EXECUTIVE OVERVIEW
The Company is a leading worldwide designer, manufacturer and marketer of motion
control products, technologies, systems and services that efficiently and
ergonomically move, lift, position and secure materials. Key products include
hoists, actuators, rigging tools, light rail work stations and digital power and
motion control systems. We are focused on commercial and industrial applications
that require the safety and quality provided by our superior design and
engineering know-how.
Founded in 1875, we have grown to our current size and leadership position
through organic growth and acquisitions. We developed our leading market
position over our 145-year history by emphasizing technological innovation,
manufacturing excellence and superior customer service. In addition,
acquisitions significantly broadened our product lines and services and expanded
our geographic reach, end-user markets and customer base. In accordance with our
Blueprint for Growth Strategy, we are simplifying the business utilizing our
80/20 process, improving our operational excellence, and ramping the growth
engine by investing in new product development and a digital platform to grow
profitably. Shareholder value will be enhanced by expanding EBITDA margins and
return on invested capital ("ROIC").
Our revenue base is geographically diverse with approximately 47% derived from
customers outside the U.S. for the nine months ended December 31, 2020. We
believe this balances the impact of changes that occur in local economies, as
well as benefits the Company from growth in emerging markets. We monitor both
U.S. and Eurozone Industrial Capacity Utilization statistics as well as the ISM
Production Index as indicators of anticipated demand for our products. In
addition, we continue to monitor the potential impact of other global and U.S.
trends including, industrial production, trade tariffs, raw material cost
inflation, interest rates, foreign currency exchange rates, and activity of
end-user markets around the globe.
From a strategic perspective, we are investing in new products as we focus on
our greatest opportunities for growth. We maintain a strong North American
market share with significant leading market positions in hoists, lifting and
sling chain, forged attachments, actuators, and digital power and motion control
systems for the material handling industry. We seek to maintain and enhance our
market share by focusing our sales and marketing activities toward select North
American and global market sectors including general industrial, energy,
automotive, heavy OEM, entertainment, and construction and infrastructure.
Regardless of the economic climate and point in the economic cycle, we
constantly explore ways to increase operating margins as well as further improve
our productivity and competitiveness. We have specific initiatives to reduce
quote lead-times, improve on-time deliveries, reduce warranty costs, and improve
material and factory productivity. The initiatives are being driven by the
implementation of our business operating system, CMBS (Columbus McKinnon
Business System). We are working to achieve these strategic initiatives through
business simplification, operational excellence, and profitable growth
initiatives. We believe these initiatives will enhance future operating margins.
Our principal raw materials and components purchases were approximately $318
million in fiscal 2020 (or 60% of Cost of product sold) and include steel,
consisting of rod, wire, bar, structural, and other forms of steel; electric
motors; bearings; gear reducers; castings; steel and aluminum enclosures and
wire harnesses; electro-mechanical components and standard variable drives.
These commodities are all available from multiple sources. We purchase most of
these raw materials and components from a limited number of strategic and
preferred suppliers under agreements which are negotiated on a company-wide
basis through our global purchasing group. Generally, as we experience
fluctuations in our costs, we reflect them as price increases to our customers
with the goal of being margin neutral.
We operate in a highly competitive and global business environment. We face a
variety of opportunities in those markets and geographies, including trends
toward increasing productivity of the global labor force and the expansion of
market opportunities in Asia and other emerging markets. While we execute our
long-term growth strategy, we are supported by our strong free cash flow as well
as our liquidity position and flexible debt structure.
Like many global companies, we are being affected by COVID-19. While the
severity and duration of this global pandemic is not known at this time, we are
seeking to take all appropriate measures to protect the cash flow and liquidity
of the Company. This includes reducing our cost base, reducing working capital
needs, and reducing capital expenditures. We have a flexible capital structure
composed of a Credit Agreement that includes a Term Loan that requires quarterly
principal payments of $1.1 million and a $100 million Revolver. On August 26,
2020, the Company entered into a Second Amendment to the Credit Agreement, which
extends the $100 million Revolver which was originally set to expire on January
31, 2022 to August 25, 2023. During the quarter ended June 30, 2020, the Company
drew $25 million from the Revolver for liquidity and working
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capital purposes demonstrating it has a strong, supportive bank group. During
the three months ended December 31, 2020, the Company repaid the $25 million and
the associated interest on the Revolver.
