CIRCOR International Reports Second Quarter 2011 Financial Results

• Revenues Increase 14% Year Over Year on Strong Demand
• 25% Order Growth with Backlog up Nearly 40% Year Over Year
• Reports EPS of $0.43

BURLINGTON, Mass.--(BUSINESS WIRE)--CIRCOR International, Inc. (NYSE: CIR), a leading provider of valves and other highly engineered products for the industrial, aerospace and energy markets, today announced financial results for the second quarter ended July 3, 2011.

Management Comments on Second-Quarter Results

“Revenues grew 14% year over year as a result of strong operating performance in our aerospace, flow technology and short-cycle energy businesses,” said Chairman and Chief Executive Officer Bill Higgins. “Orders for the quarter increased 25% year over year as a result of strengthening demand across nearly all end markets and contributions from acquisitions. Despite shipping delays in a few large projects in the quarter, which resulted in revenues and earnings below expectations, we continue to expect revenues and earnings to grow through the second half of 2011 and into next year.”

Consolidated Results

Revenues for the second quarter of 2011 were $191.9 million, a 14% increase from $168.0 million in the second quarter of 2010. CIRCOR reported net income for the second quarter of 2011 of $7.5 million, or $0.43 per diluted share, compared with a net loss of $11.2 million, or $0.66 per share, for the second quarter of 2010. Excluding Leslie asbestos and bankruptcy charges, net of tax, earnings per share for the second quarter of 2010 were $0.44.

Consolidated adjusted operating earnings (which exclude Leslie asbestos and bankruptcy charges) were $12.4 million for the second quarter of 2011 compared with $11.6 million for the second quarter of 2010, an increase of 7%.

Consolidated Orders and Free Cash Flow

The Company received orders totaling $213.4 million during the second quarter of 2011, an increase of 25% compared with the second quarter of 2010. Backlog as of July 3, 2011 was $442.0 million, up 39% from backlog of $317.6 million at July 4, 2010.

During the second quarter of 2011, the Company used $76.4 million of free cash flow (defined as net cash from operating activities less capital expenditures), which included the payment of $76.6 million in April 2011 to fund the Leslie Controls Bankruptcy Trust. This compares to $12.6 million of free cash flow generated in the second quarter of 2010.

Energy

CIRCOR’s Energy segment revenues of $82.0 million for the quarter ended July 3, 2011 represent a 6% increase from $77.3 million for the quarter ended July 4, 2010. The increase includes 4% growth from the February 2011 Brazilian energy acquisition and a positive foreign currency impact of 5%. In addition, organic growth declined by 4% primarily due to lower revenue from large international projects, partially offset by strength across the balance of the Energy segment.

Incoming orders for the second quarter of 2011 were $103.2 million, an increase of 30% year over year due to growth across the majority of the segment’s energy businesses. Ending backlog totaled $225.7 million, an increase of 81% year over year.

For the second quarter of 2011, the Energy segment adjusted operating margin of 5.3% was down from 8.3% for the second quarter of 2010 primarily due to lower organic volume and associated leverage as well as the impact of the Brazil energy acquisition, including integration activities.

Aerospace

CIRCOR’s Aerospace segment revenues increased by 30% to $36.0 million for the second quarter of 2011 from $27.8 million in the second quarter of 2010. The increase in revenues was driven by 18% growth from acquisitions, 7% organic growth, and a 5% positive foreign currency impact. The acquisition growth was primarily related to the August 2010 aerospace landing gear acquisition.

Incoming orders for the second quarter of 2011 were $33.4 million, an increase of 24% year over year, primarily due to the positive impact of acquisitions. Ending backlog totaled $133.1 million, an increase of 14% year over year.

The Aerospace segment’s adjusted operating margin was 11.2% for the second quarter of 2011, compared with 14.6% for the second quarter of 2010. Second-quarter adjusted operating margins decreased primarily due to unfavorable product mix and development costs associated with new program wins.

