Post on 29-Jun-2015
FOURTH QUARTER 2006 EARNINGS RELEASEJANUARY 25, 2007
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FORWARD LOOKING STATEMENTS
Statements in this presentation that are not strictly historical, including statements regarding events or developments that we believe or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, including those related to competition, our ability to develop and successfully market new products and technologies, our ability to expand our business in new geographic markets, our ability to identify, consummate and integrate appropriate acquisitions, litigation and other contingent liabilities including intellectual property matters, our compliance with applicable laws and regulations, our ability to achieve projected efficiencies, cost reductions, sales growth and earnings, economic conditions in the end-markets we sell into, commodity costs and surcharges, currency exchange rates, tax audits, and general domestic and international economic conditions. It's possible that actual results might differ materially from any forward-looking statements that we might make today. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2005 Annual Report on Form 10-K and FOURTH Quarter 2006 Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date they are made, and we do not intend to update any forward looking statement.
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Q4 05 Q4 062005 2006
$0.78
$1.00 $2.76
$3.48
FOURTH QUARTER 2006PERFORMANCE SUMMARY
EARNINGS PER SHARE REVENUES ($M)+28% +17.5%
Q4 05 Q4 06 2005 2006
$2,264$2,660
$7,985
$9,596
+26% +20%
Core 6.5%Acquisition 13.0%FX 0.5%
Core 5.5%Acquisition 9.0%FX 3.0%
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FOURTH QUARTER 2006PERFORMANCE SUMMARY
GROSS MARGINS SG & A+140 BPS
Q4 05 Q4 06 2005 2006
26.8%
28.0%27.2%
28.6%
Q4 05 Q4 06 2005 2006
43.0%
44.8%
43.1%
44.2%
+180 BPS +110 BPS +120 BPS
Stock Option Expense Impact:Q4 06: 50 BPS2006: 60 BPS
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Q4 05 Q4 06 2005 2006
15.6%
16.8%
15.8% 15.8%
FOURTH QUARTER 2006PERFORMANCE SUMMARY
OPERATING PROFIT ($M) OPERATING MARGINSFLAT
Q4 05 Q4 06 2005 2006
$352
$447 $1,265
$1,518
+27% +20% +120 BPS
Q4 06: Acquisition Impact -40 BPSOption Expense -50 BPS
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FOURTH QUARTER 2006PERFORMANCE SUMMARY
NET INTEREST EXPENSE ($M) TAX RATE-370 BPS
Q4 05 Q4 06
27.1%23.4%
Q4 05 Q4 06
$6.8
$24.7
+265%
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Q4 05 Q4 06 2005 2006
$252
$324 $898
$1,122
NET INCOME ($M)+28.5% +25%
FOURTH QUARTER 2006PERFORMANCE SUMMARY
*2006 includes $53M related the reduction of previously recorded tax reserves in the first half of 2006 and $16.8M related to a reduced income tax provision in Q4
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FOURTH QUARTER 2006PERFORMANCE SUMMARY
2005 2006
$121$138
OPERATING CASH FLOW ($M) CAP EX ($M)
2005 2006
$1,204
$1,547
FREE CASH FLOW ($M)+29% +30%+14%
2005 2006
$1,083
$1,410
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Q4 05 Q4 06 2005 2006
$711
$799$2,601
$2,906
FOURTH QUARTER 2006PROFESSIONAL INSTRUMENTATION
OPERATING MARGINSREVENUES ($M)+200 BPS+12.5%
Core 6.5%Acquisition 3.0%FX 3.0%
Q4 05 Q4 06 2005 2006
20.3%
22.3%
20.7% 21.5%
+12% +80BPS
Core 7.5%Acquisition 4.0%FX 0.5%
Q4 06: Acquisition Impact -20 BPSOption Expense -45 BPS
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FOURTH QUARTER 2006ENVIRONMENTAL
Q4 06 vs. Q4 05Revenue Growth 11.0%
Breakdown: Core 6.5%Acquisition 1.5%FX 3.0%
2006 vs. 2005Revenue Growth 10.5%
Breakdown: Core 8.0%Acquisition 2.0%FX 0.5%
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FOURTH QUARTER 2006ELECTRONIC TEST
Q4 06 vs. Q4 05Revenue Growth 15.5%
Breakdown: Core 6.5%Acquisition 6.5%FX 2.5%
2006 vs. 2005Revenue Growth 14.5%
Breakdown: Core 7.0%Acquisition 7.5%
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Q4 05 Q4 06 2005 2006
$459
$697
$1,182
$2,220
FOURTH QUARTER 2006MEDICAL TECHNOLOGIES
OPERATING MARGINSREVENUES ($M)+100 BPS+52%
Core 8.5%Acquisition 38.0%FX 5.5%
Q4 05 Q4 06 2005 2006
13.6% 14.6%11.7%
11.8%
+88% +10 BPS
Core 8.5%Acquisition 78.0%FX 1.5%
Q4 06: Acquisition Impact -50 BPSOption Expense -30 BPS
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FOURTH QUARTER 2006INDUSTRIAL TECHNOLOGIES
OPERATING MARGINSREVENUES ($M)+210 BPS+6.5%
Q4 05 Q4 06 2005 2006
14.2%
16.3%
14.7%15.6%
Q4 05 Q4 06 2005 2006
$744
$792$2,908 $3,119
+7.5% +90 BPS
Core 3.0%Acquisition 0.5%FX 3.0%
Core 6.0%Acquisition 1.0%FX 0.5%
Q4 06: Acquisition Impact -10 BPSOption Expense -40 BPS
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FOURTH QUARTER 2006PRODUCT IDENTIFICATION
Q4 06 vs. Q4 05Revenue Growth (1.5%)
Breakdown: Core (4.5%)FX 3.0%
2006 vs. 2005Revenue Growth 3.5%
Breakdown: Core 2.5%FX 1.0%
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FOURTH QUARTER 2006MOTION
Q4 06 vs. Q4 05Revenue Growth 7.5%
Breakdown: Core 4.0%FX 3.5%
2006 vs. 2005Revenue Growth 6.0%
Breakdown: Core 5.0%Acquisition 0.5%FX 0.5%
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FOURTH QUARTER 2006TOOLS & COMPONENTS
OPERATING MARGINSREVENUES ($M)+10 BPS+6.5%
Q4 05 Q4 06 2005 2006
14.6%14.7% 15.4%14.4%
Q4 05 Q4 06 2005 2006
$349
$372$1,294 $1,351
Core 4.5%
+4.5% -100 BPS
Q4 06: Divestiture -65 BPSOption Expense -45 BPS
Core 6.5%
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FOURTH QUARTER 2006MECHANICS HAND TOOLS
Q4 06 vs. Q4 05Revenue Growth 7.5%
Breakdown: Core 7.5%
2006 vs. 2005Revenue Growth 4.5%
Breakdown: Core 4.5%
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2007 OUTLOOK
Guidance
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2007 OUTLOOK
Q & A
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