(Financial statements follow)
Condensed Consolidated Statements of Operations (Unaudited) |
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|
Three Months Ended |
|
Nine Months Ended |
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(DOLLARS AND SHARES IN MILLIONS, EXCEPT PER SHARE AMOUNTS) |
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
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Net sales |
$ |
210.3 |
|
|
$ |
229.1 |
|
|
$ |
637.9 |
|
|
$ |
703.8 |
|
Cost of sales |
|
136.2 |
|
|
|
148.7 |
|
|
|
422.5 |
|
|
|
464.1 |
|
Gross margin |
|
74.1 |
|
|
|
80.4 |
|
|
|
215.4 |
|
|
|
239.7 |
|
|
|
|
|
|
|
|
|
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Selling, general and administrative expenses |
|
45.1 |
|
|
|
44.2 |
|
|
|
143.5 |
|
|
|
150.5 |
|
| Research and development expenses |
|
8.1 |
|
|
|
7.8 |
|
|
|
26.5 |
|
|
|
25.5 |
|
| Restructuring and impairment charges |
|
6.3 |
|
|
|
2.0 |
|
|
|
7.8 |
|
|
|
16.4 |
|
| Other operating (income) expense, net |
|
— |
|
|
|
(0.8 |
) |
|
|
— |
|
|
|
(7.5 |
) |
| Operating income |
|
14.6 |
|
|
|
27.2 |
|
|
|
37.6 |
|
|
|
54.8 |
|
|
|
|
|
|
|
|
|
|
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| Equity income in unconsolidated joint ventures |
|
0.4 |
|
|
|
0.6 |
|
|
|
1.2 |
|
|
|
1.5 |
|
| Other income (expense), net |
|
(1.5 |
) |
|
|
0.7 |
|
|
|
(0.8 |
) |
|
|
0.0 |
|
| Interest expense, net |
|
— |
|
|
|
(2.3 |
) |
|
|
(1.0 |
) |
|
|
(8.6 |
) |
| Income before income tax expense |
|
13.5 |
|
|
|
26.2 |
|
|
|
37.0 |
|
|
|
47.7 |
|
| Income tax expense |
|
2.8 |
|
|
|
7.2 |
|
|
|
10.4 |
|
|
|
14.3 |
|
| Net income |
$ |
10.7 |
|
|
$ |
19.0 |
|
|
$ |
26.6 |
|
|
$ |
33.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Basic earnings per share |
$ |
0.58 |
|
|
$ |
1.02 |
|
|
$ |
1.43 |
|
|
$ |
1.79 |
|
| Diluted earnings per share |
$ |
0.58 |
|
|
$ |
1.02 |
|
|
$ |
1.43 |
|
|
$ |
1.79 |
|
|
|
|
|
|
|
|
|
|
||||||||
| 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) |
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| (DOLLARS AND SHARES IN MILLIONS, EXCEPT PAR VALUE) |
September 30, 2024 |
|
December 31, 2023 |
||||
| Assets |
|
|
|
||||
| Current assets |
|
|
|
||||
| Cash and cash equivalents |
$ |
146.4 |
|
|
$ |
131.7 |
|
| Accounts receivable, less allowance for credit losses of $1.5 and $1.1 |
|
156.3 |
|
|
|
161.9 |
|
| Contract assets |
|
28.1 |
|
|
|
45.2 |
|
| Inventories, net |
|
154.4 |
|
|
|
153.5 |
|
| Asbestos-related insurance receivables, current portion |
|
4.3 |
|
|
|
4.3 |
|
| Other current assets |
|
31.7 |
|
|
|
30.3 |
|
| Total current assets |
|
521.2 |
|
|
|
526.9 |
|
| Property, plant and equipment, net of accumulated depreciation of $403.7 and $385.7 |
|
381.4 |
|
|
|
366.3 |
|
| Operating lease right-of-use assets |
|
25.4 |
|
|
|
18.9 |
|
| Goodwill |
|
365.7 |
|
|
|
359.8 |
|
| Other intangible assets, net of amortization |
|
117.7 |
|
|
|
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 |
|
58.0 |
|
|
|
49.7 |
|
| Other long-term assets |
|
8.7 |
|
|
|
8.4 |
|
| Total assets |
$ |
1,540.0 |
|
|
$ |
1,517.2 |
|
| Liabilities and Shareholders’ Equity |
|
|
|
||||
| Current liabilities |
|
|
|
||||
| Accounts payable |
$ |
47.2 |
|
|
$ |
50.3 |
|
| Accrued employee benefits and compensation |
|
39.7 |
|
|
|
31.1 |
|
| Accrued income taxes payable |
|
6.6 |
|
|
|
2.0 |
|
| Operating lease obligations, current portion |
|
4.1 |
|
|
|
3.5 |
|
| Asbestos-related liabilities, current portion |
|
5.5 |
|
|
|
5.5 |
|
| Other accrued liabilities |
|
19.4 |
|
|
|
24.0 |
|
| Total current liabilities |
|
122.5 |
|
|
|
116.4 |
|
| Borrowings under revolving credit facility |
|
— |
|
|
|
30.0 |
|
| Operating lease obligations, non-current portion |
|
21.7 |
|
|
|
15.4 |
|
| Asbestos-related liabilities, non-current portion |
|
55.1 |
|
|
|
56.0 |
|
| Non-current income tax |
|
6.1 |
|
|
|
7.2 |
|
| Deferred income taxes |
|
23.8 |
|
|
|
22.9 |
|
| Other long-term liabilities |
|
10.1 |
|
|
|
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 |
|
155.7 |
|
|
|
151.8 |
|
| Retained earnings |
|
1,181.6 |
|
|
|
1,155.0 |
|
| Accumulated other comprehensive loss |
|
(55.2 |
) |
|
|
(66.4 |
) |
| Total shareholders' equity |
|
1,300.7 |
|
|
|
1,259.0 |
|
| Total liabilities and shareholders' equity |
$ |
1,540.0 |
|
|
$ |
1,517.2 |
|
Reconciliation of non-GAAP financial measures to the comparable GAAP measures
