|($ millions; except per share data)||Three months ended June 30,||Six months ended June 30,|
|% of Sales||13.5||%||12.0||%||1.5||pts.||11.5||%||11.5||%||0.0||pts.|
|Income from Continuing Operations||$9.2||$19.5||($10.3)||(52.8)||%||$24.6||$37.1||($12.4)||(33.6)||%|
|Income from Continuing Operations Per Diluted Share||$0.17||$0.35||($0.18)||(51.4)||%||$0.45||$0.67||($0.22)||(32.8)||%|
|Income from Discontinued Operations Per Diluted Share||$3.65||$0.10||$3.55||NM||$3.59||$0.18||$3.41||NM|
|Net Income Per Diluted Share||$3.82||$0.45||$3.37||NM||$4.04||$0.85||$3.19||NM|
|NM = Not Meaningful|
- Second quarter 2013 sales were $96.8 million, up 3% from $93.8 million in the same period last year. A sales increase in original equipment manufacturing (“OEM”) was partially offset by lower sales in the aftermarket business. Within the aftermarket business, repair and overhaul sales were down while spare part sales were essentially flat to last year.
- Operating profit of $15.2 million for the second quarter of 2013 was up 17% from the prior year period of $13.0 million. Operating profit benefited from the impact of higher OEM sales and better productivity, partially offset by a lower profit contribution from the aftermarket business given lower sales.
- Second quarter 2013 sales were $170.6 million, up 40% from $121.5 million in the same period last year. The increase was driven by the Synventive acquisition’s sales contribution and organic sales growth of 5%, inclusive of favorable pricing, offset by unfavorable foreign exchange of $0.5 million.
- Operating profit of $20.9 million for the second quarter of 2013 was up 64% from the prior year period of $12.7 million driven by the profit contribution of Synventive and the profit impact of higher organic sales.
- Interest expense increased to $3.2 million, up from $2.4 million last year primarily as a result of a higher average borrowing rate in the current quarter. During the second quarter of 2013, borrowings were substantially reduced as proceeds from the BDNA sale were used to reduce debt.
- The Company’s effective tax rate from continuing operations for the second quarter of 2013 is 71.6% and was adversely impacted by a tax charge of $16.6 million associated with the April 16, 2013 U.S. Tax Court Decision. Absent that item, the Company’s effective tax rate from continuing operations for the second quarter of 2013 was 20.5% compared to 16.3% in the second quarter of 2012 and 13.5% for the full year 2012. The remaining effective tax rate increase in the second quarter 2013 versus the full year 2012 rate was mainly due to several discrete foreign tax related items in 2012, an increase in the Company’s effective tax rate in Sweden, and a projected mix of earnings attributable to higher-taxing jurisdictions.
- On July 23, 2013, the Company’s Board of Directors increased the quarterly cash dividend 10 percent to $0.11 per share of common stock. The dividend increase will raise the annualized dividend payout to $0.44 per share of common stock.