Business Description
Standex International Corporation was incorporated in 1975 and is the successor
of a corporation organized in 1955. We have paid dividends each quarter since
Standex became a public corporation in November 1964.
We are a leading manufacturer of a variety of products and services for diverse
commercial and industrial market segments. We have 11 operating segments, aggregated
and organized for reporting purposes into five segments: Food Service Equipment
Group, Engraving Group, Engineering Technologies Group, Electronics Products
Group and Hydraulics Products Group. Overall management, strategic development
and financial control are maintained by the executive staff from our corporate
headquarters located in Salem, New Hampshire.
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It is our objective to grow larger and more profitable business units through
both organic initiatives and acquisitions. On an ongoing basis we identify and
implement organic growth initiatives such as new product development, geographic
expansion, introduction of products and technologies into new markets and applications
and leveraging of sales synergies between business units, key accounts and strategic
sales channel partners. Also, we utilize strategically aligned or “bolt
on” acquisitions to create both sales and cost synergies with our core
business platforms to accelerate their growth and margin improvement. There
is a particular focus on identifying and investing in opportunities that complement
our products and will increase the global presence and capabilities of our businesses.
From time to time we have divested businesses that we felt were not strategic
or did not meet our growth and return expectations.
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We create “Customer Intimacy” by partnering with our customers in
order to develop and deliver custom solutions or engineered products that provide
technology-driven solutions to our customers. This relationship generally provides
us with the ability to sustain sales and profit growth over time and provide
superior operating margins to enhance shareholder returns. Further, we have
made a priority in developing new sales channels and leveraging strategic customer
relationships.
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We focus on operational excellence through continuous improvement in the cost
structure of our businesses and recognize that our businesses are competing
in a global economy that requires that we constantly strive to improve our competitive
position. We have deployed a number of management competencies including lean
enterprise, the use of low cost manufacturing facilities in countries such as
Mexico, India, and China, the consolidation of manufacturing facilities to achieve
economies of scale and leveraging of fixed infrastructure costs, alternate sourcing
to achieve procurement cost reductions, and capital improvements to increase
shop floor productivity, which drives improvements in the cost structure of
our business units.
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Our capital allocation strategy is to use cash flow generated from operations
to fund the strategic growth programs above, including acquisitions, dividends,
and capital investments for organic growth and cost reductions. We recognize
that cash flow is fundamental in our ability to invest in organic and acquisitive
growth for our business units and return cash to our shareholders in the form
of dividends to reflect the measure of quality from the earnings that we generate
over time.
208.12 %