Brad Ellis, Senior Vice President...Brad Ellis, Senior Vice President FLUID HANDLING Results &...
Transcript of Brad Ellis, Senior Vice President...Brad Ellis, Senior Vice President FLUID HANDLING Results &...
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Fluid Handling
Brad Ellis, Senior Vice President
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FLUID HANDLING
Results & Guidance
Market Outlook
Driving Growth
Expanding Margins
Summary
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FluidHandling 33%
GeneralIndustrial
22%
Chemical21%
Power10%
Oil & Gas9%
Municipal9%
Non-Res.Construction
29%
FLUID HANDLING
• OUTPERFORMING; CONTINUED SHARE GAINS AND MARGIN EXPANSION
($ Millions) 2015 2016 2017 2018 2019G
Sales 1,091 999 1,043 1,102 1,120
Operating Profit* 126 109 115 129 146
Operating Margin* 11.6% 10.9% 11.1% 11.7% 13.0%
*Excludes Special Items. Please see non-GAAP Financial Measures tables for details.Note: Charts based on 2018 actual results.
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United States36%
Western Europe25%
Canada20%
Emerging Markets
16%
Developed Asia-Pacific
3%
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BACK TO MID-TEEN MARGINS
CONFIDENT IN CONTINUED MARGIN EXPANSION
6%
10%
14%
12%
14%
16%
14%
600
700
800
900
1,000
1,100
1,200
1,300
1,400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019G
Sales Margins
12%
Global Recession Oil Price
Weakens
*Excludes Special Items. Please see non-GAAP Financial Measures tables for details. Note that adjusted margins do not reflect the recent pension accounting change.
Fluid Handling Sales ($ Millions) and Margin %*
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FLUID HANDLING
Results & Guidance
Market Outlook
Driving Growth
Expanding Margins
Summary
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% of
Total Sales
2018
Actual
Midterm
Outlook
21%
10%
9%
22%
9%
29%
End Markets
Chemical
Power
Oil & Gas
Municipal
Non-Residential Commercial
General Industrial
Total
FLUID HANDLING MARKET — POSITIVE OUTLOOK
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FLUID HANDLING
Results & Guidance
Market Outlook
Driving Growth
Expanding Margins
Summary
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DRIVING GROWTH — HAZARDOUS / TOXIC EMISSIONS
TRIPLE OFFSET VALVE MULTI-YEAR ROLLOUT ON TRACK TO GENERATE $40M BY 2021
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DRIVING GROWTH — TIGHTER EMISSIONS STANDARDS
NEW TOP SEAL SLEEVED PLUG VALVE SHARE GAIN WITHIN CORE CHEMICAL MARKETS
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DRIVING GROWTH — CRYOGENIC SOLUTIONS FOR LNG
INVESTED IN TESTING CAPABILITIES FOR ENGINEERED CHECK TO GENERATE $7M BY 2022
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DRIVING GROWTH — DETERIORATING WASTE STREAM
NEW CHOPPER PUMP TECHNOLOGY ON TRACK TO GENERATE $10M BY 2021
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DRIVING GROWTH — SMART INSTRUMENTATION
INVESTING IN INNOVATIVE PRODUCT PORTFOLIO TO PLAY IN HIGHER GROWTH MARKET
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»LARGE DIAMETER THERMOPLASTIC
ROTOLINING TECHNOLOGY
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India Middle EastChina
DRIVING GROWTH — LOCALIZATION
LOCALIZATION INITIATIVES TO GENERATE $7M IN GROWTH BY 2022»13
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DRIVING GROWTH – SPEED OF QUOTE AND ENGINEERING
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IDEATION
DESIGN
COST
QUOTE
PROTOTYPE
Order Quote Time Reduced 50%Product Modification from 3 Months to 2 Weeks
Front End Tools / Configurator Deployment
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DRIVING GROWTH — NEW BREAKTHROUGH OPPORTUNITY
LAUNCH OF LARGE DIAMETER LINED PIPE OPENS NEW MARKET TO GENERATE $25M BY 2023
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»LARGE DIAMETER THERMOPLASTIC
ROTOLINING TECHNOLOGY
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FLUID HANDLING
Results & Guidance
Market Outlook
Driving Growth
Expanding Margins
Summary
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EXPANDING MARGINS — REPOSITIONING
ON TRACK TO DELIVER $15M COST SAVINGS BY 2021
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Restructuring in Europe
Consolidating two facilities to existing
plants in US, India, and Mexico
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Single Piece Flow Visual FactoryLinked Value Stream
EXPANDING MARGINS — SITE TRANSFORMATIONS
LINDAU EXAMPLE: $2M PRODUCTIVITY, 30% LEADTIME REDUCTION, 25% FOOTPRINT REDUCTION
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» …Now take only minutes, without error
EXPANDING MARGINS — ROBOTIC PROCESS AUTOMATION
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Administrative computer tasks across multiple
systems took several days to complete…
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India Engineering Center Metal Seated Ball Valve Example
EXPANDING MARGINS — VALUE ENGINEERING
RAMPING UP TO $100M OF REVENUE PER YEAR AT 10% SAVINGS BY 2022
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30%
COST
VA
LU
ECOMPACT
CAST
DESIGN
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FLUID HANDLING
Results & Guidance
Market Outlook
Driving Growth
Expanding Margins
Summary
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SUMMARY
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EXPECTING 100 BPS MARGIN IMPROVEMENT ANNUALLY OVER THE NEXT FEW YEARS
Strong Execution; Great 2018 Results1
Confident in 2019 Guidance2
Continued share gains and margin expansion3
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