EnPro Industries 2008 一季度季报

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EnPro Industries Reports Continued Growth in Sales and Segment Profits for the First Quarter of 2008 fficeffice" />

 

EnPro logo. (PRNewsFoto/EnPro Industries, Inc.)

ffice:smarttags" />CHARLOTTE, NC UNITED STATES

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selected items, earnings
             increase 13%, to a record $1.07 a share from $0.95

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    CHARLOTTE, N.C., May 1 /PRNewswire-FirstCall/ -- EnPro Industries
(NYSE: NPO) today reported record quarterly sales and segment income in the
first quarter of 2008, as sales grew by 14% over the first quarter of 2007
to $283.1 million and segment income grew by 11% to $46.8 million.

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    (Logo: .newscom点com/cgi-bin/prnh/20050825/CLTH030LOGO )

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    Net income in the quarter was $13.2 million or $0.61 a share, compared
to $12.3 million or $0.56 a share a year ago. Before asbestos-related
expenses and other selected items, income was $23.0 million, or $1.07 a
share, compared to $21.0 million, or $0.95 a share in 2007, a per share
increase of 13%.

    A table showing the effect of asbestos-related expenses and other
selected items on net income and earnings per share in both periods is
included in this release. The items include expenses of $2.4 million,
before tax ($1.5 million, after tax), for the company's proxy contest with
Steel Partners, which was settled on April 11. Per share amounts are
expressed on a diluted basis throughout the release.

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    "We are pleased by the results of the first quarter," said Steve
Macadam, president and chief executive officer. "They reflect the sound
condition of most of our key markets, and they underscore the effectiveness
of our strategies and the strength of the performance culture at EnPro.
It's a privilege to join a company with such a strong record of sales and
income growth and to have the opportunity to lead it to continued success
in the future."

    The 14% increase in the company's sales over the first quarter of 2007
reflects the contributions of acquisitions and the strength of the
company's international markets, as well as continued organic growth.
Acquisitions, combined with increased activity in certain of the company's
markets, added about 9 percentage points of the increase in sales while
foreign exchange contributed about 5 percentage points.

    Segment profits grew by 11% as the Engine Products and Services segment
reported a 75% increase and the Engineered Products segment reported a 16%
increase. Profits in the Sealing Products segment were about the same as a
year ago. Segment margins decreased to 16.5% from 17.1% as conditions
softened in the heavy-duty truck market and other markets served by certain
of the company's higher margin businesses.

  

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  Sealing Products Segment

    Sales in the Sealing Products segment improved by about 7%, reaching a
record quarterly level of $123.6 million. About 4 percentage points of the
improvement were the result of favorable foreign exchange rates. The
segment's sales benefited from higher demand for Garlock's products from
power generation and other energy-related markets and from steel and mining
markets. Garlock also benefited from foreign exchange. Activity in Stemco's
heavy-duty truck markets decreased reflecting reduced demand from original
equipment manufacturers, but the business benefited from the acquisition of
V.W. Kaiser in the first quarter and sales were about the same as a year
ago. Continued weakness in Plastomer Technologies' semiconductor markets
led to lower sales in that business.

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    ($ Millions)
    Quarter Ended        3/31/08     3/31/07
    Sales                 $123.6      $115.6
    Profit                 $21.5       $21.4
    Margin                  17.4 %      18.5 %

    Profits in the Sealing Products segment were about the same as a year
ago at $21.5 million but segment profit margins declined to 17.4%. At
Garlock, increased volumes and better pricing benefited both profits and
profit margins, but at Stemco and Plastomer Technologies, volumes were
below the levels of a year ago and profits and profit margins declined.

    Engineered Products

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    Sales in the Engineered Products segment increased by 25%, to $133.1
million, also a record for the first quarter. Acquisitions contributed
about 12 percentage points of the increase while favorable foreign exchange
rates contributed about 7 points. At GGB Bearing Technology, increased
demand from European industrial markets and favorable foreign exchange
rates led to higher sales. Sales at Compressor Products International (CPI)
doubled from a year ago, primarily as a result of acquisitions completed in
the second half of 2007. Quincy Compressor's sales were about the same as a
year ago.

 

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    ($ Millions)
    Quarter Ended        3/31/08     3/31/07
    Sales                 $133.1      $106.3
    Profit                 $21.8       $18.8
    Margin                  16.4 %      17.7 %

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    The segment's operating profit increased by 16% to $21.8 million as all
businesses in the segment reported improvements. However, the segment's
margins declined to 16.4% from 17.7%, primarily because of lower margins at
CPI. CPI's margins were affected by softer conditions in its Canadian
markets and by integration costs and increased OEM shipments, which
generally carry lower margins, at its operations in the United Kingdom.

    Engine Products and Services

    In the Engine Products and Services segment, sales grew by about 4% to
$26.5 million as the value of engines and associated equipment shipped in
the quarter increased. Segment profits improved by 75% to $3.5 million and
segment margins increased to 13.2% from 7.8% as the segment benefited from
the shipment of more profitable engines as well as productivity
improvements.

 

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    ($ Millions)
    Quarter Ended        3/31/08     3/31/07
    Sales                  $26.5       $25.6
    Profit                  $3.5        $2.0
    Margin                  13.2 %       7.8 %

    Cash Flows

    The company's cash balance declined to $49.1 million at March 31, 2008,
compared with $129.2 million at December 31, 2007.

    Operating activities contributed net cash of $9.4 million in the first
quarter of 2008, compared to $19.5 million in the first quarter of last
year. Operating cash flows in the current year reflect seasonal increases
in working capital that are typical of the first half of the year as well
as an increase in net outflows for asbestos in the first quarter of 2008.

    Payments of asbestos claims and expenses, net of insurance receipts,
were $7.5 million in the first quarter of 2008, compared to $3.0 million a
year ago, when net outflows benefited from insurance collections that had
been delayed from previous years.

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    Capital expenditures increased to $12.7 million from $8.9 million as
the company continued to invest in improving its