Slide 1: 1Q 2012 Earnings Conference Call
1Q 2012 Earnings Conference Call First Quarter 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this web site from one to twelve months following the initial presentation, but content will not be updated to reflect
Slide 3: Overview of First Quarter 2012 Results
Overview of First Quarter 2012 Results • Solid sales growth due to increased demand in commercial markets, led by commercial aerospace and oil & gas • Diluted EPS of $0.48 exceeded guidance, excluding the gain on sale of heat treating business • Strategic diversification across our defense markets l
Slide 4: First Quarter 2012 Results (Continuing Operations)
First Quarter 2012 Results (Continuing Operations) Key sales highlights: ($ in Millions) • Sales growth of 11% First Quarter % Change 2012 vs. Prior Yr • Gains across all three segments, led by 29% Sales: surge in metal treatment segment Flow Control $ 266.8 12% • Solid, double-digit increases in th
Slide 5: First Quarter 2012 Operating Income Drivers
First Quarter 2012 Operating Income Drivers Key Positives • Led by strong gains in Metal Treatment (+30%) across all major lines of business • Favorable performance on long-term submarine contracts • Benefiting from ongoing ramp up in commercial aircraft production rates and improved economic condit
Slide 6: First Quarter 2012 EPS Reconciliation
First Quarter 2012 EPS Reconciliation Guidance First Quarter Results (as of Feb. 14, 2012) 1Q’12 EPS from Continuing Operations $0.42 Add: Disc. Ops (Heat Treating in Q1) $0.06 Subtotal: $0.48 $0.40 - $0.44 Add: Disc. Ops - Gain on Divestiture (Heat Treating) 1 $0.39 1Q’12 EPS as Reported $0.87 1Gai
Slide 7: First Quarter 2012 End Markets Summary
First Quarter 2012 End Markets Summary Key Positives • Commercial markets up 17%, Defense up 1% Aero Oil & Gas • Benefiting from ongoing ramp up in commercial Defense 12% 13% aircraft production rates Ground • Super vessels in strong demand by international Defense customers 5% • Increased revenues
Slide 8: 2012E Market Outlook
2012E Market Outlook (as of May 1, 2012) FY2012E FY2012E Management Guidance (Prior) (Current: Cont. Ops) Aero Defense 2 - 4% 2 - 4% Ground Defense (2) - (4%) (2) - (4%) Naval Defense 3 - 5% 3 - 5% Total Defense 3 - 5% 3 - 5% Including Other Defense Commercial Aero 18 - 20% 18 - 20% Oil & Gas 7 - 9%
Slide 9: 2012E Financial Outlook
2012E Financial Outlook (as of May 1, 2012) FY2012E FY2012E Management Guidance (Prior) (Current: Cont. Ops) Total Sales $2,230 - 2,270M $2,190 - 2,230M 9% - 11% 9% - 11% Flow Control $1,170 - 1,180M $1,170 - 1,180M 10% - 11% 10% - 11% Motion Control $750 - 770M $750 - 770M 6% - 8% 6% - 8% Metal Tre
Slide 10: 2012E Metal Treatment Guidance Reconciliation
2012E Metal Treatment Guidance Reconciliation (as of May 1, 2012) Less: FY Less: 2012 Guidance Heat Treating 2012 Guidance Potential (as of Feb. 14) Results (as of May 1) Restructuring (Divestiture) Sales $310 - 320M ($40M) $270 - 280M Operating Income $51 - 53M ($13M) ($12M) $26 - 28M Operating Mar
Slide 11: 2012E vs. 2011A Pro Forma Diluted EPS Reconciliation
2012E vs. 2011A Pro Forma Diluted EPS Reconciliation (as of May 1, 2012) Growth % vs. Management Guidance Diluted EPS Prior Year 2011 Full Year Pro Forma Diluted EPS* $2.54 *Excludes results of heat treating business and non-recurring R&D tax credit of $0.09 2012E Full Year Diluted EPS (as of Feb. 1
Slide 12: 2012E Financial Outlook
2012E Financial Outlook (as of May 1, 2012) FY2012E FY2012E Management Guidance (Prior) (Current: Cont. Ops) Operating Income $240 - 248M $213 - 221M Growth rate 17% - 21% 10% - 14% Pension Expense ~$26.5M ~$26.5M Interest Expense, net $33 - 34M $31 - 32M Diluted EPS $2.95 - 3.05 $2.58 - 2.68 Dilute
Slide 13: Outlook for 2012 and Closing Comments
Outlook for 2012 and Closing Comments • Expecting double-digit growth in Sales, Operating Income and Adjusted EPS • Strong performances anticipated in commercial aerospace and power generation markets • Expecting a solid rebound in sales and profitability in oil & gas market • Defense business showi
Slide 14: Appendix
Appendix 14 First Quarter 2012
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation 15 First Quarter 2012
Slide 16: 1Q 2012 Segment Review – Flow Control
1Q 2012 Segment Review – Flow Control Oil & Gas 22% Naval Defense 31% Gen Industrial 10% Power Gen 35% Comm Aero 2% Segment Sales: $267 M 16 First Quarter 2012
Slide 17: 1Q 2012 Segment Review – Motion Control
1Q 2012 Segment Review – Motion Control Aero Defense 33% Comm Aero 34% Gen Industrial Ground 11% Defense Other 14% Defense & Naval Gov't. Defense 4% 4% Segment Sales: $165 M 17 First Quarter 2012
Slide 18: 1Q 2012 Segment Review – Metal Treatment
1Q 2012 Segment Review – Metal Treatment Comm Aero 40% Gen Industrial 33% Other Power Gen Defense & Aero Defense 8% Gov't. 14% 2% Oil & Gas 3% Segment Sales: $70 M 18 First Quarter 2012