UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

IDEX CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		1-10235		36-3555336
(State of		(Commission File Number)		(IRS Employer
Incorporation)				Identification No.)

630 Dundee Road
Northbrook, Illinois 60062
(Address of principal executive offices, including zip code)

(847) 498-7070
(Registrant’s telephone number, including area code)

          Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 — Results of Operations and Financial Condition.

On February 4, 2009, IDEX Corporation (the “Company”) issued a press release announcing financial results for the fourth quarter and year ended December 31, 2008.

A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information in this Current Report furnished pursuant to Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. This information shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended.

Item 9.01 — Financial Statements and Exhibits.

(d)

Exhibits

99.1

Press release dated February 4, 2009 announcing IDEX Corporation’s fourth quarter operating results

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

February 5, 2009

Exhibit Index

Exhibit
Number		Description
99.1		Press release dated February 4, 2009 announcing IDEX Corporation’s fourth quarter operating results

EXHIBIT 99.1

IDEX CORPORATION REPORTS 2008 RESULTS;
9% ORDERS GROWTH, 10% SALES GROWTH, ADJUSTED EPS UP 4%

			NORTHBROOK, IL, February 4 – IDEX Corporation (NYSE: IEX) today announced its financial results for the three- and twelve-month periods ended December 31, 2008.
			New orders in the quarter totaled $336 million, down 3 percent compared to the prior-year period. Sales in the quarter totaled $355 million, 3 percent higher than the prior-year period (12 percent acquisitions, -5 percent organic and -4 percent foreign currency translation).
			Fourth quarter operating income of $41 million was 33 percent lower than the prior-year period. Operating margin of 11.6 percent reflected a 620 basis point decline versus the prior-year period. Excluding the impact of a $12.7 million restructuring-related charge and acquisitions, operating margin was 16.3 percent, down 150 basis points primarily due to lower volume.
			Income from continuing operations of $25 million decreased 35 percent versus the fourth quarter of the previous year. Diluted earnings per share from continuing operations of 31 cents declined 16 cents, or 34 percent, from the fourth quarter of the previous year. Excluding the impact of the restructuring-related costs, diluted earnings per share from continuing operations was 41 cents, a decline of 6 cents, or 13 percent, from the fourth quarter of the previous year.

Full Year 2008 Highlights (from Continuing Operations)

	•		Orders increased 9 percent compared to the prior year (8 percent acquisitions, flat organic and 1 percent foreign currency translation).
	•		Sales increased 10 percent compared to the prior year (9 percent acquisitions, flat organic and 1 percent foreign currency translation).
	•		Income from continuing operations was $131 million, or 16 percent lower than the prior year. Excluding restructuring costs and the Q308 goodwill impairment charge, income from continuing operations was $163 million, or 4 percent ahead of the prior year.
	•		Diluted EPS of $1.60 was 30 cents, or 16 percent, lower than the prior year. Excluding restructuring costs and the Q308 goodwill impairment charge, diluted EPS of $1.98 was 8 cents, or 4 percent, ahead of the prior year.
	•		EBITDA of $296 million was 19.9 percent of sales and covered interest expense by more than 15 times.
	•		Free cash flow of $196 million was 9 percent higher than the prior year and significantly exceeded net income.
	•		Repurchased 2.3 million shares for $50 million in the fourth quarter of 2008

Fourth Quarter 2008 Business Highlights (excluding restructuring costs)

Fluid & Metering Technologies

o

Sales in the fourth quarter of $179.2 million reflected 21 percent growth compared to the fourth quarter of 2007 (25 percent acquisitions, -1 percent organic and -3 percent foreign currency translation). Growth was driven by the impact of acquisitions.

o

Operating margin of 17.5 percent represented a 270 basis point decline compared with the fourth quarter of 2007, primarily due to the impact of acquisitions. Excluding the impact of acquisitions, operating margin was 21.3 percent, a 110 basis point improvement compared with the prior-year period.

Health & Science Technologies

o

Sales in the fourth quarter of $77.8 million reflected a 4 percent decline compared to the fourth quarter of 2007 (5 percent acquisitions, -7 percent organic and -2 percent foreign currency translation). The organic decline was due to general demand softness in the non-core HST businesses.

o

Operating margin of 20.1 percent reflected a 130 basis point improvement compared with the fourth quarter of 2007. Excluding the impact of the Semrock acquisition, operating margin was 19.2 percent, a 40 basis point improvement compared with the prior-year period.

Dispensing Equipment

o

Sales of $25.7 million in the fourth quarter reflected a 39 percent decline compared with the fourth quarter of 2007 (-33 percent organic and -6 percent foreign currency translation), as a result of continued deterioration in capital spending for both the North American and European markets.

o

Operating margin of -5.3 percent represented a significant decline compared with the fourth quarter of 2007 due to much lower volumes in the Americas and Europe.

