Slide 1: 4th Quarter 2010 Earnings Conference Call
4th Quarter 2010 Earnings Conference Call Tuesday, February 1, 2011, 10 a.m. CT
Slide 2: Safe Harbor
Safe Harbor Today’s T d ’ presentation t ti iincludes l d fforward-looking d l ki statements t t t that th t reflect management’s current expectations about the Company’s future business and financial performance. These statements are subject to certain risks and uncertainties that could cause actua
Slide 3: Financial Results
Financial Results Fouth Quarter Year-to-Date $ millions except EPS 2010 2009 Change 2010 2009 Change Sales $ 197 $ 146 35 % $ 744 $ 579 28 % Gross Profit 108 77 39 % 403 293 38 % Rate 55 % 53 % 54 % 51 % Operating Expenses 70 53 30 % 250 219 15 % Operating Earnings 38 24 59 % 153 74 106 % I t Intere
Slide 4: Consolidated Results
Consolidated Results Fourth Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 103 $ 76 35 % $ 408 $ 329 24 % Europe 49 37 33 % 178 143 25 % Asia Pacific 45 33 37 % 158 107 46 % Total $ 197 $ 146 35 % $ 744 $ 579 28 % Operating Earnings $ 38 $ 24 59 % $ 153 $ 74 106 %
Slide 5: Quarterly Summary
Quarterly Summary Fourth quarter sales of $197 million and earnings of $27 million Sales by geography increased as compared to prior year – Americas increased by 35 percent – Europe increased by 33 percent (42 percent at consistent translation rates) – Asia Pacific increased by 37 percent (33 pe
Slide 6: Quarterly Summary
Quarterly Summary Operating expenses increased $16 million, but as a percentage of sales were 1 percentage point lower than the fourth quarter 2009 – Volume related items including incentive and bonus $7 M – Increase in new product launch expenses in marketing and selling lli off approximately i t
Slide 7: Annual Summary
Annual Summary Sales of $744 million and earnings of $103 million – Favorable currency translation effect of $3 million on sales, $2 million on net earnings Sales by geography increased as compared to prior year – Americas increased by 24 percent – Europe increased by 25 percent (29 percent at c
Slide 8: Annual Summary
Annual Summary Operating expenses up $32 million over 2009, decreased as a percentage of sales, 34% in 2010 vs. 38% in 2009 – Increased incentive pprovisions $21M Tax rate of 31% compared to 29% last year – Effect of tax credits lower as a percentage of pretax earnings 8
Slide 9: Cash Flow and Liquidity
Cash Flow and Liquidity 2010 cash flow from operations of $101 million versus $147 million in 2009 – Cash uses ¾ Capital expenditures $17 M ¾ Dividends $48 M Share repurchases $24 M Pension contribution $10 M Working capital – Increase in inventories $33 M – Increase in accounts receivable $
Slide 10: Industrial Equipment
Industrial Equipment Fourth Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 54 $ 40 33 % $ 188 $ 149 26 % Europe 29 23 26 % 109 89 24 % Asia Pacific 30 23 35 % 112 75 49 % Total $ 113 $ 86 31 % $ 409 $ 313 31 % Operating Earnings $ 35 $ 23 52 % $ 126 $ 68 85 % % of
Slide 11: Contractor Equipment
Contractor Equipment Fourth Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 33 $ 24 35 % $ 163 $ 133 22 % Europe 18 13 42 % 63 50 24 % Asia Pacific 11 8 28 % 31 25 24 % Total $ 62 $ 45 36 % $ 257 $ 208 23 % Operating Earnings $ 5 $ 5 13 % $ 37 $ 29 28 % % of sales
Slide 12: Lubrication Equipment
Lubrication Equipment Fourth Quarter Year-to-Date $ millions 2010 2009 Ch Change 2010 2009 Ch Change Sales Americas $ 16 $ 12 43 % $ 58 $ 47 23 % Europe 2 1 63 % 6 4 56 % Asia Pacific 4 2 92 % 14 7 104 % Total $ 22 $ 15 52 % $ 78 $ 58 35 % Operating Earnings $ 3 $ 0 $ 9 $ (3) % of sales 11% 3% 11% (
Slide 13: Move Measure Control Dispense Spray
Move Measure Control Dispense Spray