FREE ELECTRONIC LIBRARY - Books, dissertations, abstract

Pages:   || 2 | 3 | 4 | 5 |   ...   | 22 |

«Our Business Segments ENGINE PRODUCTS AND SERVICES SEALING PRODUCTS ENGINEERED PRODUCTS Our Engine Products and Services segment Our Sealing Products ...»

-- [ Page 1 ] --

Shaping EnPro For The Future


EnPro At-A-Glance

Aftermarket Mix Markets Served

Consolidated 2010 Sales

55% 40+



Our Business Segments




Our Engine Products and Services segment Our Sealing Products segment designs, Operations in our Engineered Products designs, manufactures, sells and services manufactures and sells a wide range of segment design, manufacture and sell nonheavy-duty, medium-speed diesel, natural products designed to be reliable and rolling, self-lubricating bearing products gas and dual-fuel engines. These engines durable. These products are often vital and precision-engineered components are used in U.S. Navy ships for propulsion to safety and environmental protection and lubrication systems for reciprocating and power generation; they are also and frequently used in demanding compressors. Among other applications, used in commercial power generation applications, where extreme pressures these products are used in the automotive, applications, including backup power for and temperatures and corrosive pharmaceutical, machine tool, pulp and nuclear power plants, and in pump and environments make sealing difficult. paper, natural gas, power generation, compressor applications.

refining and petrochemical markets.

• 46% of consolidated 2010 sales • 19% of consolidated 2010 sales

–  –  –

The year 2010 was one of significant change for EnPro Industries.

It was a year in which:

• Our markets continued the recovery they began in late 2009;

• Our financial performance improved significantly;

• We completed the divestiture of Quincy Compressor and began to reinvest the proceeds to strengthen our company; and

• Our Garlock Sealing Technologies LLC (GST) subsidiary moved to permanently resolve its asbestos liability.

Each of these developments is significant in its own right, but combined, they point toward a promising future for EnPro.

Rebounding Markets By late 2009, the recessionary conditions of 2008-09 were easing. The declining order rates we had seen since mid-2008 had begun to reverse. Our customers were showing greater confidence about prospects for the coming year and once again planning for growth.

So we entered 2010 with cautious optimism, but by the end of the year, our business had recovered at a pace much more robust than the modest rate we and many outside industry observers had forecast at the beginning of the year. Growing demand led to sales increases of 15% or more in our operations, except at Fairbanks Morse Engine (FME), where, as we had expected at the beginning of the year, sales were flat with the record levels of 2009, but segment profits exceeded the prior year’s record.

Our consolidated sales grew to $865.0 million, an 8% increase, despite the deconsolidation of GST’s sales beginning June 5, 2010, when it moved to permanently resolve all current and future asbestos claims against it. GST, which recorded sales growth of 22% for the full year of 2010, had an additional $104.9 million in third-party sales following its deconsolidation.

An Improved Financial Performance During 2009, we took steps to align our company with the then-current conditions of our markets. We reduced costs and focused on achieving our goals for excellence across our company. As our markets improved in 2010 and demand for our products grew, these actions and the results from our Continuous Improvement programs helped us realize significant earnings growth even with the deconsolidation of GST.

–  –  –

In addition to growing demand, we also realized benefits from our Continuous Improvement initiatives. These programs are creating consistent and sustainable improvement in our financial results by managing raw material input costs, improving productivity, enhancing our margins and strengthening our go-to-market strategy. As our markets recovered, the benefits of these programs accelerated, and we were able to produce more without adding back the full level of costs we had eliminated.

Improving markets and the benefits of our Continuous Improvement programs helped us to record a nearly 40% improvement in our consolidated net income before asbestos-related expenses and other selected items in 2010. On that basis, income grew to $49.0 million from $34.8 million in 2009. The figures for 2010 don’t include an additional $11.8 million in adjusted net income from GST following its deconsolidation. Under generally accepted accounting principles, or GAAP, we reported consolidated net income of $155.4 million in 2010 after a loss of $139.3 million in 2009.

A Year for Acquisitions Late in 2009, we announced our intent to sell Quincy Compressor, one of the original EnPro companies, for $190 million. While Quincy was a sound business with attractive products, it was not a business we felt we could grow effectively because of its much larger competitors.

As we announced at the time, our plan was to reinvest the proceeds into areas where EnPro had more attractive opportunities.

–  –  –

We believe that GST’s asbestos liability has been the result of highly flawed and unfair tort systems found in many states. These systems allow the presentation of questionable scientific testimony and, more importantly, do not properly account for payments made to claimants from the 524(g) trusts created by GST’s former co-defendants, companies that produced dangerous insulation and other products that caused the plaintiffs’ injuries. To seek a final and permanent resolution to this situation, GST turned to the federal courts to initiate what we have termed the Asbestos Claims Resolution Process, or ACRP. In the process, GST seeks to resolve all pending and future asbestos claims by establishing its own trust under Section 524(g) of the U.S. Bankruptcy Code that will become solely responsible for resolving pending and future claims against GST.

