“As a result of these original equipment and aftermarket factors, our outlook is for order run rates to be higher than those experienced this quarter. However, the current outlook is unlikely to support annual revenue above $4 billion.”
“Our shipments in fiscal 2013 have remained above incoming order rates as we continue to make our delivery commitments to our customers. However, we are nearing the end of backlog depletion capability, and our fourth quarter will reflect the transition to lower volumes. As such, it will not be the strongest quarter of the year, as has been our tradition. However, we expect to finish the year within our prior guidance, and therefore reiterate earnings per fully diluted share of $5.60 to $5.80 on revenues of $4.9 to $5.0 billion. Excluding restructuring charges and other unusual items, full year earnings per fully diluted share are expected to be between $5.75 and $5.95.”
“After a strong third quarter, our year to date cash flow is on track and we have historically demonstrated our ability to generate strong cash flows though the cycle. In addition, we have more than sufficient growth capacity in place, and therefore our capex spend will continue to decline from its peak level of $240 million in fiscal year 2012 to a sustaining run rate of $125 million per year. Our U.S. pension plans are nearing fully funded status, and this will allow us to reduce pension funding by approximately $115 million in fiscal year 2014. This gives us a solid position from which to execute a share repurchase program, and I am pleased to announce that our Board of Directors has authorized us to repurchase up to $1 billion of our shares over the next three years.”
Quarterly Conference CallManagement will host a quarterly conference call to discuss the Company’s third quarter results at 11:00 a.m. EDT on August 28, 2013. Interested parties can listen to the call by dialing 888-504-7966 in the United States or 719-325-2437 outside of the United States, access code #7285398, at least 15 minutes prior to the 11:00 a.m. EDT start time of the call. A rebroadcast of the call will be available until the close of business on September 18, 2013 by dialing 888-203-1112 or 719-457-0820, access code #7285398.