IDEX Corporation Revises Earnings Outlook for Third and Fourth Quarters

11.09.2001

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

markets.

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.

About IDEX

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.

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