MIRA INFORM REPORT

Report Date :

13.10.2012

IDENTIFICATION DETAILS

Name :	GARDNER DENVER, INC.
Registered Office :	Fortune 1000 Rank: 819, Suite 3000, 1500 Liberty Ridge Drive, Wayne, PA 19087
Country :	United States
Financials (as on) :	31.12.2011
Year of Establishment :	1859
Legal Form :	Public Parent Company
Line of Business :	designs, manufactures and markets engineered industrial machinery and related parts and services
No. of Employees :	6,800 employees

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

United States - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices increased another 50% between 2006 and 2008. In 2008, soaring oil prices threatened inflation and caused a deterioration in the US merchandise trade deficit, which peaked at $840 billion. In 2009, with the global recession deepening, oil prices dropped 40% and the US trade deficit shrank, as US domestic demand declined, but in 2011 the trade deficit ramped back up to $803 billion, as oil prices climbed once more. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources are lower, as a percentage of GDP, than that of most other developed countries. The wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the US budget deficit and public debt - through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform bill that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. Long-term problems include inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable current account and budget deficits - including significant budget shortages for state governments - energy shortages, and stagnation of wages for lower-income families.

Source : CIA

Company name & address

Gardner Denver, Inc.

Fortune 1000 Rank: 819

Suite 3000, 1500 Liberty Ridge Drive

Wayne, PA 19087

United States

Tel: 610-249-2000

Fax: 302-636-5454

Toll Free: 800-682-9868

Web: www.gardnerdenver.com

Synthesis

Employees: 6,800

Company Type: Public Parent

Corporate Family: 61 Companies

Traded: New York Stock Exchange: GDI

Incorporation Date: 1859

Auditor: KPMG LLP

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2011

Reporting Currency: US Dollar

Annual Sales: 2,370.9 1

Net Income: 277.6

Total Assets: 2,365.6 2

Market Value: 2,958.5 (28-Sep-2012)

Business Description

Gardner Denver, Inc. (Gardner Denver) designs, manufactures and markets engineered industrial machinery and related parts and services. The Company is a global manufacturer of engineered compressors and vacuum products for industrial applications. Stationary air compressors are used to pressurize gas, including air, in excess of 50 pounds per square inch gauge and are used in manufacturing, process applications and materials handling, and to power air tools and equipment. Blowers and liquid ring pumps compress gas, including air, up to 50 pounds per square inch gauge and are often used in vacuum applications. Blowers are used in pneumatic conveying, wastewater aeration and engineered vacuum systems. Liquid ring pumps are sold as part of an engineered package and are used in process applications, such as power generation, chemical processing and oil and gas refining. On December 15, 2011, the Company acquired Robuschi S.p.A. (Robuschi). For the six months ended 30 June 2012, Gardner Denver, Inc. revenues increased 7% to $1.22B. Net income increased 3% to $130.1M. Revenues reflect Industrial Products Group segment increase of 7% to $655.5M, Engineered Products Group segment increase of 6% to $561.8M. Net income was partially offset by Industrial Products Group segment income decrease of 13% to $56.4M. Dividend per share remained flat at $0.10.

Industry

Industry Miscellaneous Capital Goods

ANZSIC 2006: 2451 - Pump and Compressor Manufacturing

NACE 2002: 2912 - Manufacture of pumps and compressors

NAICS 2002: 333912 - Air and Gas Compressor Manufacturing

UK SIC 2003: 29122 - Manufacture of compressors

UK SIC 2007: 28132 - Manufacture of compressors

US SIC 1987: 3563 - Air and Gas Compressors

Key Executives

(Emails Available)

Name	Title
Michael M. Larsen	Interim Chief Executive Officer, Chief Financial Officer and Vice President
Brian L. Cunkelman	Pres-Indus Products Grp & VP
Helen W. Cornell	Executive Vice President, Finance and Chief Financial Officer
Brent A. Walters	Vice President, Chief Compliance Officer, General Counsel, Secretary
Bob D. Elkins	Vice President, Chief Information Officer

Significant Developments

Topic	#*	Most Recent Headline	Date
Mergers & Acquisitions	1	Gardner Denver, Inc. Announces Agreement To Acquire Robuschi	11-Oct-2011
Negative Earnings Pre-Announcement	2	Gardner Denver, Inc. Issues Q3 2012 EPS Guidance Below Analysts' Estimates; Lowers FY 2012 EPS Guidance	19-Jul-2012
Officer Changes	1	Barry L. Pennypacker Resigns As President, Chief Executive Officer Of Gardner Denver, Inc.	16-Jul-2012
Other Earnings Pre-Announcement	1	Gardner Denver, Inc. Issues FY, Q1 2012 EPS Guidance In Line With Analysts' Estimates	9-Feb-2012
Positive Earnings Pre-Announcement	1	Gardner Denver, Inc. Issues Q4 2011 EPS Guidance In Line With Analysts' Estimates; Raises FY 2011 EPS Guidance	20-Oct-2011

* number of significant developments within the last 12 months

News

Title	Date
Gardner Denver Inc. Files SEC Form 4, Statement of Changes in Beneficial Ownership of Securities (Oct. 2, 2012) Economics Week (246 Words)	10-Oct-2012
US Patent Issued to Gardner Denver Deutschland on Oct. 2 for "Compressor Control" (British Inventor) U.S. Fed News (254 Words)	8-Oct-2012
CONTRACT AWARD - 49-- BLAST CLEANING MACHINE. FedBizOpps (104 Words)	26-Sep-2012
Mon Valley Regional Chamber touts members for excellence Valley Independent (Monessen, PA) (744 Words)	14-Sep-2012
WIPO PUBLISHES PATENT OF GARDNER DENVER DEUTSCHLAND, FISCHER PETER FOR "SIDE CHANNEL MACHINE ARRANGEMENT" (GERMAN INVENTOR) U.S. Fed News (260 Words)	5-Sep-2012

Financial Summary

As of 30-Jun-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	2.21	1.95
Quick Ratio (MRQ)	1.52	1.03
Debt to Equity (MRQ)	0.39	0.45
Sales 5 Year Growth	7.27	6.22
Net Profit Margin (TTM) %	11.56	7.96
Return on Assets (TTM) %	12.26	8.48
Return on Equity (TTM) %	21.36	17.58

Stock Snapshot

Traded: New York Stock Exchange: GDI

As of 28-Sep-2012

   Financials in: USD

Recent Price	60.41	EPS	5.48
52 Week High	86.99	Price/Sales	1.25
52 Week Low	45.54	Dividend Rate	0.20
Avg. Volume (mil)	0.66	Price/Earnings	9.52
Market Value (mil)	2,958.46	Price/Book	2.40
		Beta	1.39

	Price % Change	Rel S&P 500%
4 Week	0.22%	-2.15%
13 Week	14.18%	7.96%
52 Week	-7.94%	-25.85%
Year to Date	-21.61%	-31.57%

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location

Suite 3000, 1500 Liberty Ridge Drive

Wayne, PA, 19087

Chester County

United States

Tel: 610-249-2000

Fax: 302-636-5454

Toll Free Tel: 800-682-9868

Web: www.gardnerdenver.com

Quote Symbol - Exchange

GDI - New York Stock Exchange

Sales USD(mil): 2,370.9

Assets USD(mil): 2,365.6

Employees: 6,800

Fiscal Year End: 31-Dec-2011

Industry: Miscellaneous Capital Goods

Incorporation Date: 1859

Company Type: Public Parent

Quoted Status: Quoted

Interim Chief Executive Officer,

Chief Financial Officer and Vice President: Michael M. Larsen

Company Web Links

Company Contact/E-mail

Corporate History/Profile

Employment Opportunities

Executives

Financial Information

Home Page

Investor Relations

News Releases

Products/Services

Contents

Industry Codes

Business Description

Product Codes

Brand/Trade Names

Financial Data

Market Data

Key Corporate Relationships

Additional Information

Industry Codes

ANZSIC 2006 Codes:

2451 - Pump and Compressor Manufacturing

2462 - Mining and Construction Machinery Manufacturing

2499 - Other Machinery and Equipment Manufacturing Not Elsewhere Classified

NACE 2002 Codes:

2912 - Manufacture of pumps and compressors

2923 - Manufacture of non-domestic cooling and ventilation equipment

2952 - Manufacture of machinery for mining, quarrying and construction

NAICS 2002 Codes:

333912 - Air and Gas Compressor Manufacturing

333411 - Air Purification Equipment Manufacturing

333132 - Oil and Gas Field Machinery and Equipment Manufacturing

US SIC 1987:

3563 - Air and Gas Compressors

3564 - Industrial and Commercial Fans and Blowers and Air Purification Equipment

3533 - Oil and Gas Field Machinery and Equipment

UK SIC 2003:

29122 - Manufacture of compressors

2952 - Manufacture of machinery for mining, quarrying and construction

2923 - Manufacture of non-domestic cooling and ventilation equipment

UK SIC 2007:

28132 - Manufacture of compressors

2892 - Manufacture of machinery for mining, quarrying and construction

2825 - Manufacture of non-domestic cooling and ventilation equipment

Business Description

Gardner Denver, Inc. (Gardner Denver) designs, manufactures and markets engineered industrial machinery and related parts and services. The Company is a global manufacturer of engineered compressors and vacuum products for industrial applications. Stationary air compressors are used to pressurize gas, including air, in excess of 50 pounds per square inch gauge and are used in manufacturing, process applications and materials handling, and to power air tools and equipment. Blowers and liquid ring pumps compress gas, including air, up to 50 pounds per square inch gauge and are often used in vacuum applications. Blowers are used in pneumatic conveying, wastewater aeration and engineered vacuum systems. Liquid ring pumps are sold as part of an engineered package and are used in process applications, such as power generation, chemical processing and oil and gas refining. The Company also supplies pumps and compressors for original equipment manufacturer (OEM) applications, such as medical equipment, vapor recovery, printing, packaging and laboratory equipment. In addition, the Company designs, manufactures, markets, and services a group of pumps, water jetting systems and related aftermarket parts used in oil and natural gas well drilling, servicing and production and in industrial cleaning and maintenance. The Company also manufactures loading arms, swivel joints, couplers and valves used to load and unload ships, tank trucks and rail cars. The Company is manufacturer of reciprocating pumps used in oil and natural gas well drilling, servicing and production, and in loading arms used in the transfer of petrochemical products. On December 15, 2011, the Company acquired Robuschi S.p.A. (Robuschi).

The Company’s operates in two product groups: the Industrial Products Group and the Engineered Products Group. During the year ended December 31, 2011, approximately 42% of the Industrial Products Group revenue is generated through distribution, approximately 39% is sold directly to the end customer and the balance is for OEM products. During 2011, approximately 60% of Engineered Products Group revenue is sold directly to the end user, approximately 31% is used in OEM products and the balance is sold through distribution. During 2011, the Company derived 53% revenue from sales of Industrial Products and 47% revenue from sales of Engineered Products.

Industrial Products Group Segment

In the Industrial Products Group, the Company designs, manufactures, markets and services products and related aftermarket parts for industrial and commercial applications, such as rotary screw, reciprocating, and sliding vane air and gas compressors; positive displacement, centrifugal and side channel blowers, and vacuum pumps, serving manufacturing, transportation and general industry and selected OEM and engineered system applications. The Company also markets and services complementary ancillary products. The Company’s reciprocating compressors range from fractional to 1,500 horsepower and are sold under theGardner Denver, Champion, Bottarini, CompAir, Mako, Reavell and Belliss & Morcom. The Company’s lubricated rotary screw compressors range from 5 to 680 horsepower and are sold under theGardner Denver, Bottarini, Electra-Screw, Electra-Saver, Electra-Saver II, Enduro, RotorChamp, Tamrotor, CompAir and Tempest . The Company’s oil-free rotary screw compressors range from 5 to 150 horsepower and are sold under the Gardner Denver, CompAir and Dryclon. The Company’s oil-free centrifugal compressors range from 200 to 400 horsepower and are sold under the Quantima. The Company also has a range of portable compressors, which are sold under the CompAir and Bottarini.

Blowers are used to produce a high volume of air at low pressure or vacuum. The Company’s positive displacement blowers range from 0 to 36 pounds per square inch gauge discharge pressure and 0 to 29.9 inches of mercury (in Hg) vacuum and capacity range of 0 to 17,000 cubic feet per minute and are sold as Sutorbilt, DuroFlow, CycloBlower, HeliFlow, Robuschi, TriFlow, Drum, Wittig and Elmo Rietschle. The Company’s multistage centrifugal blowers are sold under Gardner Denver, Lamson and Hoffman and range from 0.5 to 25 pounds per square inch gauge discharge pressure and 0 to 18 inches Hg vacuum and capacity range of 100 to 40,000 cubic feet per minute. The Company’s side channel blowers range from 0 to 15 pounds per square inch gauge discharge pressure and 20 inches Hg vacuum and capacity range of 0 to 1,500 cubic feet per minute and are sold under the Elmo Rietschle, Airgen and TurboTron . The Company’s sliding vane compressors and vacuum pumps range from 0 to 150 pounds per square inch gauge discharge pressure and 29.9 inches Hg vacuum and capacity range of 0 to 3,000 cubic feet per minute and are sold under Gardner Denver, Hydrovane, Elmo Rietschle, Drum and Wittig. The Company’s engineered vacuum systems are used in industrial cleaning, hospitals, dental offices, general industrial applications and the chemical industry and are sold under Gardner Denver, Invincible, and Elmo Rietschle. The Company’s engineered systems range from 0 to 32 pounds per square inch gauge discharge pressure and 29.9 inches Hg vacuum and capacity range of 50 to 3,000 cubic feet per minute and are sold under the Elmo Rietschle.

The customers for the Company’s compressor and vacuum products are durable and non-durable goods manufacturers; process industries (petroleum, primary metals, pharmaceutical, food and paper); OEMs; manufacturers of printing equipment, pneumatic conveying equipment, and dry and liquid bulk transports; wastewater treatment facilities, and automotive service centers and niche applications, such as Polyethylene terephthalate (PET) bottle blowing, breathing air equipment and compressed natural gas. Manufacturers of machinery and related equipment use stationary compressors for automated systems, controls, materials handling and special machinery requirements. The petroleum, primary metals, pharmaceutical, food and paper industries require compressed air and vacuum for processing, instrumentation, packaging and pneumatic conveying. The Company’s blowers are instrumental to local utilities for aeration in treating industrial and municipal waste. Positive displacement blowers and vacuum pumps are used on trucks to vacuum leaves and debris from street sewers and to unload liquid and dry bulk materials, such as cement, grain and plastic pellets. In addition, blowers are used in packaging technologies, medical applications, printing and paper processing and chemical processing applications. The Industrial Products Group operates production facilities globally, including six plants in the United States, four in the United Kingdom, three in Germany, two in Italy, and one each in China, Brazil and Finland.

