EX-99 2 c07544exv99.htm EXHIBIT 99 Exhibit 99
Exhibit 99
GORMAN-RUPP REPORTS THIRD QUARTER AND NINE MONTH 2010 RESULTS
Mansfield, Ohio – October 28, 2010 – The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the third quarter and nine months ended September 30, 2010.
Net sales during the third quarter ended September 30, 2010 increased 15.4% to $73,953,000 compared to $64,096,000 during the same period in 2009. Net income increased 18.9% to $6,155,000 compared to $5,177,000 in the third quarter 2009. Earnings per share were $0.37 and $0.31 for the respective periods.
Net sales for the nine months ended September 30, 2010 increased 4.0% to $212,119,000 compared to $204,039,000 during the same period in 2009. Net income increased 12.1% to $16,308,000 compared to $14,550,000 in the first nine months of 2009. Earnings per share, respectively, were $0.98 and $0.87 for the two periods.
The increase in net sales during the quarter continued to be positively impacted by the slowly rebounding global economy and is due primarily to increases in sales to the international fire protection market, the municipal market, and the construction, rental and industrial markets, partially offset by decreased sales in the OEM market.
The 19.8% increase in operating income and the increase in earnings for the quarter reflect the impact of the $9.9 million of increased sales and the ongoing benefits of cost savings and operating efficiencies initiated in 2009 and continuing in 2010. Offsetting the impact of increased sales and cost savings were increases in LIFO expense of $0.04 per share primarily due to the partial liquidation of LIFO quantities during the third quarter 2009 as a result of reduced inventory levels, and overtime compensation of $0.03 per share associated with meeting increased customer demand during the quarter.
The Company’s backlog of orders increased to $104.6 million at September 30, 2010 compared to $85.2 million a year ago and $93.7 million at December 31, 2009. The increase from September 30, 2009 was largely due to orders arising from the custom pump, wastewater, rental and international fire protection markets.
Jeffrey S. Gorman, President and CEO said, “The Company has again experienced increasingly positive financial results during this quarter and we remain cautiously optimistic that improving business conditions will continue. As we begin the fourth quarter, we are very pleased to have completed the National Pump Company acquisition which will complement and broaden our existing pump portfolio and provide opportunities for expansion of our markets.”
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.

 


 

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,  
    2010     2009     2010     2009  
 
 
Net sales
  $ 73,953     $ 64,096     $ 212,119     $ 204,039  
Cost of products sold
    55,298       47,996       160,729       156,804  
 
                       
 
                               
Gross profit
    18,655       16,100       51,390       47,235  
 
                               
Selling, general and administrative expenses
    9,401       8,373       26,535       26,151  
 
                       
 
                               
Operating income
    9,254       7,727       24,855       21,084  
 
                               
Other income (expense) — net
    3       78       (388 )     791  
 
                       
 
                               
Income before income taxes
    9,257       7,805       24,467       21,875  
Income taxes
    3,102       2,628       8,159       7,325  
 
                       
 
                               
Net income
  $ 6,155     $ 5,177     $ 16,308     $ 14,550  
 
                       
 
                               
Basic and diluted earnings per share
  $ 0.37     $ 0.31     $ 0.98     $ 0.87  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    September 30,     December 31,  
    2010     2009  
Assets
               
Cash and short-term investments
  $ 42,120     $ 45,908  
Accounts receivable — net
    49,644       37,239  
Inventories
    39,287       40,506  
Deferred income taxes and other current assets
    5,517       7,747  
 
           
 
               
Total current assets
    136,568       131,400  
 
               
Property, plant and equipment — net
    107,535       108,523  
 
               
Deferred income taxes and other assets
    10,081       9,149  
 
           
 
               
Total assets
  $ 254,184     $ 249,072  
 
           
 
               
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 12,299     $ 8,972  
Short-term debt
          15,000  
Accrued liabilities and expenses
    27,264       19,203  
 
           
 
               
Total current liabilities
    39,563       43,175  
 
               
Income taxes payable
    971       971  
Retirement benefits
    1,930       5,044  
Postretirement benefits
    22,982       22,270  
 
               
The Gorman-Rupp Company shareholders’ equity
    188,007       176,905  
Noncontrolling interest
    731       707  
 
           
 
               
Total shareholders’ equity
    188,738       177,612  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 254,184     $ 249,072  
 
           
 
               
Shares outstanding
    16,688,535       16,710,535  

 

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