IDEX Corp. Q2 2008 Earnings Call Transcript

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2008-07-22 17:48:18.0

Tags: IDEX Corp.

Question-and-Answer Session

[Operator Instructions]. Our first question comes from Mike Schneider of Robert W. Baird.

Mike Schneider - Robert W. Baird

Good morning, guys.

Larry D. Kingsley - Chairman, President and Chief Executive Officer

Hi Mike.

Mike Schneider - Robert W. Baird

Just some questions on the outlook. First, congratulations on a nice quarter. In Dispensing, it looks like the total organic growth rate forecasted for the year was ticked down by just one point from 4 to 6 to 3 to 5. Is that primarily just a slightly lower outlook on Dispensing?

Larry D. Kingsley - Chairman, President and Chief Executive Officer

It is, Mike. Basically, we are assuming that we are going to continue to see relatively soft domestic markets spend out of the smaller retailers and that some of the CapEx programs with the large retailers may push a bit as well. So that's built into the slightly lower organic assumptions for the full year.

Mike Schneider - Robert W. Baird

And the large CapEx programs, have you actually seen project delays yet or you are just being conservative and anticipating them based on the market?

Larry D. Kingsley - Chairman, President and Chief Executive Officer

No, we have seen some delays.

Mike Schneider - Robert W. Baird

Okay. And then, the margin in Dispensing, you mentioned raw materials hit you seemingly quite hard this quarter. What pricing actions have you taken and should we see the benefit of those in the second half?

Larry D. Kingsley - Chairman, President and Chief Executive Officer

First, maybe on across company comment, we actually did in the quarter realized both the cost mitigation actions as well as selective price actions essentially offset material on across company basis. Within Dispensing, sheets deal was the primary culprit what we saw fair amount of increase that we couldn't recover which generated a portion of that 330 basis points year-over-year. The back half of the year will probably recover some of that again both cost but also a little bit of price. On a company wide basis, we feel very comfortable that we're in good shape relative to material margin based on the actions that are already in place.

Mike Schneider - Robert W. Baird

Okay. And then, just on the other side, so acquisitions, it looks like you actually took your forecast up a bit, what acquisition is driving the growth, is that Iso Tech or just a collection of them?

 

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