Common use of Results of Operations Clause in Contracts

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on the following page and the Company's Statements of Consolidated Operations included in the Financial Statements section. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. PERFORMANCE IN THE THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THE SAME PERIOD OF 2000 IDEX reported record sales; however, recorded lower net income and earnings per share for the first quarter of 2001 compared with last year. Incoming orders of $189.7 million were 2% lower than 2000 as a result of an 11% decrease in the base businesses and a 2% negative effect from foreign currency translation partially offset by 11% growth from recent acquisitions. Net sales for the three months ended March 31, 2001 were $187.4 million, a 6% increase over the $176.7 million for the comparable 2000 period. Acquisitions accounted for a 13% improvement, which was partially offset by a 5% decline in base sales activity and a 2% unfavorable currency translation. Net income was $7.2 million, 54% lower than the $15.8 million earned in the first quarter of 2000. Diluted earnings per share decreased 29 cents to 23 cents, down 56% compared with the same period a year ago. Excluding the one-time restructuring charge, net income was $10.7 million, 32% lower than the $15.8 million earned in last year's first quarter, and diluted earnings per share were 35 cents, down 33% from 52 cents last year. In the first three months of 2001, the Pump Products Group contributed 58% of sales and 60% of operating income, the Dispensing Equipment Group accounted for 19% of sales and 17% of operating income, and the Engineered Products Group represented both 23% of sales and operating income. In the first three months of 2001, international sales grew by 9% while domestic sales increased by 4% compared with last year. As a result, international sales were 41% of total sales, up from 40% in the same quarter of 2000. Pump Products Group sales of $109.7 million for the three months ended March 31, 2001 increased by $10.8 million, or 11%, from 2000 principally reflecting the Ismatec, Trebor and Liquid Controls acquisitions which added 16% to the first quarter sales. Base business sales volume was down 4% from last year and foreign currency had a 1% negative effect on the Group's sales comparison to 2000. In the first quarter of 2001, international sales grew by 24% and domestic sales increased by 5% principally reflecting the recent acquisitions. Excluding acquisitions and foreign currency, base international sales increased 1%, while base U.S. sales volume decreased 7% due to weak conditions in the U.S. manufacturing sector. Sales to customers outside the United States increased to 35% of total group sales in 2001 from 31% in 2000 principally due to recent acquisitions and the change in sales mix caused by the weaker domestic sales in 2001. Dispensing Equipment Group sales of $35.8 million decreased $4.1 million, or 10%, in the first quarter of 2001 compared with last year's first quarter. Base business volume was down 6% from 2000 and foreign currency translation had a 4% negative effect. In the first quarter of 2001, international sales were essentially equal to last year, while domestic sales decreased by 21% due to continuing weak conditions in the U.S. manufacturing sector, which caused significant year-over-year volume declines. Sales to customers outside the United States were 57% of total group sales in 2001, up from 51% in 2000 primarily reflecting a change in sales mix due to the weaker domestic sales in 2001. Other Engineered Products sales of $42.3 million increased by $3.9 million, or 10%, in the first quarter of 2001 compared with 2000 principally reflecting the Class 1 acquisition which added 18% to the first quarter sales. Overall base business sales decreased by 5% and foreign currency translation had a negative effect of 3%. In the first quarter of 2001, domestic sales increased by 24% and international sales decreased by 6% with the lower international sales resulting from foreign currency translation. Excluding foreign currency and acquisitions, international base sales increased by 1% in 2001, while the base U.S. sales volume decreased 10% compared to last year due to the weak conditions in the U.S. manufacturing markets. Sales to customers outside the United States were 41% of total group sales in 2001, down from 48% in 2000 principally reflecting the change in sales mix due to the Class 1 acquisition. IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (IN THOUSANDS) FOR THE THREE MONTHS ENDED MARCH 31, 2001(1) 2000 (UNAUDITED) Pump Products Group

