Slide 1: 2nd Quarter 2010 Earnings Conference Call
2nd Quarter 2010 Earnings Conference Call Thursday, July 22, 2010, 10 a.m. CT
Slide 2: Safe Harbor
Safe Harbor Today’s presentation includes forward-looking statements that 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 actual results to differ from anticipate
Slide 3: Financial Results
Financial Results Second Quarter Year-to-Date $ millions except EPS 2010 2009 Change 2010 2009 Change Sales $ 192 $ 148 30 % $ 357 $ 286 25 % Gross Profit 102 73 40 % 191 137 39 % Rate 53 % 49 % 54 % 48 % Operating Expenses 63 55 15 % 119 112 6% Operating Earnings 39 18 113 % 72 25 193 % Interest &
Slide 4: Consolidated Results
Consolidated Results Second Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 110 $ 88 25 % $ 197 $ 169 17 % Europe 44 35 27 % 86 70 22 % Asia Pacific 38 25 53 % 74 47 59 % Total $ 192 $ 148 30 % $ 357 $ 286 25 % Operating Earnings $ 39 $ 18 113 % $ 72 $ 25 193 % % o
Slide 5: Q2 Summary
Q2 Summary ■ Second quarter sales of $192 million and earnings of $25 million ■ Sales by geography increased as compared to prior year – Americas increased by 25 percent – Europe increased by 27 percent (33 percent at consistent translation rates) – Asia Pacific increased by 53 percent (47 percent a
Slide 6: Q2 Summary
Q2 Summary ■ Operating expenses as a percentage of sales were 4 percentage points lower than the second quarter 2009 – Volume related items are re-adjusting from 2009 Strong operating results drove a higher rate of incentive and bonus provisions in the second quarter, with an increase of $3 million
Slide 7: 2010 Q2 to Q1 Discussion Items
2010 Q2 to Q1 Discussion Items $ millions Increased rate for incentive and bonus provisions $ 3 Other volume related costs and expenses 1 $ 4 Additional new product introduction costs and expenses Manufacturing $ 1 Selling and Marketing 1 $ 2 7
Slide 8: Year-to-date June Summary
Year-to-date June Summary ■ Year-to-date sales of $357 million and earnings of $45 million – Favorable currency translation effect of $6 million on sales, $3 million on net earnings ■ Sales by geography increased as compared to prior year – Americas increased by 17 percent – Europe increased by 22 p
Slide 9: Year-to-date June Summary
Year-to-date June Summary ■ Operating expenses up $7 million over 2009, decreased as a percentage of sales, 33% in 2010 vs 39% in 2009 – Effects of cost reduction activities and lower pension expense were partially offset by effects of currency translation and increased incentive provisions ■ Tax ra
Slide 10: Cash Flow and Liquidity
Cash Flow and Liquidity ■ Year-to-date 2010 cash flow from operations of $28 million versus $69 million in 2009 – Cash uses Capital expenditures $6 M Dividends $24 M Repayment of long-term debt $6 M ■ Share repurchases $10 M: $3 M paid, balance in accounts payable ■ Working capital – Increase in inv
Slide 11: Industrial Equipment
Industrial Equipment Second Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 45 $ 35 28 % $ 87 $ 71 23 % Europe 27 20 37 % 55 44 26 % Asia Pacific 28 18 54 % 55 34 63 % Total $ 100 $ 73 37 % $ 197 $ 149 33 % Operating Earnings $ 30 $ 13 120 % $ 60 $ 25 141 % % of sa
Slide 12: Contractor Equipment
Contractor Equipment Second Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 52 $ 41 26 % $ 84 $ 73 15 % Europe 15 14 10 % 28 25 12 % Asia Pacific 7 5 29 % 13 10 29 % Total $ 74 $ 60 22 % $ 125 $ 108 16 % Operating Earnings $ 13 $ 12 10 % $ 18 $ 13 36 % % of sales 1
Slide 13: Lubrication Equipment
Lubrication Equipment Second Quarter Year-to-Date $ millions 2010 2009 Change 2010 2009 Change Sales Americas $ 13 $ 12 12 % $ 26 $ 24 7% Europe 2 1 86 % 3 2 55 % Asia Pacific 3 1 122 % 6 3 108 % Total $ 18 $ 14 28 % $ 35 $ 29 20 % Operating Earnings $ 2 $ (2) $ 4 $ (3) % of sales 10% (12)% 10% (11)
Slide 14: Move Measure Control Dispense Spray
Move Measure Control Dispense Spray