“We are very pleased to report record fourth quarter and full-year sales, operating margins, net earnings, and EPS,” said Bill Cook, Chairman, President and CEO. “In the quarter, our sales in local currencies increased 11 percent over the prior year; the change in exchange rates due to the stronger U.S. dollar reduced this to the 5 percent increase we reported above. Industrial Products segment sales increased 20 percent in local currency, led by a 51 percent increase in Gas Turbine Products. Sales in our Engine Products segment increased 6 percent in local currency with growth in both Off-Road and On-Road Products. Our Aftermarket Products local currency sales were up 6 percent globally, with 10 percent growth in the Americas offsetting weaker market conditions in Europe and Asia.”
“Our operating margin was 15.1 percent, which was a new fourth quarter record. We continued to enjoy the benefits of great operating leverage and from our many Continuous Improvement initiatives. We have also remained diligent in managing our operating expenses.”
“We are beginning our new fiscal year with forecasted global GDP growth rates lower than they were a year ago. While we are not immune to the economic conditions in any of our end markets, we expect to deliver a sales increase of 5 to 9 percent in FY13 by executing our detailed Strategic Plans. By focusing on our global growth opportunities and operational excellence, we forecast delivering another EPS record of between $1.82 and $1.96 per share in FY13.”
Financial Statement DiscussionThe impact of foreign currency translation decreased sales by $36.3 million, or 5.8 percent, during the fourth quarter and decreased sales by $38.7 million, or 1.7 percent, for the year. The impact of foreign currency translation decreased reported net earnings by $3.9 million, or 5.9 percent, during the fourth quarter and decreased reported net earnings by $4.0 million, or 1.8 percent, for the year.