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REGENCY TOWERS, 1415 W. 22ND ST., OAK BROOK, ILLINOIS 60523
FOR IMMEDIATE RELEASE
INVESTOR CONTACT
Dave Janek
(630) 954-2000
Dave Janek
(630) 954-2000
MEDIA CONTACT
John Segvich
(630) 954-2000
John Segvich
(630) 954-2000
Federal Signal to present at Goldman Sachs Capital Goods Conference
OAK BROOK, Ill., November 1, 2006 — Federal Signal Corporation (NYSE: FSS) announced today that Robert D. Welding, president and chief executive officer, and Stephanie K. Kushner, vice president and chief financial officer, will speak to investors at the Goldman Sachs Capital Goods Conference in New York City on Wednesday, November 1, 2006.
Investors will be able to access the presentation from http://www.federalsignal.com on Wednesday, November 1, 2006. The presentation will also be filed as Form 8-K.
About Federal Signal Corporation
Federal Signal Corporation (NYSE: FSS) is a global leader in advancing security and well-being for communities and workplaces around the world. The company manufactures a broad range of safety and signaling products, and fire rescue and environmental vehicles that help protect people, property and the environment. Federal Signal’s leading brands include Bronto(R), Elgin(R), E-ONE(R), Federal APD(R), Federal Signal(R), Guzzler(R), Jetstream(R) and Vactor(R). In addition, Federal Signal operates a consumable industrial tooling business that includes the leading CLAPPDiCO(R), Dayton Progress(R), Manchester(R) and PCS(R) brands. Federal Signal was founded in 1901 and is based in Oak Brook, Illinois. To learn more about Federal Signal Corporation visitwww.federalsignal.com.
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Federal Signal: |
Advancing Security and Well-Being |
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Safe Harbor |
This presentation contains various forward-looking statements as of the date hereof and the Company undertakes no obligation to update these statements regardless of new developments or otherwise. Statements in this presentation that are not historical are forward-looking statements. These risks and uncertainties, some of which are beyond the company’s control, include the cyclical nature of the company’s industrial and municipal markets, technological advances by competitors, the Company’s ability to improve its operating performance, risks associated with the execution of planned plant closures, increased warranty and product liability expenses, risks associated with supplier and other partner alliances, changes in cost competitiveness including those resulting from foreign currency movements, disruptions in the supply of parts or components from sole source suppliers and subcontractors, retention of key employees and general changes in the competitive environment. |
November 1, 2006 |
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Investment Appeal |
Strong brands |
Diverse markets |
Improving margins |
Strengthening balance sheet |
Growth opportunities –self funding |
Economic Value key performance measurement |
New vision focused on sustainable profitable growth |
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FSS Overview |
Key Statistics |
5,500 employees$1.2 billion in revenue |
Stock trades on NYSE as FSS |
Key Competitive Advantages |
Rich 100+ year history of product leadership |
Strong brand recognition: #1 or #2 in most markets |
High-priority products in municipal and industrial markets |
Well developed distribution channels Disciplined, focused management team |
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Federal Signal Today |
Environmental Fire Safety |
Tool Products Rescue Products Group Group Group Group |
$348 million $371 million $277 million $162 million * 2005 Revenues5 |
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Market Diversity |
Segment Revenues Customer Orders $1.2 billion $1.1 billion |
Environmental U.S.-Industrial |
Safety and Commercial Non-U.S. 30% 24% 27% 31% |
Fire Rescue Tool 14% U.S.-Municipal 32% and Government 42% |
2005 |
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FSS Orders By Market Segment |
45 40 35 |
30 6-month average ($ millions) 25 20 |
15 |
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 03 03 03 03 03 03 03 03 03 03 03 03 04 04 04 04 04 04 04 04 04 04 04 04 05 05 05 05 05 05 05 05 05 05 05 05 06 06 06 06 06 06 06 06 06 |
US Municipal/Government US Industrial/Commercial Non-US |
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Foundation For a New Vision |
PREVENT RESPOND RECOVER MAINTAIN |
(An Incident) (To An Incident) (From An Incident) (Safe Conditions) Mine lighting Mine lighting Sewer cleaners Police PolicePEOPLEPolice Outdoor Warning Fire rescue vehicles Systems SweepersAmber Integrated Warning Parking systems Systems Sewer cleaners Police Police Water blastersPROPERTYPolice Fire rescue vehicles Vacuum trucksPROTECTParking systems Sweepers Outdoor Warning Vacuum trucks SweepersENVIRONMENTSystems Sewer cleaners Fire rescue vehicles Sewer cleaner |
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our vision The leader in advancing security and well-being for communities and workplaces around the world. |
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Our Mission We serve organizations that protect people, property and the environment. |
We listen to customers and imagine ways to help them address emerging needs. |