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on the following page 11 and the Company's Statements of Consolidated Operations included in the Financial Statements section. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. PERFORMANCE IN THE THREE MONTHS SECOND QUARTER ENDED MARCH 31JUNE 30, 2001 COMPARED TO THE SAME PERIOD OF 2000 IDEX reported record sales; however, recorded increased orders and sales and lower net income and earnings per share for the first second quarter of 2001 compared with last year. Incoming orders of orders, $189.7 million 191.4 million, were 26% lower higher than 2000 as a result of an 11recent acquisitions (Ismatec -- April 2000, Trebor -- May 2000, Class 1 -- January 2001, Liquid Controls -- January 2001 and Versa-Matic -- June 2001) contributing growth of 15%, partially offset by a 7% decrease in the base businesses and a 2% negative effect from foreign currency translation partially offset by 11% growth from recent acquisitionstranslation. Net sales for in the three months ended March 31, 2001 were second quarter grew 4% to $187.4 million, a 6% increase over the 192.6 million from $176.7 185.3 million for the comparable 2000 period. Acquisitions accounted for a 13% improvement, which was partially offset by a 57% decline in base sales business activity and a 2% unfavorable currency translation. Net income was $7.2 13.0 million, 5426% lower than the record $15.8 million earned in the first quarter of 2000. Diluted earnings per share decreased 29 cents to 23 cents, down 56% compared with the same period a year ago. Excluding the one-time restructuring charge, net income was $10.7 million, 32% lower than the $15.8 17.5 million earned in last year's first second quarter, and diluted . Diluted earnings per share were 35 share, at 42 cents, also were down 3326% from 52 cents last year's record 57 cents. In the first three months second quarter of 2001, the Pump Products Group contributed 5857% of sales and 6056% of operating income, the Dispensing Equipment Group accounted for 1922% of sales and 17% of operating income, and the Engineered Products Group represented both 2321% of sales and 22% of operating income. In the first three months of 2001, international sales grew by 9% while domestic sales increased by 4% compared with last year. As a result, international International sales were 4143% of total sales, up from 4041% in the same quarter of 2000. In the second quarter of 2001, international sales grew by 8% while domestic sales increased by 1% compared with last year. Excluding the recent acquisitions and currency translation, international sales increased 1% while domestic sales decreased 13%. Pump Products Group sales of $109.7 110.4 million for the three months ended March 31June 30, 2001 increased by $10.8 8.5 million, or 118%, from 2000 principally reflecting the Ismatec, Trebor and Trebor, Liquid Controls and Versa-Matic acquisitions which added 16% to the first second quarter sales. Base business sales volume was down 47% from last year and foreign currency had a 1% negative effect on the Group's sales comparison to 2000. In the first second quarter of 2001, international sales grew by 2422% and domestic sales increased by 52% principally reflecting the recent acquisitions. Excluding acquisitions and foreign currency, base international sales increased 1decreased 2%, while base U.S. sales volume decreased 710% due to with the lower U.S. sales principally caused by weak conditions in the U.S. manufacturing sector. Sales As a result, sales to customers outside the United States U.S. increased to 3537% of total group sales in 2001 from 3133% in 2000 principally due to recent acquisitions and the change in sales mix caused by the weaker domestic sales in 2001acquisitions. Dispensing Equipment Group sales of $35.8 41.6 million decreased $4.1 5.6 million, or 1012%, in the first second quarter of 2001 compared with last year's first second quarter. Base business volume was down 68% from 2000 and foreign currency translation had a 4% negative effect. In the first second quarter of 2001, international sales essentially were essentially equal to last year, while domestic sales decreased by 2125% due to continuing weak conditions in the U.S. manufacturing sector, which caused significant year-over-year volume declinesdeclines in U.S. markets. Sales to customers outside the United States U.S. were 5760% of total group sales in 2001, up from 5153% in 2000 primarily reflecting a change in sales mix due to the weaker domestic U.S. sales in 2001. Other Engineered