The Company has six vehicle-fitting facilities in six countries within Europe. These fitting facilities offer customized vehicle installations of systems, which include compressors, blowers, exhausters, generators, hydraulics, power take-off units, gear boxes, axles, pumps and oil and fuel systems. Typical uses for such systems include the discharge of product from road tankers, tire removal, transfer of power from gear boxes to ancillary power units and provision of power for electrical and compressed air operated tools. Each facility can offer onsite repair and maintenance or support the customer in the field through their own service engineers and a network of service agents. In addition, the Company has two services and remanufacturing centers in the United States, which can perform installation, repair and maintenance work on certain of the Company’s products and similar equipment.

The Company competes with Ingersoll-Rand, United Technologies Corporation, Atlas Copco, Atlas Copco, Kaeser Compressor, Roots, Busch, Becker and SiHi.

Engineered Products Group Segment

The Company’s Engineered Products Group segment designs, manufactures, markets and services a range of pumps, compressors, liquid ring vacuum pumps, water jetting and loading arm systems and related aftermarket parts. These products are used in well drilling, well servicing and production of oil and natural gas; industrial, commercial and transportation applications, and in industrial cleaning and maintenance. This segment also designs, manufactures, markets and services other engineered products and components and equipment for the chemical, petroleum and food industries. Positive displacement reciprocating pumps are marketed under the Gardner Denver and OPI. Applications of Gardner Denver pumps in oil and natural gas production include oil transfer, water flooding, salt-water disposal, pipeline testing, ammine pumping for gas processing, re-pressurizing, enhanced oil recovery, hydraulic power and other liquid transfer applications. The Company’s production pumps range from 25 to 300 horsepower horizontally designed pumps. Well servicing operations include general workover service, completions (bringing wells into production after drilling), and plugging and abandonment of wells. The Company’s well servicing products consist of plunger pumps ranging from 165 to 400 horsepower. Gardner Denver also manufactures intermittent duty triplex and quintuplex plunger pumps ranging from 250 to 3,000 horsepower for well cementing and stimulation, including reservoir fracturing or acidizing. Duplex pumps, ranging from 16 to 100 horsepower, are produced for shallow drilling, which includes water well drilling, seismic drilling and mineral exploration. Triplex mud pumps for oil and natural gas drilling rigs range from 275 to 2,400 horsepower.

Liquid ring vacuum pumps, compressors and engineered systems, sold under the Nash , are used in different applications, including gas removal, distillation, reacting, drying, lifting and handling, filters, priming and vapor recovery. These applications are found in the pulp and paper, industrial manufacturing, petrochemical, power, mining and oil and gas industries. Nash products range in capacity from approximately 10 cubic feet per minute to over 20,000 cubic feet per minute. Gardner Denver operates five Nash service centers in North America, and one each in the Netherlands and Australia. The Oberdorfer line of fractional horsepower specialty bronze and high alloy pumps are for the general industrial and marine markets. A small portion of Gardner Denver pumps are sold for use in industrial applications.

Through the Company's Thomas operating division, the Company has a presence in medical markets and environmental markets, such as sewage aeration and vapor recovery through the design of custom compressors and vacuum pumps for OEMs. Deep vacuum pumps are sold under the Welch and ILMVAC trademarks into the laboratory and life science markets. Other markets for this division include the automotive, industrial and printing markets. Gardner Denver water jetting pumps and systems are used in a range of industries, including petrochemical, refining, power generation, aerospace, construction and automotive, among others. The products are sold under the Partek, Liqua-Blaster and American Water Blaster trademarks, and are employed in applications, such as industrial cleaning, coatings removal, concrete demolition, and surface preparation.

Gardner Denver’s other fluid transfer components and equipment include loading arms, swivel joints, storage tank equipment, dry-break couplers and tank truck systems used to load and unload ships, tank trucks and rail cars. These products are sold under the Emco Wheaton, Todo and Perolo trademarks. As of December 31, 2011, the Engineered Products Group operated 22 production facilities (including two remanufacturing facilities) globally, including 12 in the United States, four in Germany, two in China and one each in the United Kingdom, Sweden, Brazil and Canada.

The Company competes with National Oilwell Varco, The Weir Group PLC, Interpump Group SpA, Federal Signal, WOMA Apparatebau GmbH, SiHi, OPW Engineered Systems, Dover Corporation, FMC Technologies, Schwelm Verladetechnik GmbH and IDEX

More Business Descriptions

Gardner Denver, Inc. (Gardner Denver) designs, manufactures and markets engineered industrial machinery and related parts and services. The Company is a global manufacturer of engineered compressors and vacuum products for industrial applications. Stationary air compressors are used to pressurize gas, including air, in excess of 50 pounds per square inch gauge and are used in manufacturing, process applications and materials handling, and to power air tools and equipment. Blowers and liquid ring pumps compress gas, including air, up to 50 pounds per square inch gauge and are often used in vacuum applications. Blowers are used in pneumatic conveying, wastewater aeration and engineered vacuum systems. Liquid ring pumps are sold as part of an engineered package and are used in process applications, such as power generation, chemical processing and oil and gas refining. On December 15, 2011, the Company acquired Robuschi S.p.A. (Robuschi). For the six months ended 30 June 2012, Gardner Denver, Inc. revenues increased 7% to $1.22B. Net income increased 3% to $130.1M. Revenues reflect Industrial Products Group segment increase of 7% to $655.5M, Engineered Products Group segment increase of 6% to $561.8M. Net income was partially offset by Industrial Products Group segment income decrease of 13% to $56.4M. Dividend per share remained flat at $0.10.

Blowers, Stationary Air Compressors, Petroleum Drilling & Production Pumps & Water Jetting Equipment

Establishments primarily engaged in manufacturing machinery, equipment, and components for general industrial use, and for which no special classification is provided.

At Gardner Denver we are constantly working to be a more effective customer driven organization that empowers our employees to create value for our customers investors & communities.

Gardner Denver manufactures blowers, air compressors, petroleum pumps, water jetting pumps and accessories, fluid transfer equipment and liquid ring pumps for various industrial and transportation applications throughout the world. It serves customers in the environmental sector, services sector, industrial sector and energy sector. The company was founded in 1993 as a spin-off from Cooper Industries. Gardner Denver has corporate headquarters and a manufacturing facility in Quincy, Ill. It also has manufacturing and service divisions throughout the United States, Europe, China and Canada. Its shares are traded publicly on the New York Stock Exchange under the symbol GDI.

Parent holding company with high-tech units involved in manufacturing air compressors, pumps, and blowers for use in many manufacturing processes, oil, and gas production. Products are sold to multiple industries.

Product Codes

Product Code	Product Description
ZZZ-HC	Parent/Holding company

Brand/Trade Names
Aeon - Lubricants Auto Sentry Es - Monitors - electronic Air-On-Demand - Machine parts Cyclosilencer - Machine parts	Gd Integra - Compressors - air Auto Sentry - Electrical equipment Lamgard - Electronic equipment

Financial Data

Financials in:	USD(mil)
Revenue:	2,370.9
Net Income:	277.6
Assets:	2,365.6
Long Term Debt:	326.1
Total Liabilities:	1,088.3
Working Capital:	0.3
Date of Financial Data:	31-Dec-2011

1 Year Growth

25.1%

60.5%

16.7%

Market Data

Quote Symbol:	GDI
Exchange:	New York Stock Exchange
Currency:	USD
Stock Price:	60.4
Stock Price Date:	09-28-2012
52 Week Price Change %:	-7.9
Market Value (mil):	2,958,463.0
SEDOL:	2374178
ISIN:	US3655581052
Equity and Dept Distribution:
Common Stock $.01 Par, 03/11, 100M auth., 59,592,384 issued, less 7,351,869 Tres. @$188.7M. Insiders own 0.42%. PO3/04, 3M shs@$24.5 by Bear Sterns & Co. Inc. 4/94, Co. spun off from Cooper Industries; Basis: 1-for-4. 12/97, 3-for-2 split. 1/97, 2-for-1 split. 06/06, 2-for-1 stock split.

Key Corporate Relationships

Auditor:	KPMG LLP
Auditor:	KPMG LLP

Additional Information
ABI Number:	441342755
Fortune 1000 Rank:	819

Credit Report as of 11/01/2011

Location
1500 Liberty Ridge Dr Ste: 3000 Chesterbrook, PA 19087-5581 United States
County:	Delaware
MSA:	Philadelphia, PA
Phone:	610-249-2000
URL:	http://gardnerdenver.com
ABI^©:	441342755
Annual Sales:	$2,370,903,000 (USD)
Employees:	6,800
Facility Size(ft^2):	40,000+
Facility Own/Lease:	Own
Business Type:	Public
Location Type:	Headquarter
Ticker:	GDI
Exchange:	NYSE

Primary Line of Business:
SIC:	3569-07 - Automation Systems & Equipment-Mfrs
NAICS:	333999 - Misc General Purpose Machinery Mfg
Secondary Lines of Business:
SICs:	5084-02 - Compressors-Air & Gas (Whls)
	5084-27 - Machinery-New (Whls)
	8742-13 - Marketing Programs & Services
	9999-66 - Federal Government Contractors
NAICS:	423830 - Industrial Machinery Merchant Whols
	541613 - Marketing Consulting Svcs

Corporate Family	Corporate Structure News:
	Gardner Denver, Inc.
Gardner Denver, Inc. Total Corporate Family Members: 61

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Gardner Denver, Inc.	Parent	Wayne, PA	United States	Miscellaneous Capital Goods	2,370.9	6,800
Gardner Denver Thomas Inc.	Subsidiary	Sheboygan, WI	United States	Miscellaneous Capital Goods	1.0	900
Gardner Denver Thomas GmbH	Subsidiary	Puchheim, Bayern	Germany	Miscellaneous Capital Goods	71.6	360
Gardner Denver Thomas Monroe	Division	Monroe, LA	United States	Miscellaneous Capital Goods	99.9	300
Gardner Denver Thomas -Products Division	Division	Sheboygan, WI	United States	Miscellaneous Capital Goods		90
Gardner Denver Welch Vacuum Technology, Inc.	Subsidiary	Niles, IL	United States	Miscellaneous Capital Goods		15
Gardner Denver Welch Vacuum	Branch	Chuluota, FL	United States	Business Services	1.0	3
Gardner Denver Compressor Division	Subsidiary	Quincy, IL	United States	Miscellaneous Capital Goods		498
Gardner Denver Compressor Division	Branch	Sedalia, MO	United States	Miscellaneous Capital Goods	93.0	250
Gardner Denver Re-Mfg Center	Branch	Fishers, IN	United States	Miscellaneous Capital Goods	11.9	32
Gardner Denver Schopfheim GmbH	Subsidiary	Schopfheim, Baden-Württemberg	Germany	Miscellaneous Capital Goods	95.5	450
Gardner Denver Ltd.	Subsidiary	Redditch	United Kingdom	Miscellaneous Capital Goods		250
Gardner Denver Nash	Subsidiary	Trumbull, CT	United States	Miscellaneous Capital Goods	125.0	45
Gardner Denver Nash Brasil Industria e Comercio de Bombas Ltda.	Subsidiary	Campinas, S.P.	Brazil	Miscellaneous Capital Goods		200
Gardner Denver Nash LLC	Branch	Hartland, WI	United States	Miscellaneous Capital Goods	13.4	36
The Nash Engineering Company of Canada, Ltd.	Subsidiary	Burlington, ON	Canada	Miscellaneous Capital Goods		30
Gardner Denver Nash UK Ltd.	Subsidiary	Winsford	United Kingdom	Engineering Consultants		20
Gardner Denver Nash LLC	Branch	Trussville, AL	United States	Miscellaneous Capital Goods	9.2	17
Gardner Denver Nash LLC	Branch	Houston, TX	United States	Miscellaneous Capital Goods	4.1	11
Gardner Denver Nash LLC	Branch	Sammamish, WA	United States	Business Services	1.0	4
Gardner Denver Nash LLC	Branch	Albany, NY	United States	Business Services	1.0	3
Gardner Denver Nash LLC	Branch	Naperville, IL	United States	Business Services	0.3	1
Belliss & Morcom (USA) Inc.	Subsidiary	Naperville, IL	United States	Miscellaneous Capital Goods		8
CompAir UK Ltd.	Subsidiary	Redditch	United Kingdom	Miscellaneous Capital Goods		200
CompAir Drucklufttechnik GmbH-Industrial Division	Division	Simmern	Germany	Miscellaneous Capital Goods	75.0	500
CompAir SA (Pty) Ltd	Subsidiary	Wadeville	South Africa	Construction and Agriculture Machinery	30.0	200
CompAir USA	Subsidiary	Piqua, OH	United States	Miscellaneous Capital Goods		150
MAKO	Subsidiary	Peachtree City, GA	United States	Miscellaneous Capital Goods		150
CompAir South East Europe doo	Subsidiary	Belgrade, Zemun	Serbia	Miscellaneous Capital Goods		50
Comp Air Canada Inc	Subsidiary	Oakville, ON	Canada	Miscellaneous Capital Goods		35
CompAir Hong Kong Ltd.	Subsidiary	Shanghai	Hong Kong	Miscellaneous Capital Goods		18
Nils & Abbas Trading Co LLC	Subsidiary	Dubai	United Arab Emirates	Miscellaneous Capital Goods
CompAir do Brasil	Subsidiary	Sao Paulo, Jundia	Brazil	Miscellaneous Capital Goods
Shanghai CompAir Compressor Co Ltd	Subsidiary	Songjiang Industrial District, Shanghai	China	Miscellaneous Capital Goods
CompAir UK Limited-High Pressure Division	Division	Ipswich	United Kingdom	Miscellaneous Capital Goods
CompAir SCCC	Subsidiary	Shanghai	China	Miscellaneous Capital Goods
CompAir Kointec Ltd.	Subsidiary	Kyongki, Shiheung-si	Korea, Republic of	Miscellaneous Capital Goods
CompAir Iberia S.L.	Subsidiary	Madrid, Pinto	Spain	Miscellaneous Capital Goods
Gardner Denver Industrial Products	Subsidiary	Peachtree City, GA	United States	Miscellaneous Capital Goods		150
Champion Gardner Denver	Subsidiary	Princeton, IL	United States	Miscellaneous Capital Goods	34.9	144
Best-Aire, Inc.	Subsidiary	Millbury, OH	United States	Retail (Specialty)		140
Best Aire LLC	Branch	Fishers, IN	United States	Miscellaneous Capital Goods	8.2	15
Gardner Denver S.r.l.	Subsidiary	Varese	Italy	Miscellaneous Capital Goods	44.8	120
Robuschi SpA	Subsidiary	Parma, Parma	Italy	Miscellaneous Capital Goods	77.1	217
Gieffe Systems SRL	Subsidiary	Noceto, Parma	Italy	Miscellaneous Capital Goods	5.9	10
Gardner Denver Petroleum Pumps	Subsidiary	Tulsa, OK	United States	Miscellaneous Capital Goods	5.0	100
Gardner Denver Water Jetting	Branch	Houston, TX	United States	Miscellaneous Capital Goods	54.4	100
Gardner Denver Petroleum Pumps	Branch	Odessa, TX	United States	Miscellaneous Capital Goods	16.3	30
Gardner Denver Petroleum Pumps	Branch	Oklahoma City, OK	United States	Miscellaneous Capital Goods	1.6	3
Ilmvac GmbH	Subsidiary	Ilmenau, Thüringen	Germany	Scientific and Technical Instruments	13.9	89
Gardner Denver France	Subsidiary	Montrouge	France	Construction and Agriculture Machinery	82.4	72
Webster Drives Ltd.	Subsidiary	Bolton	United Kingdom	Auto and Truck Parts		70
Air Relief Inc	Subsidiary	Mayfield, KY	United States	Miscellaneous Capital Goods		50
Gardner Denver Fluid Trnsfr	Branch	Benbrook, TX	United States	Miscellaneous Capital Goods	22.3	41
Gardner Denver Oberdorfer Pmps	Subsidiary	Syracuse, NY	United States	Miscellaneous Capital Goods		40
TODO AB	Subsidiary	Toreboda	Sweden	Miscellaneous Fabricated Products	13.2	30
Emco Wheaton USA Inc	Subsidiary	Houston, TX	United States	Miscellaneous Capital Goods		30
Emco Wheaton USA Inc	Branch	Wilson, NC	United States	Miscellaneous Capital Goods	21.5	60
Emco Wheaton USA Inc	Branch	Sudbury, MA	United States	Auto and Truck Parts	6.7	2
Tamrotor Marine Compressors AS	Subsidiary	Oslo	Norway	Miscellaneous Capital Goods	38.5	25
Gardner Denver Inc	Branch	Mesquite, TX	United States	Miscellaneous Capital Goods	2.2	4