Fire & Safety/Diversified Products

o

Sales in the fourth quarter of $73.4 million reflected a 3 percent decline compared with the prior year (3 percent organic and -6 percent foreign currency translation). Organic growth was driven by demand for fire suppression and rescue equipment serving emerging markets.

o

Operating margin of 23.9 percent represented a 210 basis point improvement compared with the fourth quarter of 2007.

For the fourth quarter of 2008, Fluid & Metering Technologies contributed 50 percent of both sales and operating income; Health & Science Technologies accounted for 22 percent of sales and 25 percent of operating income; Dispensing Equipment accounted for 7 percent of sales and -3 percent of operating income; and Fire & Safety/Diversified Products represented 21 percent of sales and 28 percent of operating income.

Restructuring

As previously announced, IDEX has commenced the closure of manufacturing operations in the Dispensing segment’s Milan, Italy facility as well as an additional facility consolidation within the Fluid & Metering Technologies segment. IDEX has essentially completed Company-wide restructuring plans which include management and administrative workforce reductions of over 375 employees. The projected savings in costs and operating expenses resulting from these restructuring activities is expected to be $20 million in 2009. The non-recurring severance and non-severance related charges associated with the restructuring were $18 million, recorded in 2008.

Conference Call to be Broadcast over the Internet

IDEX will broadcast its fourth quarter earnings conference call over the Internet on Thursday, February 5, 2009 at 9:30 a.m. CT. Chairman and Chief Executive Officer Larry Kingsley and Vice President and Chief Financial Officer Dominic Romeo will discuss the company’s recent financial performance and respond to questions from the financial analyst community. IDEX invites interested investors to listen to the call and view the accompanying slide presentation, which will be carried live on its website at www.idexcorp.com. Those who wish to participate should log on several minutes before the discussion begins. After clicking on the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event and view the presentation slides, or download the correct applications at no charge. Investors also will be able to hear a replay of the call by dialing 888.203.1112 or 719.457.0820 and using conference ID #1364347.

A Note on EBITDA and Free Cash Flow

EBITDA means earnings before interest, income taxes, depreciation and amortization and non-recurring non-cash charges, while free cash flow means cash flow from operating activities less capital expenditures plus the excess tax benefit from stock-based compensation. Management uses these non-GAAP financial measures as internal operating metrics and for enterprise valuation purposes. Management believes these measures are useful as analytical indicators of leverage capacity and debt servicing ability, and uses them to measure financial performance as well as for planning purposes. However, they should not be considered as alternatives to net income, cash flow from operating activities or any other items calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The definitions of EBITDA and free cash flow used here may differ from those used by other companies.

EBITDA and Free Cash Flow bridge		For the Quarter Ended																				For the Year Ended
		December 31,												September 30,								December 31,
		2008				2007				Change				2008				Change				2008				2007				Change
Inc before Taxes		$	37.1			$	58.0				(36	)%		$	28.3				31	%		$	198.7			$	235.2				(16	)%
Depr & Amort			13.5				9.7				39				10.9				24				48.6				38.0				28
GW Impm’t			—				—				—				30.1				na				30.1				—				na
Interest			5.2				5.4				(3	)			3.9				36				18.9				23.4				(19	)
EBITDA		$	55.8			$	73.1				(24	)		$	73.2				(24	)		$	296.3			$	296.6				—
Cash Flow from Op Activities		$	53.9			$	59.9				(10	)%		$	72.9				(26	)%		$	220.6			$	198.1				11	%
Capital Exp			(8.7	)			(5.7	)			52				(5.9	)			48				(27.8	)			(24.5	)			14
Excess Tax Benefit from Stock-Based Compensation			0.2				0.7				(69	)			0.6				(60	)			3.1				5.4				(42	)
Free Cash Flow		$	45.4			$	54.9				(17	)		$	67.6				(33	)		$	195.9			$	179.0				9

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. These statements may relate to, among other things, capital expenditures, cost reductions, cash flow, and operating improvements and are indicated by words or phrases such as “anticipate,” “estimate,” “plans,” “expects,” “projects,” “should,” “will,” “management believes,” “the company believes,” “the company intends,” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this news release. The risks and uncertainties include, but are not limited to, the following: economic and political consequences resulting from terrorist attacks and wars; levels of industrial activity and economic conditions in the U.S. and other countries around the world; pricing pressures and other competitive factors, and levels of capital spending in certain industries – all of which could have a material impact on order rates and IDEX’s results, particularly in light of the low levels of order backlogs it typically maintains; its ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the company operates; interest rates; capacity utilization and the effect this has on costs; labor markets; market conditions and material costs; and developments with respect to contingencies, such as litigation and environmental matters. The forward-looking statements included here are only made as of the date of this news release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

About IDEX

IDEX Corporation is an applied solutions company specializing in fluid and metering technologies, health and science technologies, dispensing equipment, and fire, safety and other diversified products built to its customers’ exacting specifications. Its products are sold in niche markets to a wide range of industries throughout the world. IDEX shares are traded on the New York Stock Exchange and Chicago Stock Exchange under the symbol “IEX”.