Flow Technologies

CIRCOR’s Flow Technologies segment revenues increased 17% to $73.9 million for the second quarter of 2011 from $62.9 million in the second quarter of 2010. Second-quarter 2011 revenues reflected organic growth of 12% with strength across nearly all end markets, growth from acquisitions of 1%, and a favorable foreign currency impact of 4%.

Incoming orders for this segment were $76.8 million for the second quarter of 2011, an increase of 19% year over year due to an improvement in most markets. Ending backlog totaled $83.2 million, an increase of 10% year over year.

This segment’s adjusted operating margin, which excludes the impact of Leslie asbestos and bankruptcy charges, for the second quarter of 2011, was 12.4%, compared with 10.1% in the second quarter of 2010. The second-quarter year-over-year increase was primarily due to revenue leverage.

Business and Financial Outlook

“Most of our markets have seen strong growth during the first half of 2011 and we have a sizable and growing backlog across all businesses to work with going forward,” said Higgins. “With this as our base, we are focused on converting the growing backlog, leveraging our newer acquisitions for growth, and expanding margins in our energy projects.”

CIRCOR currently expects revenues for the third quarter of 2011 in the range of $202 million to $212 million. Earnings are expected to be in the range of $0.47 to $0.57 per diluted share. CIRCOR’s guidance for earnings per share assumes a 30% tax rate and that exchange rates remain at present levels.

Conference Call Information

CIRCOR International will hold a conference call to review its financial results today, August 4, 2011, at 10:00 a.m. ET. Those who wish to listen to the conference call and view the accompanying presentation slides should visit “Webcasts & Presentations” in the “Investors” portion of the CIRCOR website. The live call also can be accessed by dialing [phone] or [phone]. If you are unable to listen to the live call, the webcast will be archived for one year on the Company’s website.

Use of Non-GAAP Financial Measures

Adjusted net income, adjusted earnings per diluted share, adjusted operating margin, and free cash flow are non-GAAP financial measures and are intended to serve as a complement to results provided in accordance with accounting principles generally accepted in the United States. CIRCOR believes that such information provides an additional measurement and consistent historical comparison of the Company’s performance. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available in this news release.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, those relating to CIRCOR’s future performance, including third-quarter revenue and earnings guidance. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About CIRCOR International, Inc.

CIRCOR International, Inc. designs, manufactures and markets valves and other highly engineered products for the industrial, aerospace and energy markets. With more than 7,000 customers in over 100 countries, CIRCOR has a diversified product portfolio with recognized, market-leading brands. CIRCOR’s culture, built on the CIRCOR Business System, is defined by the Company’s commitment to attracting, developing and retaining the best talent and pursuing continuous improvement in all aspects of its business and operations. The Company’s strategy includes growing organically by investing in new, differentiated products; adding value to component products; and increasing the development of mission-critical subsystems and solutions. CIRCOR also plans to leverage its strong balance sheet to acquire strategically complementary businesses. For more information, visit the Company’s investor relations web site at http://investors.circor.com.

CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED
	Three Months Ended						Six Months Ended
	July 3, 2011			July 4, 2010			July 3, 2011			July 4, 2010
Net revenues	$	191,908		$	168,005		$	395,278		$	314,274
Cost of revenues		137,302			118,463			284,444			222,013
GROSS PROFIT		54,606			49,542			110,834			92,261
Selling, general and administrative expenses		42,180			37,959			84,635			73,376
Leslie asbestos and bankruptcy charges (recoveries)		(124	)		28,908			877			28,260
OPERATING INCOME (LOSS)		12,550			(17,325	)		25,322			(9,375	)
Other expense (income):
Interest income		(54	)		(50	)		(97	)		(92	)
Interest expense		1,286			636			2,102			1,233
Other expense, net		560			258			1,476			207
Total other expense		1,792			844			3,481			1,348
INCOME (LOSS) BEFORE INCOME TAXES		10,758			(18,169	)		21,841			(10,723	)
Provision (Benefit) for income taxes		3,261			(6,928	)		6,439			(5,216	)
NET INCOME (LOSS)	$	7,497		$	(11,241	)	$	15,402		$	(5,507	)
Earnings per common share:
Basic	$	0.43		$	(0.66	)	$	0.90		$	(0.32	)
Diluted	$	0.43		$	(0.66	)	$	0.88		$	(0.32	)
Weighted average common shares outstanding:
Basic		17,251			17,108			17,206			17,080
Diluted		17,434			17,108			17,406			17,080

CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
	Six Months Ended
	July 3, 2011			July 4, 2010
OPERATING ACTIVITIES
Net income (loss)	$	15,402		$	(5,507	)
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation		7,496			6,343
Amortization		2,196			1,942
Compensation expense of share-based plans		1,960			1,814
Tax effect of share based compensation		(637	)		(90	)
(Gain) loss on disposal of property, plant and equipment		(39	)		275
(Payment) provision for Leslie bankruptcy settlement		(76,625	)		24,974
Changes in operating assets and liabilities, net of
effects from business acquisitions:
Trade accounts receivable		(9,486	)		(19,247	)
Inventories		(37,714	)		(14,850	)
Prepaid expenses and other assets		(6,163	)		3,228
Accounts payable, accrued expenses and other liabilities		36,208			15,511
Net cash (used in) provided by operating activities		(67,402	)		14,393
INVESTING ACTIVITIES
Additions to property, plant and equipment		(7,463	)		(8,187	)
Proceeds from the disposal of (purchases of) property, plant and equipment		50			(233	)
Purchases of investments		(2	)		0
Proceeds from the sale of investments		0			21,427
Business acquisitions, net of cash acquired		(20,221	)		(5,210	)
Net cash (used in) provided by investing activities		(27,636	)		7,797
FINANCING ACTIVITIES
Proceeds from long-term borrowings		201,087			32,458
Payments of long-term borrowings		(101,994	)		(34,645	)
Debt issuance costs		(2,001	)		0
Dividends paid		(1,325	)		(1,279	)
Proceeds from the exercise of stock options		476			293
Tax effect of share based compensation		637			90
Net cash provided by (used in) financing activities		96,880			(3,083	)
Effect of exchange rate changes on cash and cash equivalents		708			(4,600	)
INCREASE IN CASH AND CASH EQUIVALENTS		2,550			14,507
Cash and cash equivalents at beginning of year		45,752			46,350
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	48,302		$	60,857

CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
	July 3, 2011		December 31, 2010
ASSETS
Current Assets:
Cash & cash equivalents	$	48,302	$	45,752
Short-term investments		107		101
Trade accounts receivable, less allowance
for doubtful accounts of $845 and $822, respectively		151,567		138,860
Inventories		210,103		167,797
Income taxes refundable		0		1,625
Prepaid expenses and other current assets		11,504		5,749
Deferred income tax asset		20,585		20,111
Insurance receivables		0		38
Assets held for sale		542		542
Total Current Assets		442,710		380,575
Property, Plant and Equipment, net		106,586		95,768
Other Assets:
Goodwill		79,930		63,175
Intangibles, net		62,738		62,322
Deferred income tax asset		12,589		11,829
Other assets		4,644		2,526
Total Assets	$	709,197	$	616,195
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	99,778	$	80,577
Accrued expenses and other current liabilities		70,372		51,248
Accrued compensation and benefits		21,144		22,305
Leslie asbestos and bankruptcy related liabilities		1,642		79,831
Income taxes payable		0		38
Notes payable and current portion of long-term debt		2,154		851
Total Current Liabilities		195,090		234,850
Long-Term Debt, net of current portion		103,083		684
Deferred income taxes		3,250		0
Other Non-Current Liabilities		21,941		23,841
Shareholders' Equity:
Preferred stock, $.01 par value; 1,000,000 shares
authorized; no shares issued and outstanding		0		0
Common stock, $.01 par value; 29,000,000 shares
authorized; and 17,202,100 and 17,112,688 issued and
outstanding, respectively		173		171
Additional paid-in capital		256,094		254,154
Retained earnings		110,497		96,389
Accumulated other comprehensive income		19,069		6,106
Total Shareholders' Equity		385,833		356,820
Total Liabilities and Shareholders' Equity	$	709,197	$	616,195

CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in millions)
UNAUDITED
		Three Months Ended				Six Months Ended
		July 3, 2011		July 4, 2010			July 3, 2011		July 4, 2010
ORDERS^1
	Energy	$	103.2	$	79.4		$	217.0	$	145.6
	Aerospace		33.4		27.0			66.3		61.8
	Flow Technologies		76.8		64.3			151.7		133.5
	Total orders	$	213.4	$	170.7		$	435.0	$	340.9
		July 3, 2011		July 4, 2010
BACKLOG ^2
	Energy	$	225.7	$	124.7
	Aerospace		133.1	$	117.2
	Flow Technologies		83.2	$	75.7
	Total backlog	$	442.0	$	317.6
Note 1: Orders do not include the foreign exchange impact due to the re-measurement of customer order backlog amounts denominated in foreign currencies.
Note 2: Backlog includes all unshipped customer orders.

CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
			2010																2011
			1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			YTD
NET REVENUES
	Energy		$	57,722		$	77,305		$	80,613		$	90,229		$	305,869		$	99,170		$	81,994		$	181,164
	Aerospace			27,274			27,811			28,316			35,465			118,866			32,110			36,029			68,139
	Flow Technologies			61,273			62,889			68,648			68,365			261,175			72,090			73,885			145,975
		Total		146,269			168,005			177,577			194,059			685,910			203,370			191,908			395,278
* ADJUSTED OPERATING MARGIN
	Energy			3.5	%		8.3	%		11.1	%		6.7	%		7.7	%		6.4	%		5.3	%		5.9	%
	Aerospace			13.2	%		14.6	%		9.6	%		14.1	%		13.0	%		11.6	%		11.2	%		11.4	%
	Flow Technologies			10.2	%		10.1	%		13.1	%		12.5	%		11.5	%		13.7	%		12.4	%		13.0	%
		Segment operating margin		8.1	%		10.0	%		11.7	%		10.1	%		10.1	%		9.8	%		9.1	%		9.5	%
	Corporate expenses			-3.1	%		-3.1	%		-2.7	%		-3.3	%		-3.1	%		-3.0	%		-2.7	%		-2.9	%
		* Adjusted operating margin		5.0	%		6.9	%		8.9	%		6.7	%		7.0	%		6.8	%		6.5	%		6.6	%
	Leslie asbestos and bankruptcy charges (recoveries)			-0.4	%		17.2	%		1.3	%		1.1	%		4.8	%		0.5	%		-0.1	%		0.2	%
		Total operating margin		5.4	%		-10.3	%		7.6	%		5.6	%		2.2	%		6.3	%		6.5	%		6.4	%
* ADJUSTED OPERATING INCOME
	Energy			2,025			6,424			8,968			6,024			23,441			6,393			4,373			10,766
	Aerospace			3,607			4,067			2,726			5,002			15,402			3,727			4,021			7,748
	Flow Technologies			6,276			6,367			8,997			8,512			30,152			9,854			9,133			18,987
		Segment operating income		11,908			16,858			20,691			19,538			68,995			19,974			17,527			37,501
	Corporate expenses			(4,607	)		(5,274	)		(4,859	)		(6,494	)		(21,234	)		(6,201	)		(5,100	)		(11,301	)
		* Adjusted operating income		7,301			11,584			15,832			13,044			47,761			13,773			12,427			26,200
	Leslie asbestos and bankruptcy charges (recoveries)			(648	)		28,908			2,343			2,173			32,776			1,001			(124	)		877
		Total operating income		7,949			(17,325	)		13,490			10,871			14,986			12,772			12,550			25,322
INTEREST EXPENSE, NET				(554	)		(586	)		(734	)		(641	)		(2,515	)		(773	)		(1,232	)		(2,005	)
OTHER (EXPENSE) INCOME, NET				51			(258	)		853			(608	)		38			(915	)		(560	)		(1,476	)
	PRETAX INCOME (LOSS)			7,446			(18,169	)		13,609			9,622			12,508			11,084			10,758			21,841
(PROVISION) BENEFIT FOR INCOME TAXES				(1,713	)		6,928			(3,210	)		(1,890	)		115			(3,178	)		(3,261	)		(6,439	)
EFFECTIVE TAX RATE				23.0	%		38.1	%		23.6	%		19.6	%		-0.9	%		28.7	%		30.3	%		29.5	%
	NET INCOME (LOSS)		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624		$	7,906		$	7,497		$	15,402
Weighted Average Common Shares Outstanding (Diluted)				17,193			17,108			17,258			17,378			17,297			17,378			17,434			17,406
EARNINGS PER COMMON SHARE (Diluted)			$	0.33		$	(0.66	)	$	0.60		$	0.44		$	0.73		$	0.45		$	0.43		$	0.88
EBIT			$	8,000		$	(17,583	)	$	14,343		$	10,263		$	15,024		$	11,857		$	11,990		$	23,848
Depreciation				3,228			3,115			3,166			3,566			13,075			3,575			3,921			7,496
Amortization of intangibles				979			964			1,122			1,236			4,301			1,418			778			2,196
	EBITDA		$	12,207		$	(13,504	)	$	18,631		$	15,065		$	32,400		$	16,850		$	16,689		$	33,540
EBITDA AS A PERCENT OF SALES				8.3	%		-8.0	%		10.5	%		7.8	%		4.7	%		8.3	%		8.7	%		8.5	%
CAPITAL EXPENDITURES			$	3,606		$	4,580		$	3,213		$	3,513		$	14,913		$	2,693		$	4,770		$	7,464
* Adjusted Operating Income & Margin excludes Leslie asbestos and bankruptcy charges.

CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
			2010															2011
			1ST QTR			2ND QTR			3RD QTR			4TH QTR			YTD			1ST QTR			2ND QTR			YTD
FREE CASH FLOW [NET CASH FLOW FROM OPERATING
	ACTIVITIES LESS CAPITAL EXPENDITURES]		$	(6,380	)	$	12,587		$	(2,863	)	$	16,221		$	19,564		$	1,522		$	(76,387	)	$	(74,866	)
	ADD:
		Capital Expenditures		3,606			4,580			3,213			3,513			14,913			2,693			4,770			7,464
	NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		$	(2,774	)	$	17,167		$	350		$	19,734		$	34,477		$	4,215		$	(71,617	)	$	(67,402	)
NET DEBT (CASH) [TOTAL DEBT LESS CASH & CASH
	EQUIVALENTS LESS INVESTMENTS]		$	(52,713	)	$	(55,976	)	$	(26,225	)	$	(44,318	)	$	(44,318	)	$	(22,562	)	$	56,828		$	56,828
	ADD:
		Cash & cash equivalents		37,812			60,857			68,526			45,752			45,752			53,491			48,302			48,302
		Investments		22,412			94			97			101			101			107			107			107
	TOTAL DEBT		$	7,511		$	4,975		$	42,398		$	1,535		$	1,535		$	31,036		$	105,237		$	105,237
DEBT AS % OF EQUITY				2	%		2	%		12	%		0	%		0	%		8	%		27	%		27	%
	TOTAL DEBT			7,511			4,975			42,398			1,535			1,535			31,036			105,237			105,237
	TOTAL SHAREHOLDERS' EQUITY			349,244			324,128			351,719			356,820			356,820			374,706			385,833			385,833
EBIT [NET INCOME LESS INCOME TAXES LESS
	INTEREST EXPENSE, NET]		$	8,000		$	(17,583	)	$	14,343		$	10,263		$	15,023		$	11,857		$	11,990		$	23,847
	LESS:
		Interest expense, net		(554	)		(586	)		(734	)		(641	)		(2,515	)		(773	)		(1,232	)		(2,005	)
		(Provision) benefit for income taxes		(1,713	)		6,928			(3,210	)		(1,890	)		115			(3,178	)		(3,261	)		(6,439	)
	NET INCOME		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624		$	7,906		$	7,497		$	15,404
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET,
	LESS DEPRECIATION LESS AMORTIZATION LESS INCOME
	TAXES]		$	12,207		$	(13,504	)	$	18,631		$	15,065		$	32,399		$	16,850		$	16,689		$	33,539
	LESS:
		Interest expense, net		(554	)		(586	)		(734	)		(641	)		(2,515	)		(773	)		(1,232	)		(2,005	)
		Depreciation		(3,228	)		(3,115	)		(3,166	)		(3,566	)		(13,075	)		(3,575	)		(3,921	)		(7,496	)