Competitors Report

Company Name	Location	Employees	Ownership
Atlas Copco AB	Nacka, Sweden	39,332	Public
Busch AG	Rheinfelden, Switzerland	20	Private
Colfax Corp	Fulton, Maryland, United States	1,500	Public
Dover Corporation	Downers Grove, Illinois, United States	34,000	Public
Duerr AG	Bietigheim-Bissingen, Germany	7,314	Public
Federal Signal Corporation	Oak Brook, Illinois, United States	2,919	Public
FMC Technologies, Inc.	Houston, Texas, United States	14,200	Public
Hammelmann Maschinenfabrik GmbH	Oelde, Nordrhein-Westfalen, Germany	270	Private
IDEX Corporation	Lake Forrest, Illinois, United States	6,814	Public
Ingersoll-Rand Company	Montvale, New Jersey, United States	35,560	Private
Ingersoll-Rand PLC	Swords, Ireland	52,000	Public
Interpump Group SpA	Sant'ilario D'Enza, Italy	2,688	Public
Jetstream of Houston, LLP	Houston, Texas, United States	80	Private
National-Oilwell Varco, Inc.	Houston, Texas, United States	42,183	Public
NLB Corp.	Wixom, Michigan, United States	165	Private
OPW Fueling Components	Hamilton, Ohio, United States	300	Private
Quincy Compressor Inc.	Quincy, Illinois, United States	220	Private
Robert Bosch GmbH	Gerlingen, Germany	283,507	Private
Roots Canada Ltd.	Toronto, Ontario, Canada	200	Private
SIHI Pumps, Inc.	Grand Island, New York, United States	50	Private
Sullair Corporation	Michigan City, Indiana, United States	520	Private
Teco Electric & Machinery Co., Ltd.	Taipei, Taiwan	13,400	Public
The Weir Group PLC	Glasgow, United Kingdom	11,669	Public
United Technologies Corporation	Hartford, Connecticut, United States	199,900	Public

Executive report

Board of Directors

Name	Title	Function
Diane K. Schumacher	Independent Chairman of the Board	Chairman
Biography: Mrs. Diane K. Schumacher is an Independent Chairman of the Board of Gardner Denver Inc., since November 2011. She has been a director of Gardner Denver since August 2000. Mrs. Schumacher served as Senior Vice President, General Counsel and Secretary of Cooper Industries, Ltd., a company engaging in the manufacture and sale of electrical products and tools and the Company’s former parent company (“Cooper�), from 1995 to 2003, and was Senior Vice President, General Counsel and Chief Compliance Officer until August 2006. She served as Special Counsel to the CEO of Cooper from September 2006 until her retirement from Cooper in September 2008. Mrs. Schumacher is currently providing legal services to a number of non-public companies as an independent consultant. She is a member of the Advisory Board, College of Business, Southern Illinois University. Mrs. Schumacher holds a B.A. in economics from Southern Illinois University and a J.D. from DePaul University College of Law. She completed the Harvard Advanced Management Program. Age: 58 Education: DePaul University, JD Southern Illinois University, BA (Economics)
Michael C. Arnold	Independent Director	Director/Board Member
Biography: Mr. Michael C. Arnold is an Independent Director of Gardner Denver, Inc., since June 2009. Mr. Arnold was appointed to the role of President and Chief Executive Officer of Ryerson Inc. in January 2011, a distributor and processor of metals in North America. Previously, Mr. Arnold served as Executive Vice President and President of the Bearings and Power Transmission Group at The Timken Company, a publicly held manufacturer of innovative friction management and power transmission products and services (“Timken�) from 2007 until December 2010. Mr. Arnold served as President of Timken’s former Industrial Group from 1999 through 2007. Mr. Arnold earned both a B.S. in mechanical engineering and a Masters in sales and marketing from The University of Akron. He completed the Advanced Management Program at Harvard University. Mr. Arnold served as Chairman of Endorsia.com International AB. He is a member of The University of Akron’s Engineering Advisory Council. He has served as a director of Cincinnati Incorporated since May 2008. Age: 55 Education: University of Akron, MBA (Marketing) University of Akron, BS (Mechanical Engineering)
Donald G. Barger	Independent Director	Director/Board Member
Biography: Mr. Donald G. Barge is an Independent Director of Gardner Denver, Inc., since April 1994. Mr. Barger retired in February 2008 from YRC Worldwide, Inc. (“YRCW�), formally Yellow Corporation, a publicly held company specializing in the transportation of goods and materials. He served as special advisor to the Chief Executive Officer of YRCW from September 2007 to February 2008 and as Executive Vice President and Chief Financial Officer of YRCW and Senior Vice President and Chief Financial Officer of Yellow Corporation from December 2000 to September 2007. Prior to joining Yellow, he served as Vice President and Chief Financial Officer of Hillenbrand Industries Inc. (“Hillenbrand�), a publicly held company serving the healthcare and funeral services industries, from March 1998 until December 2000. Mr. Barger was Vice President, Chief Financial Officer of Worthington Industries, Inc. (“Worthington�), a publicly held manufacturer of metal and plastic products and processed steel products, from September 1993 until joining Hillenbrand. Mr. Barger has a B.S. from the United States Naval Academy and an M.B.A. from the University of Pennsylvania, Wharton School of Business. Mr. Barger is a director of Globe Specialty Metals, Inc., a publicly held producer of silicon metal and silicon-based specialty alloys, and Precision Aerospace Components, Inc., a publicly held provider of quality aerospace components. Mr. Barger retired as a director in February 2012 from Quanex Building Products Corporation, a publicly held manufacturer of engineered materials and components for the U.S. building products markets. Age: 69 Education: Wharton School of Business at the University of Pennsylvania, MBA United States Naval Academy, BS
John D. Craig	Independent Director	Director/Board Member
Biography: Mr. John D. Craig is an Independent Director of Gardner Denver, Inc., since November 2011. Mr. Craig has served as Chairman of the Board of Directors, President and Chief Executive Officer of EnerSys, a publicly traded company and the world’s manufacturing and marketer of industrial batteries and related equipment, since November 2000. Prior to joining EnerSys in 2000, Mr. Craig served six years with Yuasa, Inc., holding a series of positions with increasing responsibility, with his last position being President and Chief Operating Officer. Mr. Craig holds a B.S. from Western Michigan University and an M.S. from Arizona State University. He serves on the boards of Kutztown University Foundation, American Red Cross (Berks County) and Reading Hospital, and is President and a board member of Battery Council International. Age: 61 Education: Arizona State University, M Western Michigan University, BS
Raymond R. Hipp	Independent Director	Director/Board Member
Biography: Mr. Raymond R. Hipp is an Independent Director of Gardner Denver Inc., since November 1998. Since July 2002, Mr. Hipp has served as a strategic alternative and mergers and acquisitions consultant. Mr. Hipp served as Chairman, President and CEO and a Director of Alternative Resources Corporation, a provider of information technology staffing and component outsourcing, a position he held from July 1998 until his retirement in June 2002. From August 1996 until May 1998, Mr. Hipp was the Chief Executive Officer of ITI Marketing Services, a provider of telemarketing services. Mr. Hipp has a B.S. from Southeast Missouri State University. In February 2011, Mr. Hipp was appointed a Director and Chairman of the Audit Committee for Neogenomics, Inc., a biotechnology company operating a network of cancer-focused testing laboratories. Age: 69 Education: Southeast Missouri State University, BS
David D. Petratis	Independent Director	Director/Board Member
Biography: Mr. David D. Petratis is an Independent Director of Gardner Denver, Inc., since July 2004. In July 2008, Mr. Petratis was appointed Director, President and Chief Executive Officer of Quanex Building Products Corporation (“Quanex�), a publicly held manufacturer of engineered materials and components for the U.S. building products markets. In addition to his current role at Quanex, in December 2008, he was elected to the position of Chairman. Mr. Petratis previously served as President and Chief Executive Officer of the North American Operating Division of Schneider Electric, a market brand of electrical distribution and industrial control products, systems and services, from January 2004 until May 2008 and President and Chief Operating Officer from December 2002 until his promotion in January 2004. He was President of MGE Americas, a privately held manufacturer of power supplies, from 1996 through 2002. Mr. Petratis earned a B.A. in industrial management from the University of Northern Iowa and an M.B.A. from Pepperdine University. He has held positions on the Board of Directors of the University of California, Irvine Graduate School of Management, the California State (Fullerton) Quality Advisory Board and Project Independence, a community agency in Costa Mesa, California for the developmentally disabled. Mr. Petratis served on the Board of Governors of National Electrical Manufacturers Association (NEMA) and the International Electrical Safety Foundation. Age: 54 Education: Pepperdine University, MBA University of Northern Iowa, BA (Industrial Management)
Charles L. Szews	Independent Director	Director/Board Member
Biography: Mr. Charles L. Szews is an Independent Director of Gardner Denver, Inc., since November 2006. In January 2011, Mr. Szews was appointed as the President and Chief Executive Officer of Oshkosh Corporation (“Oshkosh�), a specialty vehicle manufacturer. He has been a director of Oshkosh since May 2007. Previously, he served as President and Chief Operating Officer of Oshkosh from October 2007 until January 2011, as Executive Vice President and Chief Financial Officer of Oshkosh from 1997 until 2007 and Vice President and Chief Financial Officer from 1996 to 1997. Prior to joining Oshkosh in 1996, Mr. Szews spent eight years with Fort Howard Corporation, a paper manufacturing company, holding a series of positions with increasing responsibility, with his last position being Vice President and Controller. Mr. Szews has ten years of audit experience at E&Y. Mr. Szews holds a B.B.A. in comprehensive public accounting from the University of Wisconsin-Eau Claire and was previously a Certified Public Accountant for 28 years. Age: 55 Education: University of Wisconsin, Eau Claire, BBA
Richard L. Thompson	Independent Director	Director/Board Member
Biography: Mr. Richard L. Thompson is an Independent Director of Gardner Denver Inc., since November 1998. Mr. Thompson served as a Group President and Executive Office Member of Caterpillar Inc. (“Caterpillar�), a publicly held manufacturer of construction machinery and equipment, from 1995 until his retirement in June 2004. He earned both a B.S. in electrical engineering and an M.B.A. from Stanford University and completed the Caterpillar Advanced Management Program. Mr. Thompson serves as Chairman of the Board of Directors of Lennox International, Inc., a publicly held manufacturer of HVAC and refrigeration equipment, and as a director of NiSource Inc., a publicly held electric and gas utility. Age: 72 Education: Stanford University, MBA Stanford University, BS (Electrical Engineering)

