Gardner Denver, Inc. Reports First Quarter Earnings Per Share of $0.31

Revenues Grow 13% and EPS Increases 19% from Prior Year



Apr 25, 2001, 01:00 ET from Gardner Denver, Inc.

    QUINCY, Ill., April 25 /PRNewswire/ -- Gardner Denver, Inc. (NYSE:   GDI), a
 leading manufacturer of compressors and blowers for industrial applications
 and pumps for the petroleum and industrial markets, announced that revenues
 for the three months ended March 31, 2001 were $100.9 million.  Diluted
 earnings per share in the first quarter of 2001 were $0.31 including a
 $0.5 million after-tax gain from litigation settlement proceeds.  Excluding
 the impact of this non-operating item, diluted earnings per share were $0.28.
     Revenues for the three-month period increased $11.7 million, or 13%,
 compared to the same period of 2000.  Petroleum revenues for the three-month
 period increased approximately $10.2 million, or 95%, compared to the same
 period of 2000.  This increase resulted from heightened demand for petroleum
 products due to continued high oil and natural gas prices.  Compressor
 products revenues increased $1.5 million, or 2%, for the three months of 2001,
 compared to 2000, as a result of the incremental revenues from acquisitions
 and increased rotary screw compressor volume in Europe partially offset by
 unfavorable foreign currency exchange rates.  Net income was $4.8 million for
 the first three months of 2001 compared to $4.0 million in 2000.  Diluted
 earnings per share increased 19% to $0.31 for the first quarter compared to
 $0.26 for the same period of 2000.
     "We are pleased with our first quarter results and the momentum building
 in our petroleum products segment," stated Ross J. Centanni, Chairman,
 President and CEO.  "As anticipated, orders for well servicing and drilling
 pumps continued to improve during the first quarter.  Orders and backlog for
 this segment have doubled from their levels a year ago.  This increased
 activity has boosted the petroleum products segment's backlog an additional
 54% since December 31, 2000.  We believe this positive trend will continue if
 oil and natural gas prices remain near current levels, day rates and the rig
 count continue to increase and recent economic slowdowns do not significantly
 impact oil and natural gas demand."
     "As expected, orders for compressed air products showed only modest growth
 during the first quarter of 2001 as compared to the previous year.  Because
 compressed air is often used as a fourth utility in the manufacturing process,
 demand for compressors is correlated to manufacturing capacity utilization
 rates and the rate of change of industrial equipment production.  These
 indicators, along with the GDP, weakened during the latter half of 2000 and in
 early 2001 as the U.S. manufacturing sector continued to cut production to
 cope with reduced demand.  While waiting for a stronger industrial economy, we
 continue to expect additional synergies and cost reductions for compressed air
 products as we further integrate acquisitions, penetrate global markets and
 realize returns from our capital investments," Centanni concluded.
 
     Safe Harbor
     All of the statements in this release, other than historical facts, are
 forward-looking statements made in reliance upon the safe harbor of the
 Private Securities Litigation Reform Act of 1995. As a general matter,
 forward-looking statements are those focused upon anticipated events or trends
 and expectations and beliefs relating to matters that are not historical in
 nature.  Such forward-looking statements are subject to uncertainties and
 factors relating to Gardner Denver's operations and business environment, all
 of which are difficult to predict and many of which are beyond the control of
 the Company.  These uncertainties and factors could cause actual results to
 differ materially from those matters expressed in or implied by such forward-
 looking statements.  The following uncertainties and factors, among others,
 could affect future performance and cause actual results to differ materially
 from those expressed in or implied by forward-looking statements: the ability
 to identify, negotiate and complete future acquisitions; the speed with which
 the Company is able to integrate its recent acquisitions and realize the
 related financial benefit; the domestic and/or worldwide level of oil and
 natural gas prices and oil and gas drilling and production, which affect
 demand for the Company's petroleum products; changes in domestic and/or
 worldwide industrial production and industrial capacity utilization rates,
 which affect demand for the Company's compressed air products; pricing of
 Gardner Denver products; the degree to which the Company is able to penetrate
 niche markets; the ability to maintain and to enter into key purchasing and
 supply relationships; and the continued successful implementation of cost
 reduction efforts.
     Comparisons of the financial results for the three month periods ended
 March 31, 2001 and 2000 follow.
     Gardner Denver will broadcast, through a live webcast, its conference call
 to discuss first quarter earnings on Thursday, April 26, 2001 at 9:30 a.m.
 Eastern.  This free webcast will be available in listen-only mode and can be
 accessed, for up to thirty days following the call, through the Investor
 Relations page on the Gardner Denver website ( www.gardnerdenver.com ) or on
 StreetFusion's website ( www.streetfusion.com ).
 