Products sales of $42.3 41.3 million increased by $3.9 4.4 million, or 1012%, in the first second quarter of 2001 compared with 2000 principally reflecting the Class 1 acquisition which added 1819% to the first second quarter sales. Overall base business sales decreased by 56% and foreign currency translation had a negative effect of 3%1% on this Group's sales volume. In the first second quarter of 2001, domestic sales increased by 2426% and international sales decreased by 6% with the lower international sales resulting from foreign currency translation4%. Excluding foreign currency and acquisitions, international base sales increased decreased by 13% in 2001, while the base U.S. sales volume decreased 108% compared to last year due to the weak conditions in the U.S. manufacturing marketsyear. Sales to customers outside the United States U.S. were 4140% of total group sales in 2001, down from 4847% in 2000 principally reflecting the change in sales mix due to the Class 1 acquisition. IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (IN THOUSANDS) FOR THE THREE MONTHS ENDED MARCH 31, 2001(1) 2000 (UNAUDITED) SECOND QUARTER ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------------------- -------------------- 2001(1) -------- 2000(2) -------- 2001(1) -------- 2000(2) -------- Pump Products GroupGroup Net sales(3)................................ $110,433 $101,906 $220,175 $200,893 Operating income before restructuring(4).... 16,721 18,942 32,946 38,265 Operating margin............................ 15.1% 18.6% 15.0% 19.0% Depreciation and amortization............... $ 6,146 $ 5,047 $ 12,319 $ 10,022 Capital expenditures........................ 2,656 1,867 5,283 3,833 Dispensing Equipment Group Net sales(3)................................ $ 41,577 $ 47,172 $ 77,411 $ 87,092 Operating income before restructuring(4).... 6,626 10,715 11,274 17,932 Operating margin............................ 15.9% 22.7% 14.6% 20.6% Depreciation and amortization............... $ 2,247 $ 2,244 $ 4,657 $ 4,382 Capital expenditures........................ 1,591 1,382 2,703 2,483 Other Engineered Products Group Net sales(3)................................ $ 41,333 $ 36,978 $ 83,612 $ 75,381 Operating income before restructuring(4).... 6,627 6,549 12,674 13,988 Operating margin............................ 16.0% 17.7% 15.2% 18.6% Depreciation and amortization............... $ 1,910 $ 1,737 $ 3,987 $ 3,505 Capital expenditures........................ 1,429 889 2,919 2,156 Company Net sales(3)................................ $192,622 $185,258 $380,017 $361,920 Before restructuring: operating income...... 26,241 31,756 48,738 61,719 operating margin...... 13.6% 17.1% 12.8% 17.1% After restructuring: operating income....... $ 26,241 $ 31,756 $ 43,077 $ 61,719 operating margin....... 13.6% 17.1% 11.3% 17.1% Depreciation and amortization(5)............ $ 10,865 $ 9,429 $ 22,090 $ 18,394 Capital expenditures........................ 5,807 4,219 11,110 8,567 ---------------

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on the following page 10 and the Company's Statements of Consolidated Operations included in the Financial Statements section. IDEX consists of three reporting groups: Pump Products, Dispensing Equipment and Other Engineered Products. PERFORMANCE IN THE THREE MONTHS THIRD QUARTER ENDED MARCH 31SEPTEMBER 30, 2001 2000 COMPARED TO THE SAME PERIOD OF 2000 1999 IDEX reported record sales; however, recorded lower net income and earnings per share for the first third quarter of 2001 compared with last yearended September 30, 2000. Incoming orders of orders, $189.7 million 164.0 million, were 2unchanged from 1999 with 3% lower than growth from recent acquisitions (FAST-June 1999, Ismatec-April 2000 as and Trebor-April 2000) offset by a result of an 113% decrease in decline from base business which was totally attributable to the base businesses and a 2% negative effect from foreign currency translation partially offset by 11% growth from recent acquisitionstranslation. Net sales for the three months ended March 31September 30, 2001 2000 were $187.4 176.2 million, a 64% increase over the $176.7 169.9 million for the comparable 2000 1999 period. Acquisitions accounted for added 4% to third quarter sales and base business volume was up 3%, while foreign currency translation had a 133% improvement, which was partially offset by a 5% decline in base sales activity and a 2% unfavorable currency translationnegative effect. Net income was $7.2 16.6 million, 5415% lower higher than the $15.8 14.5 million earned in the first third quarter of 20001999. Diluted earnings per share