Executives

Name	Title	Function
Michael M. Larsen	Interim Chief Executive Officer, Chief Financial Officer and Vice President	Chief Executive Officer
Biography: Mr. Michael M. Larsen serves as Interim Chief Executive Officer, Chief Financial Officer, Vice President of Gardner Denver, Inc. He has been appointed as Interim Chief Executive Officer of the Company, effective July 13, 2012. Prior to joining Gardner Denver, Mr. Larsen served as chief financial officer for General Electric Water & Process Technologies. His previous experience includes more than 15 years with General Electric Company, where he served in a variety of financial leadership roles in GE Plastics, GE Industrial, GE Energy Services and GE Power & Water. He joined GE's European Healthcare organization in Paris, France in 1995 and served on GE's Corporate Audit staff for six years. Mr. Larsen holds a B.A. in international economics from the American University of Paris and an M.B.A. from Columbia University and London Business School. Age: 43 Education: London Business School, MBA Columbia University, MBA American University of Paris, BA (International Economics) Compensation/Salary:$457,219 Compensation Currency: USD
Brian L. Cunkelman	Pres-Indus Products Grp & VP	President
Biography: Mr. Brian L. Cunkelman is the Vice President, President - Industrial Products Group of Gardner Denver, Inc. Mr. Cunkelman joined Gardner Denver in 2010 as Vice President, IPG Americas, and was promoted in 2011 to his current role as Vice President and General Manager for Emco Wheaton, a division of Gardner Denver, headquartered in Germany. In his new role, Mr. Cunkelman will remain based in Europe, which represents a substantial portion of IPG’s global operations. Previously, Mr. Cunkelman was Vice President of the Engineering Solutions business unit for Dell Corporation, and spent more than 17 years with Wabtec Corporation in a variety of operational and business leadership roles of increasing responsibility. These roles included Product Development, Operations Management, International Business Development, and Aftermarket Development. Brian holds a Bachelor of Science degree in Mechanical Engineering from Brown University and has experience in implementing Lean principles. Age: 43 Education: Brown University, BS (Mechanical Engineering)
T. Duane Morgan	Pres-Indus Products Grp & VP	Division Head Executive
Biography: Mr. T. Duane Morgan has been appointed as the Vice President, President - Engineered Products Group of Gardner Denver, Inc., effective from July 23, 2012. Prior to that he was Vice President and President - Engineered Products Group of the company. He joined the Company as Vice President and General Manager of the Gardner Denver Fluid Transfer Division in December 2005. Prior to joining Gardner Denver, Mr. Morgan served as President of Process Valves for Cooper Cameron Valves, a division of Cooper Cameron Corporation, Vice President and General Manager, Aftermarket Services, from 2003 to 2005, and President of Orbit Valve, a division of Cooper Cameron Valves, from 1998 to 2002. From 1985 to 1998, he served in capacities in plant and sales management for Cooper Oil Tool Division, Cooper Industries. Before joining Cooper Industries, he held positions in finance, marketing and sales with Joy Manufacturing Company and B.F. Goodrich Company. Mr. Morgan holds a B.S. degree in mathematics from McNeese State University and an M.B.A. from Louisiana State University. Mr. Morgan is a member of the Board of Directors of the Petroleum Equipment Suppliers Association and a former member of the Board of Directors of the Valve Manufacturers Association. Mr. Morgan served on active duty as an Air Defense Artillery Officer in the U.S. Army. Age: 62 Education: Louisiana State University, MBA McNeese State University, BS (Mathematics) Compensation/Salary:$353,675 Compensation Currency: USD
Paul Keegel	Director, Operations	Operations Executive
Josh Greer	Senior Network Administrator	Administration Executive
Brent A. Walters	Vice President, Chief Compliance Officer, General Counsel, Secretary	Company Secretary
Biography: Mr. Brent A. Walters is Vice President, Chief Compliance Officer, General Counsel, Secretary of Gardner Denver, Inc. He was appointed Vice President, General Counsel and Chief Compliance Officer of Gardner Denver in August 2009, and appointed Secretary of the Company in February 2010. He joined the Company from Caterpillar Inc., a publicly traded manufacturer of construction machinery and equipment, where he held a series of positions with increasing responsibility from 1996 to 2009, as Senior Corporate Counsel. Prior to joining Caterpillar in 1996, Mr. Walters was an associate attorney with Hinshaw & Culbertson from 1991 to 1996 and a financial auditor with KPMG LLP and PricewaterhouseCoopers LLP prior to attending law school. Mr. Walters has a B.S. in accounting from Bradley University and J.D. from Southern Illinois University School of Law. He is a Certified Public Accountant. Age: 47 Education: Southern Illinois University, JD Bradley University, BS (Accounting) Compensation/Salary:$297,067 Compensation Currency: USD
Helen W. Cornell	Executive Vice President, Finance and Chief Financial Officer	Finance Executive
Education: University of Kentucky, bachelor's (Accounting) Vanderbilt, master's (Business Administration)
Sue Kendrick	Finance Director	Finance Executive
Kristine Krueger	Financial Systems Specialist	Finance Executive
Thomas Mccarthy	Director Finance	Finance Executive
Social:
Jerry Spyres	Financial Director	Finance Executive
Social:
Jim Giedeman	Accounts Payable	Accounting Executive
Cynthia Huber	Supervisor, Accounts Payable	Accounting Executive
Social:
Mary Jackson	Manager, Accounting	Accounting Executive
Social:
Bob Laws	Interna Audit Manager	Accounting Executive
Gary Moore	Manager Accounting and Payroll (Ap)	Accounting Executive
Doug Eckert	Director - Tax	Corporate Tax Executive
Social:
Janice Walbring	Senior Tax Specialist	Corporate Tax Executive
David J Antoniuk	Vice President & Corporate Controller	Controller
Biography: David J. Antoniuk joined the Company as Vice President and Corporate Controller in September 2005. Prior to joining Gardner Denver Mr. Antoniuk was employed by Davis-Standard Corporation a wholly-owned subsidiary of Crompton Corporation as Vice President Finance from 1996 to 2005. From 1985 to 1996 Mr. Antoniuk held positions of increasing responsibility with Pirelli Cables North America serving in the roles of Corporate Controller from 1989 to 1992 and Division Operations Controller from 1992 to 1996. From 1982 to 1985 he was employed at Johnson & Johnson Inc. and from 1979 to 1982 with KPMG. Mr. Antoniuk has a B.S. degree in business administration from Seton Hall University and is a Certified Public Accountant. Education: Seton Hall University, BS (Business Administration) Social:
Susan Blickhan	Controller	Controller
Andrew Hibbard	Director, Compensation	Benefits & Compensation Executive
Social:
Christy Salgado	Senior Benefits Analyst	Benefits & Compensation Executive
Kyle Stone	Benefits Department	Benefits & Compensation Executive
Social:
Emily Tait	Compensation Analyst	Benefits & Compensation Executive
David Varner	Payroll Supervisor	Benefits & Compensation Executive
Maureen Evans	Human Resources Professional	Human Resources Executive
Kristen Fields	Human Resources Generalist Ii	Human Resources Executive
Susan A. Gunn	Vice President - Human Resources	Human Resources Executive
Biography: Ms. Susan A. Gunn is Vice President - Human Resources of Gardner Denver, Inc., since January 1, 2012. Prior to joining Gardner Denver, Ms. Gunn was employed by Hay Group as Global Head of Human Resources and Acting Chief Marketing Officer. Hay Group is a private global management consulting firm providing support in evaluating and implementing global human resources strategy. Ms. Gunn led international HR operations in public enterprises including senior human resources roles at Willis Group Holdings, Revlon and Vivendi Universal (The Seagram Company). Ms. Gunn is a member of the Board of Directors for Leadership Philadelphia, a non-profit institution supporting philanthropist leadership activities in the Philadelphia area. Ms. Gunn holds a Bachelor of Arts degree in Economics and a Graduate Certificate in Human Resources from McGill University. Age: 40 Education: McGill University, BA (Economics)
Tatjana Sinkovic	Hris Leader	Human Resources Executive
Wayne Szmyt	Manager Human Resources	Human Resources Executive
Social:
Stan Yelton	Manager, Human Resources	Human Resources Executive
Social:
John Balamuta	Manager, Sales and Marketing	Sales Executive
Richard Bortle	Sales Consultant	Sales Executive
Social:
Jason Brister	Sales Engineer	Sales Executive
Ed Campea	Regional Sales Manager	Sales Executive
Social:
Tom Dardis	Manager Sales	Sales Executive
Social:
Barb Dietrich	Vice President Sales	Sales Executive
Social:
Jim Gartman	Director of Sales and Marketing	Sales Executive
Social:
Bill Harris	Territory Sales Manager	Sales Executive
Valorie Miller	Sales Coordinator	Sales Executive
Carr Staley	Sls - Latin America	Sales Executive
Jim Russell	Manager For Global Technical Services.	International Executive
Gary Gillespie	Marketing Executive	Marketing Executive
Social:
Leanne Hobbs	Marketing Manager, Professional	Marketing Executive
Peter Klipfel	Marketing Director	Marketing Executive
Social:
Heather Luker	Senior Marketing Analyst	Marketing Executive
Amy Massman	Manager Marketing	Marketing Executive
Social:
Phil Shults	Marketing	Marketing Executive
Curtis Stratman	Information Technology, Marketing	Marketing Executive
Susan Wray	Marketing Specialist	Marketing Executive
Leah Hanlin	Graphic Designer	Advertising Executive
Social:
John Bordewick	Technical Support	Information Executive
Social:
Bob D. Elkins	Vice President, Chief Information Officer	Information Executive
Biography: Mr. Bob D. Elkins is Vice President, Chief Information Officer of Gardner Denver, Inc., since November 2007. He joined Gardner Denver in January 2004, as Director of Information Technology and served in that position until his promotion in 2005 to Vice President, Information Technology. Mr. Elkins has 20 years experience in Information Technology leadership positions. Prior to joining Gardner Denver, he served as Senior Project Manager for SBI and Company from September 2003 to December 2003, Vice President, Industry Solutions for Novoforum from July 2000 to September 2002, Director of Information Technology for Halliburton Energy Services from May 1994 to July 2000, and Associate Partner at Accenture (formerly Andersen Consulting) from January 1981 to May 1994. Mr. Elkins has a B.S. in economics and an M.B.A. in computer science from Texas A&M University. Age: 63 Education: Texas A&M University, MBA (Computer Science) Texas A&M University, BS (Economics) Social:
Terry Herman	Information Technology	Information Executive
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Diana Klauser	Mis Director	Information Executive
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Jeff Massman	Information Technology Director	Information Executive
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Kevin Meyer	Manager of Information Technology, Thomas	Information Executive
Social:
Courtney Mills	Information Technology Manager, Uk	Information Executive
Social:
Lorrie Peterson	Information Technology Specialist	Information Executive
Social:
Manfred Stieglmeier	Director Engineered Systems	Information Executive
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Tony Mitchell	Network Administrator	Network Management Executive
Dave Asermily	Engineering Manager	Engineering/Technical Executive
Mark Beatty	Electrical Engineer	Engineering/Technical Executive
Wes Carl	Manager Engineering	Engineering/Technical Executive
Social:
Mark Cawthon	Engineering Management	Engineering/Technical Executive
Martin Coats	Engineer	Engineering/Technical Executive
Ron Collins	Controls Engineer	Engineering/Technical Executive
Christoph Degginger	Vice President Engineering and New Pro...	Engineering/Technical Executive
Steve Dick	Manager Technical Services	Engineering/Technical Executive
Social:
Jordan Genenbacher	Manufacturing Engineer	Engineering/Technical Executive
Gary Graham	Manufacturing Engineering Manager	Engineering/Technical Executive
Social:
Luke Gray	Design Engineer	Engineering/Technical Executive
Kevin Hughes	Engineer	Engineering/Technical Executive
Maureen Kamphaus	Technical Surveyor Hygienist	Engineering/Technical Executive
Neville Kapadia	Director-Engineering	Engineering/Technical Executive
Scott Smith	Engineer	Engineering/Technical Executive
Mike Walker	Applications Engineer, Uk	Engineering/Technical Executive
Lisa Hert	Manager Telecommunications	Telecommunications Executive
Social:
Norb Mast	Manager of Research	Research & Development Executive
Mike Holm	Sap Business Analyst	Business Development Executive
David Hetzler	Director Finacial Planning and Analysis	Planning Executive
Mark Chiado	Compliance Officer	Legal Executive
Vivien Hammett	Trade Compliance Analyst	Legal Executive
Jeremy T. Steele	Vice President, General Counsel & Chief Compliance Officer	Legal Executive
Education: Brigham Young University, BS (Business ( International Finance )) Duke University School of Law, JD
Addy Farou	Vice President Manufacturing	Manufacturing Executive
Social:
Paul Healy	Director of Manufacturing	Manufacturing Executive
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Dan Chevalier	Import Analyst	Logistics Executive
Jennifer Murphy	Materials and Inventory Coordinator I	Merchandise Management Executive
Oj Adkisson	Purchasing Manager	Purchasing Executive
Brian Armitage	Procurement Manager	Purchasing Executive
Les Middleton	Materials Manager	Purchasing Executive
Social:
Mark Whitis	Materials Manager	Purchasing Executive
Douglas Porter	Quality Assurance Specialist	Quality Executive
Barbara Anderson	Supervisor Welfare Plans	Other
Russ Cook	Manager, Sap Infrastructure	Other
Social:
Chris Eastham	Manager	Other
Schyler Engel	Emarketing Supervisor	Other
Robert Gardner	Founder	Other
Biography: Robert Gardner started his company in 1859 with products sold to the oil and natural gas industry. Today we are a leading supplier of equipment for the exploration production refining safe transportation and distribution of petroleum products. Gardner Denver air compressors and nitrogen generators are found in service stations around the corner and around the world.
Michael Hummert	Sap Project Manager	Other
Social:
Connie Johnson	Ship and Receiving	Other
Jimmy Lam	Director Blowers Asia	Other
Travis Merrill	Designer	Other
Shelly Pettis	Ship and Receiving	Other
Merton Porter	Regional Manager	Other
Gregory Pratt	Corporate Law	Other
Betsy Ralsten	Project Manager, Sap & Fi, Co	Other
Social:
John Sharp	Manager of It	Other
Social:
J Dennis Shull	Executive Vice President & President-Industrial Products Group	Other
Carissa Slate	Designer I	Other
Social:
Aaron Strong	Analyst	Other

Significant Developments

Gardner Denver, Inc. Declares Quarterly Cash Dividend Aug 02, 2012

Gardner Denver, Inc. announced that the Board of Directors declared a regular quarterly dividend of $0.05 per share for the second quarter of 2012. The second quarter dividend is payable August 31, 2012, to shareholders of record as of August 16, 2012.

Gardner Denver, Inc. Issues Q3 2012 EPS Guidance Below Analysts' Estimates; Lowers FY 2012 EPS Guidance

Jul 19, 2012

Gardner Denver, Inc. announced that for fiscal 2012, it expects DEPS to be in the range of $4.90 to $5.10 as compared to its prior guidance of $5.20 to $5.40. This new forecast represents a $0.30 adjustment driven principally by a broadly weaker economy in Europe and the exchange rate impact of foreign currencies. For the third quarter of 2012, it expects earnings to be in the range of $1.12 to $1.22 DEPS. These projections include profit improvement costs and other items totaling $0.03 per diluted share for the third quarter and $0.40 per diluted share for the total year. For the third quarter of 2012 Adjusted DEPS are expected to be in a range of $1.15 to $1.25 and fiscal 2012 Adjusted DEPS are expected to be in a range of $5.30 to $5.50, as compared to prior guidance of $5.60 to $5.80. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.35 for the third quarter of 2012; EPS of $5.49 for fiscal 2012.

