
highly unlikely that the full third quarter will match the first or second
quarter's orders and sales, let alone the performance seen at this time last
year. These expected declines are primarily associated with the continuing
weakness in North America and declines in European business activity. While
we have seen softness in virtually all end-markets, the most significant
impact has been felt at our pump and dispensing equipment business units that
serve the paints and coatings, general industrial, automotive and chemical
processing markets. These are the same problems that many of our peers and
customers are facing. However, two positive points are worth noting. First,
the Asian market remains strong and is growing, and second, we believe IDEX is
maintaining its market shares.
"Our fourth quarter performance will depend on the pace of incoming
business over the next few months," Williams continued. "IDEX operates with a
very small backlog of unfilled orders, and we are not able to assess how long
the current softness in our markets will last.
"We believe IDEX is well positioned for a strong recovery once economic
conditions improve. This is based on our reduced cost structure; our margin
improvement initiatives of Six Sigma, global sourcing and E-Business; and also
the use of strong cash flow to cut debt and interest expense. In addition, we
continue to pursue acquisitions to drive the company's longer-term profitable
growth," Williams concluded.
IDEX Corporation is a manufacturer of proprietary pumps and metering
products, dispensing equipment, and other engineered products with leading
positions in niche markets. 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