EX-99 2 l27229aexv99.htm EX-99 EX-99
 

Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD SECOND QUARTER AND SIX MONTH RESULTS
Mansfield, Ohio — July 26, 2007 — The Gorman-Rupp Company (AMEX:GRC) reports record earnings and sales for the second quarter and six months ended June 30, 2007.
Net income during the second quarter of 2007 increased 18.9% to $6,538,000 compared to $5,499,000 for the same period in 2006. Net sales during the quarter increased 17.3% to $79,647,000 compared to $67,905,000 in 2006. Earnings per share for the second quarter 2007 were $0.49 compared to $0.41 during 2006.
Net income for the first six months of 2007 increased 15.9% to $11,630,000 compared to $10,037,000 during 2006. Net sales increased 14.2% to $154,108,000 during the first six months of 2007 compared to $134,992,000 during 2006. Earnings per share for the first six months of 2007 were $0.87 compared to $0.75 in 2006.
Record net income resulted from additional sales and corresponding improvement in manufacturing efficiencies during the quarter. The Company’s Mansfield Division and Patterson Pump Company subsidiary both reported strong sales of pumps and pump systems for water, wastewater and de-watering applications. Integration of Gorman-Rupp Europe B.V. into the Company continued during the quarter, providing expanded European market opportunities.
Patterson Pump Company completed on-time delivery in June of a $15.0 million pump order for a New Orleans flood control project.
The backlog of orders at June 30, 2007 was $98.0 million compared to the record $115.2 million at March 31, 2007. The decrease primarily reflects the record level of shipments during the quarter.
Jeffrey S. Gorman, President and CEO, stated, “We are extremely pleased with the record sales and earnings during the second quarter and first six months. 2007 is shaping up to be a very good year for Gorman-Rupp. Our product diversity in the fluid-handling markets, and related infrastructure, has produced very positive results both domestically and internationally”.
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President & CFO, Telephone (419) 755-1294.
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.


 

Exhibit 99
Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2007     2006     2007     2006  
 
                               
Net sales
  $ 79,647     $ 67,905     $ 154,108     $ 134,992  
Cost of products sold
    61,548       52,318       119,944       104,455  
 
                       
 
                               
Gross Profit
    18,099       15,587       34,164       30,537  
 
                               
Selling, general and administrative expenses
    8,286       7,643       16,726       15,749  
 
                       
 
                               
Operating Income
    9,813       7,944       17,438       14,788  
Other income (expense) — net
    625       439       1,043       643  
 
                       
 
                               
Income Before Income Taxes
    10,438       8,383       18,481       15,431  
Income taxes
    3,900       2,884       6,851       5,394  
 
                       
 
                               
Net Income
  $ 6,538     $ 5,499     $ 11,630     $ 10,037  
 
                       
 
                               
Basic and Diluted Earnings Per Share
  $ 0.49     $ 0.41     $ 0.87     $ 0.75  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    June 30,     December 31,  
    2007     2006  
Assets
               
 
               
Cash and short-term investments
  $ 24,630     $ 16,855  
Accounts receivable — net
    52,213       45,135  
Inventories — net
    51,241       50,299  
Deferred income taxes and other current assets
    3,048       7,829  
 
           
 
               
Total Current Assets
    131,132       120,118  
 
               
Property, Plant and Equipment — Net
    54,785       52,351  
 
               
Deferred income taxes and other assets
    19,908       15,071  
 
           
 
               
Total Assets
  $ 205,825     $ 187,540  
 
           
 
               
Liabilities and Shareholders’ Equity
               
 
               
Accounts payable
  $ 15,308     $ 10,417  
Accrued liabilities and expenses
    21,479       17,229  
 
           
 
               
Total Current Liabilities
    36,787       27,646  
 
               
Income Taxes Payable
    1,466        
Retirement Benefits
    1,438       4,185  
Postretirement Benefits
    28,105       27,567  
 
               
Minority Interest
    483        
 
               
Shareholders’ Equity
    137,546       128,142  
 
           
 
               
Total Liabilities and Shareholders’ Equity
  $ 205,825     $ 187,540  
 
           
 
               
Shares outstanding
    13,360,004       13,360,004