Slide 1: Second Quarter 2019 Earnings Conference Call
SE COND QU ARTER 2 019 EAR NIN GS CON FE RE NCE CALL JULY 26, 2019 PRESENTATION UPDATED: July 26, 2019 at 3:00 p.m. CDT (2019E Revenue range updated on Slide 10)
Slide 2: Forward-Looking Statement / Safe Harbor Statement
F O RWA R D - L O O K I N G S TAT E M E N T SAFE HARBOR STATEMENT This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the expected impact of tariffs and raw material in
Slide 3: Q2 2019 Financial Performance
Q2 2019 FINANCIAL PERFORMANCE COMMENTS Organic revenue down 2.8% as demand slowed across our GAAP EPS $1.97 $1.91 portfolio vs. demand levels exiting Q1 - Revenues declined ~2%-pts vs. Q1 run rates - PLS impact (70) bps GAAP EPS of $1.91, ex. headwinds $2.00, +2% REVENUE $3.8B $3.6B - EPS headwi
Slide 4: Q2 2019 Operating Margin
Q 2 2 0 1 9 O P E R AT I N G M A R G I N KEY MARGIN DRIVERS +10 bps Q2'19 ex. restructuring 24.3% 24.4% Enterprise Initiatives +110 bps restructuring 24.1% Volume (60) Price/Cost - Other (40) Q2'18 Q2'19 Margin Expansion +10 bps Accelerated Restructuring (30) Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Pric
Slide 5: Q2 Segment Performance
Q2 SEGMENT PERFORMANCE Q1 vs. Q2 Organic Growth Q2 2019 AUTOMOTIVE OEM (10)% (40) bps Q1 Organic* Q2 Organic Change $879 22.5% $788 22.1% Automotive OEM (5)% (7)% (2)%-pts Food Equipment 3 2 (1) T&M / Electronics 1 (1) (2) Q2'18 Q2'19 Q2'18 Q2'19 Welding 5 (2) (7) Total Revenue Operating Margin Poly
Slide 6: Q2 2019 Segment Performance: Food Equipment, Test & Measurement/Electronics
Q2 2019 SEGMENT PERFORMANCE FOOD EQUIPMENT TEST & MEASUREMENT/ELECTRONICS (1)% +20 bps (4)% +100 bps $553 $548 25.4% 25.6% $554 $533 24.5% 23.5% Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Total Revenue Operating Margin Total Revenue Operating Margin Organic revenue +2% Organic revenue (1)%
Slide 7: Q2 2019 Segment Performance: Welding, Polymers & Fluids
Q2 2019 SEGMENT PERFORMANCE WELDING POLYMERS & FLUIDS (4)% (50) bps (4)% +160 bps $440 $422 29.3% 28.8% $445 $427 22.8% 21.2% Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Total Revenue Operating Margin Total Revenue Operating Margin Organic revenue (2)% Organic revenue flat Equipment (4)%,
Slide 8: Q2 2019 Segment Performance: Construction Products, Specialty Products
Q2 2019 SEGMENT PERFORMANCE CONSTRUCTION PRODUCTS SPECIALTY PRODUCTS (5)% +50 bps (9)% (200) bps $444 $424 25.0% $522 28.1% 24.5% $473 26.1% Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Total Revenue Operating Margin Total Revenue Operating Margin Organic revenue (1)% Organic revenue (6)% N
Slide 9: 1H 2019 Financial Performance
1H 2019 FINANCIAL PERFORMANCE COMMENTS Organic revenue down 2.2%, equal days basis down 1.4% GAAP EPS $3.87 $3.72 - Automotive OEM down 7% - PLS impact (70) bps GAAP EPS of $3.72, ex. headwinds $3.93, +2% - 1H EPS headwinds: ~$0.20 FX & restructuring dissipate in 2H REVENUE $7.6B $7.2B - 2H EPS
Slide 10: 2019 Financial Guidance
2019 FINANCIAL GUIDANCE COMMENTS Current levels of demand, adjusted for seasonality, project GAAP EPS $7.60 $7.55 - $7.85 organic revenue down 1 to 3% - PLS impact ~(80) bps GAAP EPS $7.70 mid-point, ex. headwinds $7.95, +5% $14.8B $14.1 to - EPS headwinds: ~$0.25 FX and higher restructuring $14
Slide 11: Q&A
Q&A 11