Results of Operations
Three Months Ended December 31, 2020 and December 31, 2019
Net sales in the fiscal 2021 quarter ended December 31, 2020 were $166,547,000,
down $32,808,000 or 16.5% from the fiscal 2020 quarter ended December 31, 2019
net sales of $199,355,000. Net sales were negatively impacted $37,769,000 due to
decreased sales volume as a result of the COVID-19 pandemic, offset by price
increases which positively impacted sales by $1,917,000. Foreign currency
translation favorably impacted sales by $3,044,000 for the three months ended
December 31, 2020.
Gross profit in the fiscal 2021 quarter ended December 31, 2020 was $55,315,000,
a decrease of $12,557,000 or 18.5% from the fiscal 2020 quarter ended
December 31, 2019 gross profit of $67,872,000. Gross profit margin was 33.2% in
the fiscal 2021 three months ended December 31, 2020 compared to 34.0% in fiscal
2020. The decrease in gross profit was due to lower sales volume which reduced
gross profit by $12,828,000, $3,146,000 in decreased productivity net of other
cost changes, $114,000 in incremental net severance costs, $77,000 received in
the prior year from an insurance settlement which did not reoccur, and $77,000
in higher product liability costs in the quarter ended December 31, 2020. These
gross profit decreases were offset by $1,936,000 of price increases net of
material inflation, $445,000 in lower net costs incurred in factory closures,
and $209,000 in decreased tariffs. The translation of foreign currencies had a
$1,095,000 favorable impact on gross profit in the three months ended
December 31, 2020.
Selling expenses were $18,829,000 and $23,169,000 in the fiscal 2021 and 2020
third quarters ended December 31, 2020 and 2019, respectively. As a percentage
of consolidated net sales, selling expenses were 11.3% and 11.6% in the fiscal
2021 and 2020 three months ended December 31, 2020 and 2019, respectively.
Selling expense decreased primarily due to lower variable selling costs and cost
containment measures in the three months ended December 31, 2020. Foreign
currency translation had a $412,000 unfavorable impact on selling expenses.
General and administrative expenses were $19,859,000 and $17,960,000 in the
fiscal 2021 and 2020 third quarters ended December 31, 2020 and 2019,
respectively. As a percentage of consolidated net sales, general and
administrative expenses were 11.9% in the three months ended December 31, 2020
and 9.0% in the three months ended December 31, 2019. The increase in general
and administrative expenses was primarily due to $2,388,000 in higher stock
compensation expense, of which $1,981,000 was reversed in the prior year for
shares that were forfeited upon the former Chief Executive Officer's
resignation, and $893,000 of higher incentive compensation expense. These
increases were offset by $984,000 in prior year factory closure and business
realignment costs which did not reoccur in the current year, $358,000 in reduced
bad debt expense, and $281,000 in lower medical and benefit expenses in the
quarter ended December 31, 2020. Foreign currency translation had a $173,000
unfavorable impact on general and administrative expenses.
Research and development expenses were $3,038,000 and $2,628,000 in the fiscal
2021 and 2020 third quarters ended December 31, 2020 and 2019, respectively. As
a percentage of consolidated net sales, research and development expenses were
1.8% and 1.3% in the fiscal 2021 and 2020 three months ended December 31, 2020
and 2019. The increase in research and development expenses was primarily due to
$174,000 in higher incentive compensation expense.
Amortization of intangibles was $3,142,000 and $3,229,000 in the fiscal 2021 and
2020 third quarters ended December 31, 2020 and 2019, respectively, with the
decrease related to currency and certain intangible assets that are now fully
amortized.
Interest and debt expense was $2,986,000 in the third quarter ended December 31,
2020 compared to $3,423,000 in the third quarter ended December 31, 2019 and
primarily related to a decrease in interest and debt expense on the Company's
Term Loan due to lower average borrowings outstanding during the fiscal 2021
period.
Investment income of $495,000 and $408,000 in the third quarters ended
December 31, 2020 and 2019, respectively, related to earnings on marketable
securities held in the Company's wholly owned captive insurance subsidiary and
the Company's equity method investment in EMC, described in Note 6.
Income tax expense as a percentage of income from continuing operations before
income tax expense was 9% and 13% in the quarters ended December 31, 2020 and
December 31, 2019, respectively. Typically these percentages vary from the U.S.
statutory rate of 21% primarily due to varying effective tax rates at the
Company's foreign subsidiaries, and the jurisdictional
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mix of taxable income for these subsidiaries. For the quarter ended December 31,
2020, the rate is lower than the U.S. statutory rate as a result of pre-tax
losses in certain jurisdictions.
