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Roper Industries Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 8, 2012 09:21AM

Roper Industries Inc. (ROP) filed Quarterly Report for the period ended 2012-06-30. Roper Industries, Inc. has a market cap of $10.09 billion; its shares were traded at around $103.145 with a P/E ratio of 22.6 and P/S ratio of 3.6. The dividend yield of Roper Industries, Inc. stocks is 0.5%. Roper Industries, Inc. had an annual average earning growth of 16.8% over the past 10 years. GuruFocus rated Roper Industries, Inc. the business predictability rank of 3-star.



Highlight of Business Operations:

In our Industrial Technology segment, net sales were up 11% to $203.9 million in the second quarter of 2012 as compared to $183.5 million in the second quarter of 2011. Organic growth accounted for 13% of the increase in sales, with an offsetting negative 2% from foreign exchange. The increase in organic sales was due primarily to growth in our materials testing and fluid handling businesses. Gross margins increased to 50.4% in the second quarter of 2012 as compared to 50.2% in the second quarter of 2011. Selling, general and administrative (“SG&A”) expenses as a percentage of net sales decreased to 20.0% in the current year quarter from 22.0% in the prior year quarter due to operating leverage on higher sales volume. The resulting operating profit margins were 30.4% in the second quarter of 2012 as compared to 28.2% in the second quarter of 2011. Net sales in our Energy Systems & Controls segment increased by 6% to $154.7 million during the second quarter of 2012 compared to $145.8 million in the second quarter of 2011. Organic sales increased by 5% while acquisitions added $5.2 million, or 3.5%, offset partially by a negative 2% foreign exchange impact. The increase in organic sales was due to increased demand in industrial process end markets and growth in our diesel engine safety systems. Gross margins increased to 55.7% in the second quarter of 2012 compared to 55.2% in the second quarter of 2011 due to operating leverage on higher sales volume. SG&A expenses as a percentage of net sales were 29.7% in the second quarter of 2012, compared to 29.3% in the prior year quarter due to product mix. As a result, operating margins were 26.0% in the second quarter of 2012 as compared to 25.9% in the second quarter of 2011. In our Medical & Scientific Imaging segment, net sales remained relatively unchanged at $151.0 million in the second quarter of 2012 as compared to $151.1 million in the second quarter of 2011. The change was comprised of negative organic growth of 4%, a 5% increase from acquisitions, and negative 1% from foreign exchange. We experienced continued growth in our medical businesses, which was more than offset by weakness in camera sales into research markets. Gross margins increased to 63.7% in the second quarter of 2012 from 62.9% in the second quarter of 2011 due primarily to product mix. SG&A as a percentage of net sales increased to 40.1% in the second quarter of 2012 as compared to 39.5% in the second quarter of 2011 due to negative operating leverage. As a result, operating margins were 23.6% in the second quarter of 2012 as compared to 23.4% in the second quarter of 2011. In our RF Technology segment, net sales were $215.3 million in the second quarter of 2012 as compared to $219.6 million in the second quarter of 2011, representing a decrease of 2%. The decrease in sales was due primarily to a large installation project in water and gas network monitoring during the second quarter of 2011 that has since been completed. Gross margins increased to 52.3% in the second quarter of 2012, as compared to 49.9% in the prior year quarter due to product mix. SG&A as a percentage of sales in the second quarter of 2012 was 25.2% as compared to 25.8% in the prior year due to product mix. As a result, operating profit margins were 27.0% in the second quarter of 2012 as compared to 24.1% in the second quarter of 2011.

In our Industrial Technology segment, net sales were up 11% to $203.9 million in the second quarter of 2012 as compared to $183.5 million in the second quarter of 2011. Organic growth accounted for 13% of the increase in sales, with an offsetting negative 2% from foreign exchange. The increase in organic sales was due primarily to growth in our materials testing and fluid handling businesses. Gross margins increased to 50.4% in the second quarter of 2012 as compared to 50.2% in the second quarter of 2011. Selling, general and administrative (“SG&A”) expenses as a percentage of net sales decreased to 20.0% in the current year quarter from 22.0% in the prior year quarter due to operating leverage on higher sales volume. The resulting operating profit margins were 30.4% in the second quarter of 2012 as compared to 28.2% in the second quarter of 2011.

Net sales in our Energy Systems & Controls segment increased by 6% to $154.7 million during the second quarter of 2012 compared to $145.8 million in the second quarter of 2011. Organic sales increased by 5% while acquisitions added $5.2 million, or 3.5%, offset partially by a negative 2% foreign exchange impact. The increase in organic sales was due to increased demand in industrial process end markets and growth in our diesel engine safety systems. Gross margins increased to 55.7% in the second quarter of 2012 compared to 55.2% in the second quarter of 2011 due to operating leverage on higher sales volume. SG&A expenses as a percentage of net sales were 29.7% in the second quarter of 2012, compared to 29.3% in the prior year quarter due to product mix. As a result, operating margins were 26.0% in the second quarter of 2012 as compared to 25.9% in the second quarter of 2011.

In our Medical & Scientific Imaging segment, net sales remained relatively unchanged at $151.0 million in the second quarter of 2012 as compared to $151.1 million in the second quarter of 2011. The change was comprised of negative organic growth of 4%, a 5% increase from acquisitions, and negative 1% from foreign exchange. We experienced continued growth in our medical businesses, which was more than offset by weakness in camera sales into research markets. Gross margins increased to 63.7% in the second quarter of 2012 from 62.9% in the second quarter of 2011 due primarily to product mix. SG&A as a percentage of net sales increased to 40.1% in the second quarter of 2012 as compared to 39.5% in the second quarter of 2011 due to negative operating leverage. As a result, operating margins were 23.6% in the second quarter of 2012 as compared to 23.4% in the second quarter of 2011.

In our Medical & Scientific Imaging segment net sales increased 6% to $313.7 million in the first six months of 2012 as compared to $296.4 million in the first six months of 2011. The change was comprised of a 7% increase from acquisitions and negative 1% from foreign exchange. We experienced continued growth in our medical businesses which was offset by weakness in our camera businesses. Gross margins increased to 64.5% in the first six months of 2012 from 62.8% in the first six months of 2011, due primarily to product mix. SG&A as a percentage of net sales was relatively unchanged at 39.3% in the six month period ended June 30, 2012 as compared to 39.1% in the prior year period. Operating margins were 25.2% in the first six months of 2012 as compared to 23.8% in the first six months of 2011.

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