10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT

Commission file number 1-6747

THE GORMAN-RUPP COMPANY

(Exact name of Registrant as specified in its charter)

Ohio	34-0253990
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
600 South Airport Road, Mansfield, Ohio	44903
(Address of principal executive offices	(Zip Code)

Registrant’s telephone number, including area code (419) 755-1011

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of each class	Name of each exchange on which registered
Common Shares, without par value	NYSE MKT

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.     Yes  ¨    No  x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in the definitive proxy statement or information statement incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

State the aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant. The aggregate market value is computed by reference to the price at which the common equity was sold as of June 30, 2012. $388,384,369

Indicate the number of shares outstanding of each of the Registrant’s classes of common stock as of March 1, 2013.

Common Shares, without par value—20,996,893

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the 2012 Annual Report to Shareholders incorporated by reference into Part II (Items 5-9A).

Portions of Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement incorporated by reference into Part III (Items 10-14).

**************

The Exhibit Index is located at Page 15

PART I

ITEM 1. BUSINESS

The Gorman-Rupp Company (“Registrant”, “Gorman-Rupp” or the “Company”) was incorporated in Ohio in 1934. The Company designs, manufactures and globally sells pumps and pump systems for use in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (“HVAC”), military and other liquid-handling applications.

During the year ended December 31, 2012, the Company acquired South Africa-based Pumptron (Proprietary) Limited (“Pumptron”) and Texas-based American Turbine Pump companies (“American Turbine”) which complement and broaden our existing pump portfolio and provide additional opportunities for global expansion of our major water markets and certain non-water markets.

PRODUCTS

The Company operates in one business segment, the manufacture and international sale of pumps and pump systems. The following table sets forth, for the years 2010 through 2012, the total net sales, income before income taxes and year-end total assets (in thousands) of the Company.

	2012		2011		2010
Net Sales	$	375,691	$	359,490	$	296,808
Income Before Income Taxes		42,447		42,685		38,333
Assets		335,183		298,700		286,707

The Company’s product line consists of pump models ranging in size from  ¹/₄“ to 144” and ranging in rated capacity from less than one gallon per minute to in excess of 700,000 gallons per minute. The types of pumps which the Company produces include self priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high pressure booster, rotary gear, diaphragm, bellows and oscillating.

The pumps have drives that range from 1/35 horsepower electric motors up to much larger electric motors or internal combustion engines. Many of the larger units comprise encased, fully integrated water and wastewater pumping stations. In certain cases, units are designed for the inclusion of customer-supplied drives.

The Company’s larger pumps are sold principally for use in the construction, industrial, water and wastewater handling fields; for flood control; for boosting low residential water pressure; for pumping refined petroleum products, including the ground refueling of aircraft; for fluid control in HVAC applications; and for various agricultural purposes.

The Company’s pumps are also utilized for dewatering purposes. Additionally, pumps manufactured for fire protection are used for sprinkler systems, fire hydrants, stand pipes, fog systems and deluge systems at hotels, banks, factories, airports, schools, public buildings and hundreds of other facilities throughout the world.

2

PART I – CONTINUED

ITEM 1. BUSINESS – CONTINUED

Many of the Company’s smallest pumps are sold to customers for incorporation into such products as food processing, chemical, photo processing, medical and other waste treatment, HVAC equipment, appliances and solar heating.

MARKETING

The Company’s pumps are marketed in the United States and worldwide through a network of more than 1,000 distributors, through manufacturers’ representatives (for sales to many original equipment manufacturers), through third-party distributor catalogs, and by direct sales. The Company is continuously seeking alliances to further enhance marketing opportunities. Government sales are handled directly by the Company and export sales are made primarily through foreign distributors and representatives.

During 2012, 2011 and 2010, there were no shipments to any single customer that exceeded 10% of total net sales.

Gorman-Rupp continues to actively pursue international business opportunities and, in 2012, shipped its pumps to more than 120 countries. However, the Company’s foreign operations do not involve material financial or other risks due to their relatively small size, both individually and collectively. No sales made to customers in any one foreign country amounted to more than 5% of total net sales during 2012, 2011 or 2010.

As a result of this active pursuit of international business, approximately $136.5 million of 2012 sales were shipped outside the United States, as compared to $118.1 million in 2011 and $116.1 million in 2010. International sales represented 36%, 33% and 39% of total sales in 2012, 2011 and 2010, respectively. The Company continues its efforts to penetrate international markets principally by its increased global investments and its sales responses to worldwide pumping needs.

COMPETITION

Since the late 1990’s, a number of consolidations have occurred within the highly competitive pump industry. As a consequence, numerous pump competitors now exist as subsidiaries, divisions or departments within significantly larger corporations. Foreign-sourced pumps have also increasingly penetrated into the Company’s domestic markets.

Gorman-Rupp estimates that 80 other domestic and global companies selling pumps and pump units compete in one or more of the lines of business and applications in which comparable products of the Company are utilized. International competitors are based mostly in Europe and Asia.

Most commercial and industrial pumps are specifically designed and engineered for a particular customer’s application. The Company believes that proper application, product performance, and quality of delivery and service are its principal methods of competition, and attributes its success to its continued emphasis in these areas.

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PART I – CONTINUED

ITEM 1. BUSINESS – CONTINUED

PURCHASING AND PRODUCTION

Virtually all materials, supplies, components and accessories used by the Company in the fabrication of its products, including all castings (for which most patterns are made and owned by the Company), structural steel, bar stock, motors, solenoids, engines, seals, and plastic and elastomeric components are purchased by the Company from other suppliers and manufacturers. No purchases are made under long-term contracts and the Company is not dependent upon a single source for any materials, supplies, components or accessories which are of material importance to its business.