     Gardner Denver, with 2000 revenues of $379 million, is a leading
 manufacturer of reciprocating, rotary and vane compressors and blowers for
 various industrial applications and pumps used in the petroleum and industrial
 markets.  Gardner Denver's news releases are available by facsimile
 (800-758-5804, extension 303875) or by visiting the Company's website
 ( www.gardnerdenver.com ).
 
 
                                GARDNER DENVER, INC.
                        CONSOLIDATED STATEMENT OF OPERATIONS
              (in thousands, except per share amounts and percentages)
 
                                                 (Unaudited)
                                             Three Months Ended
                                                  March 31,
                                                                          %
                                               2001         2000       Change
 
     Revenues                               $100,896       $89,166        13
 
     Costs and Expenses:
       Cost of sales                          71,454        62,907        14
       Depreciation and amortization           4,275         3,891        10
       Selling and administrative             16,649        15,453         8
       Interest expense                        1,842         1,817         1
       Other income, net                        (941)       (1,284)      (27)
 
     Income before income taxes                7,617         6,382        19
     Provision for income taxes                2,818         2,431        16
 
     Net income                               $4,799        $3,951        21
 
     Basic earnings per share                  $0.31         $0.26        19
     Diluted earnings per share                $0.31         $0.26        19
 
     Basic weighted average
      number of shares outstanding            15,452        15,213
     Diluted weighted average
      number of shares outstanding            15,648        15,464
 
     Shares outstanding as of 3/31            15,528        15,297
 
     Note:  The Consolidated Statement of Operations and the Business Segment
     Results are presented in accordance with the requirements of the Financial
     Accounting Standards Board's Emerging Issues Task Force 00-10, "Accounting
     for Shipping and Handling Fees and Costs" and thus, include outbound
     freight billed to customers as revenues and outbound freight expenses in
     cost of sales.  In addition, the Company currently allocates all costs
     related to corporate activity to its segments and calculates their
     operating earnings presented in the Business Segment Results based on
     income before interest expense, other income, net and income taxes.Certain
     prior year amounts have been reclassified to conform with current year
     presentation.
 
 
                                GARDNER DENVER, INC.
                              BUSINESS SEGMENT RESULTS
                         (in thousands, except percentages)
                                    (Unaudited)
 
                                            Three Months Ended
                                                 March 31,
                                                                         %
                                             2001          2000        Change
 
     Compressed Air Products
       Revenues                            $79,922       $78,420           2
       Operating earnings                    5,459         6,184         (12)
       % of Revenues                          6.8%          7.9%
         Orders                             82,624        79,737           4
         Backlog                            51,516        50,095           3
 
     Petroleum Products
       Revenues                             20,974        10,746          95
       Operating earnings                    3,059           731         318
       % of Revenues                         14.6%          6.8%
         Orders                             27,300        13,643         100
         Backlog                            18,350         9,558          92
 
                           CONDENSED BALANCE SHEET ITEMS
 
                                         (Unaudited)    (Audited)        %
                                           03/31/01      12/31/00      Change
 
     Cash and equivalents                  $19,700       $30,239         (35)
     Receivables, net                       79,103        79,448           0
     Inventories, net                       64,254        61,942           4
     Current assets                        171,932       179,916          (4)
 
     Total assets                          392,230       403,881          (3)
 
     Short-term debt and curr. maturities    5,707         5,781          (1)
     Current liabilities                    63,381        68,243          (7)
     Long-term debt, excl. curr.
      maturities                           104,377       115,808         (10)
 
     Total liabilities                     214,958       232,733          (8)
 