decreased 29 rose 6 cents to 23 54 cents, down 56up 13% compared with the same period a year ago. Excluding the one-time restructuring charge, net income was $10.7 million, 32% lower than the $15.8 million earned in last year's first quarter, and diluted earnings per share were 35 cents, down 33% from 52 cents last year. In the first three months third quarter of 20012000, the Pump Products Group contributed 5856% of sales and 6055% of operating income, the Dispensing Equipment Group accounted for 1924% of sales and 1725% of operating income, and the Other Engineered Products Group represented both 2320% of sales and operating income. In the first three months of 2001, international sales grew by 9% while domestic sales increased by 4% compared with last year. As a result, international International sales were 4142% of total sales, up from 40% in the same quarter of 1999. In the third quarter of 2000, international sales grew by 9% while domestic sales increased by 1% compared with last year. Excluding the recent acquisitions and currency translation, international sales increased 11% reflecting increases in all international markets. Pump Products Group sales of $109.7 100.0 million for the three months ended March 31September 30, 2001 2000 increased by $10.8 6.5 million, or 117%, from 2000 1999 principally reflecting the Ismatec, Ismatec and Trebor and Liquid Controls acquisitions which added 166% to the first third quarter sales. Base business sales volume was down 4up 2% from last year and while foreign currency had a 1% negative effect on the Group's sales comparison to 20001999. In the first third quarter of 20012000, international sales grew by 24% and 19%, while domestic sales increased by 5% principally reflecting the recent acquisitions2%. Excluding acquisitions and foreign currencyAs a result, base international sales increased 1%, while base U.S. sales volume decreased 7% due to weak conditions in the U.S. manufacturing sector. Sales to customers outside the United States U.S. increased to 3533% of total group sales in 2001 2000 from 3130% in 2000 principally 1999 due to recent acquisitions and the change in sales mix caused by the weaker domestic higher sales in 2001all international markets. Dispensing Equipment Group sales of $35.8 41.7 million decreased increased $4.1 0.2 million, or 101%, in the first third quarter of 2001 2000 compared with last year's first third quarter. Base business volume was down up 6% from 2000 1999 and acquisitions added 1% to this Group's sales growth, while foreign currency translation had a 46% negative effect. In the first third quarter of 20012000, international sales were essentially equal to last yeargrew by 9%, while domestic sales decreased by 21% due to continuing weak 8%, principally reflecting a temporary change in market conditions in the U.S. manufacturing sectorpaints and coatings markets. The business environment for the Group's dispensing equipment, which caused significant yearprimarily serves the paints and coatings markets, remains robust in Europe, due to the European Union-overmandated change to water-year volume declinesbased pigments. However, this strength is being offset as some paint manufacturers and retailers in the U.S. have reduced their short-term demand for paint dispensing equipment. Sales to customers outside the United States U.S. were 5756% of total group sales in 20012000, up from 5152% in 2000 1999 primarily reflecting a change in sales mix due to the weaker domestic stronger European sales increase in 20012000. Other Engineered Products Group sales of $42.3 35.2 million increased decreased by $3.9 0.3 million, or 101%, in the first third quarter of 2001 2000 compared with 2000 principally reflecting the Class 1 acquisition which added 18% to the first quarter sales1999. Overall base business sales decreased increased by 53% and foreign currency translation had a negative effect of 3%4% on this Group's sales volume. In the first third quarter of 20012000, domestic sales increased by 246% and international sales decreased by 68% with the lower international sales resulting from foreign currency translation. Excluding foreign currency and acquisitionscurrency, international base sales increased by 1% in 2001, while the base U.S. sales volume decreased 10% 2000 compared to last year due to the weak conditions in the U.S. manufacturing marketsyear. Sales to customers outside the United States U.S. were 4146% of total group sales in 20012000, down from 4850% in 1999 principally reflecting the foreign currency translation effect on international sales in 2000. Gross profit of $70.2 million in the third quarter of 2000 increased by $4.4 million, or 7%, from 1999 reflecting higher sales volume at the Pump Products Group. Gross profit as a percent of sales was 39.8% in 2000 and increased from 38.7% in 1999 principally reflecting productivity improvements at the change in sales mix due to the Class 1 acquisition. Company's IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (IN THOUSANDS) FOR THE THREE THIRD QUARTER ENDED NINE MONTHS ENDED MARCH 31SEPTEMBER 30, 2001(1SEPTEMBER 30, ------------------- ------------------- 2000 1999 2000(1) 2000 1999(2) -------- -------- -------- -------- (UNAUDITED) (UNAUDITED) Pump Products Group