The Company purchases motors for its polypropylene bellows pumps and magnetic drive pumps from several alternative vendors; and motor components for its large submersible pumps, and motors and engines for its pump systems, from a limited number of suppliers. Small motor requirements are also currently sourced from alternative suppliers.

The other production operations of the Company consist of the machining of castings, the cutting, shaping and welding of bar stock and structural members, the design and assembly of electrical control panels, the manufacture of a few minor components, and the assembling, painting and testing of its products. Virtually all of the Company’s products are tested prior to shipment.

OTHER ASPECTS

As of December 31, 2012, the Company employed approximately 1,247 persons, of whom approximately 744 were hourly employees. The Company has no collective bargaining agreements, has never experienced a strike and considers its labor relations to be satisfactory.

Although the Company owns a number of patents, and several of them are important to its business, Gorman-Rupp believes that the business of the Company is not materially dependent upon any one or more patents. The Company’s patents, trademarks and other intellectual property are adequate for its business purposes.

The backlog of orders at December 31, 2012 was valued at $143.4 million compared to $155.5 million at December 31, 2011. Approximately 92% of the Company’s backlog of unfilled orders is scheduled to be shipped during 2013, with the remainder during early 2014.

AVAILABLE INFORMATION

The Company maintains a website accessible through its internet address of www.gormanrupp.com. Gorman-Rupp makes available free of charge on or through www.gormanrupp.com its Annual Report to Shareholders, its annual reports on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K, and any amendments to those reports, as soon as reasonably practicable after those reports (and any amendments) are electronically filed with or furnished to the Securities and Exchange Commission (“Commission”). However, the information contained on the Company’s website is not a part of this Form 10-K or any other report filed with or furnished to the Commission.

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PART I – CONTINUED

ITEM 1. BUSINESS—CONTINUED

As noted in Gorman-Rupp’s Annual Report to Shareholders, a paper copy of the Company’s Form 10-K is also available free of charge upon written request to the Company’s Corporate Secretary.

ITEM 1A. RISK FACTORS

Market influences and cost pressures

The overall pump industry is cyclical in nature, and some of its business activity is generally related to business conditions in the durable goods and capital equipment markets. The Company cannot predict the timing or extent of future economic or market swings. Additionally, raw material and energy purchases are major drivers of costs in the manufacture of pumps, and these costs are usually highly unpredictable. While efforts are made to recoup higher production costs through increased prices, the future acceptability of such price increases by customers is not guaranteed due to the highly competitive market place.

Compliance with a variety of import and export laws and regulations, and the cost of compliance as well as the consequences of failure to properly comply with such laws

The Company is subject to a variety of laws regarding international operations, including regulations issued by the U.S. Department of Commerce Bureau of Industry and Security and various foreign governmental agencies. The Company cannot predict the nature, scope or effect of future regulatory requirements to which our international operations and trading practices might be subject or the manner in which existing laws might be administered or interpreted. Future regulations could limit the countries in which certain of our products may be manufactured or sold or could restrict our access to, and increase the cost of obtaining, products from foreign sources. In addition, actual or alleged violations of import-export laws could result in enforcement actions and substantial financial penalties.

Family ownership of common equity

A substantial percentage of the Company’s Common Shares is held by various members of the Gorman and Rupp families and their affiliates. These family holdings do not typically trade; therefore, the Common Shares, in part because of these circumstances, generally have a history of relatively thin trading experiences on the NYSE MKT Exchange.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

The Company’s corporate headquarters is located in Mansfield, Ohio. The production operations of the Company are conducted at several locations throughout the United States and other countries as set forth below. The Company is a lessee under a number of operating leases for certain real properties, none of which is material to its operations.

5

PART I – CONTINUED

ITEM 2. PROPERTIES—CONTINUED

The Company owns facilities in Sparks, Nevada and Dallas, Texas comprising training centers and warehouses, and leases a warehouse and training facility in Bangkok, Thailand. In addition, the Company leases warehouse facilities in Jebal Ali, Dubai and Culemborg, The Netherlands.

The Company’s principal production operations are:

United States
Mansfield (two) and Bellville, Ohio	Glendale, Arizona	Houston, Texas*
Toccoa, Georgia	Olive Branch, Mississippi	Lubbock, Texas (two)
Royersford, Pennsylvania
Other Countries
St. Thomas, Ontario, Canada	County Westmeath, Ireland*	Leeuwarden, The Netherlands*
Culemborg, The Netherlands*	Johannesburg, South Africa*

* Leased properties

Gorman-Rupp considers its plants, machinery and equipment to be well maintained, in good operating condition and adequate for the present uses and business requirements of the Company.

ITEM 3. LEGAL PROCEEDINGS

For more than ten years, numerous business entities in the pump and fluid-handling industries, as well as a multitude of companies in many other industries, have been targeted in a series of lawsuits in several jurisdictions by various individuals seeking redress to claimed injury as a result of the entities’ alleged use of asbestos in their products. The Company and two of its subsidiaries remain drawn into this mass-scaled litigation, typically as one of many co-defendants in a particular proceeding; the vast majority of these cases were against Patterson Pump Company. The allegations in the lawsuits involving the Company and/or its subsidiaries are vague, general and speculative, and most cases have not advanced beyond the early stage of discovery. Insurers of the Company have engaged legal counsel to represent the Company and its subsidiaries and to protect their interests. In certain situations, the plaintiffs have voluntarily dismissed the Company and/or its subsidiaries from some of the lawsuits after the plaintiffs have acknowledged that there is no basis for their claims. In other situations, the Company and/or its subsidiaries have been dismissed from some of the lawsuits as a result of court rulings in favor of motions to dismiss and/or motions for summary judgment. In sixty-five cases, the Company and/or its subsidiaries have entered into nominal economic settlements recommended and paid for by insurers, coupled with dismissal of the lawsuits. During the fourth quarter 2011, Patterson Pump Company entered into an agreement with plaintiffs’ counsel for the voluntary dismissal of more than 95% of the cases against it at no cost to Patterson Pump Company or its insurer.

