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

Date of report: April 19, 2010
(Date of earliest event reported)

IDEX CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		1-10235		36-3555336
(State of Incorporation)		(Commission File Number)		(IRS Employer 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 April 19, 2010, IDEX Corporation (the “Company”) issued a press release announcing financial results for the quarter ended March 31, 2010.

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 April 19, 2010 announcing IDEX Corporation’s quarterly 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.

April 19, 2010

Exhibit Index

Exhibit
Number		Description
99.1		Press release dated April 19, 2010 announcing IDEX Corporation’s quarterly operating results

EXHIBIT 99.1

IDEX CORPORATION REPORTS FIRST QUARTER 2010 RESULTS;
ADJUSTED EARNINGS PER SHARE OF 46 CENTS

NORTHBROOK, IL, April 19 — IDEX Corporation (NYSE: IEX) today announced first quarter 2010 results.

New orders in the quarter totaled $370 million, up 10 percent compared to the prior-year period. Sales in the quarter totaled $356 million, 9 percent higher than the prior-year period.

First quarter 2010 operating income, adjusted for restructuring related charges of $1.9 million, was $60 million and resulted in adjusted operating margin of 16.8 percent, up 410 basis points from the prior year (excluding prior year restructuring related charges) due to volume, restructuring actions, and prior year acquisition related charges. On an as-reported basis, first quarter operating income of $58 million was 48 percent higher than the prior-year period.

Excluding the impact of restructuring related charges, first quarter adjusted diluted earnings per share was 46 cents, an increase of 16 cents, or 55 percent, from the first quarter of the previous year (excluding prior year impact of restructuring related charges). On an as-reported basis, diluted earnings per share of 45 cents increased 17 cents, or 60 percent, from the first quarter of 2009.

First Quarter 2010 Highlights

•		Orders increased 10 percent compared to the prior year (+8 percent organic and +2 percent foreign currency translation).
•		Sales increased 9 percent compared to the prior year (+6 percent organic and +3 percent foreign currency translation).
•		Reported net income of $37 million was $14 million, or 62 percent, higher than the prior year. Excluding restructuring related charges, adjusted net income of $38 million was $14 million, or 57 percent, higher than the prior year (excluding prior year restructuring charges).
•		Diluted EPS of $0.45 was 17 cents, or 60 percent, higher than the prior year. Excluding restructuring related charges, adjusted diluted EPS of $0.46 was 16 cents, or 55 percent, higher than the prior year (excluding prior year restructuring charges).
•		EBITDA of $72 million was 20 percent of sales and covered interest expense by more than 21 times.
•		Free cash flow of $20 million was 50% higher than the prior year.

“Our first quarter results reflect the return to growth in most of our end markets. The order trends within the Fluid and Metering and Heath and Science Technologies segments were particularly strong while our remaining markets performed as expected. Our cost structure allowed for strong profitability and this is reflected in a first quarter adjusted operating margin of 16.8%, which improved by 410 basis points compared to prior year. Overall, we are very pleased with the performance of the company.

Based on current outlook, our projected second quarter 2010 EPS is in the range of 45 to 47 cents on a fully diluted basis. Our outlook for the full year 2010 has improved from previous estimates; we now expect organic revenue growth in the mid-single digit range which will result in diluted EPS of $1.75 to $1.80, excluding any future restructuring related charges and any impact from the recently announced Seals, Ltd. acquisition. Our full year guidance incorporates a large DIY Dispensing order that ships entirely in the first half. Full year EPS above the top end of our range is dependent on a strong U.S. end market recovery.”

First Quarter 2010 Business Highlights (excluding restructuring related charges)

Fluid & Metering Technologies

•

Sales in the first quarter of $173 million reflected a 10 percent increase compared to the first quarter of 2009 (+7 percent organic and +3 percent foreign currency translation).

•

Operating margin of 18.8 percent represented a 410 basis point improvement compared with the first quarter of 2009 primarily due to higher volume, cost reduction initiatives, and prior year acquisition related charges.

Health & Science Technologies

•

Sales in the first quarter of $88 million reflected an 18 percent increase compared to the first quarter of 2009 (+17 percent organic and +1 percent foreign currency translation).

•

Operating margin of 21.8 percent represented a 760 basis point improvement compared with the first quarter of 2009 primarily due to higher volume, cost reduction initiatives, and prior year acquisition related charges.

Dispensing Equipment

•

Sales in the first quarter of $34 million reflected a 2 percent increase compared to the first quarter of 2009 (-3 percent organic and +5 percent foreign currency translation).

•

Operating margin of 20.1 percent represented a 800 basis point improvement compared with the first quarter of 2009 primarily due to cost reduction initiatives and productivity improvement.

Fire & Safety/Diversified Products

•

Sales in the first quarter of $63 million reflected a 2 percent decrease compared to the first quarter of 2009 (-5 percent organic and +3 percent foreign currency translation).