Results of Operations. For purposes of this discussion and analysis section, reference is made to the table on the following page 11 and the Company's Statements of Consolidated Operations included in the Financial Statements section. IDEX consists of three reporting groupsreportable business segments: Pump Products, Dispensing Equipment and Other Engineered Products. PERFORMANCE IN THE THREE MONTHS ENDED MARCH 31, 2001 1999 COMPARED TO THE SAME PERIOD OF 2000 IDEX reported record sales; however, recorded lower net income and earnings per share for the first quarter of 2001 compared with last year. Incoming orders of $189.7 million were 2% lower than 2000 as a result of an 11% decrease in the base businesses and a 2% negative effect from foreign currency translation partially offset by 11% growth from recent acquisitions. 1998 Net sales for the three months ended March 31, 2001 1999, were $187.4 156.5 million, a 6decrease of 2% increase over from the sales of $176.7 159.1 million for the comparable 2000 period. Acquisitions accounted for a 13% improvement, which was partially offset by a 5% decline in base sales activity and a 2% unfavorable currency translationfirst quarter of 1998. Net income was from continuing operations for the quarter amounted to $7.2 11.9 million, 5414% lower than the $15.8 million earned in the first quarter of 2000. Diluted earnings per share decreased 29 cents to 23 cents, down 56% compared with the same period a year ago. Excluding the one-time restructuring charge, net income was $10.7 million, 32% lower than the $15.8 13.9 million earned in last year's first quarter, and diluted . Diluted earnings per share from continuing operations were 35 cents, down 33% from 52 40 cents versus 46 cents in the same quarter last year. New orders from continuing operations totaled $165.9 million and exceeded shipments by more than $9 million in the first quarter of 1999. The Company ended the first quarter with a typical unfilled orders backlog of about 1 1/3 months' sales. In the first three months quarter of 20011999, the Pump Products Group contributed 5860% of sales and 6063% of operating income, the Dispensing Equipment Group accounted for 1917% of sales and 1714% of operating income, and the Other Engineered Products Group represented both 23% of both sales and operating income. In the first three months The inclusion of 2001Xxxx, international sales grew by 9% while domestic sales increased by acquired on January 21, 1998, for a full quarter of 1999 added 4% compared with last yearto the quarterly sales growth but was offset by a 6% decline in base business activity. As a result, international International sales were 4137% of total salessales in the first quarter of 1999, up down from 40% in last year's first quarter. A portion of this reduction came from including Xxxx for a full quarter in 1999, which only has about 20% of its sales outside of the same United States. Certain international markets, particularly Europe and Latin America, experienced softer economic conditions this quarter compared to the first quarter of 2000last year, which also contributed to the reduction in the international sales. Partially offsetting this international decline were shipments to Asia, which were about 5% higher than either the first or fourth quarters of 1998. Compared to the first quarter of last year, total domestic sales increased 2%, while international sales declined 8%. Pump Products Group sales of $109.7 94.3 million for the three months ended March 31, 2001 increased by 1999, were essentially equal to the sales of $10.8 million, or 11%, from 2000 principally reflecting the Ismatec, Trebor and Liquid Controls acquisitions which 94.5 million in same period of 1998. The inclusion of Xxxx for a full quarter of 1999 added 168% to the first quarter sales. Base quarterly sales growth but was offset by a decline in base business sales volume was down 4% from last year and foreign currency had a 1% negative