Previous Statements by GDI
» Gardner Denver CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Gardner Denver Inc. Q4 2008 Earnings Call Transcript
» Gardner Denver Inc. Q3 2008 Earnings Conference Call Transcript
These uncertainties and factors could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements. Please refer to Gardner Denver's third quarter 2011 earnings press release issued on October 20, 2011 for further information regarding potential uncertainties and factors that could cause actual results to differ from anticipated results.Gardner Denver does not undertake or plan to update these forward-looking statements even though the Company's situation may change. Therefore, you should not rely on these forward-looking statements as representing the Company's or its management's view as of any date subsequent to today. As a reminder, this call is being broadcast in listen-only mode through a live webcast. This free webcast will be available for replay up to 90 days following the call through the Investor Relations page on the Gardner Denver website at gardnerdenver.com, or the Thomson StreetEvents site at earnings.com, and now I'd like to turn the meeting back over to Barry. Barry Pennypacker Thanks, Michael. Gardner Denver had an excellent third quarter, as our teams execution led to yet another quarter of records revenue, operating income, net income and diluted earnings per share. Our orders for the third quarter were $628 million, up 14% versus prior year, up 9% organically and our book-to-bill remained greater than 1, as revenues of $615 million were up 25% – 20% organically. Backlog at the end of the quarter was $669 million, up 20% versus prior year and our strong backlog positions us well for the balance of 2011, and provides us improved visibility into the first half of 2012. Operating income for the third quarter of 2011 was $107 million, a 57% increase over last year as operating margins improved 350 basis points to 17.3%. Net income was $74 million, up 58% over last year's third quarter as diluted earnings per share increased 61% to $1.42 and $1.48 on an adjusted basis.
In addition, our cash generation was excellent as cash flow from operating activities totaled $97 million in the third quarter and our strong balance sheet enable us to repurchase $126 million of our outstanding shares and announced the agreement to acquire Robuschi for approximately $207 million.Before I get into the capital deployment into more detail, let me give you a little more color on the organic growth and margin expansion by segment in the third quarter. Our Engineered Products Group continues to experience strong growth, with orders up 7% and revenues up 38%. Orders in this segment can be choppy on a quarterly basis and adjusted for our large order booked in the third quarter of 2010, EPG orders were up 15% versus prior year. In EPG, the backlog tends to give you a good indication as to where the business is going and our backlog at the end of the quarter was $421 million, up 23% year-over-year. When you look at the increase in rig count and strong growth in unconventional drilling for liquids and natural gas in the shale formations in the United States, it's not surprising that our energy businesses, representing about 20% of total Gardner Denver's revenues, continued to be very strong. Orders in our pressure pumping business essentially doubled year-over-year and the backlog in that business is three times greater than it was at this point last year. Our drilling pump business doubled revenue year-over-year and continued to grow backlog with orders for delivery through the first half of 2012. We see no signs of weakness in our energy business and independent research reports and customer feedbacks suggest that the demand for pressure pumping horsepower and the associated aftermarket, particularly for fluid ends will remain strong at least through 2012. Our focus is on making the right investments to take full advantage of this opportunity. Read the rest of this transcript for free on seekingalpha.com