(Financial statements follow)
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS) |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Net sales |
$ |
214.2 |
|
|
$ |
230.9 |
|
|
$ |
427.6 |
|
|
$ |
474.7 |
|
Cost of sales |
|
141.1 |
|
|
|
151.3 |
|
|
|
286.3 |
|
|
|
315.4 |
|
Gross margin |
|
73.1 |
|
|
|
79.6 |
|
|
|
141.3 |
|
|
|
159.3 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
|
50.9 |
|
|
|
46.2 |
|
|
|
98.4 |
|
|
|
106.3 |
|
| Research and development expenses |
|
9.5 |
|
|
|
8.1 |
|
|
|
18.4 |
|
|
|
17.7 |
|
| Restructuring and impairment charges |
|
1.4 |
|
|
|
3.9 |
|
|
|
1.5 |
|
|
|
14.4 |
|
| Other operating (income) expense, net |
|
— |
|
|
|
(6.5 |
) |
|
|
— |
|
|
|
(6.7 |
) |
| Operating income |
|
11.3 |
|
|
|
27.9 |
|
|
|
23.0 |
|
|
|
27.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Equity income in unconsolidated joint ventures |
|
0.5 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.9 |
|
| Other income (expense), net |
|
0.3 |
|
|
|
(0.8 |
) |
|
|
0.7 |
|
|
|
(0.7 |
) |
| Interest expense, net |
|
(0.2 |
) |
|
|
(2.8 |
) |
|
|
(1.0 |
) |
|
|
(6.3 |
) |
| Income before income tax expense |
|
11.9 |
|
|
|
25.1 |
|
|
|
23.5 |
|
|
|
21.5 |
|
| Income tax expense |
|
3.8 |
|
|
|
7.2 |
|
|
|
7.6 |
|
|
|
7.1 |
|
| Net income |
$ |
8.1 |
|
|
$ |
17.9 |
|
|
$ |
15.9 |
|
|
$ |
14.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Basic earnings per share |
$ |
0.44 |
|
|
$ |
0.96 |
|
|
$ |
0.85 |
|
|
$ |
0.77 |
|
| Diluted earnings per share |
$ |
0.44 |
|
|
$ |
0.96 |
|
|
$ |
0.85 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Shares used in computing: |
|
|
|
|
|
|
|
||||||||
| Basic earnings per share |
|
18.6 |
|
|
|
18.6 |
|
|
|
18.6 |
|
|
|
18.6 |
|
| Diluted earnings per share |
|
18.6 |
|
|
|
18.7 |
|
|
|
18.6 |
|
|
|
18.7 |
|
| Condensed Consolidated Statements of Financial Position (Unaudited) |
|||||||
| (DOLLARS AND SHARES IN MILLIONS, EXCEPT PAR VALUE) |
June 30, 2024 |
|
December 31, 2023 |
||||
| Assets |
|
|
|
||||
| Current assets |
|
|
|
||||
| Cash and cash equivalents |
$ |
119.9 |
|
|
$ |
131.7 |
|
| Accounts receivable, less allowance for credit losses of $1.0 and $1.1 |
|
160.0 |
|
|
|
161.9 |
|
| Contract assets |
|
31.6 |
|
|
|
45.2 |
|
| Inventories, net |
|
150.8 |
|
|
|
153.5 |
|
| Asbestos-related insurance receivables, current portion |
|
4.3 |
|
|
|
4.3 |
|
| Other current assets |
|
35.5 |
|
|
|
30.3 |
|
| Total current assets |
|
502.1 |
|
|
|
526.9 |
|
| Property, plant and equipment, net of accumulated depreciation of $393.2 and $385.7 |
|
365.7 |
|
|
|
366.3 |
|
| Operating lease right-of-use assets |
|
17.6 |
|
|
|
18.9 |
|
| Goodwill |
|
356.3 |
|
|
|
359.8 |
|
| Other intangible assets, net of amortization |
|
117.2 |
|
|
|
123.9 |
|
| Asbestos-related insurance receivables, non-current portion |
|
52.2 |
|
|
|
52.2 |
|
| Investments in unconsolidated joint ventures |
|
9.7 |
|
|
|
11.1 |
|
| Deferred income taxes |
|
58.1 |
|
|
|
49.7 |
|
| Other long-term assets |
|
8.2 |
|
|
|
8.4 |
|
| Total assets |
$ |
1,487.1 |
|
|
$ |
1,517.2 |
|
| Liabilities and Shareholders’ Equity |
|
|
|
||||
| Current liabilities |
|
|
|
||||
| Accounts payable |
$ |
49.9 |
|
|
$ |
50.3 |
|
| Accrued employee benefits and compensation |
|
30.9 |
|
|
|
31.1 |
|
| Accrued income taxes payable |
|
7.6 |
|
|
|
2.0 |
|
| Operating lease obligations, current portion |
|
3.7 |
|
|
|
3.5 |
|
| Asbestos-related liabilities, current portion |
|
5.5 |
|
|
|
5.5 |
|
| Other accrued liabilities |
|
18.9 |
|
|
|
24.0 |
|
| Total current liabilities |
|
116.5 |
|
|
|
116.4 |
|
| Borrowings under revolving credit facility |
|
— |
|
|
|
30.0 |
|
| Operating lease obligations, non-current portion |
|
14.1 |
|
|
|
15.4 |
|
| Asbestos-related liabilities, non-current portion |
|
55.8 |
|
|
|
56.0 |
|
| Non-current income tax |
|
7.5 |
|
|
|
7.2 |
|
| Deferred income taxes |
|
22.6 |
|
|
|
22.9 |
|
| Other long-term liabilities |
|
9.8 |
|
|
|
10.3 |
|
| Shareholders’ equity |
|
|
|
||||
| Capital stock - $1 par value; 50.0 authorized shares; 18.6 and 18.6 shares issued and outstanding |
|
18.6 |
|
|
|
18.6 |
|
| Additional paid-in capital |
|
152.4 |
|
|
|
151.8 |
|
| Retained earnings |
|
1,170.9 |
|
|
|
1,155.0 |
|
| Accumulated other comprehensive loss |
|
(81.1 |
) |
|
|
(66.4 |
) |
| Total shareholders' equity |
|
1,260.8 |
|
|
|
1,259.0 |
|
| Total liabilities and shareholders' equity |
$ |
1,487.1 |
|
|
$ |
1,517.2 |
|
Reconciliation of non-GAAP financial measures to the comparable GAAP measures