In addition, the Company and/or its subsidiaries are parties in a small number of legal proceedings arising in the ordinary course of business. Management does not currently believe that these proceedings, or the industry-wide asbestos litigation, will materially impact the Company’s consolidated results of operations, liquidity or financial condition.

6

PART I – CONTINUED

ITEM 4. MINE SAFETY DISCLOSURE

Not applicable.

EXECUTIVE OFFICERS OF THE REGISTRANT

Pursuant to General Instruction G(3), the information regarding executive officers called for by Item 401 of Regulation S-K and by Item 9 of this Form 10-K is set forth below.

				Date Elected
Name	Age		Office	to Position
James C. Gorman		88	Chairman	1989
Jeffrey S. Gorman		60	President and Chief Executive Officer	1998
Wayne L. Knabel		66	Chief Financial Officer	2009
David P. Emmens		64	Corporate Counsel and Corporate Secretary	2002

Except as noted, each of the above-named officers has held his or her executive position with the Company for the past five years. Mr. J. C. Gorman served as the Company’s President from 1964 until 1989, and as Chief Executive Officer from 1964 until 1996. He has served as a Director of the Company continuously since 1946. Mr. J. S. Gorman was elected President and Chief Executive Officer effective May 1, 1998, after having served as Senior Vice President since 1996. Mr. J. S. Gorman also held the position of General Manager of the Mansfield Division from 1989 through 2005. He served as Assistant General Manager from 1986 to 1988; and he held the office of Corporate Secretary from 1982 to 1990. He has served as a Director of the Company continuously since 1989. Mr. Knabel was elected Chief Financial Officer effective May 1, 2009. Mr. Knabel previously served as Vice President Finance since May 1, 2008. Mr. Knabel joined the Company in March 2008. He previously served as Chief Financial Officer from 2003 to 2008 at Arthur Middleton Capital Holdings which manufactures and distributes over-the-counter nutraceuticals and performs direct marketing. Mr. Emmens joined the Company as Corporate Counsel in 1997, and was elected as Corporate Secretary in 2002. He served as Assistant Corporate Secretary from 1999 to 2002. Mr. J. S. Gorman is the son of Mr. J. C. Gorman. Mr. Christopher H. Lake, a Director of the Company, is the son of Dr. Peter B. Lake, also a Director. There are no other family relationships among any of the Executive Officers and Directors of the Company.

7

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Attention is directed to the section “Quarterly Stock Prices and Dividends” and the data below pertaining to the shareholder information on page 42 in the Company’s 2012 Annual Report to Shareholders, which is incorporated herein by this reference.

Attention is also directed to the “Shareholder Return Performance Presentation” on page 42 in the Company’s 2012 Annual Report to Shareholders, which is incorporated herein by this reference.

The Company did not repurchase any of its Common Shares during the fourth quarter of the period covered by this Form 10-K.

ITEM 6. SELECTED FINANCIAL DATA

Attention is directed to the section “Eleven Year Summary of Selected Financial Data” on pages 38 and 39 in the Company’s 2012 Annual Report to Shareholders, which is incorporated herein by this reference.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Attention is directed to the section “Management’s Discussion and Analysis” on pages 28 through 35, and to the section “Safe Harbor Statement” on page 43, in the Company’s 2012 Annual Report to Shareholders, which are incorporated herein by this reference.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Attention is directed to the section “Management’s Discussion and Analysis” on pages 28 through 35, and to the section “Safe Harbor Statement” on page 43, in the Company’s 2012 Annual Report to Shareholders, which are incorporated herein by this reference. The Company’s foreign operations do not involve material market risks due to their relatively small size, both individually and collectively. As indicated in paragraph four on page three referenced above, the Company has no material market risk exposures required to be reported by Item 305 of Regulation S-K.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Attention is directed to the Company’s consolidated financial statements, the notes thereto and the report of the independent registered public accounting firm thereon on pages 14 through 27, and to the section “Summary of Quarterly Results of Operations” on pages 38 and 39, in the Company’s 2012 Annual Report to Shareholders, which are incorporated herein by this reference.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

8

PART II - CONTINUED

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. The Company’s disclosure controls and procedures are also designed to ensure that information required to be disclosed in Company reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to the Company’s Management, including the principal executive officer and the principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

An evaluation was carried out under the supervision and with the participation of the Company’s Management, including the principal executive officer and the principal financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report on Form 10-K. Based on the evaluation, the principal executive officer and the principal financial officer have concluded that the Company’s disclosure controls and procedures were effective as of December 31, 2012.

Management’s Report on Internal Control over Financial Reporting

There were no material weaknesses identified at any Division or Subsidiary of the Company during 2012. The 2012 Report of Management on Internal Control over Financial Reporting and the related Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting are incorporated herein by this reference from pages 36 and 37 of the Company’s 2012 Annual Report to Shareholders, respectively.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

The Company has no information required to be disclosed in a report on Form 8-K during the fourth quarter of the year covered by this report on Form 10-K that has not otherwise been reported on a Form 8-K.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

With respect to Directors, attention is directed to the sections “Election of Directors,” “Board of Directors and Board Committees,” “Audit Committee Report” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company’s definitive Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement (filed with the SEC pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K), which are incorporated herein by this reference.

9

PART III – CONTINUED

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE— CONTINUED

With respect to Executive Officers, attention is directed to Part I of this Form 10-K.

The Company has adopted a Code of Ethics that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer, as well as to all employees, officers and Directors. The Code of Ethics is set forth as an exhibit to this Form 10-K. In addition, the Code of Ethics is posted on the Company’s website accessible through its Internet address of www.gormanrupp.com (under the heading “Investor Relations” and the sub-heading “Corporate Governance”), including any amendments.