We create innovative solutions drawing upon the talent of our employees and a rich portfolio of products and services. |
We deliver superior growth in economic value. |
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Product Leadership: Our Primary Strategic Thrust |
A comprehensive enterprise strategy |
Shapes every plan and decision we make |
Colors the entire organization —from |
competencies; to culture; to business priorities |
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Safety Products Group — Continued Growth |
Emergency Electrical Parking Products Products Products ProductsLightbars, beacons, sirens and Beacons, horns, outdoor warning Gates, ticket dispensers, cash speakers sirens, communications systems, registers, card readers, software mining and marine hazardous area lighting |
CustomersPolice and fire departments, Industrial plants, petrochemical Parking operators, airports, ambulance services, DOTs, plants, ship/rig builders, coal municipalities, shopping centers, utilities, tow truck operators mines, municipalities, nuclear &n bsp; universities, hospitals, hotels plants, military basesChannelsPolice and truck equipment Electrical wholesalers, catalog Parking equipment distributors, distributors, catalog houses, houses, OEMs, direct direct installers, OEMs, direct |
CompetitorsWhelen, Code 3, Ecco Edwards/GE, Gaitronics/Hubbell, Amano, Ascom, |
Crouse-Hinds/Cooper, Whelen Scheidt & Bachman, SkiData |
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Safety Products Group |
Overview/Outlook |
Sales vs. Operating Margin |
Recent leadership change |
350 20Solid market positions and financial |
$ % |
300 $277performance |
$247 16 |
16.2% |
25016.3% 12.9%New product development pipeline |
13.5%12 |
200 $222 |
$205Global expansion |
150 |
8“Whitespace”—large airport parking100systems, water/waste water 4management systems, integrated |
0 0security systems, others to come |
2004 2005 YTD YTD |
3Q05 3Q06 |
Sales ($M) |
Operating Margin (%) |
* Includes a $6.7 M gain from product-line sales in Q305. |
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Fire Rescue Group —Accelerating |
Rescue and Pumper ARFF Aerial Fire Homeland Security and Tanker Apparatus Apparatus ProductsCustom and Custom and commercial Apparatus designed for Aerial waterway, ladders, commercial rescues for pumpers and tankers for rapid attack and traditional and articulated command/ municipal and industrial intervention for aircraft or devices operation centers, markets airfield events bomb trucks, HazMat |
CustomersCities, Counties, States, Cities, Counties, Airports and Cities, Counties, Federal Government States, Refineries Military Airbases States, RefineriesChannelsDealer Network Dealer Network Direct Sales Dealer Network and Direct SalesCompetitorsPierce / LDV, SVI, ALF Pierce, Rosenbauer, ALF Oshkosh, Rosenbauer ALF, Pierce, KME Rosenbauer |
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Fire Rescue Group |
Overview/Outloo k |
Sales vs. Operating Margin |
$ 450Recognized brands and broad |
19 %product offering |
400 $361 $377 350 15Stable markets with growth300potential |
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250 $263 $261Established and expanding |
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200distribution 150 3 |
1.0% |
-0.5%Improving economies of scale and |
100-0.9% |
-1market diversification |
50 |
0-5.1%-5Growth opportunities for E-ONE2004-5.1% 2005 YTD YTDand Bronto apparatus |
3Q05 3Q06 |
Operational improvements equate |
Sales ($M) |
to margin growth over time |
Operating Margin (%) |
Operating margin excludes adverse impact of restructuring cost |
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Fire Rescue Group Continuous Improvement Update |
Key performance indicators continue to show favorable trends —throughput, lead times, hours per unit, build quality, primary working capital, days sales outstanding, etc. |
Cost-reduction initiatives — being realized, more to come |
Margin growth from operational improvements and strategic transition |
Strengthening, enabling and expanding distribution |
EzOne configurator rollout — on-schedule, providing immediate benefits |
Transforming product management/engineering to energize product leadership focus |
Stable backlog with production essentially filled for 2006 |
E-ONE brand —loyal customer base, attracting new customers |
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Environmental Products Group — Expanding Opportunities |
Sweepers Vacuum Trucks — Vacuum Trucks — Water Blasters Municipal Industrial Products Street, parking lot Sewer and catch basin Vacuum loaders that clean Water blasters that and industrial cleaners, glycol recovery up industrial waste or clean and prepare sweepers vehicles, hydro recover and recycle industrial surfaces excavating vehicles valuable raw materialsCustomers |
Contractors, cities, Contractors, cities, Industrial contractors, Industrial contractors, counties, states, counties, states, airports plants and rental houses plants and rental airports housesChannelsDealers, direct Dealers Direct Direct, distributors |
CompetitorsSchwarze, Tymco, VacCon, Super Products, Super Products, GapVax, NLB, Gardner Denver, Allianz Clean Earth, Aquatech VacCon, Clean Earth Woma, Hammelman |
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Environmental Products Group |