Barry L. Pennypacker Resigns As President, Chief Executive Officer Of Gardner Denver, Inc. Jul 16, 2012

Gardner Denver, Inc. announced that Barry L. Pennypacker has resigned as President, Chief Executive Officer (CEO) and Director. Michael M. Larsen, Vice President and Chief Financial Officer, has been named Interim CEO, effective immediately. Diane Schumacher, who served in a variety of senior management and legal roles during her career with Cooper Industries, will continue to serve as Board chairperson and will actively assist Mr. Larsen during the transition period.

Gardner Denver, Inc. Declares Quarterly Dividend and Increases Share Repurchase Authorization May 02, 2012

Gardner Denver, Inc. announced that the Board of Directors declared a regular quarterly dividend of five cents per share for the first quarter of 2012. The first quarter dividend is payable June 1, 2012, to shareholders of record as of May 17, 2012. In addition, the Company announced that on May 1, 2012 its Board of Directors increased the authorized level for repurchases of its common stock by 1.6 million shares, or approximately $102 million, plus an additional amount to offset any future dilution resulting from equity grants under the Company's benefit plans. The Company repurchased 1.064 million shares of its common stock in April 2012 and additionally has approximately 600,000 shares, or approximately $38 million, that remains available from an existing authorization approved by the Board of Directors in November 2011. The timing and amount of repurchases will vary based upon market conditions, corporate requirements, and other factors. All common stock acquired will be held as treasury stock and will be available for general corporate purposes.

Gardner Denver, Inc. Issues Q2 2012 EPS Guidance Below Analysts' Estimates'; Lowers FY 2012 EPS Guidance

Apr 19, 2012

Gardner Denver, Inc. announced that for the second quarter of 2012, it expects diluted earnings per share (DEPS) to be approximately $1.35 to $1.45, and for fiscal 2012 DEPS to be in the range of $5.20 to $5.40. These projections include profit improvement costs and other items totaling $0.05 per diluted share for the second quarter and $0.40 per diluted share for the total year. For the second quarter 2012 adjusted DEPS are expected to be in a range of $1.40 to $1.50 and for fiscal 2012 Adjusted DEPS are expected to be in a range of $5.60 to $5.80. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.51 for second quarter of 2012; EPS of $5.93 for fiscal 2012.

Gardner Denver, Inc. Declares Quarterly Cash Dividend Feb 24, 2012

Gardner Denver, Inc. announced that on February 21, 2012 its Board of Directors declared a quarterly dividend of $0.05 per share, payable on March 23, 2012, to stockholders of record as of March 8, 2012.

Gardner Denver, Inc. Issues FY, Q1 2012 EPS Guidance In Line With Analysts' Estimates Feb 09, 2012

Gardner Denver, Inc. announced that for the first quarter of 2012, it anticipate diluted earnings per share (DEPS) to be approximately $1.20 to $1.30, and for fiscal 2012 DEPS to be in the range of $5.85 to $6.05. These projections include acquisition related and profit improvement costs totaling $0.10 per diluted share for the first quarter and $0.15 per diluted share for the total year. For the first quarter 2012 adjusted DEPS are expected to be in a range of $1.30 to $1.40 and for fiscal 2012 Adjusted DEPS are expected to be in a range of $6.00 to $6.20. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.38 for the first quarter of 2012 and EPS of $6.17 for fiscal 2012.

Gardner Denver, Inc. Issues Q4 2011 EPS Guidance In Line With Analysts' Estimates; Raises FY 2011 EPS Guidance Oct 20, 2011

Gardner Denver, Inc. announced that for fourth quarter of 2011, it expects diluted earnings per share (DEPS) in the range of $1.42-$1.47 and adjusted DEPS in the range of $1.45-$1.50. For fiscal 2011, it expects DEPS to be in the range of $5.24-$5.29 and adjusted DEPS in the range of $5.44-$5.49. According to I/B/E/S Estimates, analysts are expecting the Company to report EPS of $1.47 for fourth quarter of 2011 and EPS of $5.34 for fiscal 2011.

Gardner Denver, Inc. Announces Agreement To Acquire Robuschi Oct 11, 2011

Gardner Denver, Inc. announced that it has entered into a share purchase agreement with the holders of 100% of the outstanding shares of Robuschi S.p.A. (Robuschi), a European manufacturer of blowers and pumps, for a purchase price of approximately EUR152 million ($207 million at current exchange rates). Its shares are currently held by an investor group led by Milan, Italy based Aksia Group. Robuschi is a European producer of blowers, pumps and associated packages. These products are used in a wide variety of end markets including wastewater, mining, and power generation, as well as general industrial applications. With facilities in Noceto, Italy; Sao Paulo, Brazil; and Shanghai, China, in addition to its main production facility in Parma, Robuschi serves over 3,000 customers and has an installed base in excess of 200,000 units. The transaction is subject to customary closing conditions, including the receipt of applicable regulatory approvals, and is expected to close in the fourth quarter of 2011.

Annual income statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Sales	2,370.9	1,895.1	1,778.1	2,018.3	1,868.8
Revenue	2,370.9	1,895.1	1,778.1	2,018.3	1,868.8
Total Revenue	2,370.9	1,895.1	1,778.1	2,018.3	1,868.8
Cost of Revenue	1,563.0	1,268.7	1,227.5	1,380.0	1,248.9
Cost of Revenue, Total	1,563.0	1,268.7	1,227.5	1,380.0	1,248.9
Gross Profit	807.9	626.4	550.6	638.3	619.9
Selling/General/Administrative Expense	394.8	369.5	356.2	348.6	327.0
Total Selling/General/Administrative Expenses	394.8	369.5	356.2	348.6	327.0
Interest Expense - Operating	-	-	-	-	26.2
Interest Expense - Net Operating	-	-	-	-	26.2
Investment Income - Operating	-0.7	-2.0	0.5	12.9	0.3
Interest/Investment Income - Operating	-0.7	-2.0	0.5	12.9	0.3
Interest Expense (Income) - Net Operating Total	-0.7	-2.0	0.5	12.9	26.5
Restructuring Charge	8.6	2.2	46.1	11.1	-0.2
Impairment-Assets Held for Use	0.0	0.0	262.4	0.0	0.0
Other Unusual Expense (Income)	2.0	1.0	-0.3	5.0	0.7
Unusual Expense (Income)	10.6	3.2	308.2	16.1	0.5
Other Operating Expense	2.5	3.4	-0.6	1.0	-0.7
Other, Net	-	-	-	-	-3.1
Other Operating Expenses, Total	2.5	3.4	-0.6	1.0	-3.8
Total Operating Expense	1,970.2	1,642.7	1,891.8	1,758.6	1,599.2
Operating Income	400.7	252.4	-113.7	259.7	269.7
Interest Expense - Non-Operating	-15.4	-23.4	-28.5	-25.5	-
Interest Expense, Net Non-Operating	-15.4	-23.4	-28.5	-25.5	-
Interest Income (Expense) - Net Non-Operating Total	-15.4	-23.4	-28.5	-25.5	-
Other Non-Operating Income (Expense)	1.7	2.9	3.8	0.8	-
Other, Net	1.7	2.9	3.8	0.8	-
Income Before Tax	387.0	231.9	-138.4	235.0	269.7
Total Income Tax	107.4	56.9	24.9	67.5	63.3
Income After Tax	279.5	175.0	-163.3	167.5	206.4
Minority Interest	-2.0	-2.0	-1.9	-1.5	-1.3
Net Income Before Extraord Items	277.6	173.0	-165.2	166.0	205.1
Net Income	277.6	173.0	-165.2	166.0	205.1
Income Available to Common Excl Extraord Items	277.6	173.0	-165.2	166.0	205.1
Income Available to Common Incl Extraord Items	277.6	173.0	-165.2	166.0	205.1
Basic/Primary Weighted Average Shares	51.7	52.3	51.9	52.6	53.2
Basic EPS Excl Extraord Items	5.37	3.31	-3.18	3.16	3.85
Basic/Primary EPS Incl Extraord Items	5.37	3.31	-3.18	3.16	3.85
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	277.6	173.0	-165.2	166.0	205.1
Diluted Weighted Average Shares	52.1	52.7	51.9	53.1	54.0
Diluted EPS Excl Extraord Items	5.33	3.28	-3.18	3.12	3.80
Diluted EPS Incl Extraord Items	5.33	3.28	-3.18	3.12	3.80
Dividends per Share - Common Stock Primary Issue	0.20	0.20	0.05	0.00	0.00
Gross Dividends - Common Stock	10.4	10.5	2.6	0.0	0.0
Interest Expense, Supplemental	15.4	23.4	28.5	25.5	26.2
Depreciation, Supplemental	431.2	42.9	49.3	47.0	46.3
Total Special Items	10.6	3.2	308.2	16.1	0.5
Normalized Income Before Tax	397.6	235.0	169.8	251.1	270.2
Effect of Special Items on Income Taxes	2.9	0.8	107.9	4.6	0.1
Inc Tax Ex Impact of Sp Items	110.4	57.7	132.8	72.1	63.4
Normalized Income After Tax	287.2	177.4	37.0	179.0	206.8
Normalized Inc. Avail to Com.	285.2	175.4	35.2	177.5	205.5
Basic Normalized EPS	5.52	3.35	0.68	3.37	3.86
Diluted Normalized EPS	5.48	3.33	0.68	3.34	3.80
Amort of Intangibles, Supplemental	17.1	17.3	19.4	14.5	12.3
Rental Expenses	31.3	28.4	31.3	24.7	20.5
Research & Development Exp, Supplemental	39.3	35.9	36.0	38.7	37.3
Normalized EBIT	410.6	253.5	195.0	288.8	296.7
Normalized EBITDA	858.9	313.8	263.7	350.2	355.3
Current Tax - Domestic	69.2	31.5	18.4	36.5	46.9
Current Tax - Foreign	41.1	24.6	17.3	29.6	30.4
Current Tax - Local	5.3	2.4	2.1	3.7	4.8
Current Tax - Total	115.5	58.5	37.8	69.8	82.0
Deferred Tax - Domestic	-3.0	1.7	-3.8	-1.9	-8.0
Deferred Tax - Foreign	-4.2	-4.8	-7.9	-1.4	-10.3
Deferred Tax - Local	-0.8	1.5	-1.1	1.0	-0.4
Deferred Tax - Total	-8.1	-1.6	-12.9	-2.3	-18.7
Income Tax - Total	107.4	56.9	24.9	67.5	63.3
Interest Cost - Domestic	3.5	3.7	4.2	4.2	4.2
Service Cost - Domestic	0.0	0.0	0.0	0.0	0.0
Prior Service Cost - Domestic	0.0	0.0	0.0	0.0	0.0
Expected Return on Assets - Domestic	-4.1	-3.6	-3.2	-4.6	-4.5
Actuarial Gains and Losses - Domestic	1.2	1.3	1.8	0.1	0.2
Curtailments & Settlements - Domestic	0.0	0.0	0.0	0.0	0.0
Domestic Pension Plan Expense	0.6	1.5	2.8	-0.2	-0.1
Interest Cost - Foreign	12.2	11.7	11.1	11.9	10.9
Service Cost - Foreign	1.2	1.1	1.1	1.1	3.8
Prior Service Cost - Foreign	0.0	0.0	0.0	0.0	0.0
Expected Return on Assets - Foreign	-11.3	-10.4	-9.0	-12.6	-11.9
Actuarial Gains and Losses - Foreign	0.9	1.0	-0.1	-0.1	0.4
Curtailments & Settlements - Foreign	0.0	-0.8	-0.1	0.0	0.0
Foreign Pension Plan Expense	3.1	2.5	3.0	0.4	3.2
Interest Cost - Post-Retirement	0.8	0.9	1.1	1.1	1.4
Service Cost - Post-Retirement	0.0	0.0	0.0	0.0	0.0
Prior Service Cost - Post-Retirement	-0.1	-0.1	-0.2	-0.4	-0.4
Expected Return on Assets - Post-Retir.	0.0	0.0	0.0	0.0	0.0
Actuarial Gains and Losses - Post-Retir.	-1.3	-1.4	-1.4	-1.3	-0.8
Post-Retirement Plan Expense	-0.5	-0.7	-0.4	-0.6	0.2
Defined Contribution Expense - Domestic	17.7	14.8	15.7	18.2	15.4
Total Pension Expense	20.9	18.1	21.1	17.8	18.7
Discount Rate - Domestic	5.30%	5.70%	6.30%	6.10%	5.90%
Discount Rate - Foreign	5.40%	5.70%	6.40%	5.80%	5.10%
Discount Rate - Post-Retirement	5.50%	6.00%	6.40%	6.10%	5.90%
Expected Rate of Return - Domestic	7.80%	7.80%	7.80%	8.00%	8.00%
Expected Rate of Return - Foreign	6.80%	7.20%	7.00%	7.50%	7.50%
Compensation Rate - Foreign	3.60%	3.80%	3.40%	4.10%	3.90%
Total Plan Interest Cost	16.5	16.3	16.4	17.3	16.5
Total Plan Service Cost	1.2	1.1	1.1	1.1	3.9
Total Plan Expected Return	-15.4	-14.0	-12.2	-17.2	-16.5