While this process is pending, neither GST nor its subsidiaries will be included in the consolidated results of EnPro. During the process, GST and its affiliates are protected from asbestos claims, and the outflow of cash to resolve them is halted.

So far, the ACRP has received strong support from all of GST’s constituencies. It has been business as usual with employees, customers and suppliers. The ACRP has also been well-received by EnPro shareholders, and we are grateful and appreciative of your support. It is too early to be certain of the outcome of the ACRP, but we plan ultimately to re-consolidate the results of GST with considerable value for EnPro shareholders.

An Important Note for Our Employees Of course, all of our accomplishments have been made possible only by our employees. We strive to create a culture of empowerment and accountability at EnPro, and that shows up in a number of areas. One of the most important of these is safety. Across our company, we are striving to have the world’s safest workers, with a personal and public commitment to work safely every day and to be absolutely dedicated to creating an injury-free workplace.

As a result, our safety performance rates among the best of all companies and EnPro has been publicly recognized as an industry leader.

The benefits may not be as apparent to outsiders as many of our other activities, but they are just as important to our success. Programs like our safety program make EnPro an attractive place to work and help us to recruit and retain highly capable people. Our safety accomplishments are a tribute to the spirit and dedication of our employees, and I am personally grateful for their achievements.

A Management Transition Early in 2011, Bill Dries, our chief financial officer since EnPro became an independent public company in May of 2002, announced his intention to retire in September 2011. Bill’s leadership and dedication have contributed greatly to our success. The policies and controls that he helped establish set the company on the right path from the beginning, and he has been a key contributor to our most important management decisions.

Bill will continue as chief financial officer through our annual shareholders’ meeting on May 5 and be succeeded in that role by Alex Pease.

Alex joined us on February 24, 2011, as senior vice president after eight years at McKinsey & Company, where he was involved in the firm’s Global Chemical and Oil & Gas practices and was a leader in its North American Corporate Finance practice. Alex has substantial knowledge of our markets and of areas that will be essential as we continue to grow, including capital allocation, acquisition strategy and risk management. He also brings knowledge of EnPro to the job, having served in a consulting capacity on many of our Continuous Improvement programs.

Bill has served EnPro with distinction and tireless dedication, and we are confident that Alex will likewise serve, as we continue to grow and enhance the value of EnPro for all of our stakeholders.

An Encouraging Outlook In the early months of 2011, we are encouraged by the trends we see in our markets. We expect increased industrial production in most regions of the world and healthy energy markets, which should benefit our Sealing Products and Engineered Products segments. FME should also have another strong year, with sales comparable to 2010, although profitability will reflect increased spending on research and development and a higher mix of new engine shipments, which tend to carry lower profit margins. All of our operations should receive additional benefits from our Continuous Improvement initiatives. We also expect acquisitions completed in 2010 and early 2011 to make a significant contribution to sales and a modest but increasing contribution to profits as we complete their integration into our operations.

We are confident our achievements in 2010 put us on course for continued growth in 2011, and we look forward to sharing the rewards of our growth with our investors.


–  –  –

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a nonaccelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one):

Large accelerated filer Accelerated filer

–  –  –

The aggregate market value of voting and nonvoting common stock of the registrant held by non-affiliates of the registrant as of June 30, 2010 was $563,695,249. As of March 7, 2011, there were 20,674,141 shares of common stock of the registrant outstanding.

–  –  –

Item 1 Business

Item 1A Risk Factors

Item 1B Unresolved Staff Comments

Item 2 Properties

Item 3 Legal Proceedings

Item 4 [Removed and Reserved]

Executive Officers of the Registrant


Item 5 Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 6 Selected Consolidated Financial Data

Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 7A Quantitative and Qualitative Disclosures About Market Risk

Item 8 Financial Statements and Supplementary Data

Item 9 Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A Controls and Procedures

Item 9B Other Information


Item 10 Directors, Executive Officers and Corporate Governance

Item 11 Executive Compensation

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Pages:   || 2 | 3 | 4 | 5 |   ...   | 22 |

Similar works:

«STATEMENT OF Dr. David McClure Associate Administrator Office of Citizen Services and Innovative Technologies General Services Administration BEFORE THE HOUSE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM SUBCOMMITTEE ON GOVERNMENT OPERATIONS Data Centers and the Cloud, Part II: The Federal Government's Take on Optimizing New Information Technologies Opportunities to Save Taxpayers Money” July 25, 2013 Chairman Mica, Ranking Member Connolly, and Members of the Subcommittee: Thank you for the...»