Nine Months Ended December 31, 2020 and December 31, 2019
Net sales in the fiscal 2021 nine months ended December 31, 2020 were
$463,407,000, down $156,269,000 or 25.2% from the fiscal 2020 nine months ended
December 31, 2019 net sales of $619,676,000. Net sales were negatively impacted
$166,203,000 due to decreased sales volume as a result of the COVID-19 pandemic,
offset by price increases which positively impacted sales by $6,667,000. Foreign
currency translation favorably impacted sales by $3,267,000 for the nine months
ended December 31, 2020.
Gross profit in the fiscal 2021 nine months ended December 31, 2020 was
$156,137,000, a decrease of $60,840,000 or 28.0% from the fiscal 2020 nine
months ended December 31, 2019 gross profit of $216,977,000. Gross profit margin
was 33.7% in the fiscal 2021 nine months ended December 31, 2020 compared to
35.0% in fiscal 2020. The decrease in gross profit was due to lower sales volume
which reduced gross profit by $59,239,000, $11,288,000 in decreased productivity
net of other cost changes, $1,221,000 in net costs incurred in factory closures,
$303,000 in incremental current year severance costs, $367,000 received in the
prior year from an insurance settlement which did not reoccur, and $77,000 in
higher product liability costs in the nine months ended December 31, 2020. These
gross profit decreases were offset by $6,589,000 of price increases net of
material inflation, $2,189,000 from a gain recorded for a building sold in China
classified as Cost of products sold, and $1,574,000 in decreased tariffs. The
translation of foreign currencies had a $1,303,000 favorable impact on gross
profit in the nine months ended December 31, 2020.
Selling expenses were $56,087,000 and $68,801,000 in the nine months ended
December 31, 2020 and 2019, respectively. As a percentage of consolidated net
sales, selling expenses were 12.1% and 11.1% in the fiscal 2021 and 2020 nine
months ended December 31, 2020 and 2019, respectively. Selling expense decreased
primarily due to lower variable selling costs and cost measures put in place as
a result of COVID-19 in the nine months ended December 31, 2020. Foreign
currency translation had a $428,000 unfavorable impact on selling expenses.
General and administrative expenses were $53,842,000 and $56,713,000 in the
fiscal 2021 and 2020 nine months ended December 31, 2020 and 2019, respectively.
As a percentage of consolidated net sales, general and administrative expenses
were 11.6% in the nine months ended December 31, 2020 and 9.2% in the nine
months ended December 31, 2019. The decrease in general and administrative
expenses was primarily due to $1,260,000 of lower incentive compensation expense
offset by $3,054,000 in higher stock compensation expense in the current year,
of which $1,981,000 was reversed in the prior year for shares that were
forfeited upon the former Chief Executive Officer's resignation. $1,073,000 in
prior year factory closure and business realignment costs which did not reoccur
in the current year, $212,000 in reduced bad debt expense, and $320,000 in lower
medical and benefit expenses also contributed to lower general and
administrative expenses in the nine months ended December 31, 2019. A reduction
in travel related business expenses and professional services in response to
COVID-19 further contributed to the reduction in general and administrative
expenses. Foreign currency translation had a $53,000 unfavorable impact on
general and administrative expenses.
Research and development expenses were $8,703,000 and $8,419,000 in the fiscal
2021 and 2020 nine months ended December 31, 2020 and 2019, respectively. As a
percentage of consolidated net sales, research and development expenses were
1.9% and 1.4% in the fiscal 2021 and 2020 nine months ended December 31, 2020
and 2019. The increase in research and development expenses was primarily due to
$174,000 in higher incentive compensation expense.
A Loss on sales of businesses in the amount of $176,000 was recorded in the nine
months ended December 31, 2019 primarily as a result of a final working capital
adjustment from sold businesses.
Amortization of intangibles was $9,449,000 and $9,708,000 in the nine months
ended December 31, 2020 and 2019, respectively, with the decrease related to
currency and certain intangible assets that are now fully amortized.
Interest and debt expense was $9,192,000 in the nine months ended December 31,
2020 compared to $11,034,000 in the nine months ended December 31, 2019 and
primarily related to a decrease in interest and debt expense on the Company's
Term Loan due to lower average borrowings outstanding during the fiscal 2021
period, offset by interest on the Revolver borrowings.