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Cash & Equivalents	155.3	157.0	109.7	120.7	92.9
Cash and Short Term Investments	155.3	157.0	109.7	120.7	92.9
Accounts Receivable - Trade, Gross	489.0	381.4	336.9	398.7	317.5
Provision for Doubtful Accounts	-11.5	-11.5	-10.7	-10.6	-8.8
Trade Accounts Receivable - Net	477.5	369.9	326.2	388.1	308.7
Total Receivables, Net	477.5	369.9	326.2	388.1	308.7
Inventories - Finished Goods	67.7	54.9	51.6	91.0	77.6
Inventories - Work In Progress	57.3	38.4	39.7	47.1	47.6
Inventories - Raw Materials	202.5	163.2	150.1	159.4	142.5
LIFO Reserve	-15.9	-15.0	-15.0	-12.6	-11.4
Total Inventory	311.7	241.5	226.5	284.8	256.4
Deferred Income Tax - Current Asset	35.9	34.6	30.6	33.0	21.0
Other Current Assets	35.3	25.5	25.5	30.9	22.4
Other Current Assets, Total	71.3	60.2	56.1	63.9	43.4
Total Current Assets	1,015.7	828.5	718.5	857.6	701.5
Buildings	160.4	175.5	168.2	143.5	140.5
Land/Improvements	27.5	30.6	31.1	28.8	27.9
Machinery/Equipment	422.6	400.9	417.6	401.9	353.1
Construction in Progress	34.6	17.6	10.0	14.5	21.9
Property/Plant/Equipment - Gross	645.1	624.6	626.9	588.7	543.5
Accumulated Depreciation	-354.2	-338.0	-320.6	-283.7	-250.1
Property/Plant/Equipment - Net	290.9	286.6	306.2	305.0	293.4
Goodwill, Net	676.6	571.8	578.0	804.6	685.5
Intangibles - Gross	334.8	276.2	284.0	287.4	125.4
Accumulated Intangible Amortization	-109.6	-95.2	-82.1	-60.5	-47.6
Intangibles, Net	348.9	289.6	314.4	346.3	206.3
Other Long Term Assets	33.5	50.6	21.9	26.6	18.9
Other Long Term Assets, Total	33.5	50.6	21.9	26.6	18.9
Total Assets	2,365.6	2,027.1	1,939.0	2,340.1	1,905.6
Accounts Payable	214.5	143.3	94.9	135.9	101.6
Accrued Expenses	172.9	140.0	168.1	187.6	147.7
Notes Payable/Short Term Debt	77.7	37.2	33.6	37.0	25.7
Customer Advances	40.7	39.0	26.9	36.9	37.2
Other Current liabilities, Total	40.7	39.0	26.9	36.9	37.2
Total Current Liabilities	505.8	359.6	323.5	397.4	312.2
Long Term Debt	326.1	250.7	330.9	506.7	264.0
Total Long Term Debt	326.1	250.7	330.9	506.7	264.0
Total Debt	403.8	287.9	364.5	543.7	289.7
Deferred Income Tax - LT Liability	76.8	62.2	67.8	91.2	64.2
Deferred Income Tax	76.8	62.2	67.8	91.2	64.2
Minority Interest	2.3	12.5	11.8	10.9	-
Pension Benefits - Underfunded	14.7	13.7	15.3	17.5	17.4
Other Long Term Liabilities	162.6	151.3	137.5	117.6	88.2
Other Liabilities, Total	177.3	165.0	152.8	135.1	105.5
Total Liabilities	1,088.3	849.9	886.9	1,141.2	745.9
Common Stock	0.6	0.6	0.6	0.6	0.6
Common Stock	0.6	0.6	0.6	0.6	0.6
Additional Paid-In Capital	601.9	592.0	558.7	545.7	515.9
Retained Earnings (Accumulated Deficit)	972.9	705.7	543.3	711.1	545.1
Treasury Stock - Common	-315.3	-182.5	-132.9	-130.8	-29.9
Other Comprehensive Income	17.3	61.4	82.5	72.4	128.0
Other Equity, Total	17.3	61.4	82.5	72.4	128.0
Total Equity	1,277.3	1,177.2	1,052.2	1,198.9	1,159.7
Total Liabilities & Shareholders’ Equity	2,365.6	2,027.1	1,939.0	2,340.1	1,905.6
Shares Outstanding - Common Stock Primary Issue	50.7	52.2	52.2	51.8	53.5
Total Common Shares Outstanding	50.7	52.2	52.2	51.8	53.5
Treasury Shares - Common Stock Primary Issue	9.1	7.3	6.4	6.5	3.8
Employees	6,800	6,100	6,500	7,700	6,200
Number of Common Shareholders	5,300	5,500	6,000	6,600	6,900
Accumulated Intangible Amort, Suppl.	109.6	95.2	82.1	60.5	47.6
Deferred Revenue - Current	40.7	39.0	26.9	36.9	37.2
Total Long Term Debt, Supplemental	403.8	287.9	364.5	516.7	289.7
Long Term Debt Maturing within 1 Year	77.7	37.2	33.6	36.2	24.8
Long Term Debt Maturing in Year 2	316.6	51.0	39.1	40.6	35.4
Long Term Debt Maturing in Year 3	0.7	190.5	67.0	57.8	81.5
Long Term Debt Maturing in Year 4	2.5	0.7	214.7	69.7	1.0
Long Term Debt Maturing in Year 5	0.7	0.7	0.7	293.2	1.0
Long Term Debt Maturing in 2-3 Years	317.3	241.5	106.1	98.4	116.9
Long Term Debt Maturing in 4-5 Years	3.2	1.4	215.4	362.9	2.0
Long Term Debt Matur. in Year 6 & Beyond	5.6	7.8	9.4	19.2	146.0
Total Capital Leases, Supplemental	7.1	7.7	9.5	7.2	7.9
Capital Lease Payments Due in Year 1	0.6	1.0	1.4	0.4	0.4
Capital Lease Payments Due in Year 2	0.4	0.5	0.8	0.4	0.3
Capital Lease Payments Due in Year 3	0.4	0.5	0.8	0.4	0.3
Capital Lease Payments Due in Year 4	1.2	0.4	0.3	0.3	0.3
Capital Lease Payments Due in Year 5	1.2	0.4	0.3	0.3	0.3
Capital Lease Payments Due in 2-3 Years	0.7	1.0	1.5	0.7	0.6
Capital Lease Payments Due in 4-5 Years	2.4	0.7	0.6	0.6	0.6
Cap. Lease Pymts. Due in Year 6 & Beyond	3.4	5.0	6.0	5.5	6.3
Total Operating Leases, Supplemental	138.6	92.0	105.6	120.5	82.5
Operating Lease Payments Due in Year 1	33.0	26.8	27.2	29.6	19.0
Operating Lease Payments Due in Year 2	23.6	19.8	21.6	22.7	15.5
Operating Lease Payments Due in Year 3	18.1	13.4	15.5	17.5	10.6
Operating Lease Payments Due in Year 4	14.1	9.0	10.2	12.1	9.2
Operating Lease Payments Due in Year 5	10.2	6.3	7.5	8.2	6.3
Operating Lease Pymts. Due in 2-3 Years	41.7	33.2	37.1	40.2	26.1
Operating Lease Pymts. Due in 4-5 Years	24.3	15.3	17.7	20.3	15.5
Oper. Lse. Pymts. Due in Year 6 & Beyond	39.6	16.7	23.6	30.4	21.9
Pension Obligation - Domestic	74.9	71.1	71.5	72.9	72.9
Pension Obligation - Foreign	224.5	219.8	220.3	169.3	218.8
Post-Retirement Obligation	15.8	14.9	16.6	17.5	19.5
Plan Assets - Domestic	54.7	52.2	47.0	44.5	59.9
Plan Assets - Foreign	161.1	158.3	150.8	122.7	179.0
Funded Status - Domestic	-20.2	-18.9	-24.5	-28.4	-13.0
Funded Status - Foreign	-63.4	-61.5	-69.5	-46.6	-39.8
Funded Status - Post-Retirement	-15.8	-14.9	-16.6	-17.5	-19.5
Accumulated Obligation - Domestic	74.9	71.1	71.5	72.8	72.9
Accumulated Obligation - Foreign	206.6	0.0	195.0	151.3	186.7
Accumulated Obligation - Post-Retirement	15.8	14.9	16.6	17.5	19.5
Total Funded Status	-99.4	-95.3	-110.6	-92.5	-72.3
Discount Rate - Domestic	4.60%	5.30%	5.70%	6.30%	6.10%
Discount Rate - Foreign	4.80%	5.40%	5.70%	6.40%	5.80%
Discount Rate - Post-Retirement	4.80%	5.50%	6.00%	6.40%	6.10%
Compensation Rate - Foreign	3.00%	3.60%	3.80%	3.40%	4.20%
Accrued Liabilities - Domestic	-85.0	-81.9	-95.6	-76.7	-55.1
Accrued Liabilities - Post-Retirement	-14.5	-13.4	-15.0	-15.8	-17.2
Other Assets, Net - Domestic	-	-	-	-	9.0
Other Assets, Net - Foreign	-	-	-	-	10.3
Other Assets, Net - Post-Retirement	-	-	-	-	-11.5
Net Assets Recognized on Balance Sheet	-99.4	-95.3	-110.6	-92.5	-64.5
Equity % - Domestic	60.00%	60.00%	60.00%	-	62.00%
Equity % - Foreign	50.00%	50.00%	55.00%	-	48.00%
Debt Securities % - Domestic	38.00%	38.00%	38.00%	-	32.00%
Debt Securities % - Foreign	26.00%	26.00%	26.00%	-	21.00%
Other Investments % - Domestic	2.00%	2.00%	2.00%	-	6.00%
Other Investments % - Foreign	-	-	-	-	31.00%
Total Plan Obligations	315.2	305.8	308.5	259.6	311.2
Total Plan Assets	215.8	210.5	197.8	167.1	238.9

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Income/Starting Line	279.5	175.0	-163.3	167.5	206.4
Depreciation	60.3	60.2	68.7	61.5	58.6
Depreciation/Depletion	60.3	60.2	68.7	61.5	58.6
Deferred Taxes	-10.6	-8.8	-8.2	-4.3	-13.6
Unusual Items	1.9	2.1	263.7	0.6	0.4
Other Non-Cash Items	3.3	4.1	6.6	10.8	1.4
Non-Cash Items	5.3	6.2	270.3	11.4	1.7
Accounts Receivable	-88.4	-43.8	72.1	9.5	-36.4
Inventories	-46.4	-15.4	67.5	35.1	-16.2
Payable/Accrued	88.9	36.7	-89.9	-20.6	0.6
Other Assets & Liabilities, Net	11.1	-7.9	-5.8	17.7	-19.5
Changes in Working Capital	-34.7	-30.4	43.8	41.7	-71.5
Cash from Operating Activities	299.8	202.2	211.3	277.8	181.6
Purchase of Fixed Assets	-55.7	-33.0	-42.8	-41.0	-47.8
Capital Expenditures	-55.7	-33.0	-42.8	-41.0	-47.8
Acquisition of Business	-196.4	-12.1	-0.1	-356.5	-0.2
Sale of Fixed Assets	3.7	2.7	1.2	2.2	1.7
Other Investing Cash Flow	0.0	0.0	0.0	0.9	0.7
Other Investing Cash Flow Items, Total	-192.6	-9.5	1.1	-353.4	2.2
Cash from Investing Activities	-248.3	-42.5	-41.7	-394.4	-45.6
Other Financing Cash Flow	-17.0	2.2	-0.4	-1.6	5.4
Financing Cash Flow Items	-17.0	2.2	-0.4	-1.6	5.4
Cash Dividends Paid - Common	-10.4	-10.5	-2.6	0.0	0.0
Total Cash Dividends Paid	-10.4	-10.5	-2.6	0.0	0.0
Repurchase/Retirement of Common	-132.6	-49.4	-0.9	-100.9	-1.0
Common Stock, Net	-132.6	-49.4	-0.9	-100.9	-1.0
Options Exercised	7.5	19.6	3.8	11.1	9.0
Issuance (Retirement) of Stock, Net	-125.1	-29.8	2.9	-89.8	8.0
Short Term Debt Issued	13.4	26.9	25.0	64.9	39.4
Short Term Debt Reduction	-18.5	-24.9	-33.5	-66.9	-37.1
Short Term Debt, Net	-5.1	2.0	-8.4	-2.0	2.3
Long Term Debt Issued	447.6	8.0	52.2	877.1	148.8
Long Term Debt Reduction	-330.1	-82.8	-231.7	-628.1	-276.4
Long Term Debt, Net	117.5	-74.8	-179.6	249.1	-127.6
Issuance (Retirement) of Debt, Net	112.4	-72.7	-188.0	247.0	-125.2
Cash from Financing Activities	-40.1	-110.9	-188.2	155.6	-111.8
Foreign Exchange Effects	-13.1	-1.6	7.5	-11.2	6.4
Net Change in Cash	-1.8	47.3	-11.0	27.8	30.6
Net Cash - Beginning Balance	157.0	109.7	120.7	92.9	62.3
Net Cash - Ending Balance	155.3	157.0	109.7	120.7	92.9
Cash Interest Paid	14.8	20.5	25.9	23.6	25.9
Cash Taxes Paid	105.9	51.5	36.0	62.0	92.8