ITEM 11. EXECUTIVE COMPENSATION

Attention is directed to the sections “Board of Directors and Board Committees,” “Executive Compensation,” “Compensation Discussion and Analysis,” “Pension Benefits,” “Summary Compensation Table,” “Director Compensation,” “Risk Oversight” and “Compensation Committee Report” in the Company’s definitive Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement (filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K), which are incorporated herein by this reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Attention is directed to the section “Beneficial Ownership of Shares” and “Election of Directors” in the Company’s definitive Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement (filed with the SEC pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K), which are incorporated herein by this reference.

On May 22, 1997, the Company’s Board of Directors adopted a Non-Employee Directors’ Compensation Plan. This Plan became effective without shareholder approval and constitutes the Company’s only equity compensation plan. The Plan provides (originally through 2006) for share compensation for regular services performed by each of the Company’s non-employee Directors. In addition to cash compensation, non-employee Directors historically received an automatic award of 500 Common Shares (from the Company’s treasury) on each July 1. On July 27, 2006, the Company’s Board of Directors adopted a resolution extending the Non-Employee Directors’ Compensation plan for an additional term until the earlier of (i) May 21, 2017, (ii) at such time as all of the Company’s Common Shares authorized for award under the Plan and registered under Form S-8 Registration Statement No. 333-30159 shall have been awarded and issued, (iii) at such time as the Company deregisters any Common Shares not issued under the foregoing Registration Statement, or (iv) at such time as the Plan is terminated by action of the Board of Directors. On July 28, 2011, the Company’s Board of Directors adopted an amendment effective August 1, 2011 to provide for the aggregate award of 1,000 Common Shares to each Non-Employee Director during 2011 and 1,000 Common Shares each July 1 thereafter. The number of Common Shares which may be awarded under the Plan cannot exceed 50,000, subject to certain conditions (e.g., stock splits, stock dividends).

10

PART III – CONTINUED

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS—CONTINUED

As of December 31, 2012, 52,000 Common Shares had been issued to non-employee Directors and 28,106 Common Shares remained available for future issuance (6,875 Common Shares were added as a result of the 5 for 4 stock split effective September 10, 2004; 7,093 Common Shares were added as a result of the 5 for 4 stock split effective December 8, 2006; 8,117 Common Shares were added as a result of the 5 for 4 stock split effective December 10, 2007; and 8,021 were added as a result of the 5 for 4 stock split effective June 10, 2011). No options, warrants or rights are available for issuance under the Plan. Attention is directed to the sections “Board of Directors and Board Committees” and “Beneficial Ownership of Shares” in the Company’s definitive Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement (filed with the SEC pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K), which is incorporated herein by this reference.

EQUITY COMPENSATION PLAN INFORMATION

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights		Weighted average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance
Non-Employee Directors’ Compensation Plan (not approved by shareholders)		-0-	$	-0-		28,106
Equity compensation plans approved by shareholders		—		—		—
Total		-0-	$	-0-		28,106

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Attention is directed to the section “Board of Directors and Board Committees” in the Company’s definitive Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement (filed with the SEC pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K), which is incorporated herein by this reference.

The Company has no relationships or transactions required to be reported by Item 404 of Regulation S-K.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Attention is directed to the section “Appointment of Independent Registered Public Accounting Firm” in the Company’s definitive Notice of 2013 Annual Meeting of Shareholders and related Proxy Statement (filed with the SEC pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K), which is incorporated herein by this reference.

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PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following documents are filed as part of this report:

1. Financial Statements

With respect to the audited consolidated financial statements of the Registrant and its subsidiaries, the following documents have been incorporated by reference into this report:

(i.) Consolidated balance sheets—December 31, 2012 and 2011

(ii.) Consolidated statements of income-Years ended December 31, 2012, 2011, 2010

(iii.) Consolidated statements of comprehensive income-Years ended December 31, 2012, 2011, 2010

(iv.) Consolidated statements of shareholders’ equity-Years ended December 31, 2012, 2011, 2010

(v.) Consolidated statements of cash flows-Years ended December 31, 2012, 2011, 2010

(vi.) Notes to consolidated financial statements

(vii.) 2012 Report of independent registered public accounting firm

(viii.) 2012 Report of management on internal control over financial reporting

(ix.) 2012 Report of independent registered public accounting firm

2. Financial Statement Schedules

All financial statement schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, or the information required to be set forth therein is included in the consolidated financial statements or Notes thereto.

3. Exhibits

The exhibits listed below are submitted in a separate section of this report immediately following the Exhibit Index.

(3)	(i) Articles of incorporation and (ii) By-law
(4)	Instruments defining the rights of security holders, including indentures
(10)	Material contracts
(13)	Annual report to security holders
(14)	Code of ethics
(21)	Subsidiaries of the registrant
(23)	Consent of Independent Registered Public Accounting Firm
(24)	Powers of attorney
(31)	Rule 13a-14(a)/15d-14(a) Certifications
(32)	Section 1350 Certifications
(101.INS)	XBRL Instance Document
(101.SCH)	XBRL Taxonomy Extension Schema Document
(101.CAL)	XBRL Taxonomy Extension Calculation Linkbase Document
(101.DEF)	XBRL Taxonomy Extension Definition Linkbase Document
(101.LAB)	XBRL Taxonomy Extension Label Linkbase Document
(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE GORMAN-RUPP COMPANY
*By:	DAVID P. EMMENS
	David P. Emmens
	Attorney-In-Fact