Investment income of $1,429,000 and $939,000 in the nine months ended
December 31, 2020 and 2019, respectively, related to earnings on marketable
securities held in the Company's wholly owned captive insurance subsidiary and
the Company's equity method investment in EMC, described in Note 6.
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Other expense was $20,081,000 in the nine months ended December 31, 2020
compared to $618,000 in the nine months ended December 31, 2019. The increase
primarily related to a $18,933,000 settlement charge as a result of the
termination of one of the Company's U.S. pension plans, as described in Note 10.
Income tax expense as a percentage of income from continuing operations before
income tax expense was (45)% and 20% in the nine months ended December 31, 2020
and December 31, 2019, respectively. Typically these percentages vary from the
U.S. statutory rate of 21% primarily due to varying effective tax rates at the
Company's foreign subsidiaries, and the jurisdictional mix of taxable income for
these subsidiaries. For the nine months ended December 31, 2020, the rate is
lower than the U.S. statutory rate as a result of the impacts associated with
pre-tax losses in the U.S. related to the pension settlement expense described
above, the U.S. R&D credit, and the utilization of net operating losses that
previously had a full valuation allowance against them.
The Company estimates that the effective tax rate related to continuing
operations will be approximately (2)% to (4)% for fiscal 2021 resulting from a
pre-tax loss primarily due to the termination of one of the Company's U.S.
pension plans.
Liquidity and Capital Resources
Cash, cash equivalents, and restricted cash totaled $187,876,000 at December 31,
2020, an increase of $73,176,000 from the March 31, 2020 balance of
$114,700,000.
Cash flow from operating activities
Net cash provided by operating activities was $71,948,000 for the nine months
ended December 31, 2020 compared with net cash provided by operating activities
of $70,252,000 for the nine months ended December 31, 2019. Non-cash adjustments
to net income of $42,439,000, a decrease in trade accounts receivable of
$34,254,000, and a decrease in inventory of $20,786,000 contributed to the
increase in cash provided by operating activities for the nine months ended
December 31, 2020. The decrease in accounts receivable is due to cash collection
improvements and the decrease in inventory is due to the Company's initiatives
to increase cash flow and improve inventory turns. The most significant non-cash
adjustments to net income are depreciation and amortization of $21,203,000 and a
$18,933,000 loss recorded for the termination of one of the U.S. pension plans
(refer to Note 10 for further details). This increase in cash was offset by an
overall net loss of $479,000, a decrease in trade accounts payable of $8,764,000
and a decrease in accrued expenses and non-current liabilities of $15,269,000.
The decrease in accrued expenses and non-current liabilities primarily consists
of the fiscal 2020 annual incentive plan payments which were paid in the quarter
ended June 30, 2020 and $6,740,000 in cash paid for amounts included in the
measurement of operating lease liabilities during the nine months ended
December 31, 2020.
The net cash provided by operating activities for the nine months ended
December 31, 2019 primarily consisted of net income of $50,428,000, non-cash
adjustments to net income of $34,240,000, a decrease in trade accounts
receivable of $3,989,000, and a decrease in inventory of $10,870,000. These cash
inflows were offset by a decrease in accrued expenses and non-current
liabilities of $23,764,000 and an decrease in trade accounts payable of
$3,013,000. The decrease in accrued expenses and non-current liabilities
primarily consists of the fiscal 2020 annual incentive plan payments, $7,075,000
in U.S. pension plan contributions and $6,363,000 in cash paid for amounts
included in the measurement of operating lease liabilities during the nine
months ended December 31, 2019.
Cash flow from investing activities
Net cash provided by investing activities was $846,000 for the nine months ended
December 31, 2020 compared with net cash used by investing activities of
$6,977,000 for the nine months ended December 31, 2019. The most significant
source of cash was $5,453,000 net proceeds received from a building sold in
China. The most significant use of cash in the fiscal 2021 period was $5,904,000
in capital expenditures
The net cash used by investing activities for the nine months ended December 31,
2019 was primarily due to $6,761,000 in capital expenditures.
Cash flow from financing activities
Net cash used by financing activities was $7,680,000 for the nine months ended
December 31, 2020 and $50,431,000 for the nine months ended December 31, 2019.
