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>FOURTH QUARTER 2005 EARNINGS RELEASEJANUARY 26, 2006
FORWARD LOOKING STATEMENTS
Statements in this document that are not strictly historical, including statements regarding events or developments that we believe or anticipate will or may occur in the future, may be "forward-looking" statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These factors include, among other things, litigation and other contingent liabilities, the Company's ability to achieve projected efficiencies, cost reductions, sales growth and earnings, economic conditions in the end-markets the Company sells into, the Company's ability to expand its business in new geographic markets, commodity costs and surcharges, competition, market demand for new products, currency exchange rates, the integration of acquired businesses, changes in the market for acquisitions and divestitures, regulatory approvals and the Company's ability to consummate announced acquisitions, and general economic conditions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings.
FOURTH QUARTER 2005PERFORMANCE SUMMARY
Q4 04 Q4 05 2004 2005
0.67
0.81 $2.30
$2.79
EARNINGS PER SHARE REVENUES
+21% +14.5%
Q4 04 Q4 05 2004 2005
$1,980
$2,264$6,889
$7,985
+21.5% +16%
Core 4.5%Acquisition 11.5%
Core 5.5%Acquisition 11.5%FX (2.5%)
FOURTH QUARTER 2005PERFORMANCE SUMMARY
GROSS MARGINS SG & A
+120 BPS
Q4 04 Q4 05 2004 2005
26.4%26.8%
26.1%
27.3%
Q4 04 Q4 05 2004 2005
42.2%
43.0%
42.0%
43.2%
+80 BPS +120 BPS +40 BPS
FOURTH QUARTER 2005PERFORMANCE SUMMARY
OPERATING PROFIT OPERATING MARGINS
Flat
Q4 04 Q4 05 2004 2005
16.0% 16.2%16.0% 16.0%
Q4 04 Q4 05 2004 2005
$316$368
$1,105$1,280
+16%
Acquisition ImpactQ4 05 Approx -75 BPS
+16% +20 BPS
Acquisition Impact2005 Approx -40 BPS
FOURTH QUARTER 2005PERFORMANCE SUMMARY
NET INTEREST EXPENSE TAX RATE
-100 BPS
Q4 04 Q4 05
28.5% 27.5%
Q4 04 Q4 05
$11.5
$6.8
-41%
Q4 04 Q4 05 2004 2005
$218
$262$746
$908
NET INCOME+20% +21.5%
FOURTH QUARTER 2005PERFORMANCE SUMMARY
FOURTH QUARTER 2005PERFORMANCE SUMMARY
2004 2005
$116 $121
OPERATING CASH FLOW CAP EX
2004 2005
$1,033$1,204
FREE CASH FLOW+16.5% +18%+5%
2004 2005
$917
$1,083
Q4 04 Q4 05 2004 2005
$947$1,170
$2,964
$3,782
FOURTH QUARTER 2005PROFESSIONAL INSTRUMENTATION
OPERATING MARGINSREVENUES-80 BPS+23.5%
Acquisition ImpactQ4 05 Approx -190 BPS
Core 5.5%Acquisition 21.5%FX (3.5%)
Q4 04 Q4 05 2004 2005
18.5% 17.7%18.7%
17.9%
+27.5% -80 BPS
Core 5.0%Acquisition 23.0%FX (0.5%)
Acquisition Impact2005 Approx -90 BPS
FOURTH QUARTER 2005ENVIRONMENTAL
4Q 05 vs. 4Q 04Revenue Growth 9.5%
Breakdown: Core 8.5%Acquisition 4.0%FX (3.0%)
2005 vs. 2004Revenue Growth 12.5%
Breakdown: Core 5.0%Acquisition 7.5%
FOURTH QUARTER 2005ELECTRONIC TEST
4Q 05 vs. 4Q 04Revenue Growth 9.0%
Breakdown: Core 1.0%Acquisition 9.0%FX (1.0%)
2005 vs. 2004Revenue Growth 16.0%
Breakdown: Core 6.5%Acquisition 8.5%FX 1.0%
FOURTH QUARTER 2005MEDICAL TECHNOLOGIES
4Q 05 vs. 4Q 04Revenue Growth 55.5%
Breakdown: Core 5.5%Acquisition 56.0%FX (6.0%)
2005 vs. 2004Revenue Growth 75.5%
Breakdown: Core 2.5%Acquisition 75.0%FX (2.0%)
FOURTH QUARTER 2005INDUSTRIAL TECHNOLOGIES
OPERATING MARGINSREVENUES+140 BPS+8.5%
Q4 04 Q4 05 2004 2005
14.9%
16.3%
14.6%15.2%
Q4 04 Q4 05 2004 2005
$687$744
$2,619$2,908
+11% +60 BPS
Core 6.0%Acquisition 5.0%FX (2.5%)
Core 5.0%Acquisition 6.0%
FOURTH QUARTER 2005PRODUCT IDENTIFICATION
4Q 05 vs. 4Q 04Revenue Growth 21.0%
Breakdown: Core 10.5%Acquisition 13.0%FX (2.5%)
2005 vs. 2004Revenue Growth 26.0%
Breakdown: Core 9.5%Acquisition 16.0%FX 0.5%
FOURTH QUARTER 2005MOTION
4Q 05 vs. 4Q 04Revenue Growth 0.5%
Breakdown: Core 3.0%Acquisition 1.5%FX (4.0%)
2005 vs. 2004Revenue Growth 2.5%
Breakdown: Core 0.5%Acquisition 2.5%FX (0.5%)
FOURTH QUARTER 2005TOOLS & COMPONENTS
OPERATING MARGINSREVENUES+40 BPS+1.0%
Q4 04 Q4 05 2004 2005
14.2% 14.6% 15.2%15.4%
Q4 04 Q4 05 2004 2005
$346 $349
$1,306 $1,294
Core 4.0%Divestiture -3.0%
Core 4.0%Divestiture -5.0%
-1.0% +20 BPS
FOURTH QUARTER 2005MECHANICS HAND TOOLS
4Q 05 vs. 4Q 04Revenue Growth 1.0%
Breakdown: Core 1.0%
2005 vs. 2004Revenue Growth 4.0%
Breakdown: Core 4.0%
2006 OUTLOOK
Guidance
2006 OUTLOOK
Q & A
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