Date: March 4, 2013

13

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

*JEFFREY S. GORMAN	President and Chief Executive Officer and Director
Jeffrey S. Gorman	(Principal Executive Officer)
*WAYNE L. KNABEL	Chief Financial Officer
Wayne L. Knabel	(Principal Financial and Accounting Officer)
*JAMES C. GORMAN	Director
James C. Gorman
*M. ANN HARLAN	Director
M. Ann Harlan
*THOMAS E. HOAGLIN	Director
Thomas E. Hoaglin
*CHRISTOPHER H. LAKE	Director
Christopher H. Lake
*PETER B. LAKE	Director
Peter B. Lake
*RICK R. TAYLOR	Director
Rick R. Taylor
*W. WAYNE WALSTON	Director
W. Wayne Walston

* The undersigned, by signing his name hereto, does sign and execute this Annual Report on Form 10-K on behalf of The Gorman-Rupp Company and on behalf of each of the above-named Officers and Directors of The Gorman-Rupp Company pursuant to Powers of Attorney executed by The Gorman-Rupp Company and by each such Officer and Director and filed with the Securities and Exchange Commission.

March 4, 2013

By:	/s/ DAVID P. EMMENS
	David P. Emmens
	Attorney-In-Fact

14

ANNUAL REPORT ON FORM 10-K

THE GORMAN-RUPP COMPANY

For the Year Ended December 31, 2012

EXHIBIT INDEX

Exhibit Number	Description	Page Number
(3)(4)	Amended Articles of Incorporation, as amended*
(3)(4)	Regulations*
(10) (a)	Form of Indemnification Agreement between the Company and its Directors and Officers	**
(10) (b)	Non-Employee Directors’ Compensation Plan	***
(13)	Incorporated Portions of 2012 Annual Report to Shareholders	1
(14)	Code of Ethics	29
(21)	Subsidiaries of the Company	32
(23)	Consent of Independent Registered Public Accounting Firm	33
(24)	Powers of Attorney	34
(31) (a)	Certification of Chief Executive Officer (Section 302 of the Sarbanes-Oxley Act of 2002)	37
(31) (b)	Certification of Chief Financial Officer (Section 302 of the Sarbanes-Oxley Act of 2002)	39
(32)	Certification Pursuant to 18 U. S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	41
(101.INS)	XBRL Instance Document
(101.SCH)	XBRL Taxonomy Extension Schema Document
(101.CAL)	XBRL Taxonomy Extension Calculation Linkbase Document
(101.DEF)	XBRL Taxonomy Extension Definition Linkbase Document
(101.LAB)	XBRL Taxonomy Extension Label Linkbase Document
(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase Document

15

* Incorporated herein by this reference from Exhibit (3) (4) of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

** Incorporated herein by this reference from Exhibit (10) (a) of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

*** Incorporated herein by this reference from Exhibit (10) (b) of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

16

EX-13

Exhibit (13)

The Gorman-Rupp Company        Annual Report 2012

Report of Independent Registered

Public Accounting Firm

The Board of Directors and Shareholders of

The Gorman-Rupp Company

We have audited the accompanying consolidated balance sheets of The Gorman-Rupp Company as of December 31, 2012 and 2011, and the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2012. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of The Gorman-Rupp Company at December 31, 2012 and 2011, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), The Gorman-Rupp Company’s internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 4, 2013 expressed an unqualified opinion thereon.

/s/ ERNST & YOUNG LLP

Cleveland, Ohio

March 4, 2013

The Gorman-Rupp Company        Annual Report 2012

Consolidated Statements of Income

	Year ended December 31,
(Thousands of dollars, except per share amounts)	2012			2011			2010
Net sales	$	375,691		$	359,490		$	296,808
Cost of products sold		285,540			271,653			220,471
Gross profit		90,151			87,837			76,337
Selling, general and administrative expenses		47,968			44,843			37,378
Operating income		42,183			42,994			38,959
Other income		907			409			362
Other expense		(643	)		(718	)		(988	)
Income before income taxes		42,447			42,685			38,333
Income taxes		14,244			13,881			12,370
Net income	$	28,203		$	28,804		$	25,963
Earnings per share	$	1.34		$	1.37		$	1.24
Average number of shares outstanding		20,993,893			20,987,663			20,905,728

See notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income

	Year ended December 31,
(Thousands of dollars)	2012			2011			2010
Net income	$	28,203		$	28,804		$	25,963
Cumulative translation adjustments		437			(886	)		139
Pension and postretirement medical liability adjustments, net of tax		(675	)		(5,730	)		1,549
Total adjustments		(238	)		(6,616	)		1,688
Noncontrolling interest		—			—			20
Comprehensive income	$	27,965		$	22,188		$	27,671

See notes to consolidated financial statements.

2

The Gorman-Rupp Company        Annual Report 2012

Consolidated Balance Sheets

	December 31,
(Thousands of dollars)	2012		2011
Assets
Current assets:
Cash and cash equivalents	$	20,119	$	20,142
Short-term investments		254		1,060
Accounts receivable – net		58,712		56,419
Inventories – net:
Raw materials and in-process		23,967		30,480
Finished parts		52,607		36,451
Finished products		14,324		6,262
		90,898		73,193
Deferred income taxes		2,803		2,711
Prepaid and other		2,889		2,347
Total current assets		175,675		155,872
Property, plant and equipment:
Land		3,048		2,270
Buildings		96,261		91,395
Machinery and equipment		143,471		132,743
		242,780		226,408
Accumulated depreciation		119,714		112,059
Property, plant and equipment – net		123,066		114,349
Deferred income taxes		153		205
Other		4,003		2,793
Goodwill and other intangible assets – net		32,286		25,481
	$	335,183	$	298,700

See notes to consolidated financial statements.