For further information on IDEX Corporation and its business units, visit the company’s Web site at
www.idexcorp.com.

IDEX CORPORATION

IDEX CORPORATION
Condensed Statements of Consolidated Operations
(in thousands except per share amounts)

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2008				2007				2008				2007
Net sales		$	355,306			$	345,997			$	1,489,471			$	1,358,631
Cost of sales			216,169				202,411				885,562				790,182
Gross profit			139,137				143,586				603,909				568,449
Selling, general and administrative expenses			85,310				82,068				343,392				313,366
Goodwill impairment			—				—				30,090				—
Restructuring expenses			12,719				—				17,995				—
Operating income			41,108				61,518				212,432				255,083
Other income — net			1,238				1,903				5,123				3,434
Interest expense			5,233				5,379				18,852				23,353
Income from continuing operations before income taxes			37,113				58,042				198,703				235,164
Provision for income taxes			12,307				19,661				67,389				79,300
Income from continuing operations			24,806				38,381				131,314				155,864
Income (loss) from discontinued operations, net of tax			—				55				—				(719	)
Net income		$	24,806			$	38,436			$	131,314			$	155,145
Basic Earnings per Common Share:
Continuing operations		$	0.31			$	0.47			$	1.62			$	1.93
Discontinued operations			—				—				—				(0.01	)
Net income		$	0.31			$	0.47			$	1.62			$	1.92
Diluted Earnings per Common Share:
Continuing operations		$	0.31			$	0.47			$	1.60			$	1.90
Discontinued operations			—				—				—				(0.01	)
Net income		$	0.31			$	0.47			$	1.60			$	1.89
Share Data:
Basic weighted average common shares outstanding			80,529				80,975				81,123				80,666
Diluted weighted average common shares outstanding			81,289				82,363				82,320				82,086

Condensed Consolidated Balance Sheets
(in thousands)

		December 31,				December 31,
		2008				2007
Assets
Current assets
Cash and cash equivalents		$	61,353			$	102,757
Restricted cash			—				140,005
Receivables — net			208,093				193,326
Inventories			214,160				177,435
Other current assets			23,573				23,615
Total current assets			507,179				637,138
Property, plant and equipment — net			186,283				172,999
Goodwill and intangible assets			1,469,642				1,168,785
Other noncurrent assets			8,066				10,672
Total assets		$	2,171,170			$	1,989,594
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable		$	87,304			$	84,209
Accrued expenses			119,429				99,125
Short-term borrowings			5,856				5,830
Dividends payable			9,523				9,789
Total current liabilities			222,112				198,953
Long-term borrowings			548,144				448,901
Other noncurrent liabilities			233,086				179,017
Total liabilities			1,003,342				826,871
Shareholders’ equity			1,167,828				1,162,723
Total liabilities and shareholders’ equity		$	2,171,170			$	1,989,594

-more-

IDEX CORPORATION

IDEX CORPORATION
Company and Business Group Financial Information
(dollars in thousands)

		Three Months Ended								Twelve Months Ended
		December 31,(a)								December 31,(a)
		2008				2007				2008				2007
Fluid & Metering Technologies
Net sales		$	179,156			$	148,665			$	697,702			$	570,307
Operating income (b)			31,364				30,006				134,507				121,449
Operating margin			17.5	%			20.2	%			19.3	%			21.3	%
Depreciation and amortization		$	7,671			$	4,369			$	26,276			$	16,797
Capital expenditures			6,164				2,415				13,859				11,407
Health & Science Technologies
Net sales		$	77,813			$	80,814			$	331,591			$	327,170
Operating income (b)			15,637				15,191				63,921				60,924
Operating margin			20.1	%			18.8	%			19.3	%			18.6	%
Depreciation and amortization		$	3,395			$	2,994			$	11,806			$	11,156
Capital expenditures			1,471				1,355				5,365				5,342
Dispensing Equipment
Net sales		$	25,709			$	42,051			$	163,861			$	177,948
Operating income (b)			(1,359	)			7,821				25,051				39,398
Operating margin			(5.3	)%			18.6	%			15.3	%			22.1	%
Depreciation and amortization		$	771			$	720			$	3,986			$	3,151
Capital expenditures			292				384				2,528				2,832
Fire & Safety/Diversified Products
Net sales		$	73,363			$	75,828			$	300,462			$	288,424
Operating income (b)			17,527				16,508				74,433				66,516
Operating margin			23.9	%			21.8	%			24.8	%			23.1	%
Depreciation and amortization		$	1,338			$	1,387			$	5,288			$	5,676
Capital expenditures			814				1,004				4,743				3,532
Company
Net sales		$	355,306			$	345,997			$	1,489,471			$	1,358,631
Operating income			41,108				61,518				212,432				255,083
Operating margin			11.6	%			17.8	%			14.3	%			18.8	%
Depreciation and amortization (c)		$	13,507			$	9,733			$	48,599			$	38,038
Capital expenditures			9,194				5,572				28,358				26,496