     Total stockholders' equity            177,272       171,148           4
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X63324218
 
 

SOURCE Gardner Denver, Inc.
    QUINCY, Ill., April 25 /PRNewswire/ -- Gardner Denver, Inc. (NYSE:   GDI), a
 leading manufacturer of compressors and blowers for industrial applications
 and pumps for the petroleum and industrial markets, announced that revenues
 for the three months ended March 31, 2001 were $100.9 million.  Diluted
 earnings per share in the first quarter of 2001 were $0.31 including a
 $0.5 million after-tax gain from litigation settlement proceeds.  Excluding
 the impact of this non-operating item, diluted earnings per share were $0.28.
     Revenues for the three-month period increased $11.7 million, or 13%,
 compared to the same period of 2000.  Petroleum revenues for the three-month
 period increased approximately $10.2 million, or 95%, compared to the same
 period of 2000.  This increase resulted from heightened demand for petroleum
 products due to continued high oil and natural gas prices.  Compressor
 products revenues increased $1.5 million, or 2%, for the three months of 2001,
 compared to 2000, as a result of the incremental revenues from acquisitions
 and increased rotary screw compressor volume in Europe partially offset by
 unfavorable foreign currency exchange rates.  Net income was $4.8 million for
 the first three months of 2001 compared to $4.0 million in 2000.  Diluted
 earnings per share increased 19% to $0.31 for the first quarter compared to
 $0.26 for the same period of 2000.
     "We are pleased with our first quarter results and the momentum building
 in our petroleum products segment," stated Ross J. Centanni, Chairman,
 President and CEO.  "As anticipated, orders for well servicing and drilling
 pumps continued to improve during the first quarter.  Orders and backlog for
 this segment have doubled from their levels a year ago.  This increased
 activity has boosted the petroleum products segment's backlog an additional
 54% since December 31, 2000.  We believe this positive trend will continue if
 oil and natural gas prices remain near current levels, day rates and the rig
 count continue to increase and recent economic slowdowns do not significantly
 impact oil and natural gas demand."
     "As expected, orders for compressed air products showed only modest growth
 during the first quarter of 2001 as compared to the previous year.  Because
 compressed air is often used as a fourth utility in the manufacturing process,
 demand for compressors is correlated to manufacturing capacity utilization
 rates and the rate of change of industrial equipment production.  These
 indicators, along with the GDP, weakened during the latter half of 2000 and in
 early 2001 as the U.S. manufacturing sector continued to cut production to
 cope with reduced demand.  While waiting for a stronger industrial economy, we
 continue to expect additional synergies and cost reductions for compressed air
 products as we further integrate acquisitions, penetrate global markets and
 realize returns from our capital investments," Centanni concluded.
 
     Safe Harbor
     All of the statements in this release, other than historical facts, are
 forward-looking statements made in reliance upon the safe harbor of the
 Private Securities Litigation Reform Act of 1995. As a general matter,
 forward-looking statements are those focused upon anticipated events or trends
 and expectations and beliefs relating to matters that are not historical in
 nature.  Such forward-looking statements are subject to uncertainties and
 factors relating to Gardner Denver's operations and business environment, all
 of which are difficult to predict and many of which are beyond the control of
 the Company.  These uncertainties and factors could cause actual results to
 differ materially from those matters expressed in or implied by such forward-
 looking statements.  The following uncertainties and factors, among others,
 could affect future performance and cause actual results to differ materially
 from those expressed in or implied by forward-looking statements: the ability
 to identify, negotiate and complete future acquisitions; the speed with which
 the Company is able to integrate its recent acquisitions and realize the
 related financial benefit; the domestic and/or worldwide level of oil and
 natural gas prices and oil and gas drilling and production, which affect
 demand for the Company's petroleum products; changes in domestic and/or
 worldwide industrial production and industrial capacity utilization rates,
 which affect demand for the Company's compressed air products; pricing of
 Gardner Denver products; the degree to which the Company is able to penetrate
 niche markets; the ability to maintain and to enter into key purchasing and
 supply relationships; and the continued successful implementation of cost
 reduction efforts.
     Comparisons of the financial results for the three month periods ended
 March 31, 2001 and 2000 follow.
     Gardner Denver will broadcast, through a live webcast, its conference call
 to discuss first quarter earnings on Thursday, April 26, 2001 at 9:30 a.m.
 Eastern.  This free webcast will be available in listen-only mode and can be
 accessed, for up to thirty days following the call, through the Investor
 Relations page on the Gardner Denver website ( www.gardnerdenver.com ) or on
 StreetFusion's website ( www.streetfusion.com ).
 