3

The Gorman-Rupp Company        Annual Report 2012

	December 31,
	2012			2011
Liabilities and equity
Current liabilities:
Accounts payable	$	14,897		$	15,679
Short-term debt		22,000			10,000
Payroll and employee related liabilities		10,646			10,283
Commissions payable		7,568			7,757
Accrued expenses		9,710			7,154
Total current liabilities		64,821			50,873
Pension benefits		7,517			6,571
Postretirement benefits		22,399			22,705
Deferred and other income taxes		5,727			3,787
Total liabilities		100,464			83,936
Equity:
Common shares, without par value:
Authorized – 35,000,000 shares;
Outstanding – 20,996,893 shares in 2012 and 20,990,893 shares in 2011 (after deducting treasury shares of 642,603 in 2012 and 648,603 in 2011) at stated capital amount		5,130			5,128
Additional paid-in capital		2,693			2,544
Retained earnings		243,178			223,136
Accumulated other comprehensive loss		(16,282	)		(16,044	)
Total equity		234,719			214,764
	$	335,183		$	298,700

4

The Gorman-Rupp Company        Annual Report 2012

Consolidated Statements of Equity

										Accumulated
				Additional						Other
	Common			Paid-In			Retained			Comprehensive			Noncontrolling
(Thousands of dollars, except per share amounts)	Shares			Capital			Earnings			Income (Loss)			Interest			Total
Balances January 1, 2010	$	5,100		$	498		$	182,377		$	(11,070	)	$	707		$	177,612
Net income								25,963						66			26,029
Currency translation adjustments											139			(46	)		93
Pension and OPEB adjustments (net of income tax expense of $864)											1,549						1,549
Total comprehensive income		—			—			25,963			1,688			20			27,671
Purchase of noncontrolling interest					166						(46	)		(727	)		(607	)
Purchase of 31,250 treasury shares		(8	)		(487	)		(143	)								(638	)
Issuance of 128,750 treasury shares		35			2,223			562									2,820
Cash dividends—$0.336 a share								(7,024	)								(7,024	)
Balances December 31, 2010		5,127			2,400			201,735			(9,428	)		—			199,834
Net income								28,804									28,804
Currency translation adjustments											(886	)					(886	)
Pension and OPEB adjustments (net of income tax benefit of $3,282)											(5,730	)					(5,730	)
Total comprehensive income (loss)		—			—			28,804			(6,616	)		—			22,188
Issuance of 6,000 treasury shares		1			144			27									172
Cash dividends—$0.354 a share								(7,430	)								(7,430	)
Balances December 31, 2011		5,128			2,544			223,136			(16,044	)		—			214,764
Net income								28,203									28,203
Currency translation adjustments											437						437
Pension and OPEB adjustments (net of income tax benefit of $312)											(675	)					(675	)
Total comprehensive income (loss)		—			—			28,203			(238	)		—			27,965
Issuance of 6,000 treasury shares		2			149			27									178
Cash dividends—$0.390 a share								(8,188	)								(8,188	)
Balances December 31, 2012	$	5,130		$	2,693		$	243,178		$	(16,282	)	$	—		$	234,719

See notes to consolidated financial statements.

5

The Gorman-Rupp Company        Annual Report 2012

Consolidated Statements of Cash Flows

	Year ended December 31,
(Thousands of dollars)	2012			2011			2010
Cash flows from operating activities:
Net income	$	28,203		$	28,804		$	25,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,066			11,459			10,601
Pension expense		6,946			6,070			3,024
Contributions to pension plan		(7,200	)		(7,200	)		(7,200	)
Deferred income taxes		2,193			1,608			4,166
Other		(213	)		250			1,369
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable – net		710			(4,423	)		(10,618	)
Inventories – net		(8,583	)		(21,744	)		(1,223	)
Accounts payable		(1,911	)		3,637			655
Commissions payable		(189	)		1,166			2,243
Accrued expenses		4,727			8,211			67
Other		(4,116	)		(6,706	)		(404	)
Net cash provided by operating activities		32,633			21,132			28,643
Cash flows from investing activities:
Capital additions – net		(16,373	)		(11,175	)		(8,310	)
Redemptions (purchases) of short-term investments		805			958			(512	)
Payments for acquisitions, net of cash acquired		(20,823	)		—			(33,856	)
Net cash used for investing activities		(36,391	)		(10,217	)		(42,678	)
Cash flows from financing activities:
Cash dividends		(8,188	)		(7,430	)		(7,024	)
Proceeds from bank borrowings		17,000			—			35,000
Payments to bank for borrowings		(5,000	)		(15,000	)		(25,000	)
Treasury stock purchase		—			—			(638	)
Purchase of noncontrolling interest		—			—			(607	)
Net cash provided by (used for) financing activities		3,812			(22,430	)		1,731
Effect of exchange rate changes on cash		(77	)		(572	)		130
Net decrease in cash and cash equivalents		(23	)		(12,087	)		(12,174	)
Cash and cash equivalents:
Beginning of year		20,142			32,229			44,403
End of year	$	20,119		$	20,142		$	32,229

See notes to consolidated financial statements.

6

The Gorman-Rupp Company        Annual Report 2012

Notes to Consolidated Financial Statements

(Amounts in tables in thousands of dollars)

Note A – Summary of Significant Accounting Policies

Consolidation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. Earnings per share are calculated based on the weighted-average number of common shares outstanding.

Cash Equivalents and Short-Term Investments

The Company considers highly liquid instruments with maturities of 90 days or less to be cash equivalents. The Company periodically makes short-term investments for which cost approximates fair value. Short-term investments at December 31, 2012 and 2011 consist primarily of certificates of deposit.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on knowledge of the financial condition of customers, review of historical receivables and reserve trends and other relevant information.

Inventories

Inventories are stated at the lower of cost or market. The costs for approximately 73% of inventories at December 31, 2012 and 82% of inventories at December 31, 2011 are determined using the last-in, first-out (LIFO) method, with the remainder generally determined using the first-in, first-out (FIFO) method applied on a consistent basis. Cost components include materials, inbound freight costs, labor and allocations of fixed and variable overheads on an absorption costing basis.