•

Operating margin of 21.2 percent represented a 30 basis point improvement compared with the first quarter of 2009, due to cost reduction initiatives and favorable product mix.

For the first quarter of 2010, Fluid & Metering Technologies contributed 48 percent of sales and 45 percent of operating income; Health & Science Technologies accounted for 25 percent of sales and 27 percent of operating income; Dispensing Equipment accounted for 9 percent of sales and 9 percent of operating income; and Fire & Safety/Diversified Products represented 18 percent of sales and 19 percent of operating income.

Conference Call to be Broadcast over the Internet

IDEX will broadcast its first quarter earnings conference call over the Internet on Monday, April 19th, 2010 at 10:00 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 will also be able to hear a replay of the call by dialing 800.642.1687 (or 706.645.9291 for international participants) using the ID # 62850085.

A Note on EBITDA and Free Cash Flow

EBITDA means earnings before interest, income taxes, depreciation and amortization, 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
			March 31,												December 31,
			2010				2009				Change				2009				Change
→	Income before Taxes		$	54.7			$	34.1				60	%		$	48.8				12	%
→	Depreciation and Amortization			14.3				13.6				5				14.4				(1	)
→	Interest			3.4				4.8				(29	)			4.0				(13	)
→	EBITDA		$	72.4			$	52.5				38			$	67.2				8
→	Cash Flow from Operating Activities		$	27.1			$	17.6				54	%		$	54.9				(51)	%
→	Capital Expenditures			(7.5	)			(4.9	)			56				(6.7	)			12
→	Excess Tax Benefit from Stock-Based Compensation			0.6				0.6				—				1.2				(55	)
→
→	Free Cash Flow		$	20.2			$	13.3				50			$	49.4				(59	)

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.

(Tables follow)

IDEX CORPORATION

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

		Three Months Ended
		March 31,
		2010				2009
Net sales		$	355,598			$	326,613
Cost of sales			208,057				203,419
Gross profit			147,541				123,194
Selling, general and administrative expenses			87,781				81,782
Restructuring expenses			1,867				2,251
Operating income			57,893				39,161
Other income (expense) — net			254				(191	)
Interest expense			3,434				4,821
Income before income taxes			54,713				34,149
Provision for income taxes			18,088				11,544
Net income		$	36,625			$	22,605
Earnings per Common Share:
Basic earnings per common share (a)		$	0.45			$	0.28
Diluted earnings per common share (a)		$	0.45			$	0.28
Share Data:
Basic weighted average common shares outstanding			80,080				79,513
Diluted weighted average common shares outstanding			81,509				80,219

Condensed Consolidated Balance Sheets
(in thousands)

		March 31,				December 31,
		2010				2009
Assets
Current assets
Cash and cash equivalents		$	71,388			$	73,526
Receivables — net			206,387				183,178
Inventories			166,211				159,463
Other current assets			40,847				35,545
Total current assets			484,833				451,712
Property, plant and equipment — net			173,774				178,283
Goodwill and intangible assets			1,434,871				1,461,799
Other noncurrent assets			7,061				6,363
Total assets		$	2,100,539			$	2,098,157
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable		$	81,386			$	73,020
Accrued expenses			99,986				98,730
Short-term borrowings			2,609				8,346
Dividends payable			—				9,586
Total current liabilities			183,981				189,682
Long-term borrowings			383,098				391,754
Other noncurrent liabilities			243,446				248,617
Total liabilities			810,525				830,053
Shareholders’ equity			1,290,014				1,268,104
Total liabilities and shareholders’ equity		$	2,100,539			$	2,098,157

-more-

IDEX CORPORATION

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

		Three Months Ended
		March 31,
		2010				2009
Fluid & Metering Technologies
Net sales		$	172,877			$	157,018
Operating income (b)			32,510				23,140
Operating margin			18.8	%			14.7	%
Depreciation and amortization		$	8,022			$	7,769
Capital expenditures			3,608				2,557
Health & Science Technologies
Net sales		$	87,522			$	74,188
Operating income (b)			19,115				10,507
Operating margin			21.8	%			14.2	%
Depreciation and amortization		$	3,515			$	3,513
Capital expenditures			1,464				1,262
Dispensing Equipment
Net sales		$	33,554			$	32,873
Operating income (b)			6,754				3,979
Operating margin			20.1	%			12.1	%
Depreciation and amortization		$	1,033			$	784
Capital expenditures			213				218
Fire & Safety/Diversified Products
Net sales		$	63,401			$	64,982
Operating income (b)			13,423				13,571
Operating margin			21.2	%			20.9	%
Depreciation and amortization		$	1,452			$	1,280
Capital expenditures			864				822
Company
Net sales		$	355,598			$	326,613
Operating income (c)			59,760				41,412
Operating margin			16.8	%			12.7	%
Depreciation and amortization (d)		$	14,284			$	13,594
Capital expenditures			7,350				5,152