EX-99 2 c91425exv99.htm EXHIBIT 99 Exhibit 99

Exhibit 99
Page 1

GORMAN-RUPP REPORTS 2009 THIRD QUARTER EARNINGS

Mansfield, Ohio – October 22, 2009 – The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the third quarter and nine months ended September 30, 2009.

Net sales were $64,096,000 for the third quarter ended September 30, 2009, 23.9% lower than the record $84,188,000 during the same period in 2008. Net income during the quarter was $5,177,000, a decrease of 29.9% compared to $7,385,000 in the third quarter 2008. Earnings per share were $0.31 and $0.44 for the comparable periods.

Net sales for the nine months ended September 30, 2009 were $204,039,000, down 18.3% from net sales of $249,653,000 during the same period in 2008. Net income in the first nine months of 2009 was $14,550,000, a decrease of 35.1% compared to $22,432,000 in the first nine months of 2008. Earnings per share were $0.87 and $1.34 for the comparable periods.

The global economic downturn continues to have a negative impact on the Company’s business, particularly compared to its record results in the first nine months of last year. The decline in sales for the quarter was across most of the markets the Company serves, with the largest declines in the construction, rental, fire protection and power generation markets.

The decline in earnings for the quarter principally reflects decreased operating leverage on the lower volume of operations, and increased pension expense of $0.02 per share. This increased expense was offset by a decrease in LIFO expense of $0.09 per share, of which $0.04 per share was due to the partial liquidation of LIFO quantities during the third quarter 2009 as a result of lower sales levels.

The Company’s backlog of orders was $85.2 million at September 30, 2009 compared to $128.3 million a year ago and $107.8 million at December 31, 2008, with the largest decline from the power generation market. The backlog increased 3% during the quarter from $82.9 million at June 30, 2009. Continued economic uncertainty facing most companies and municipalities has caused some orders to be deferred.

The Company’s balance sheet remains strong through this period of reduced sales and earnings. The Company generated $43.9 million in operating cash flow during the first nine months of 2009, primarily due to net income and lower inventory and accounts receivable balances. Capital expenditures totaling $51.7 million for the previously announced consolidation of the Mansfield, Ohio facilities have been incurred as of September 30, 2009, of which $28.3 million has been incurred in 2009. During the quarter $8.0 million was borrowed under an unsecured loan agreement to partially finance this construction project which is expected to be completed by the end of 2009.

Jeffrey S. Gorman, President and CEO said, “As we move into the fourth quarter, some indicators appear to show the beginning of improvement in the general economy, but we have yet to see a clear indication of a sustained recovery in the capital goods sector. Despite the effects of the sluggish economy, we are pleased that our team’s ongoing financial and operational initiatives have continued to make a positive impact on our profitability. We are very proud that the Company was recognized as Exporter of the Year by the Ohio Department of Development as we continue to emphasize expanding international sales.”

 

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Exhibit 99
Page 2

Released by David P. Emmens, Corporate Secretary, Telephone (419) 755-1477.

For additional information contact Wayne L. Knabel, Chief Financial Officer, Telephone (419) 755-1397.

The Gorman-Rupp Company designs, manufactures and sells pumps and related equipment (pumps and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid handling applications.

 

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Exhibit 99
Page 3
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
                                 
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2009     2008     2009     2008  
 
                               
Net sales
  $ 64,096     $ 84,188     $ 204,039     $ 249,653  
Cost of products sold
    47,996       64,016       156,804       189,231  
 
                       
 
                               
Gross profit
    16,100       20,172       47,235       60,422  
 
                               
Selling, general and administrative expenses
    8,373       9,140       26,151       27,995  
 
                       
 
                               
Operating income
    7,727       11,032       21,084       32,427  
 
                               
Other income (expense) — net
    78       377       791       1,803  
 
                       
 
                               
Income before income taxes
    7,805       11,409       21,875       34,230  
Income taxes
    2,628       4,024       7,325       11,798  
 
                       
 
                               
Net income
  $ 5,177     $ 7,385     $ 14,550     $ 22,432  
 
                       
 
                               
Basic and diluted earnings per share
  $ 0.31     $ 0.44     $ 0.87     $ 1.34  

 

 


 

Exhibit 99
Page 4
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    September 30,     December 31,  
    2009     2008  
Assets
               
Cash and short-term investments
  $ 55,736     $ 23,793  
Accounts receivable — net
    39,371       48,200  
Inventories
    43,961       56,881  
Deferred income taxes and other current assets
    4,423       5,392  
 
           
 
               
Total current assets
    143,491       134,266  
 
               
Property, plant and equipment — net
    108,488       80,406  
 
               
Deferred income taxes and other assets
    15,562       16,866  
 
           
 
               
Total assets
  $ 267,541     $ 231,538  
 
           
 
               
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 10,981     $ 15,878  
Short-term debt
    24,806        
Accrued liabilities and expenses
    24,202       19,691  
 
           
 
               
Total current liabilities
    59,989       35,569  
 
               
Deferred and other long-term income taxes
    1,329       1,322  
Retirement benefits
    9,186       11,421  
Postretirement benefits
    24,994       24,020  
 
               
The Gorman-Rupp Company shareholders’ equity
    171,340       158,588  
Noncontrolling interest
    703       618  
 
           
 
               
Total shareholders’ equity
    172,043       159,206  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 267,541     $ 231,538  
 
           
 
               
Shares outstanding
    16,710,535       16,707,535