effect on activity of the Pump Products Group's sales comparison to 2000. In the first quarter of 2001, international sales grew by 24% and domestic sales increased by 5% principally reflecting the recent acquisitions. Excluding acquisitions and foreign currency, base international sales increased 1%, while base U.S. sales volume decreased 7% due to weak conditions in the U.S. manufacturing sector. Sales to customers outside the United States increased U.S. declined to 3530% of total group sales in 2001 the first quarter of 1999 from 3132% in 2000 1998, principally due to recent acquisitions and the change in sales mix caused by inclusion of Xxxx for the weaker domestic sales in 2001full first quarter of 1999. Dispensing Equipment Group sales of $35.8 26.3 million decreased by $4.1 3.7 million, or 1012%, in the first quarter of 2001 1999 compared with last year's first quarterquarter principally due to lower sales volume in certain international markets, particularly Europe and Latin America. Base business volume was down 6As a result of the decrease in international sales, shipments to customers outside the U.S. decreased to 40% from 2000 and foreign currency translation had a 4% negative effect. In of total Dispensing Equipment Group sales in the first quarter of 20011999, international sales were essentially equal to last year, while domestic sales decreased by 21down from 44% due to continuing weak conditions in the U.S. manufacturing sector, which caused significant year-over-year volume declines. Sales to customers outside the United States were 57% first quarter of total group sales in 2001, up from 51% in 2000 primarily reflecting a change in sales mix due to the weaker domestic sales in 20011998. Other Engineered Products Group sales of $42.3 36.6 million increased by $3.9 1.2 million, or 103%, in the first quarter of 2001 1999 compared with 2000 1998. The increase principally reflecting the Class 1 acquisition which added 18% to the first quarter sales. Overall base business reflected higher sales decreased by 5% and foreign currency translation had a negative effect of 3%. In the first quarter of 2001, domestic sales increased by 24% and international sales decreased by 6% with the lower international sales resulting from foreign currency translation. Excluding foreign currency and acquisitions, international base sales increased by 1% in 2001, while the base U.S. sales volume decreased 10% compared to last year due to the weak conditions in the U.S. manufacturing fire and rescue markets. Sales to customers outside As a result of the United States strengthening in U.S. sales, international sales were 4152% of total group sales in 2001the first quarter of 1999, down from 4854% in 2000 principally reflecting the change in sales mix due to the Class 1 acquisitionsame quarter of 1998. IDEX CORPORATION AND SUBSIDIARIES COMPANY AND BUSINESS GROUP FINANCIAL INFORMATION (IN THOUSANDS) FOR THE THREE MONTHS ENDED MARCH 31, 2001(1--------------------- 1999 1998(1) 2000 --------- --------- (UNAUDITED) Net sales (2)............................................. $ 94,308 $ 94,471 Operating income (3)...................................... 17,253 20,625 Operating margin.......................................... 18.3% 21.8% Depreciation and amortization............................. $ 4,909 $ 4,597 Capital expenditures...................................... 1,863 2,236 spensing Equipment Group Net sales (2)............................................. $ 26,259 $ 29,973 Operating income (3)...................................... 3,676 5,333 Operating margin.......................................... 14.0% 17.8% Depreciation and amortization............................. $ 1,699 $ 1,732 Capital expenditures...................................... 1,197 629 her Engineered Products Group Net sales (2)............................................. $ 36,569 $ 35,392 Operating income (3)...................................... 6,315 5,770 Operating margin.......................................... 17.3% 16.3% Depreciation and amortization............................. $ 1,729 $ 1,569 Capital expenditures...................................... 1,017 1,463 mpany Net sales................................................. $156,488 $159,084 Operating income.......................................... 23,625 28,392 Operating margin.......................................... 15.1% 17.8% Depreciation and amortization (4)......................... $ 8,415 $ 7,963 Capital expenditures...................................... 4,104 7,096 Pump Products GroupGroup Di Ot Co - -------------------------