The most significant uses of cash were $3,338,000 in repayments on our Term Loan
and dividends paid in the amount of $4,294,000. These outflows were offset by
$778,000 in net outflows from stock related transactions, which includes
proceeds of $1,828,000 from stock options exercised. The Company drew
$25,000,000 on the
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Revolver during the three months ended June 30, 2020 and subsequently repaid the
amount in full during the three months ended December 31, 2020 which resulted in
no net impact on cash used by financing activities in the nine months ended
December 31, 2020.
The most significant uses of cash for the nine months ended December 31, 2019
were $50,000,000 in repayments on our Term Loan and dividends paid in the amount
of $4,245,000.
We believe that our cash on hand, cash flows, and borrowing capacity under our
Facilities will be sufficient to fund our ongoing operations and debt
obligations, and capital expenditures for at least the next twelve months. This
belief is dependent upon successful execution of our current business plan and
effective working capital utilization. No material restrictions exist in
accessing cash held by our non-U.S. subsidiaries. Additionally we expect to
meet our U.S. funding needs without repatriating non-U.S. cash and incurring
incremental U.S. taxes. As of December 31, 2020, $106,464,000 of cash and cash
equivalents were held by foreign subsidiaries.
On January 31, 2017 the Company entered into a Credit Agreement ("Credit
Agreement") and $545,000,000 of new debt facilities ("Facilities") in connection
with the STAHL acquisition. The Facilities consist of a Revolving Facility
("Revolver") in the amount of $100,000,000 and a $445,000,000 1st Lien Term Loan
("Term Loan"). The Term Loan has a seven-year term maturing in 2024. On August
26, 2020, the Company entered into a Second Amendment to the Credit Agreement
(as amended by the First Amendment, dated as of February 26, 2018). The Second
Amendment extends the $100,000,000 secured Revolver which was originally set to
expire on January 31, 2022 to August 25, 2023.
During the three months ended June 30, 2020, the Company drew $25,000,000 from
the Revolver for liquidity and working capital purposes. The borrowings on the
Revolver triggered the debt covenant provision which requires the Total Leverage
Ratio not to exceed 3.00:1.00 as of December 31, 2019 and thereafter. The
Company has been in compliance with this provision. During the three months
ended December 31, 2020, the Company repaid the $25,000,000 from the Revolver
and associated interest. As a result, this provision no longer applies, but if
it had, the Company would have been in compliance with this provision of the
Credit Agreement.
The outstanding principal balance of the Term Loan was $256,013,000 as of
December 31, 2020. The Company repaid $1,113,000 and $3,338,000 of required
principal payments on the Term Loan during the three and nine months ended
December 31, 2020. The Company is obligated to make $4,450,000 of principal
payments over the next 12 months. In response to COVID-19 the Company is seeking
to take all appropriate measures to protect the cash flow and liquidity of the
Company. As such, only the required principal amount has been recorded within
the current portion of long-term debt on the Company's Condensed Consolidated
Balance Sheet with the remaining balance recorded as long-term debt.
There were no outstanding borrowings and $17,005,000 in outstanding letters of
credit issued against the Revolver as of December 31, 2020. The outstanding
letters of credit as of December 31, 2020 consisted of $281,000 in commercial
letters of credit and $16,724,000 of standby letters of credit.
The gross balance of deferred financing costs on the Term Loan was $14,690,000
as of December 31, 2020 and March 31, 2020. The accumulated amortization
balances were $8,219,000 and $6,645,000 as of December 31, 2020 and March 31,
2020, respectively.
The gross balance of deferred financing costs associated with the Revolver is
$3,615,000 as of December 31, 2020 and $2,789,000 as of March 31, 2020, which is
included in other assets on the Condensed Consolidated Balance Sheet. The
accumulated amortization balances were $2,179,000 and $1,766,000 as of
December 31, 2020 and March 31, 2020, respectively.
Unsecured and uncommitted lines of credit are available to meet short-term
working capital needs for certain of our subsidiaries operating outside of the
U.S. The lines of credit are available on an offering basis, meaning that
transactions under the line of credit will be on such terms and conditions,
including interest rate, maturity, representations, covenants and events of
default, as mutually agreed between our subsidiaries and the local bank at the
time of each specific transaction. As of December 31, 2020, unsecured credit
lines totaled approximately $2,687,000, of which $0 was drawn. In addition,
unsecured lines of $16,562,000 were available for bank guarantees issued in the
normal course of business of which $13,757,000 was utilized.
