IDEX Corp. Q3 2008 Earnings Conference Call Transcript

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2008-10-21 13:26:12.0

Tags: Chairman, Call Transcript, Order, Quarter, Earnings, IDEX Corp., Food & Beverage, Manufacturing, Seeking Alpha, Chairman, Call Transcript, Order, Quarter, Earnings, IDEX Corp., Food & Beverage, Manufacturing, Seeking Alpha

Question-and-Answer Session

Thank you sir. [Operator Instructions]. And for our first question, we go to Mike Schneider with Robert Baird.

Michael Schneider - Robert W. Baird

Good morning, everyone.

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

Hi Mike.

Michael Schneider - Robert W. Baird

Maybe we can start with Larry with the Fluid and Metering division. The orders for the quarter, do you happen to know what the organic rate was? And then can you give us a sense of what changed the most notably since last quarter, because orders were up 11% organically last quarter?

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

Yes. Let me give the numbers Mike. I just want to make sure organic orders were six, and to give you a sense for end markets Mike was that second half of your question?

Michael Schneider - Robert W. Baird

Yes, just so the orders did decelerate from plus 11 last quarter to plus six this quarter. Just what was the most notable change either by business segment or marketing and any details on why?

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

Yes, sure. Well, let me take a step back Mike; think about the breakout of this FMT by end markets. Because I think that gives us a broader perspective too looking forward, the three biggest segments, end markets that we serve within Fluid Metering are refine fuels and gases, what we typically refer to as energy. Water, which is mainly waste water as you know. And then you get chemical, which is they're all in aggregate about 75% of FMT's end market exposure.

We continue to see a very strong demand of the energy end markets. We continue to see and have pretty good visibility toward very strong waste water performance. The only water market's softness that we've seen is in some of the lower priced pumps that are used in the associate residential and some of the later commercial applications for water treatment that goes into the boiler applications and things of that sort. And in chemical, which chemical orders did come down a bit in the quarter.

Now, we think that they are not going to continue to degrade; they actually look at though they've flattened out. But that represents the largest sequential order decline Q3... Q2 to Q3. Beyond those three large segments, FMT is exposed to essentially Ag, which remains decent. The pharma and food segments and food was... did soften a bit from Q2 to Q3.

 

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