The special charge reflects the retirement of R. S. Evans as the Company’s Chief Executive Officer and represents stock-based retirement costs that previously were being amortized to an anticipated retirement at age 65.
Net income including the special charge was $20.3 million, or $.33 per diluted share for the first quarter of 2001.
Operating profit for the first quarter of 2001 was $43.5 million (excluding the special charge of $6.1 million pre-tax) on sales of $379.3 million compared with $48.0 million on sales of $383.8 million in the first quarter of 2000. Results for the first quarter of 2001 included severance costs totaling $2.3 million as employment levels were reduced by 400 employees at certain business units in response to the softening economy. Operating profit margins were 11.5% (excluding the special charge) for the first quarter of 2001 compared with 12.5% in the first quarter of 2000. Cash earnings (net income excluding the special charge plus amortization of goodwill) per diluted share were $.47 for the first quarter of 2001, compared with $.51 for the first quarter of 2000.
During the quarter, the Company recognized a $1.2 million pre-tax loss in miscellaneous income on a euro currency option entered into in connection with the recently completed acquisition of the Industrial Flow Group of Alfa Laval Holding AB. Overall, the Company recognized a $1.4 million pre-tax gain on this option, of which $2.6 million was recognized in the fourth quarter of 2000.
Order backlog at March 31, 2001 totaled $533.3 million, an increase of $121.7 million, or 30%, from March 31, 2000 and $29.7 million, or 6%, from December 31, 2000.