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Capital Expenditures
In addition to keeping our current equipment and plants properly maintained, we
are committed to replacing, enhancing and upgrading our property, plant and
equipment to support new product development, improve productivity and customer
responsiveness, reduce production costs, increase flexibility to respond
effectively to market fluctuations and changes, meet environmental requirements,
enhance safety and promote ergonomically correct work stations. Consolidated
capital expenditures for the nine months ended December 31, 2020 and
December 31, 2019 were $5,904,000 and $6,761,000, respectively. We expect
capital expenditure spending for fiscal 2021 to range from $10,000,000 to
$12,000,000, excluding acquisitions and strategic alliances.
Inflation and Other Market Conditions
Our costs are affected by inflation in the U.S. economy and, to a lesser extent,
in non-U.S. economies including those of Europe, Canada, Mexico, South America,
and Asia-Pacific. We do not believe that general inflation has had a material
effect on our results of operations over the periods presented primarily due to
overall low inflation levels over such periods and our ability to generally pass
on rising costs through annual price increases. However, increases in U.S.
employee benefits costs such as health insurance and workers compensation
insurance have exceeded general inflation levels. In the future, we may be
further affected by inflation that we may not be able to pass on as price
increases. With changes in worldwide demand for steel and fluctuating scrap
steel prices over the past several years, we experienced fluctuations in our
costs that we have reflected as price increases to our customers. We believe we
have been successful in instituting price increases to pass on these material
cost increases. We will continue to monitor our costs and reevaluate our pricing
policies.
Goodwill Impairment Testing
We test goodwill for impairment at least annually and more frequently whenever
events occur or circumstances change that indicate there may be impairment.
These events or circumstances could include a significant long-term adverse
change in the business climate, poor indicators of operating performance, or a
sale or disposition of a significant portion of a reporting unit.
We test goodwill at the reporting unit level, which is one level below our
operating segment. We identify our reporting units by assessing whether the
components of our operating segment constitute businesses for which discrete
financial information is available and segment management regularly reviews the
operating results of those components. We also aggregate components that have
similar economic characteristics into single reporting units (for example,
similar products and / or services, similar long-term financial results, product
processes, classes of customers, etc.). We have two reporting units, the Duff
Norton reporting unit and the Rest of Products reporting unit, which have
goodwill totaling $9,710,000 and $329,285,000, respectively, at December 31,
2020.
We currently do not believe that it is more likely than not that the fair value
of each of our reporting units is less than its applicable carrying value.
Additionally, we currently do not believe that we have any significant
impairment indicators or that any of our reporting units with goodwill are at
risk of failing Step One of the goodwill impairment test. However, if the
projected long-term revenue growth rates, profit margins, or terminal growth
rates are significantly lower, and/or the estimated weighted-average cost of
capital is considerably higher, future testing may indicate impairment of one or
more of the Company's reporting units and, as a result, the related goodwill may
be impaired.
Refer to our 2020 10-K for additional information regarding our annual goodwill
impairment process.
Seasonality and Quarterly Results
Quarterly results may be materially affected by the timing of large customer
orders, periods of high vacation and holiday concentrations, legal settlements,
gains or losses in our portfolio of marketable securities, restructuring
charges, favorable or unfavorable foreign currency translation, divestitures and
acquisitions. Therefore, the operating results for any particular fiscal quarter
are not necessarily indicative of results for any subsequent fiscal quarter or
for the full fiscal year.
Effects of New Accounting Pronouncements
Information regarding the effects of new accounting pronouncements is included
in Note 16 to the accompanying consolidated financial statements included in
this quarterly report on form 10-Q.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This report may include "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements involve known
and unknown risks, uncertainties and other factors that could cause our actual
results to differ materially from the results expressed or implied by such
statements, including general economic and business conditions, conditions
affecting the industries served by us and our subsidiaries, conditions affecting
our customers and suppliers, competitor responses to our products and services,
the overall market acceptance of such products and services, facility
consolidations and other restructurings, our asbestos-related liability, the
integration of acquisitions, and other factors disclosed in our periodic reports
filed with the SEC. Consequently such forward-looking statements should be
regarded as our current plans, estimates and beliefs. We do not undertake and
specifically decline any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any
future events or circumstances after the date of such statements or to reflect
the occurrence of anticipated or unanticipated events.
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