IDEX Corporation to Take Restructuring Charge in First Quarter; Earnings Before Charge Remain on Track

Apr 05, 2001, 01:00 ET from IDEX Corporation

    NORTHBROOK, Ill., April 5 /PRNewswire/ -- IDEX Corporation (NYSE:   IEX)
 today announced that diluted earnings per share before restructuring charges
 for the first quarter are on track with earlier estimates of 32 to 37 cents.
 In addition, the company has decided to take aggressive actions to properly
 size its operations with current business conditions.  As a result, it will
 record a $5.5 million restructuring charge, or 11 cents per share, in the
 first quarter.  This restructuring -- which affects all three business
 groups -- will result in a workforce reduction of approximately 250 employees
 (or 6 percent of the total workforce) and the consolidation of two Pump
 Products Group manufacturing plants into a single more efficient operation.
     Chairman, President and Chief Executive Officer Dennis K. Williams said,
 "The reduced demand in the U.S. manufacturing sector continues to affect sales
 volumes and profitability in our base businesses.  Last year, we introduced
 three key initiatives -- global sourcing, E-Business and Six Sigma -- that we
 believe will help us improve margins starting in the third quarter of 2001,
 continuing into 2002 and beyond.  In addition, we continue to drive top-line
 growth in new market niches and to make acquisitions that meet our strict
 criteria.  While all of these efforts will improve our longer term
 performance, we believe the current actions are necessary to appropriately
 size our businesses, lower costs and improve efficiencies.  For example, the
 decision to consolidate two of Gast Manufacturing's southwest Michigan
 production facilities addresses excess capacity issues that have resulted from
 the combination of lower current demand and improving process efficiencies
 that have been realized at this business.  We expect the annualized savings
 from these actions will exceed the charge taken in this quarter."
 
     About IDEX
     IDEX Corporation is a manufacturer of proprietary pump products,
 dispensing equipment, and other engineered products with leading positions in
 niche markets.  Its products are sold to a wide range of industries throughout
 the world.  IDEX shares are traded on the New York Stock Exchange and Chicago
 Stock Exchange under the symbol IEX.
 
     Forward-Looking Statements
     All comments relating to any future period are forward-looking statements,
 subject to uncertainties and risks that could cause actual results to vary
 materially from what is suggested here.  These uncertainties and risks include
 but are not limited to the following:  levels of industrial activity and
 economic conditions in the U.S. and other countries around the world, pricing
 pressures and other competitive factors, and levels of capital spending in
 certain industries -- all of which could have a material impact on order rates
 and the company's results, particularly in light of the low levels of order
 backlogs IDEX typically maintains; IDEX's ability to integrate and operate
 acquired businesses on a profitable basis; the relationship of the U.S. dollar
 to other currencies, and its impact on pricing and cost competitiveness;
 interest rates; utilization of IDEX's capacity and the affect of capacity
 utilization on costs; labor market conditions; raw material costs;
 developments with respect to contingencies, such as environmental matters and
 litigation, and other risks detailed from time to time in the company's
 filings with the Securities and Exchange Commission.  IDEX does not undertake
 any obligation to update any forward-looking statements.
     For further information on IDEX Corporation and its business units,
 visit the company's Website at www.idexcorp.com .
 
 

SOURCE IDEX Corporation
    NORTHBROOK, Ill., April 5 /PRNewswire/ -- IDEX Corporation (NYSE:   IEX)
 today announced that diluted earnings per share before restructuring charges
 for the first quarter are on track with earlier estimates of 32 to 37 cents.
 In addition, the company has decided to take aggressive actions to properly
 size its operations with current business conditions.  As a result, it will
 record a $5.5 million restructuring charge, or 11 cents per share, in the
 first quarter.  This restructuring -- which affects all three business
 groups -- will result in a workforce reduction of approximately 250 employees
 (or 6 percent of the total workforce) and the consolidation of two Pump
 Products Group manufacturing plants into a single more efficient operation.
     Chairman, President and Chief Executive Officer Dennis K. Williams said,
 "The reduced demand in the U.S. manufacturing sector continues to affect sales
 volumes and profitability in our base businesses.  Last year, we introduced
 three key initiatives -- global sourcing, E-Business and Six Sigma -- that we
 believe will help us improve margins starting in the third quarter of 2001,
 continuing into 2002 and beyond.  In addition, we continue to drive top-line
 growth in new market niches and to make acquisitions that meet our strict
 criteria.  While all of these efforts will improve our longer term
 performance, we believe the current actions are necessary to appropriately
 size our businesses, lower costs and improve efficiencies.  For example, the
 decision to consolidate two of Gast Manufacturing's southwest Michigan
 production facilities addresses excess capacity issues that have resulted from
 the combination of lower current demand and improving process efficiencies
 that have been realized at this business.  We expect the annualized savings
 from these actions will exceed the charge taken in this quarter."
 
     About IDEX
     IDEX Corporation is a manufacturer of proprietary pump products,
 dispensing equipment, and other engineered products with leading positions in
 niche markets.  Its products are sold to a wide range of industries throughout
 the world.  IDEX shares are traded on the New York Stock Exchange and Chicago
 Stock Exchange under the symbol IEX.
 
     Forward-Looking Statements
     All comments relating to any future period are forward-looking statements,
 subject to uncertainties and risks that could cause actual results to vary
 materially from what is suggested here.  These uncertainties and risks include
 but are not limited to the following:  levels of industrial activity and
 economic conditions in the U.S. and other countries around the world, pricing
 pressures and other competitive factors, and levels of capital spending in
 certain industries -- all of which could have a material impact on order rates
 and the company's results, particularly in light of the low levels of order
 backlogs IDEX typically maintains; IDEX's ability to integrate and operate
 acquired businesses on a profitable basis; the relationship of the U.S. dollar
 to other currencies, and its impact on pricing and cost competitiveness;
 interest rates; utilization of IDEX's capacity and the affect of capacity
 utilization on costs; labor market conditions; raw material costs;
 developments with respect to contingencies, such as environmental matters and
 litigation, and other risks detailed from time to time in the company's
 filings with the Securities and Exchange Commission.  IDEX does not undertake
 any obligation to update any forward-looking statements.
     For further information on IDEX Corporation and its business units,
 visit the company's Website at www.idexcorp.com .
 
 SOURCE  IDEX Corporation