Slide 1: 2Q 2012 Earnings Conference Call
2Q 2012 Earnings Conference Call Second 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 Second Quarter 2012 Results
Overview of Second Quarter 2012 Results • Sales growth of 4% aided by strong demand in commercial aerospace and includes recent acquisitions • Operating Income increased 10% excluding restructuring charges and AP1000 strategic investments • Diluted EPS of $0.48, up 5% excluding aforementioned charge
Slide 4: Second Quarter 2012 Results (Continuing Operations)
Second Quarter 2012 Results (Continuing Operations) Key sales highlights: ($ in Millions) Second • Sales growth of 4% Quarter % Change 2012 vs. Prior Yr • Gains across all three segments, led by 13% Sales: increase in Metal Treatment segment Flow Control $ 274.7 3% • Solid growth in commercial marke
Slide 5: Second Quarter 2012 Operating Income Drivers
Second Quarter 2012 Operating Income Drivers 2Q’12 AP1000 & 2Q’12 Adjusted % Change Reported Restruct. Charges Excl. Charges vs. 2Q’11 Flow Control $18.6 $7.8 $26.4 (1%) Motion Control $23.5 $0.5 $24.0 28% Metal Treatment $5.9 $5.2 $11.2 46% Corp & Other ($7.5) - ($7.5) (86%) Total $40.5M $13.5M $54
Slide 6: Second Quarter 2012 End Markets Summary Defense
Second Quarter 2012 End Markets Summary Defense Key Positives • Increased sales on military helicopters (particularly Aero Blackhawk) and P-8 Poseidon Oil & Gas Defense • Solid demand on DDG-51 destroyer program 12% 15% • Higher turret drive and ammunition handling Ground systems to international gr
Slide 7: Second Quarter 2012 End Markets Summary Commercial
Second Quarter 2012 End Markets Summary Commercial Key Positives • Commercial markets up 9% Aero • Benefiting from ongoing ramp up in commercial Oil & Gas Defense aircraft production rates 12% 15% • Increased revenues for U.S. and China AP1000 Ground reactor projects Defense • Higher aftermarket dem
Slide 8: 2012E Market Outlook
2012E Market Outlook (as of August 2, 2012) FY2012E FY2012E Management Guidance (Prior) (Current) Aero Defense 2 - 4% 2 - 4% Ground Defense (2) - (4%) (12) - (14%) Naval Defense 3 - 5% 6 - 8% Total Defense 3 - 5% 2 - 4% Including Other Defense Commercial Aero 18 - 20% 18 - 20% Oil & Gas 7 - 9% 3 - 5
Slide 9: 2012E Financial Outlook
2012E Financial Outlook (as of August 2, 2012) FY2012E FY2012E Management Guidance (Prior) (Current) Total Sales $2,190 - 2,230M $2,150 - 2,190M 9% - 11% 7% - 9% Flow Control $1,170 - 1,180M $1,160 - 1,170M 10% - 11% 9% - 10% Motion Control $750 - 770M $720 - 740M 6% - 8% 1% - 4% Metal Treatment $27
Slide 10: 2012E Metal Treatment Pro Forma Reconciliation
2012E Metal Treatment Pro Forma Reconciliation (as of August 2, 2012) Pro-forma adjustment excluding restructuring from current year results*: Pro Forma 2011 FY 2012 Guidance 2012 ex. (Continuing % Growth (as of August 2) Restructuring Operations) Sales $270 - 280M $270 - 280M $247M 9 - 13% Operatin
Slide 11: 2012E Financial Outlook
2012E Financial Outlook (as of August 2, 2012) FY2012E FY2012E Management Guidance (Prior Qtr.) (Current) Operating Income $213 - 221M $207 - 215M Growth rate 10% - 14% 7% - 11% Pension Expense ~$26.5M ~$27.0M Interest Expense $32 - 33M $32 - 33M Diluted EPS $2.58 - 2.68 $2.50 - 2.60 Diluted Shares
Slide 12: Outlook for 2012 and Closing Comments
Outlook for 2012 and Closing Comments • Expecting solid growth in Sales, Operating Income and Adjusted EPS • Positioned for solid growth organically and through strategic acquisitions • Strong performances anticipated in commercial aerospace and power generation markets • Continued expectations for
Slide 13: Appendix
Appendix 13 Second Quarter 2012
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation 14 Second Quarter 2012
Slide 15: 2Q 2012 Segment Review – Flow Control
2Q 2012 Segment Review – Flow Control Oil & Gas 21% Naval Defense 30% Gen Industrial 10% Power Gen 36% Comm Aero 3% Segment Sales: $275 M 15 Second Quarter 2012
Slide 16: 2Q 2012 Segment Review – Motion Control
2Q 2012 Segment Review – Motion Control Comm Aero 30% Aero Defense 40% Gen Industrial 9% Other Defense & Ground Gov't. Naval Defense 3% Defense 14% 4% Segment Sales: $181 M 16 Second Quarter 2012
Slide 17: 2Q 2012 Segment Review – Metal Treatment
2Q 2012 Segment Review – Metal Treatment Comm Aero 39% Gen Industrial 34% Other Power Gen Defense & Aero Defense 7% Gov't. 14% 2% Oil & Gas 4% Segment Sales: $71 M 17 Second Quarter 2012