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Revenues	2,370.9	1,895.1	1,778.1	2,018.3	1,868.8
Total Revenue	2,370.9	1,895.1	1,778.1	2,018.3	1,868.8
Cost of Sales	1,563.0	1,268.7	1,227.5	1,380.0	1,248.9
Impairment charges, net	0.0	0.0	262.4	0.0	0.0
Selling/Admin.	394.8	369.5	356.2	348.6	327.0
Interest Expense	-	-	-	-	26.2
Foreign currency losses	-0.7	-2.0	0.5	12.9	0.3
Restructuring charges	8.6	2.2	46.1	11.1	-0.2
Other employee termination	2.0	1.0	-0.3	5.0	0.7
Other Expense	2.5	3.4	-0.6	1.0	-0.7
Other (income) expense, net	-	-	-	-	-3.1
Total Operating Expense	1,970.2	1,642.7	1,891.8	1,758.6	1,599.2
Interest expenses	-15.4	-23.4	-28.5	-25.5	-
Other income, net	1.7	2.9	3.8	0.8	-
Net Income Before Taxes	387.0	231.9	-138.4	235.0	269.7
Provision for Income Taxes	107.4	56.9	24.9	67.5	63.3
Net Income After Taxes	279.5	175.0	-163.3	167.5	206.4
Non Controlling Interest	-2.0	-2.0	-1.9	-1.5	-1.3
Net Income Before Extra. Items	277.6	173.0	-165.2	166.0	205.1
Net Income	277.6	173.0	-165.2	166.0	205.1
Income Available to Com Excl ExtraOrd	277.6	173.0	-165.2	166.0	205.1
Income Available to Com Incl ExtraOrd	277.6	173.0	-165.2	166.0	205.1
Basic Weighted Average Shares	51.7	52.3	51.9	52.6	53.2
Basic EPS Excluding ExtraOrdinary Items	5.37	3.31	-3.18	3.16	3.85
Basic EPS Including ExtraOrdinary Item	5.37	3.31	-3.18	3.16	3.85
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	277.6	173.0	-165.2	166.0	205.1
Diluted Weighted Average Shares	52.1	52.7	51.9	53.1	54.0
Diluted EPS Excluding ExtraOrd Items	5.33	3.28	-3.18	3.12	3.80
Diluted EPS Including ExtraOrd Items	5.33	3.28	-3.18	3.12	3.80
DPS-Common Stock	0.20	0.20	0.05	0.00	0.00
Gross Dividends - Common Stock	10.4	10.5	2.6	0.0	0.0
Normalized Income Before Taxes	397.6	235.0	169.8	251.1	270.2
Inc Tax Ex Impact of Sp Items	110.4	57.7	132.8	72.1	63.4
Normalized Income After Taxes	287.2	177.4	37.0	179.0	206.8
Normalized Inc. Avail to Com.	285.2	175.4	35.2	177.5	205.5
Basic Normalized EPS	5.52	3.35	0.68	3.37	3.86
Diluted Normalized EPS	5.48	3.33	0.68	3.34	3.80
Interest Expense	15.4	23.4	28.5	25.5	26.2
Depreciation	431.2	42.9	49.3	47.0	46.3
Amort of Intangibles	17.1	17.3	19.4	14.5	12.3
Rental Expense	31.3	28.4	31.3	24.7	20.5
Research and Development	39.3	35.9	36.0	38.7	37.3
Federal	69.2	31.5	18.4	36.5	46.9
State and Local	5.3	2.4	2.1	3.7	4.8
Foreign	41.1	24.6	17.3	29.6	30.4
Current Tax - Total	115.5	58.5	37.8	69.8	82.0
Federal	-3.0	1.7	-3.8	-1.9	-8.0
State and Local	-0.8	1.5	-1.1	1.0	-0.4
Foreign	-4.2	-4.8	-7.9	-1.4	-10.3
Deferred Tax - Total	-8.1	-1.6	-12.9	-2.3	-18.7
Income Tax - Total	107.4	56.9	24.9	67.5	63.3
Service Cost - U.S.	0.0	0.0	0.0	0.0	0.0
Interest Cost - U.S.	3.5	3.7	4.2	4.2	4.2
Expected Return on Assets - U.S.	-4.1	-3.6	-3.2	-4.6	-4.5
Amort. of Prior Service Cost - U.S.	0.0	0.0	0.0	0.0	0.0
Amort. of Actuarial Gain/Loss - U.S.	1.2	1.3	1.8	0.1	0.2
Curtailments & Settlements - U.S.	0.0	0.0	0.0	0.0	0.0
Domestic Pension Plan Expense	0.6	1.5	2.8	-0.2	-0.1
Service Cost - Non-U.S.	1.2	1.1	1.1	1.1	3.8
Interest Cost - Non-U.S.	12.2	11.7	11.1	11.9	10.9
Expected Return on Assets - Non-U.S.	-11.3	-10.4	-9.0	-12.6	-11.9
Amortization of prior-service cost	0.0	0.0	0.0	0.0	0.0
Amort. of Actuarial Gain/Loss - Non-U.S.	0.9	1.0	-0.1	-0.1	0.4
Curtailments & Settlements - Non-U.S.	0.0	-0.8	-0.1	0.0	0.0
Foreign Pension Plan Expense	3.1	2.5	3.0	0.4	3.2
Service Cost - Post-Retirement	0.0	0.0	0.0	0.0	0.0
Interest Cost - Post-Retirement	0.8	0.9	1.1	1.1	1.4
Amort. of Transition Oblig. - Post-Ret.	0.0	0.0	0.0	0.0	0.0
Amort. of Prior Service Cost - Post-Ret.	-0.1	-0.1	-0.2	-0.4	-0.4
Amort. of Actuarial Gain/Loss - Post-Ret	-1.3	-1.4	-1.4	-1.3	-0.8
Post-Retirement Plan Expense	-0.5	-0.7	-0.4	-0.6	0.2
Defined Contribution Plans - U.S.	17.7	14.8	15.7	18.2	15.4
Total Pension Expense	20.9	18.1	21.1	17.8	18.7
Discount Rate - U.S.	5.30%	5.70%	6.30%	6.10%	5.90%
Expected Rate of Return - U.S.	7.80%	7.80%	7.80%	8.00%	8.00%
Discount Rate - Non-U.S.	5.40%	5.70%	6.40%	5.80%	5.10%
Compensation Rate - Non-U.S.	3.60%	3.80%	3.40%	4.10%	3.90%
Expected Rate of Return - Non-U.S.	6.80%	7.20%	7.00%	7.50%	7.50%
Discount Rate - Post-Retirement	5.50%	6.00%	6.40%	6.10%	5.90%

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Updated Normal 31-Dec-2011	Reclassified Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Cash and equivalents	155.3	157.0	109.7	120.7	92.9
Accounts Rcvbl.	489.0	381.4	336.9	398.7	317.5
Doubtful Accts.	-11.5	-11.5	-10.7	-10.6	-8.8
Raw Materials	202.5	163.2	150.1	159.4	142.5
Work in Process	57.3	38.4	39.7	47.1	47.6
Finished Goods	67.7	54.9	51.6	91.0	77.6
LIFO Reserve	-15.9	-15.0	-15.0	-12.6	-11.4
Deferred income taxes	35.9	34.6	30.6	33.0	21.0
Other current assets	35.3	25.5	25.5	30.9	22.4
Total Current Assets	1,015.7	828.5	718.5	857.6	701.5
Land and land improvements	27.5	30.6	31.1	28.8	27.9
Buildings	160.4	175.5	168.2	143.5	140.5
Machinery and equipment	292.1	274.9	284.2	269.9	240.3
Tooling, dies, patterns, etc.	65.8	61.3	64.9	64.2	54.3
Office furniture and equipment	46.2	47.5	50.8	50.1	46.0
Other Equipment	18.4	17.2	17.7	17.8	12.6
Construction in progress	34.6	17.6	10.0	14.5	21.9
Accumulated depreciation	-354.2	-338.0	-320.6	-283.7	-250.1
Goodwill	676.6	571.8	578.0	804.6	685.5
Customer lists and relationships	172.7	118.8	122.0	133.6	74.2
Acquired technology	99.4	94.7	98.2	91.7	44.7
Trademark	53.5	55.3	56.2	57.3	4.5
Other	9.2	7.3	7.6	4.7	2.0
Accumulated amortization	-109.6	-95.2	-82.1	-60.5	-47.6
Trademark	123.7	108.6	112.6	119.3	128.5
Other LT Assets	33.5	50.6	21.9	26.6	18.9
Total Assets	2,365.6	2,027.1	1,939.0	2,340.1	1,905.6
Short term borrowings & current maturing	77.7	37.2	33.6	37.0	25.7
Accounts payable	214.5	143.3	94.9	135.9	101.6
Salaries, wages and related fringe benef	59.1	50.5	43.4	65.8	59.4
Taxes	34.9	25.4	16.4	14.1	13.4
Advance payments on sales contracts	40.7	39.0	26.9	36.9	37.2
Accrued warranty	22.9	19.1	19.3	19.1	15.1
Product liability, workers' compensation	6.2	5.7	7.2	11.6	13.5
Restructuring	4.4	5.8	21.0	16.0	1.4
Other	45.3	33.5	60.8	60.9	44.9
Total Current Liabilities	505.8	359.6	323.5	397.4	312.2
Long Term Debt	326.1	250.7	330.9	506.7	264.0
Total Long Term Debt	326.1	250.7	330.9	506.7	264.0
Postretirement benefits other than pensi	14.7	13.7	15.3	17.5	17.4
Other LT Liabs.	162.6	151.3	137.5	117.6	88.2
Deferred income taxes	76.8	62.2	67.8	91.2	64.2
Noncontrolling interests	2.3	12.5	11.8	10.9	-
Total Liabilities	1,088.3	849.9	886.9	1,141.2	745.9
Common stock	0.6	0.6	0.6	0.6	0.6
Paid-in Capital	601.9	592.0	558.7	545.7	515.9
Treasury stock	-315.3	-182.5	-132.9	-130.8	-29.9
Retained Earngs.	972.9	705.7	543.3	711.1	545.1
Accumulated other comprehensive income	17.3	61.4	82.5	72.4	128.0
Total Equity	1,277.3	1,177.2	1,052.2	1,198.9	1,159.7
Total Liabilities & Shareholders' Equity	2,365.6	2,027.1	1,939.0	2,340.1	1,905.6
S/O-Common Stock	50.7	52.2	52.2	51.8	53.5
Total Common Shares Outstanding	50.7	52.2	52.2	51.8	53.5
T/S-Common Stock	9.1	7.3	6.4	6.5	3.8
Deferred Revenue	40.7	39.0	26.9	36.9	37.2
Accum. Amortz. of Intangibles	109.6	95.2	82.1	60.5	47.6
Full-Time Employees	6,800	6,100	6,500	7,700	6,200
Number of Common Shareholders	5,300	5,500	6,000	6,600	6,900
LT Debt Maturing Within 1 Year	77.7	37.2	33.6	36.2	24.8
LT Debt Maturing Within 2 Years	316.6	51.0	39.1	40.6	35.4
LT Debt Maturing Within 3 Years	0.7	190.5	67.0	57.8	81.5
LT Debt Maturing Within 4 Years	2.5	0.7	214.7	69.7	1.0
LT Debt Maturing Within 5 Years	0.7	0.7	0.7	293.2	1.0
LT Debt Maturing Thereafter	5.6	7.8	9.4	19.2	146.0
Total Long Term Debt, Supplemental	403.8	287.9	364.5	516.7	289.7
Capital Lease Maturing within 1 Year	0.6	1.0	1.4	0.4	0.4
Capital Lease Maturing within 2-3 Years	0.7	1.0	1.5	0.7	0.6
Capital Lease Maturing within 4-5 Years	2.4	0.7	0.6	0.6	0.6
Capital Lease Maturing Thereafter	3.4	5.0	6.0	5.5	6.3
Total Capital Leases	7.1	7.7	9.5	7.2	7.9
Operating Lease Maturing Within 1 Year	33.0	26.8	27.2	29.6	19.0
Operating Lease Maturing Within 2 Years	23.6	19.8	21.6	22.7	15.5
Operating Lease Maturing Within 3 Years	18.1	13.4	15.5	17.5	10.6
Operating Lease Maturing Within 4 Years	14.1	9.0	10.2	12.1	9.2
Operating Lease Maturing Within 5 Years	10.2	6.3	7.5	8.2	6.3
Operating Lease Maturing Thereafter	39.6	16.7	23.6	30.4	21.9
Total Operating Leases	138.6	92.0	105.6	120.5	82.5
Projected Benefit Obligation - U.S.	74.9	71.1	71.5	72.9	72.9
FV of Plan Assets - U.S.	54.7	52.2	47.0	44.5	59.9
Funded Status - U.S.	-20.2	-18.9	-24.5	-28.4	-13.0
Accumulated Benefit Obligation - U.S.	74.9	71.1	71.5	72.8	72.9
Projected Benefit Obligation - Non-U.S.	224.5	219.8	220.3	169.3	218.8
FV of Plan Assets - Non-U.S.	161.1	158.3	150.8	122.7	179.0
Funded Status - Non-U.S.	-63.4	-61.5	-69.5	-46.6	-39.8
Accumulated Benefit Obligation - Non-U.S	206.6	0.0	195.0	151.3	186.7
Projected Benefit Obligation - Post-Ret.	15.8	14.9	16.6	17.5	19.5
Funded Status - Post-Retirement	-15.8	-14.9	-16.6	-17.5	-19.5
Accumulated Benefit Obligation-Post-Ret.	15.8	14.9	16.6	17.5	19.5
Total Funded Status	-99.4	-95.3	-110.6	-92.5	-72.3
Discount Rate - U.S.	4.60%	5.30%	5.70%	6.30%	6.10%
Discount Rate - Non-U.S.	4.80%	5.40%	5.70%	6.40%	5.80%
Compensation Rate - Non-U.S.	3.00%	3.60%	3.80%	3.40%	4.20%
Discount Rate - Post-Retirement	4.80%	5.50%	6.00%	6.40%	6.10%
Accrued Benefit Liability - Post-Ret.	-14.5	-13.4	-15.0	-15.8	-17.2
Accrued Benefit Liability - Pension	-2.8	-2.9	-3.0	-3.1	-2.7
Other Liabilities - Pension	-82.2	-79.0	-92.6	-73.6	-52.3
AOCI-Net Actuarial Loss - U.S	-	-	-	-	9.0
AOCI-Prior Service Cost - U.S	-	-	-	-	0.0
AOCI-Prior Service Cost - Non-U.S	-	-	-	-	0.0
AOCI-Net Actuarial Loss - Non-U.S.	-	-	-	-	10.3
AOCI-Net Actuarial Loss - Post-Ret.	-	-	-	-	-10.6
AOCI-Prior Service Cost - Post-Ret.	-	-	-	-	-1.0
Net Assets Recognized on Balance Sheet	-99.4	-95.3	-110.6	-92.5	-64.5
Equity Securities % - U.S.	60.00%	60.00%	60.00%	-	62.00%
Debt Securities % - U.S.	38.00%	38.00%	38.00%	-	32.00%
Other % - U.S.	2.00%	2.00%	2.00%	-	6.00%
Equity Securities % - Non-U.S.	50.00%	50.00%	55.00%	-	48.00%
Debt Securities % - Non-U.S.	26.00%	26.00%	26.00%	-	21.00%
Other % - Non-U.S.	20.00%	20.00%	10.00%	-	31.00%
Cash & Cash Equivalents	4.00%	4.00%	9.00%	-	-

