EX-99 2 l35513aexv99.htm EX-99 EX-99
Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD 2008 SALES AND EARNINGS
WITH WEAKER FOURTH QUARTER
Mansfield, Ohio — February 12, 2009 — The Gorman-Rupp Company (NYSE Alternext: GRC) reports record results for the year ended December 31, 2008. In addition, the Company achieved its thirty-sixth consecutive year of increased cash dividends paid to shareholders.
Net income during 2008 increased 19.0% on an 8.2% increase in net sales. Record 2008 net income was $27,197,000 compared to $22,859,000 in 2007. Net sales were a record $330,646,000 during 2008 compared to $305,562,000 in 2007. Earnings per share were $1.63 and $1.37, respectively.
Sales growth in water and wastewater applications, fire protection, fabricated components and continued strength in international business contributed to the Company’s record year in 2008. The increase in the 2008 earnings principally resulted from the favorable effect of product mix and operating leverage on increased sales during the first three quarters of the year.
Net sales during the fourth quarter 2008 increased 5.4% to $80,993,000 compared to $76,825,000 for the fourth quarter 2007. Fourth quarter 2008 net income was $4,765,000 compared to $5,754,000 in 2007, a decrease of 17.2%, and resulted in fourth quarter earnings per share of $0.29 in 2008, compared to $0.35 in 2007. The unfavorable impact of changes in product mix, computer system upgrade expense and foreign currency exchange rates were primarily responsible for the reduction in fourth quarter 2008 earnings compared to 2007.
The Company’s backlog of orders was $107.8 million at December 31, 2008 compared to $116.4 million at the end of 2007. This decrease of $8.6 million was primarily due to the economic downturn experienced during the fourth quarter. The economic uncertainty facing many companies and municipalities caused several orders to be delayed and in selective instances a few orders to be cancelled.
Capital expenditures of $23.9 million for the previously announced consolidation and expansion of the Mansfield, Ohio facilities have been incurred as of December 31, 2008, of which $21.5 million has been incurred during 2008. The project is expected to be completed by the end of 2009. The Company’s financial position remains strong and no bank financing has been required to date.
Jeffrey S. Gorman, President and CEO said, “Although we are extremely pleased with the record 2008 results, we clearly are now in the midst of a continuing global economic downturn that will be difficult to escape. Lack of consumer, municipal and overall business confidence has affected the purchase of capital goods. Discussions regarding the possible infusion of Federal stimulus dollars, a portion of which may be directed toward water, wastewater and other infrastructure projects, may be positive for some of the markets we serve. In the midst of these uncertainties we will continue to align costs with changing market demand. Consistent with our first 75 years, we remain focused on our core business of manufacturing pumps and providing pumping solutions for fluid handling needs and will continue to position the Company for long-term growth.”
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.

 


 

Exhibit 99
Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income
(Thousands of dollars, except per share data)
                                 
    Three Months Ended December 31,     Twelve Months Ended December 31,  
    (unaudited)              
    2008     2007     2008     2007  
Net sales
  $ 80,993     $ 76,825     $ 330,646     $ 305,562  
Cost of products sold
    64,326       59,804       253,557       238,110  
 
                       
 
                               
Gross profit
    16,667       17,021       77,089       67,452  
 
                               
Selling, general and administrative expenses
    10,106       9,499       38,101       34,567  
 
                       
 
                               
Operating income
    6,561       7,522       38,988       32,885  
 
                               
Other income (expense) — net
    (297 )     948       1,506       2,498  
 
                       
 
                               
Income before income taxes
    6,264       8,470       40,494       35,383  
Income taxes
    1,499       2,716       13,297       12,524  
 
                       
 
                               
Net income
  $ 4,765     $ 5,754     $ 27,197     $ 22,859  
 
                       
 
                               
Basic and diluted earnings per share
  $ 0.29     $ 0.35     $ 1.63     $ 1.37  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of dollars)
                 
    December 31,     December 31,  
    2008     2007  
Assets
               
Cash and short-term investments
  $ 23,793     $ 30,190  
Accounts receivable — net
    48,200       47,256  
Inventories
    56,881       53,223  
Deferred income taxes and other current assets
    5,392       4,619  
 
           
 
               
Total current assets
    134,266       135,288  
 
               
Property, plant and equipment — net
    80,406       59,970  
 
               
Deferred income taxes and other assets
    16,866       16,276  
 
           
 
               
Total assets
  $ 231,538     $ 211,534  
 
           
 
               
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 15,878     $ 14,162  
Accrued liabilities and expenses
    19,691       19,319  
 
           
 
               
Total current liabilities
    35,569       33,481  
 
               
Deferred and other long-term income taxes
    1,322       1,432  
Retirement benefits
    11,421        
Postretirement benefits
    24,020       26,661  
 
               
Minority interest
    618       520  
 
               
Shareholders’ equity
    158,588       149,440  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 231,538     $ 211,534  
 
           
 
               
Shares outstanding
    16,707,535       16,703,035  
Shares outstanding and per share data reflect the 5 for 4 stock split effective December 10, 2007.