«Economic V i ta l i t y Clean JoBS In THe San DIeGo ReGIon www.coeccc.net To All San Diegans Throughout San Diego County, people have a long and rich history of local community pride and protection of our region’s clean air and water, natural resources, and quality of life. We also have a history of solving tough challenges, through discovery, innovation, and leadership. Like others across the world, our region is now at a crossroads, faced with growing concerns about our future economic...»

«N:\Ethik\Diverses\ethic.doc Die Ethikkommission und ihre Entscheidungen als Vorgabe für ärztliches Handeln Holger Baumgartner Die folgende „Nachlese“ der 4. Österreichischen Medizinrechtstage, Linz Dezember 1999 (aus „Medizin im Spannungsfeld von Ethik, Recht und Ökonomie“ Universitätsverlag. Rudolf Trauner-Linz; 2000), gibt ausschließlich die persönlichen Ansichten eines Arztes und Pharmakologen und damit juristischen Laien wider, der auch keinerlei juridische Fachkompetenz...»

«Red Kite International symposium, October, 17th & 18th 2009 Colloque international Milan royal, 17 & 18 octobre 2009 Montbéliard, France Proceedings Actes Red Kite International symposium, October, 17th & 18th 2009 Colloque international Milan royal, 17 & 18 octobre 2009 Montbéliard, France Proceedings Actes Proceedings of the Red Kite international Symposium, October 2009, France Actes du colloque international Milan royal, Octobre 2009, France Thanks to / tous nos remerciements : • the...»

«Essays on Risk Differentiation and Price Transparency in the Insurer’s Pricing Process DISSERTATION of the University of St. Gallen, School of Management, Economics, Law, Social Sciences and International Affairs to obtain the title of Doctor of Philosophy in Management submitted by Tina St¨rmer o from Germany Approved on the application of Prof. Dr. Hato Schmeiser and Prof. Dr. Peter Maas Dissertation no. 4377 Resch-Druck GmbH, Meiningen 2014 The University of St. Gallen, School of...»

«Review of Competition in Clearing Australian Cash Equities A Consultation Paper by the Council of Financial Regulators February 2015 © Australian Prudential Regulation Authority, Australian Securities and Investments Commission, Reserve Bank of Australia and the Department of the Treasury 2015. All rights reserved. The contents of this publication shall not be reproduced, sold or distributed without the prior consent of the Australian Prudential Regulation Authority, Australian Securities and...»

«HP Advanced Data Center Network Architectures Key Requirements for Building Modern, VirtualizationOptimized Data Center Networks Technical white paper Table of contents Introduction Key Business and Technology Drivers for a New Data Center Network Architecture Large-scale Data Center Consolidation BladeSystems and Server Virtualization Technologies New Application Deployment and Delivery Models HP’s Solution: FlexFabric Networks Wire-Once, Virtual I/O Data Center Network Data Center...»

«Magisterarbeit Titel der Magisterarbeit Economic policies shaping Market Economy in Albania Verfasserin Vanina Kureta Angestrebter akademischer Grad Magistra der Politikwissenschaft Wien, im 15.11.2010 Studienkennzahl lt. Studienblatt: A 300 0109903 Studienrichtung lt. Studienblatt: Politikwissenschaft Betreuerin/ Betreuer Univ.-Prof. Dr. Dieter Segert Acknowledgement The results of this thesis have been possible thanks do the enormous support of my Family. Their love and dedication from the...»

«Giovanni Valcavi 187 On the prohibition of the agreement of forfeiture, the simulated sale for the purpose of guarantee and the trust agreement 1. – The decision of the Divisions sitting together textually confirms the previous one of the same bench, 1611/89 (1). The case decided is linear and does not offer any specificities of fact, which allows some reservations on the unequivocity and amplitude of the dictum, as Mariconda problematically suggested on the previous one (2). The Divisions...»

«1331 Discussion Papers Deutsches Institut für Wirtschaftsforschung 2013 M&A and R&D Asymmetric Effects on Acquirers and Targets? Florian Szücs Opinions expressed in this paper are those of the author(s) and do not necessarily reflect views of the institute.IMPRESSUM © DIW Berlin, 2013 DIW Berlin German Institute for Economic Research Mohrenstr. 58 10117 Berlin Tel. +49 (30) 897 89-0 Fax +49 (30) 897 89-200 http://www.diw.de ISSN print edition 1433-0210 ISSN electronic edition 1619-4535...»

<<  HOME   |    CONTACTS
2016 www.book.dislib.info - Free e-library - Books, dissertations, abstract

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.