		Amortization		(979	)		(964	)		(1,122	)		(1,236	)		(4,301	)		(1,418	)		(778	)		(2,196	)
		(Provision) benefit for income taxes		(1,713	)		6,928			(3,210	)		(1,890	)		115			(3,178	)		(3,261	)		(6,439	)
	NET INCOME		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624		$	7,906		$	7,497		$	15,404
ADJUSTED INCOME [NET INCOME EXCLUDING
	LESLIE ASBESTOS AND BANKRUPTCY
	CHARGES, NET OF TAX]		$	5,312		$	7,549		$	11,922		$	9,144		$	33,928		$	8,557		$	7,416		$	15,974
	LESS:
		Leslie asbestos and bankruptcy charges
		(recoveries), net of tax		(421	)		18,790			1,523			1,412			21,304			651			(81	)		570
	NET INCOME		$	5,733		$	(11,241	)	$	10,399		$	7,732		$	12,624		$	7,906		$	7,497		$	15,404
ADJUSTED WEIGHTED AVERAGE SHARES
				N/A			17,109			N/A			N/A			N/A			N/A			N/A			N/A
	Adjustment for anti-dilutive conversion of shares			0			153			0			0			0			0			0			0
	Weighted average common shares outstanding (diluted)			17,193			17,262			17,258			17,378			17,297			17,378			17,434			17,406
ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING
	LESLIE ASBESTOS AND BANKRUPTCY
	CHARGES, NET OF TAX]		$	0.31		$	0.44		$	0.69		$	0.53		$	1.97		$	0.49		$	0.43		$	0.92
	LESS:
		Leslie asbestos and bankruptcy charges
		(recoveries), net of tax impact on EPS		(0.02	)		1.10			0.09			0.08			1.24			0.04			(0.00	)		0.04
	EARNINGS PER COMMON SHARE (Diluted)		$	0.33		$	(0.66	)	$	0.60		$	0.44		$	0.73		$	0.45		$	0.43		$	0.88

CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF FUTURE PERFORMANCE MEASURES TO COMMONLY
USED GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
UNAUDITED
			3rd QTR 2011
			Low		High
EXPECTED ADJUSTED EARNINGS PER SHARE [EPS EXCLUDING
	SPECIAL, IMPAIRMENT, AND LESLIE ASBESTOS AND
	BANKRUPTCY CHARGES, NET OF TAX]		$	0.47	$	0.57
	LESS:
		Expected special charges (recoveries), net of tax
		impact on EPS	$	-	$	-
		Expected impairment charges, net of tax impact
		on EPS	$	-	$	-
		Expected Leslie asbestos and bankruptcy charges,
		net of tax impact on EPS	$	-	$	-
	EXPECTED EARNINGS PER COMMON SHARE (Diluted)		$	0.47	$	0.57