Gardner Denver – GDI – Reports Second Quarter 2012 Results

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Gardner Denver, Inc. (NYSE: GDI) reported second quarter 2012 net income of $75.3 million, or $1.51 per diluted share, compared to $67.1 million, or $1.27 per diluted share in the second quarter of 2011. Results for the second quarter of 2012 included unfavorable after-tax charges of $0.02 diluted earnings per share primarily related to the Company’s disposition of two facilities and acquisition related costs, resulting in Adjusted DEPS of $1.53.

Gardner Denver, Inc. (GDI)

  • Diluted earnings per share (“DEPS”) of $1.51 up 19% from the prior year, exceeding previous guidance
  • Operating margins expanded 140 basis points to 17.6%
  • Revised full-year forecast down $0.30 to $4.90 to $5.10 DEPS, or $5.30 to $5.50 on an Adjusted DEPS basis, driven by slower economic growth, principally in Europe, and headwind from foreign exchange

GDI Second quarter 2012 revenues were $613.0 million, an increase of 0.4% compared to the prior year second quarter. The positive contribution from the recent Robuschi acquisition as well as increased sales of pressure pumps and associated after markets parts, and late cycle projects in the Engineered Products Group (“EPG”) were offset by headwind from foreign exchange, as the U.S. Dollar appreciated against other major currencies, as well as declines in the Industrial Products Group (“IPG”) primarily in Europe.


GDI Operating income for the second quarter of 2012 was $108.0 million, compared to $99.2 million in the second quarter of the prior year, resulting in an increase in operating margins of 140 basis points to 17.6%. Operating margins expanded in both segments driven by tight cost controls and the impact of the recent Robuschi acquisition.

“In a slower growth environment, Gardner Denver had a good second quarter as DEPS increased 19% over the prior year to $1.51, exceeding our previously stated guidance,” said Michael M. Larsen, Gardner Denver’s interim Chief Executive Officer. ”We executed well on our margin expansion initiatives as operating margins expanded in both segments and we continued to take steps toward optimizing our cost structure, as we announced the closure of 8 facilities globally and reduced staffing by 3%. Our cash flow from operating activities was $66 million, an increase of 36% compared to the first quarter of 2012, and we returned over $107 million in cash to our shareholders in the second quarter through the repurchase of 1.664 million shares of our common stock and the payment of dividends.”

About Gardner Denver – GDI

Gardner Denver, Inc. (GDI), with 2011 revenues of approximately $2.4 billion, is a leading worldwide manufacturer of highly engineered products, including compressors, liquid ring pumps and blowers for various industrial, medical, environmental, transportation and process applications, pumps used in the petroleum and industrial market segments and other fluid transfer equipment, such as loading arms and dry break couplers, serving chemical, petroleum and food industries.

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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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