     Gardner Denver, with 2000 revenues of $379 million, is a leading
 manufacturer of reciprocating, rotary and vane compressors and blowers for
 various industrial applications and pumps used in the petroleum and industrial
 markets.  Gardner Denver's news releases are available by facsimile
 (800-758-5804, extension 303875) or by visiting the Company's website
 ( www.gardnerdenver.com ).
 
 
                                GARDNER DENVER, INC.
                        CONSOLIDATED STATEMENT OF OPERATIONS
              (in thousands, except per share amounts and percentages)
 
                                                 (Unaudited)
                                             Three Months Ended
                                                  March 31,
                                                                          %
                                               2001         2000       Change
 
     Revenues                               $100,896       $89,166        13
 
     Costs and Expenses:
       Cost of sales                          71,454        62,907        14
       Depreciation and amortization           4,275         3,891        10
       Selling and administrative             16,649        15,453         8
       Interest expense                        1,842         1,817         1
       Other income, net                        (941)       (1,284)      (27)
 
     Income before income taxes                7,617         6,382        19
     Provision for income taxes                2,818         2,431        16
 
     Net income                               $4,799        $3,951        21
 
     Basic earnings per share                  $0.31         $0.26        19
     Diluted earnings per share                $0.31         $0.26        19
 
     Basic weighted average
      number of shares outstanding            15,452        15,213
     Diluted weighted average
      number of shares outstanding            15,648        15,464
 
     Shares outstanding as of 3/31            15,528        15,297
 
     Note:  The Consolidated Statement of Operations and the Business Segment
     Results are presented in accordance with the requirements of the Financial
     Accounting Standards Board's Emerging Issues Task Force 00-10, "Accounting
     for Shipping and Handling Fees and Costs" and thus, include outbound
     freight billed to customers as revenues and outbound freight expenses in
     cost of sales.  In addition, the Company currently allocates all costs
     related to corporate activity to its segments and calculates their
     operating earnings presented in the Business Segment Results based on
     income before interest expense, other income, net and income taxes.Certain
     prior year amounts have been reclassified to conform with current year
     presentation.
 
 
                                GARDNER DENVER, INC.
                              BUSINESS SEGMENT RESULTS
                         (in thousands, except percentages)
                                    (Unaudited)
 
                                            Three Months Ended
                                                 March 31,
                                                                         %
                                             2001          2000        Change
 
     Compressed Air Products
       Revenues                            $79,922       $78,420           2
       Operating earnings                    5,459         6,184         (12)
       % of Revenues                          6.8%          7.9%
         Orders                             82,624        79,737           4
         Backlog                            51,516        50,095           3
 
     Petroleum Products
       Revenues                             20,974        10,746          95
       Operating earnings                    3,059           731         318
       % of Revenues                         14.6%          6.8%
         Orders                             27,300        13,643         100
         Backlog                            18,350         9,558          92
 
                           CONDENSED BALANCE SHEET ITEMS
 
                                         (Unaudited)    (Audited)        %
                                           03/31/01      12/31/00      Change
 
     Cash and equivalents                  $19,700       $30,239         (35)
     Receivables, net                       79,103        79,448           0
     Inventories, net                       64,254        61,942           4
     Current assets                        171,932       179,916          (4)
 
     Total assets                          392,230       403,881          (3)
 
     Short-term debt and curr. maturities    5,707         5,781          (1)
     Current liabilities                    63,381        68,243          (7)
     Long-term debt, excl. curr.
      maturities                           104,377       115,808         (10)
 
     Total liabilities                     214,958       232,733          (8)
 
     Total stockholders' equity            177,272       171,148           4
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X63324218
 
 SOURCE  Gardner Denver, Inc.

RELATED LINKS

http://www.gardnerdenver.com