(RTTNews) - Compressor and vacuum product maker Gardner Denver Inc. (GDI: News ), Thursday reported a 44% drop in profit for the third quarter, hurt by a 11% decline in revenues from last year, weak demand for products as well as from expenses related to profit improvement initiatives and impairment charges. However, adjusted earnings came in well ahead of Street estimates. Goodrich also provided its outlook for the fourth quarter and raised its adjusted earnings outlook for fiscal year 2009.

The Quincy, Illinois-based company's net income for the fourth quarter dropped sharply to $19.42 million from $34.64 million in the year-ago quarter. On a per share basis, earnings dropped 43% to $0.37 from $0.65 per share last year.

Results for the quarter included expenses of $15.8 million for profit improvement initiatives, nonrecurring expenses and impairment charges. These expenses coupled with the related income tax effect and discrete tax items reduced earnings by $0.24 per share.

Excluding one-time items, the company's earnings declined to $0.61 per share from $0.88 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected the company to earn $0.43 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Revenues for the quarter dropped significantly to $428.85 million from $480.31 million in the prior year quarter. Analysts expected the company to report revenue of $409.33 million for the quarter.

Segment-wise, industrial products segment revenues and orders for the quarter rose 4%, primarily due to the effect of the CompAir acquisition. Engineered Products segment revenues decreased 27% owing to lower volume in most product lines and unfavorable changes in foreign currency exchange rates. Orders for Engineered Products decreased 40%, due to lower demand for most product lines and unfavorable changes in foreign currency exchange rates.
Gross margins for the quarter expanded to 31.5% from 31.3% last year. Operating income for the quarter dropped 43% year-over-year to $31.86 million.

For the nine-month period, the company reported net loss of $202.35 million or $3.90 per share, compared to net income of $135.06 million or $2.52 per share in the same period last year.

Revenues for the nine months decreased 11% to $1.33 billion from $1.50 billion last year.

Looking ahead to the fourth quarter, Gardner Denver said it expects earnings in the range of $0.61 - $0.65 per share. Excluding profit improvement costs, earnings are expected to be in a range of $0.68 - $0.72 per share. Analysts currently expect the company to report earnings of $0.70 per share for the fourth quarter.

To receive FREE breaking news email alerts for Gardner Denver, Inc and others in your portfolio

 1   2   Next Page