Long-Lived Assets

Property, plant and equipment are stated on the basis of cost. Repairs and maintenance costs are expensed as incurred. Depreciation for property, plant and equipment and amortization for finite-lived intangible assets are computed principally by the straight-line method over the estimated useful lives of the assets and are included in cost of products sold and selling, general and administrative expenses based on the use of the assets. Depreciation expense was $11.2 million, $10.5 million and $10.2 million during 2012, 2011 and 2010, respectively.

Depreciation of property, plant and equipment is determined based on the following lives:

Buildings	20-50 years
Machinery and equipment	5-15 years
Software	3-5 years

Amortization of finite-lived intangible assets is determined based on the following lives:

Technology and drawings	15-20 years
Customer relationships	9-10 years
Other intangibles	2-18 years

Long-lived assets, except goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets. Impairment losses may be recorded when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts based on the excess of the carrying amounts over the estimated fair value of the assets.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and indefinite-lived intangible assets recognized in connection with business combinations are not amortized to expense. Indefinite-lived intangible assets primarily consist of trademarks and trade names. Goodwill and indefinite-lived intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other.

Goodwill is tested for impairment at the applicable reporting unit level and is based on the net assets for the applicable reporting unit, including goodwill and intangible assets. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

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The Gorman-Rupp Company        Annual Report 2012

If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary.

In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgments and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, a discounted cash flow model is used to estimate the fair value of each reporting unit which considers forecasted cash flows discounted at a market based weighted-average cost of capital. The forecasted cash flows are based on the Company’s long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return of market participants. Other valuation techniques including comparative market multiples are used when appropriate. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units.

The Company has completed its annual goodwill impairment test for each year presented and concluded no reporting unit was at risk of failing the impairment test for any periods presented herein.

In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02 which amends the rules for testing indefinite-lived intangible assets other than goodwill for impairment. Under the new rules, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount similar to the goodwill impairment testing described above. The Company early-adopted ASU 2012-02 for its October 1, 2012 annual impairment test. The Company has completed its annual impairment test and concluded that the fair value of indefinite-lived intangible assets substantially exceeded the respective carrying values.

Revenue Recognition

The Company’s revenues from product sales are generally recognized when all of the following criteria are met: persuasive evidence of a sale arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers and collectability is probable. Product delivery occurs when the risks and rewards of ownership and title pass, which normally occurs upon shipment to the customer.

Concentration of Credit Risk

The Company generally does not require collateral from its customers and has a very good collection history. There were no sales to a single customer that exceeded 10% of total net sales for the years ended December 31, 2012, 2011 or 2010.

Shipping and Handling Costs

The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects related shipping and handling costs in cost of products sold.

Advertising

The Company expenses all advertising costs as incurred, which for the years ended December 31, 2012, 2011 and 2010 totaled $3.5 million, $3.4 million and $3.2 million, respectively.

Product Warranties

A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures. The Company expenses warranty costs directly to cost of products sold. Changes in the Company’s product warranty liability are:

	2012			2011			2010
Balance at beginning of year	$	1,228		$	1,543		$	1,863
Provision		1,394			1,081			1,217
Claims		(1,489	)		(1,396	)		(1,537	)
Balance at end of year	$	1,133		$	1,228		$	1,543

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The Gorman-Rupp Company        Annual Report 2012

Notes to Consolidated Financial Statements

(Amounts in tables in thousands of dollars)

Foreign Currency Translation

Assets and liabilities of the Company’s operations outside the United States which are accounted for in a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenues and expenses are translated at weighted-average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) within equity.

Gains and losses resulting from foreign currency transactions, the amounts of which are not material, are included in net income.

Fair Value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximates their fair value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Reclassification

Certain amounts for 2010 and 2011 have been reclassified to conform to the 2012 presentation.

Note B – Allowance for Doubtful Accounts

The allowance for doubtful accounts was $561,000 and $433,000 at December 31, 2012 and 2011, respectively.

Note C – Inventories

Inventories are stated at the lower of cost or market. Replacement cost approximates current cost and the excess over LIFO cost is approximately $53.2 million and $50.7 million at December 31, 2012 and 2011, respectively. Allowances for excess and obsolete inventory totaled $3.3 million and $3.0 million at December 31, 2012 and 2011, respectively.

Note D – Financing Arrangements

On December 17, 2012, the Company borrowed $17.0 million under an unsecured bank loan agreement to finance the acquisition of American Turbine. The loan bears interest at LIBOR plus 0.75%, adjustable and payable monthly, and matures in November 2013.

On October 1, 2010, the Company borrowed $35.0 million under an unsecured bank loan agreement to help finance the acquisition of National Pump Company. The loan bears interest at LIBOR plus 0.75%, adjustable and payable monthly, and matures in November 2013 after being extended in 2011 and 2012 through first and second amendments to the loan agreement, respectively. At December 31, 2012 and 2011, $5.0 million and $10.0 million were outstanding against this agreement, respectively.

The Company may borrow up to $20.0 million with interest at LIBOR plus 0.75% or at alternative rates as selected by the Company under an unsecured bank line of credit which matures in November 2013. At December 31, 2012 and 2011, $19.3 million and $20.0 million, respectively, was available for borrowing after deducting $700,000 in outstanding letters of credit in 2012.

The Company also has a $10.0 million unsecured bank line of credit with interest at LIBOR plus 0.75% payable monthly which matures in May 2013. At December 31, 2012 and 2011, $4.9 million and $5.0 million, respectively, was available for borrowing after deducting $5.1 million and $5.0 million in outstanding letters of credit, respectively.

