2012 Business Overview

Segment Financial Information

Year ended December 31 (In millions, except percentages; unaudited) 2012 2011 Change

Sales

     
Flow Control $1,095.3 $1,060.8 3%
Controls 726.7 709.2 2%
Surface Technologies 275.7 246.8 12%
Total Sales $2,097.7 $2,016.7 4%

Operating Income

     
Flow Control $78.8 $103.4 (24%)
Controls 86.5 75.4 15%
Surface Technologies 27.5 31.5 (13%)
Total Segments $192.8 $210.3 (8%)
Corporate and Other (31.3) (23.5) (34%)
Total Operating Income $161.4 $186.9 (14%)

Operating Margins

     
Flow Control 7.2% 9.7% (250) bps
Controls 11.9% 10.6% 130 bps
Surface Technologies 10.0% 12.8% (280) bps
Total Segments 9.2% 10.4% (120) bps
Consolidated Margin 7.7% 9.3% (160) bps
Note: Amounts may not add to the total due to rounding.