EnPro Industries Inc. (NPO)
Q1 2008 Earnings Call
May 1, 2008 9:00 a.m. EST
William Dries – Chief Financial Officer and Sr. VP
Stephen Macadam – Chief Operating Officer
Richard L. Magee – Sr. VP, Sec. and Gen. Counsel
Donald G. Pomeroy II – Principal Accounting Officer, VP and Controller
John R. Smith – Sr. VP of HR and Admin.
Todd Vencil – Davenport and Co.
Randy Laufman – Imperial Capital
Joe Mandelo – Fidelity and Company
Previous Statements by NPO
» EnPro Industries Inc., Q1 2009 Earnings Call Transcript
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» EnPro Industries Inc. Q3 2008 Earnings Call Transcript
Thank you and good morning everyone. Welcome to EnPro Industries Quarterly Earnings conference call. This morning we have got the pleasure of introducing you to Steve Macadam who has joined EnPro as President and CEO last month. I am sure you are all looking forward to hearing from Steve. And I will turn the call over to him in just a few minutes.
He’ll be joined this morning by Bill Dries, Senior Vice President and CFO who will discuss our financials. In addition, we have got other members of the corporate staff here and present and prepared to participate in the Q & A session.
Before Steve and Bill make their remarks and we open the lines for your questions I would like to remind you that you may hear statements during the course of this call that express a belief, expectation, or intention, as well as those that are not historical fact. These statements are forward-looking and involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements.
These risk and uncertainties are referenced in the Safe Harbor statement included in our press release and are described in more detail along with other risks and uncertainties in our filings with the SEC, including the Form 10-K for the year ended December 31, 2007.
We do not undertake to update any forward-looking statement made on this conference call to reflect any change in management's expectations or any change in assumptions or circumstances on which such statements are based. This call is also being webcast on enproindustries.com. And a replay of the call will be available on the website shortly after it concludes. If you have any questions that aren't answered on the call this morning or if you have any follow-up questions, please feel free to contact me at 704-731-1527.
With that I’ll turn the call over to Steve.
Thank you Don, and good morning to everyone. I am happy to be with you this morning. I want to begin by saying it is a priveledge to join EnPro. Obviously, the company has had tremendous success over the past six years which is a real testament to the sound strategies that the board and management team have established early on, as well as to the leadership of my predecessor Ernie Schaub, and also to the outstanding effort of our 4,700 employees around the world.
Ernie put a lasting imprint on this company and prepared it very well for the future. I’m excited to step into the role he filled so well for so long. And I will certainly do my best to keep EnPro on a path that leads to continued improvement and even greater success.
As you know I have been in the job for only a few weeks now, so I may not have all the answers to your questions, especially when it comes to my specific plans and potential changes to our futures strategic direction.
I have begun an in depth assessment of our strategy and operations. But EnPro is a large, diverse, and spread out geographically. So it will take some time. However, I do want to assure you that I believe EnPro is in fine shape and that our strategies and operational capabilities are fundamentally sound. My first priority is to maintain our focus on the management practices and accreted growth strategies that have served the company so well to date.
As I spend the next couple of months on my assessment my goal is to understand all the factors that will drive our future. By the time we release our second quarter earnings in August, I will have had a chance to develop more specific insights into our company and my vision for it. I hope I will have a chance to meet many of you, and I look forward to hearing your view on our company and direction.
Now let us talk about the first quarter of 2008. In a few minutes Bill will review our financial performance. But as you can see from earnings release the quarter was a very good one. Our sales were the best ever for a quarter and we are 14% higher than last year’s first quarter. Segment profits also set a quarterly record and were up 11% over last year. Segment margins were a strong 16.5%.
Our GAAP earnings were $.61 a share compared to $.56 a share last year, a 9% improvement. Our earnings before asbestos and other selected items sere $1.07 a share, also a quarterly record, and 13% better than last year.
Besides the earnings we announced this morning the first quarter was notable for a number of other significant events. My personal highlight was being asked by the board to take this job. But there was other news as well. We closed two important acquisitions. We got new Greenfield operations up and running in China. We moved closer to production in a second new building that Garlocks [ph] facility. And we announced $100 million share repurchase authorization. And we settled our proxy contest with Steel Partners.