Fortive Hosts Investor Day, Reaffirms Second Quarter and Full-Year 2017 Guidance

EVERETT, Wash.--(BUSINESS WIRE)-- Ahead of its investor day to be held in New York City, Fortive Corporation (“Fortive”) (NYSE: FTV), a diversified industrial growth company, reaffirmed its guidance for the second quarter and full-year 2017.

For the second quarter of 2017, Fortive anticipates diluted net earnings per share to be in the range of $0.62 to $0.66 and the non-GAAP adjusted diluted net earnings per share to be in the range of $0.65 to $0.69. Fortive expects 2017 diluted net earnings per share to be in the range of $2.57 to $2.67 and non-GAAP adjusted diluted net earnings per share to be in the range of $2.68 to $2.78.

James A. Lico, President and Chief Executive Officer, stated, “We are excited to host our first investor day and provide in depth discussions of each of our strategic platforms, review key growth initiatives, and demonstrate how the Fortive Business System is the cornerstone of our culture and competitive advantage. On display will be our latest innovation including our Fluke Accelix™ reliability platform, Gilbarco Veeder-Root fleet and fuel offerings, Tektronix datacenter-focused solutions, and Kollmorgen collaborative robotic technology. ”

Mr. Lico added, “Fortive is advantaged by multiple secular growth trends and expects to accelerate revenue growth and expand margin organically and through acquisitions in existing and new attractive markets. We are well positioned to become a preeminent industrial growth company and we are committed to creating sustainable long-term value for both our customers and shareholders.”

Fortive will discuss results and outlook during its video webcast today starting at 10:00 a.m. ET and concluding at approximately 3:00 p.m. ET. The link to the presentation materials and webcast will be available on the "Investors" section of Fortive’s website, www.fortive.com, under the subheading "Events & Presentations." A replay of the video webcast will be available following the presentation.

ABOUT FORTIVE

Fortive is a diversified industrial growth company comprised of Professional Instrumentation and Industrial Technologies businesses that are recognized leaders in attractive markets. With 2016 revenues of $6.2 billion, Fortive's well-known brands hold leading positions in field instrumentation, transportation, sensing, product realization, automation and specialty, and franchise distribution. Fortive is headquartered in Everett, Washington and employs a team of more than 24,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 40 countries around the world. With a culture rooted in continuous improvement, the core of our company's operating model is the Fortive Business System. For more information please visit: www.fortive.com.

NON-GAAP FINANCIAL MEASURES

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references “adjusted diluted net earnings per share,” which is a non-GAAP financial measure. The reasons why we believe such measure, when used in conjunction with the GAAP financial measure, provides useful information to investors, how management uses such non-GAAP financial measure, a reconciliation of such measure to the most directly comparable GAAP measure and other information relating to such measure are included in the supplemental reconciliation schedule attached. The non-GAAP financial measure should not be considered in isolation or as a substitute for the GAAP financial measure, but should instead be read in conjunction with the GAAP financial measure. The non-GAAP financial measure used by Fortive in this release may be different from similarly-titled non-GAAP measure used by other companies.

FORWARD-LOOKING STATEMENTS

Statements in this release that are not strictly historical, statements regarding Fortive’s anticipated earnings, business and acquisition opportunities, anticipated revenue growth, anticipated operating margin expansion, anticipated cash flow, economic conditions, future prospects, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning are “forward-looking” statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: deterioration of or instability in the economy, the markets we serve and the financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, political, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, labor matters, disruptions relating to man-made and natural disasters, impact of our separation from Danaher on our operations or financial results, and impact of our indemnification obligation to Danaher. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2016. These forward-looking statements speak only as of the date of this release, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

FORTIVE CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Adjusted Diluted Net Earnings per Share

We disclose the non-GAAP measure of forecasted adjusted diluted net earnings per share, which makes the following adjustments to forecasted GAAP diluted net earnings per share:

• Excluding on a pretax basis amortization of acquisition-related intangible assets; and
• Excluding the tax effect of the adjustment noted above by applying our overall estimated effective tax rate to the pretax amount of the adjustment noted above (unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment).

While we have a history of acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. We believe however that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible assets related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Furthermore, the forecasted adjusted diluted net earnings per share does not reflect certain adjustments that are inherently difficult to predict or estimate due to their unknown timing, effect and/or significance.

Management believes that this non-GAAP financial measure provides useful information to investors by reflecting additional ways of viewing aspects of Fortive’s operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our profitability to prior and future periods and to our peers. The items described above have been excluded from, or added to, the measure because items of this nature and/or size occur with inconsistent frequency or occur for reasons that may be unrelated to our commercial performance during the period and/or because we believe the corresponding adjustments are useful in assessing our potential ongoing operating costs or gains in a given period.

We deem acquisition-related transaction costs incurred in a given period to be significant (generally relating to our larger acquisitions) if we determine that such costs exceed the range of our typical acquisition-related transaction costs in a given period.

The non-GAAP measure should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.

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Fortive Corporation
Lisa Curran, 425-446-5000
Vice President, Investor Relations
6920 Seaway Boulevard
Everett, WA 98203

Source: Fortive Corporation

Released May 18, 2017