Slide 1: IDEX Corporation Second Quarter 2008 Earnings Release
IDEX Corporation Second Quarter 2008 Earnings Release July 22, 2008
Slide 2: Agenda
Agenda Q2 2008 Summary Segment Performance Fluid & Metering Health & Science Dispensing Equipment Fire & Safety FY and Q3 2008 Outlook Q&A
Slide 3: Replay Information
Replay Information Dial toll-free: 888.203.1112 International: 719.457.0820 Conference ID: #4450651 Log on to: www.idexcorp.com
Slide 4: Cautionary Statement Under the Private Securities Litigation Reform Act
Cautionary Statement Under the Private Securities Litigation Reform Act This presentation and discussion will include forward-looking statements. Our actual performance may differ materially from that indicated or suggested by any such statements. There are a number of factors that could cause those
Slide 5: Financial Performance
Q2 2008 Financial Performance Strong Performance Q2 2008 Q2 2007 V% Orders $402 $339 19% Sales $397 $344 15% Operating Income $74 $69 7% Operating Margin 18.6% 20.0% (140)bp EPS $.56 $.51 10% FCF $61 $58 4% (Continuing Operations)
Slide 6: Portfolio Summary
Portfolio Summary Strategic Position/ Innovation Market Growth Global Presence Acquisition Pipeline FMT (45%) HST (22%) - Core Health and Science - Industrial Pneumatics Dispensing (14%) FSD (19%) - Fire - Rescue - BAND-IT IDEX M&A Focus Healthy End Markets
Slide 7: Fluid & Metering Performance
Fluid & Metering Performance Highlights: Q2 2008 sales growth of 26% Operating margin 19.5% Strong acquisition pipeline Outlook: Continued strong end-market performance International expansion New acquisitions Strong End Markets - Well Positioned to Grow
Slide 8: Health & Science Performance
Health & Science Performance Highlights: Q2 2008 sales growth of 6% Operating margin 18.4% Outlook: Continued growth driven by strong core end markets Acquisitions performing well Strong Growth in Core Markets
Slide 9: Dispensing Equipment Performance
Dispensing Equipment Performance Highlights: Q2 2008 sales growth of 14% Operating margin 25.3% Outlook: Well positioned for growth - new technology and replenishment programs (aging equipment) Modest European market growth Soft North American market conditions Stable Global Market Conditions
Slide 10: Fire & Safety / Diversified Products Performance
Fire & Safety / Diversified Products Performance Highlights: Q2 2008 sales growth of 6% Operating margin 24.1% Outlook: Fire suppression has stabilized with flat sequential volume Continued opportunity in international markets for rescue tool products and innovation driving higher than market growth
Slide 11: Performance: Orders and Sales Double Digit Growth
Q2 2008 Performance Q2 '07 Q2 '08 339.3 402.2 Q2 '07 Q2 '08 344.5 397.3 (Continuing Operations) Double Digit Growth
Slide 12: Performance: Op Margin impacted by Acquisition and Fx
Q2 2008 Performance Q2 '07 Q2 '08 0.2 0.186 (Continuing Operations) Op Margin impacted by Acquisition and Fx Op Margin Q2 '08 18.6% Impacts Acquisitions 60bp Fx 20bp Other 70bp
Slide 13: Performance: Double Digit Earnings Growth
Q2 2008 Performance Q2 '07 Q2 '08 41.8 46.1 Q2 '07 Q2 '08 0.51 0.56 Double Digit Earnings Growth (Continuing Operations) Income +10%
Slide 14: 1H 2008 Performance
1H 2008 Performance (Continuing Operations) 18% YOY improvement in 1H Free Cash Flow 1H '07 1H '08 70.4 83
Slide 15: Segment Performance: Fluid & Metering Technologies
Q2 2008 Segment Performance (Continuing Operations) Q2 '08 Q2 '07 Change Orders $182.7 $140.1 30% Sales Organic Acquisition Currency $177.4 $141.1 26% 8% 16% 2% Operating Income $34.7 $30.1 15% Operating Margin 19.5% 21.4% (190)bp Fluid & Metering Technologies 11% Organic Orders Growth
Slide 16: Segment Performance: Health & Science Technologies
Q2 2008 Segment Performance Q2 '08 Q2 '07 Change Orders $88.5 $83.4 6% Sales Organic Acquisition Currency $87.2 $82.4 6% 1% 3% 2% Operating Income $16.1 $15.2 6% Operating Margin 18.4% 18.4% - Health & Science Technologies Core Markets Remain Strong
Slide 17: Segment Performance: Dispensing Equipment
Q2 2008 Segment Performance Q2 '08 Q2 '07 Change Orders $50.5 $46.6 8% Sales - -Organic Currency $56.6 $49.9 14% 3% 11% Operating Income $14.3 $14.2 - Operating Margin 25.3% 28.6% (330)bp Dispensing Equipment Operating Margin Impacted by Fx and Material Costs
Slide 18: Segment Performance: Fire & Safety/Diversified Products
Q2 2008 Segment Performance Q2 '08 Q2 '07 Change Orders $81.7 $71.1 15% Sales - -Organic Currency $77.2 $72.8 6% 2% 4% Operating Income $18.6 $18.1 3% Operating Margin 24.1% 24.9% (80)bp Fire & Safety/Diversified Products Growth Driven By Band Clamping and Rescue Tools Businesses
Slide 19: 2008 Outlook
2008 Outlook FY 2008 Sales growth: 13 - 15% 3 - 5% Organic Growth 7% Acquisitions 3% Fx (at current rates) EPS estimate range: $2.12 - $2.18* Q3 2008 Sales growth: 14 - 16% FMT and Fire & Safety / Diversified high single digit organic growth HST and Dispensing low single digit organic growth 7% Acqu
Slide 20: Q&A
Q&A CORPORATION 20