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009	Reclassified Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation
Net Income	279.5	175.0	-163.3	167.5	206.4
Depreciation	60.3	60.2	68.7	61.5	58.6
Impairment charges	0.0	0.0	262.4	0.0	0.0
Currency Gain	-0.7	-2.0	0.5	10.6	-0.7
Asset Disposal	1.9	2.1	1.3	0.6	0.4
LIFO liquidation income	-0.2	-0.8	-0.3	-0.6	-1.3
Stock Issued For Employe Benefit Plans	1.1	3.7	4.0	4.7	4.7
Stock based compensation expense	6.5	6.4	3.0	4.5	5.0
Excess tax benefits from stock-based com	-3.4	-3.2	-0.5	-8.5	-6.3
Deferred Taxes	-10.6	-8.8	-8.2	-4.3	-13.6
Receivables	-88.4	-43.8	72.1	9.5	-36.4
Inventories	-46.4	-15.4	67.5	35.1	-16.2
Accounts payable and accrued liabilities	88.9	36.7	-89.9	-20.6	0.6
Other assets and liabilities, net	11.1	-7.9	-5.8	17.7	-19.5
Cash from Operating Activities	299.8	202.2	211.3	277.8	181.6
Business acquisitions, net of cash	-196.4	-12.1	-0.1	-356.5	-0.2
Capital Expenditures	-55.7	-33.0	-42.8	-41.0	-47.8
Disposals of property, plant and equi	3.7	2.7	1.2	2.2	1.7
Other	0.0	0.0	0.0	0.9	0.7
Cash from Investing Activities	-248.3	-42.5	-41.7	-394.4	-45.6
Principal payments on long-term debt	-330.1	-82.8	-231.7	-628.1	-276.4
Proceeds from long-term borrowings	447.6	8.0	52.2	877.1	148.8
Purchase of treasury stock	-132.6	-49.4	-0.9	-100.9	-1.0
Proceeds from stock options	7.5	19.6	3.8	11.1	9.0
Other	-1.0	-1.0	-0.8	-1.3	-1.0
Pay. ST Debt	-18.5	-24.9	-33.5	-66.9	-37.1
Proc. ST Debt	13.4	26.9	25.0	64.9	39.4
Excess tax benefits from stock-based com	3.4	3.2	0.5	8.5	6.3
Purchase of shares from noncontrolling i	-18.8	0.0	0.0	-	-
Cash dividends paid	-10.4	-10.5	-2.6	0.0	0.0
Issuance Expenses	-0.6	0.0	-0.2	-8.9	0.0
Cash from Financing Activities	-40.1	-110.9	-188.2	155.6	-111.8
Foreign Exchange Effects	-13.1	-1.6	7.5	-11.2	6.4
Net Change in Cash	-1.8	47.3	-11.0	27.8	30.6
Net Cash - Beginning Balance	157.0	109.7	120.7	92.9	62.3
Net Cash - Ending Balance	155.3	157.0	109.7	120.7	92.9
Cash Interest Paid	14.8	20.5	25.9	23.6	25.9
Cash Taxes Paid	105.9	51.5	36.0	62.0	92.8

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 30-Jun-2012	Quarter Ending Yr Ago	Annual Year End 31-Dec-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue	613.0	0.38%	2,370.9	25.11%	5.51%	7.27%
Operating Income	108.0	8.94%	400.7	58.75%	15.55%	14.84%
Income Available to Common Excl Extraord Items	75.3	12.14%	277.6	60.48%	18.70%	15.87%
Basic EPS Excl Extraord Items	1.52	18.25%	5.37	62.42%	19.40%	16.16%
Capital Expenditures	28.3	35.10%	55.7	68.55%	10.70%	6.26%
Cash from Operating Activities	114.8	0.24%	299.8	48.24%	2.57%	12.39%
Free Cash Flow	86.4	-7.58%	244.1	44.27%	1.03%	14.13%
Total Assets	2,426.2	11.01%	2,365.6	16.70%	0.36%	6.21%
Total Liabilities	1,146.8	37.70%	1,088.3	28.04%	-1.57%	3.93%
Total Long Term Debt	404.7	172.89%	326.1	30.10%	-13.66%	-3.19%
Employees	-	-	6800	11.48%	-4.06%	2.53%
Total Common Shares Outstanding	49.0	-6.39%	50.7	-2.93%	-0.74%	-0.76%
Market Cap	2,591.1	-41.07%	3,903.2	8.69%	47.81%	14.73%

Key Ratios
Â	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Profitability
Gross Margin	34.07%	33.05%	30.97%	31.62%	33.17%
Operating Margin	16.90%	13.32%	-6.39%	12.87%	14.43%
Pretax Margin	16.32%	12.23%	-7.78%	11.64%	14.43%
Net Profit Margin	11.71%	9.13%	-9.29%	8.22%	10.97%
Financial Strength
Current Ratio	2.01	2.30	2.22	2.16	2.25
Long Term Debt/Equity	0.26	0.21	0.31	0.42	0.23
Total Debt/Equity	0.32	0.24	0.35	0.45	0.25
Management Effectiveness
Return on Assets	12.73%	8.82%	-7.63%	7.89%	11.29%
Return on Equity	22.62%	15.52%	-14.68%	14.07%	20.39%
Efficiency
Receivables Turnover	5.60	5.45	4.98	5.79	6.56
Inventory Turnover	5.65	5.42	4.80	5.10	5.19
Asset Turnover	1.08	0.96	0.83	0.95	1.02

Market Valuation USD (mil)
P/E (TTM)	10.94	.	Enterprise Value	3,234.8
Price/Sales (TTM)	1.21	.	Enterprise Value/Revenue (TTM)	1.32
Price/Book (MRQ)	2.31	.	Enterprise Value/EBITDA (TTM)	3.79
Market Cap as of 28-Sep-2012	2,958.5	.

Ratio comparisions

Traded: New York Stock Exchange: GDI	Financials in: USD (actual units)
Industry: Misc. Capital Goods	As of 28-Sep-2012

Sector: Capital Goods

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM)	10.94	21.72	22.07	19.68
P/E High Excluding Extraordinary - Last 5 Yrs	20.98	41.44	37.65	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs	7.47	7.58	7.33	10.71
Beta	1.39	1.29	1.34	1.00
Price/Revenue (TTM)	1.21	1.68	1.52	2.57
Price/Book (MRQ)	2.31	3.65	4.76	3.67
Price to Tangible Book (MRQ)	10.78	8.82	7.19	5.21
Price to Cash Flow Per Share (TTM)	4.02	14.93	15.36	14.22
Price to Free Cash Flow Per Share (TTM)	13.04	27.60	32.27	26.26
Dividends
Dividend Yield	0.33%	1.76%	1.88%	2.26%
Dividend Per Share - 5 Yr Avg	0.09	1.69	1.73	1.99
Dividend 5 Yr Growth	-	11.31%	7.09%	0.08%
Payout Ratio (TTM)	3.57%	29.04%	27.79%	25.98%
Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago	0.38%	13.69%	13.77%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago	12.92%	7.50%	9.04%	17.69%
Revenue 5 Yr Growth	7.27%	6.22%	6.24%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago	18.61%	28.86%	8.64%	19.49%
EPS (TTM) vs TTM 1 Yr Ago	26.50%	33.50%	48.61%	32.55%
EPS 5 Yr Growth	16.49%	8.06%	11.11%	9.86%
Capital Spending 5 Yr Growth	6.26%	5.01%	2.27%	-2.04%
Financial Strength
Quick Ratio (MRQ)	1.52	1.03	1.00	1.24
Current Ratio (MRQ)	2.21	1.95	1.91	1.79
LT Debt/Equity (MRQ)	0.32	0.42	0.99	0.64
Total Debt/Equity (MRQ)	0.39	0.45	1.16	0.73
Interest Coverage (TTM)	33.95	11.82	11.79	13.80
Profitability Ratios (%)
Gross Margin (TTM)	33.84%	31.48%	24.70%	45.21%
Gross Margin - 5 Yr Avg	32.66%	30.28%	24.93%	44.91%
EBITD Margin (TTM)	34.88%	14.72%	12.97%	24.43%
EBITD Margin - 5 Yr Avg	18.16%	13.59%	12.28%	22.84%
Operating Margin (TTM)	16.46%	12.13%	9.82%	20.63%
Operating Margin - 5 Yr Avg	10.76%	11.15%	9.51%	18.28%
Pretax Margin (TTM)	15.99%	11.17%	8.95%	17.95%
Pretax Margin - 5 Yr Avg	9.92%	10.14%	8.79%	17.10%
Net Profit Margin (TTM)	11.56%	7.96%	6.41%	13.65%
Net Profit Margin - 5 Yr Avg	6.70%	6.96%	6.01%	12.10%
Effective Tax Rate (TTM)	27.74%	27.81%	29.26%	28.45%
Effective Tax rate - 5 Yr Avg	32.48%	30.76%	31.03%	29.92%
Management Effectiveness (%)
Return on Assets (TTM)	12.26%	8.48%	6.25%	8.54%
Return on Assets - 5 Yr Avg	6.48%	8.02%	6.69%	8.40%
Return on Investment (TTM)	15.47%	5.39%	4.72%	7.90%
Return on Investment - 5 Yr Avg	7.89%	6.56%	5.72%	8.27%
Return on Equity (TTM)	21.36%	17.58%	18.99%	19.72%
Return on Equity - 5 Yr Avg	11.61%	18.57%	23.87%	20.06%
Efficiency
Revenue/Employee (TTM)	359,665.80	269,773.89	357,573.83	927,613.77
Net Income/Employee (TTM)	41,568.38	22,562.70	23,741.62	116,121.92
Receivables Turnover (TTM)	5.36	12.04	8.63	13.25
Inventory Turnover (TTM)	5.04	6.42	8.11	14.53
Asset Turnover (TTM)	1.06	1.06	1.00	0.93

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Financial Strength
Current Ratio	2.01	2.30	2.22	2.16	2.25
Quick/Acid Test Ratio	1.25	1.47	1.35	1.28	1.29
Working Capital	510.0	468.9	395.0	460.2	389.3
Long Term Debt/Equity	0.26	0.21	0.31	0.42	0.23
Total Debt/Equity	0.32	0.24	0.35	0.45	0.25
Long Term Debt/Total Capital	0.19	0.17	0.23	0.29	0.18
Total Debt/Total Capital	0.24	0.20	0.26	0.31	0.20
Payout Ratio	3.72%	6.05%	-1.57%	0.00%	0.00%
Effective Tax Rate	27.76%	24.54%	-	28.72%	23.46%
Total Capital	1,681.1	1,465.1	1,416.7	1,742.6	1,449.4
Efficiency
Asset Turnover	1.08	0.96	0.83	0.95	1.02
Inventory Turnover	5.65	5.42	4.80	5.10	5.19
Days In Inventory	64.59	67.31	76.01	71.58	70.36
Receivables Turnover	5.60	5.45	4.98	5.79	6.56
Days Receivables Outstanding	65.23	67.03	73.32	63.01	55.65
Revenue/Employee	348,662	310,673	273,561	262,121	301,426
Operating Income/Employee	58,928	41,379	-17,488	33,731	43,493
EBITDA/Employee	124,852	51,255	-6,914	41,716	52,942
Profitability
Gross Margin	34.07%	33.05%	30.97%	31.62%	33.17%
Operating Margin	16.90%	13.32%	-6.39%	12.87%	14.43%
EBITDA Margin	35.81%	16.50%	-2.53%	15.91%	17.56%
EBIT Margin	16.90%	13.32%	-6.39%	12.87%	14.43%
Pretax Margin	16.32%	12.23%	-7.78%	11.64%	14.43%
Net Profit Margin	11.71%	9.13%	-9.29%	8.22%	10.97%
COGS/Revenue	65.93%	66.95%	69.03%	68.38%	66.83%
SG&A Expense/Revenue	16.65%	19.50%	20.03%	17.27%	17.50%
Management Effectiveness
Return on Assets	12.73%	8.82%	-7.63%	7.89%	11.29%
Return on Equity	22.62%	15.52%	-14.68%	14.07%	20.39%
Valuation
Free Cash Flow/Share	4.82	3.24	3.23	4.57	2.50
Operating Cash Flow/Share	5.92	3.88	4.05	5.36	3.39

Current Market Multiples
Market Cap/Earnings (TTM)	10.94
Market Cap/Equity (MRQ)	2.31
Market Cap/Revenue (TTM)	1.21
Market Cap/EBIT (TTM)	7.39
Market Cap/EBITDA (TTM)	3.47
Enterprise Value/Earnings (TTM)	11.96
Enterprise Value/Equity (MRQ)	2.53
Enterprise Value/Revenue (TTM)	1.32
Enterprise Value/EBIT (TTM)	8.08
Enterprise Value/EBITDA (TTM)	3.79

Stock report

Stock Snapshot

Traded: New York Stock Exchange: GDI

As of 28-Sep-2012    US Dollars

Recent Price	$60.41	EPS	$5.48
52 Week High	$86.99	Price/Sales	1.25
52 Week Low	$45.54	Dividend Rate	$0.20
Avg. Volume (mil)	0.66	Price/Earnings	9.52
Market Value (mil)	$2,958.46	Price/Book	2.40
		Beta	1.39

	Price % Change	Rel S&P 500%
4 Week	0.22%	-2.15%
13 Week	14.18%	7.96%
52 Week	-7.94%	-25.85%
Year to Date	-21.61%	-31.57%

Stock History

Market Cap History
	30-Jun-12	% Chg	31-Mar-12	% Chg	31-Dec-11	% Chg	30-Sep-11	% Chg	30-Jun-11	% Chg
Total Common Shares Outstanding	49	-3.2	51	-0.1	51	0.1	51	-3.3	52	0.1
Market Cap	2,591.1	-18.8	3,189.4	-18.3	3,903.2	21.4	3,214.2	-26.9	4,397.1	7.9

Yearly Price History
	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg	2008	% Chg
High Price	84.46	-9.1	92.93	30.4	71.26	62.6	43.82	-24.3	57.87	25.6
Low Price	45.54	-21.8	58.26	57.3	37.04	115.1	17.22	-2.7	17.70	-41.7
Year End Price	60.41	-21.6	77.06	12.0	68.82	61.7	42.55	82.3	23.34	-29.3

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
28-Sep-12	60.21	64.43	58.39	60.41	7,865,084
31-Aug-12	57.14	63.23	56.55	60.28	13,713,855
31-Jul-12	52.89	58.35	45.54	56.98	19,972,527
29-Jun-12	52.96	54.36	47.74	52.91	15,100,293
31-May-12	65.09	65.64	53.85	54.08	15,528,835
30-Apr-12	62.95	67.41	59.00	65.14	20,765,771
30-Mar-12	68.96	70.93	62.14	63.02	22,761,073
29-Feb-12	75.75	80.23	68.57	68.68	20,835,345
31-Jan-12	79.24	84.46	70.78	74.60	17,727,534
30-Dec-11	85.12	86.99	74.24	77.06	8,048,843
30-Nov-11	73.58	85.86	73.40	85.72	12,792,121
31-Oct-11	63.10	82.22	58.26	77.33	12,234,798
30-Sep-11	79.10	79.96	62.50	63.55	11,324,638

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

---

· We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.70
UK Pound	1	Rs.84.51
Euro	1	Rs.68.16

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.