Overview/outlook: |
Sales vs. Operating Margin |
$ 400 16 %Certain Leach refuse assets sold |
350 |
$348International growth opportunities300 12 |
$295 $297Federal Signal Shanghai won |
2509.2% |
8.5% its first order for refuse truck2008.6%$259 8 bodies for the local Chinese |
8.3% |
150market |
100 4 50 |
0 0 2004 2005 YTD YTD |
3Q05 3Q06 |
Sales ($M) |
Operating Margin (%) |
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Tool Group — Expanding Globally |
Die & Mold Tooling Cutting Tools ProductsPunches, pins, Milling inserts, grooving components, retainers, inserts, cut-off tools, grooving matrices, mold bases tools, insert type drilling |
CustomersAutomotive OEMs, Automotive OEMs, tier 1 injection molders, suppliers, small engine diecasters manufacturers, aerospace, pumps and compressors |
ChannelsIndustrial distributors, Industrial distributors, direct industrial catalogs, directCompetitorsOME, Progressive, Kennametal, Sandvik, Iscar Misumi, Husky, Anchor Danly |
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Tool Group |
Sales vs. Operating MarginOverview/outlook: |
$ 200 20%New leadership focused on180profitable growth with increased |
160 $162 16 |
$161NA market share |
140 12010.3%12Global expansion |
10.2% 10.4% 8.8% |
100 $122 $122 |
80 8 60 |
40 4 20 |
0 0 2004 2005 YTD YTD |
3Q05 3Q06 |
Sales ($M) |
Operating Margin (%) |
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2006 Outlook 2005 2006 |
Revenue Op Margin % Revenue Op Margin 3-5 Year Outlook |
EPG 348 8.3% + 10-14% 8-9% Margin stable 8-9% FRG 371 0.9% + 3-4% <2.5% Gradual improvement to 9-10% SPG 277 16.3% + 9-10% 13-13.5% 2005 product-line gain — 2.5% modest margin upside Tool 162 10.3% Flat 9-10% Continued margin recoveryFSS 1157 6% + 6-8% 6-7% Target 10% operating margin |
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In Ten Years ... 15% ROIC Triple revenue Strong balance sheet |
10% operating margin Commensurate share price |
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Federal Signal . . . |
The leader in advancing security and well-being for |
communities and workplaces around the world. |
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Advancing security and well-being every day. |
Robert D. Welding President and CEO November 1, 2006 |
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Safe Harbor |
This presentation contains various forward-looking statements as of the date hereof and the Company undertakes no obligation to update these statements regardless of new developments or otherwise. Statements in this presentation that are not historical are forward-looking statements. These risks and uncertainties, some of which are beyond the company’s control, include the cyclical nature of |
the company’s industrial and municipal markets, technological advances by competitors, the Company’s ability to improve its operating performance, risks associated with the execution of planned plant closures, increased warranty and product liability expenses, risks associated with supplier and other partner alliances, changes in cost competitiveness including those resulting from foreign currency movements, disruptions in the supply of parts or components from sole source suppliers and subcontractors, retention of key employees and general changes in the competitive environment. November 1, 2006 |
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The Emerging Security Space |
An uncertain world |
A fragmented $60B global market |
Growing at the rate of 8-9% per year |
Customers desire integrated solutions... Federal Signal brings it all together |
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Federal Signal |
Intelligent Municipal Security Solution |
New Federal Signal Solutions |
hmsorit Algareoftw |
&SCommand Video/Thermal& Control |
Algorithms |
Climate |
& Software |
Sensors CBNRE |
Magnetic FieldAnalyze Prevent, Warn, Recover, Sense Respond Maintain Traditional Federal Signal Products |
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Federal Signal Integrated Security Systems |
Customer Example |
Qatargas |
What Customers Want |
Fail-safe communications for government and industrial installations |
Technology |
Self-healing fiber-optic ring |
A scaleable, redundant network solution |
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Federal Signal All-Hazard Warning Systems |
Customer Example |
State of Washington |
What Customers Want |
Tsunami warning |
Technology |
Pre-recorded and live broadcasting capability |
Activation and management via satellite |
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Federal Signal E-ONE Command and Control Vehicles |
Customer Example |
City of Chicago |
What Customers Want |
Mobile emergency operations |
Highlights |
State-of-the-art communications tools |
A custom fully integrated truck body and chassis |
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Federal Signal Bronto Aerial Devices |
Customer Example |
Maes Hoogwerkers, Belgium |
What Customers Want |
Access to challenging industrial and rescue environments |
Technology |
Bronto product line can reach up to 331 feet |
Remote diagnostics |
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The leader in advancing security and well-being for communities and workplaces around the world. |
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