The financing arrangements described above contain nominal restrictive covenants, including limits on additional borrowings and maintenance of certain operating and financial ratios. At December 31, 2012, the Company was in compliance with all requirements.

Interest expense, which approximates interest paid, was $122,000, $179,000 and $175,000 in 2012, 2011 and 2010, respectively.

The Company has operating leases for certain offices, manufacturing facilities, land, office equipment and automobiles. Rental expense relating to operating leases was $1.1 million, $866,000 and $852,000 in 2012, 2011 and 2010, respectively.

The future minimum lease payments due under these operating leases as of December 31, 2012 are:

2013		2014		2015		2016		2017		Thereafter		Total
$	919	$	781	$	398	$	356	$	218	$	1,410	$	4,082

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The Gorman-Rupp Company        Annual Report 2012

Note E – Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as reported in the Consolidated Balance Sheets are:

							Accumulated
	Currency			Pension and			Other
	Translation			OPEB			Comprehensive
	Adjustments			Adjustments			Income (Loss)
Balance at January 1, 2010	$	675		$	(11,745	)	$	(11,070	)
Current period credit		139			2,413			2,552
Income tax expense		—			(864	)		(864	)
Other		(46	)		—			(46	)
Balance at December 31, 2010		768			(10,196	)		(9,428	)
Current period charge		(886	)		(9,012	)		(9,898	)
Income tax benefit		—			3,282			3,282
Balance at December 31, 2011		(118	)		(15,926	)		(16,044	)
Current period credit (charge)		437			(987	)		(550	)
Income tax benefit		—			312			312
Balance at December 31, 2012	$	319		$	(16,601	)	$	(16,282	)

Note F – Income Taxes

The components of income before income taxes are:

	2012		2011		2010
United States	$	40,019	$	37,329	$	34,593
Foreign countries		2,428		5,356		3,740
	$	42,447	$	42,685	$	38,333

The components of income tax expense are:

	2012			2011			2010
Current expense:
Federal	$	11,542		$	10,037		$	6,369
Foreign		(324	)		1,576			1,064
State and local		1,021			761			771
		12,239			12,374			8,204
Deferred expense (benefit):
Federal		2,109			1,429			4,138
Foreign		(189	)		(101	)		(42	)
State and local		85			179			70
		2,005			1,507			4,166
Income tax expense	$	14,244		$	13,881		$	12,370

The reconciliation between income tax expense and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes is:

	2012			2011			2010
Income taxes at statutory rate	$	14,856		$	14,940		$	13,417
State and local income taxes, net of federal tax benefit		719			611			547
Research and development tax credits		—			(375	)		(350	)
Domestic production activities		(980	)		(811	)		(599	)
Lower foreign taxes differential		(528	)		(577	)		(439	)
Uncertain tax positions		(236	)		49			(234	)
Other		413			44			28
Income tax expense	$	14,244		$	13,881		$	12,370

Deferred tax assets and liabilities consist of:

	2012			2011			2010
Deferred tax assets:
Inventories	$	170		$	49		$	—
Accrued liabilities		2,430			2,506			2,237
Postretirement health benefits obligation		7,848			8,060			7,849
Pension		1,217			873			—
Other		452			1,634			1,834
		12,117			13,122			11,920
Deferred tax liabilities:
Inventories		—			—			391
Depreciation and amortization		14,376			13,419			11,524
Pension		—			—			2,001
		14,376			13,419			13,916
Net deferred tax liabilities	$	(2,259	)	$	(297	)	$	(1,996	)

The Company made income tax payments of $12.0 million, $10.3 million and $8.1 million in 2012, 2011 and 2010, respectively.

At December 31, 2012, total unrecognized tax benefits were $421,000. Of the total, $311,000 of unrecognized tax benefits, if ultimately recognized, would reduce the Company’s annual effective tax rate.

10

The Gorman-Rupp Company        Annual Report 2012

Notes to Consolidated Financial Statements

(Amounts in tables in thousands of dollars)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2012			2011			2010
Balance at beginning of year	$	1,423		$	1,298		$	1,461
Additions based on tax positions related to the current year		68			132			106
(Reduction) additions for tax positions of prior years		(1	)		117			149
Reductions due to lapse of applicable statute of limitations		(131	)		(124	)		(157	)
Settlements		(938	)		—			(261	)
Balance at end of year	$	421		$	1,423		$	1,298

The Company is subject to income taxes in the U.S. federal and various state, local and foreign jurisdictions. Income tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2009.

During 2012, examinations were completed by the Canadian Revenue Agency for years 2004 through 2006 and by the Internal Revenue Service for 2009 and 2010. An adjustment for $140,000 was made to the 2009 and 2010 U.S. tax returns, which also resulted in a $40,000 refund on the Company’s Irish tax returns. An adjustment of $315,000 was made to the Company’s 2004 through 2008 Canadian tax returns, partially offset by approximately $250,000 from U.S. tax refunds due to additional foreign tax credits generated from the Canadian exam.

The statutes of limitations in taxing jurisdictions expire in varying periods. The Company has no unrecognized tax benefits recorded for periods which the relevant statutes of limitations expire in the next 12 months.

The Company has not provided an estimate for any U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries that might be payable if these earnings were repatriated since the Company considers these amounts to be permanently invested.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense for all periods presented. The Company accrued approximately $91,000, $361,000 and $310,000 for the payment of interest and penalties at December 31, 2012, 2011 and 2010 respectively.

Note G – Pensions and Other Postretirement Benefits

The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008. Employees hired after this date participate in an enhanced 401(k) plan instead of the defined benefit pension plan.

Additionally, the Company sponsors defined contribution pension plans covering certain domestic employees and all Canadian employees. Total contributions for the plans in 2012, 2011 and 2010 were $1.3 million, $1.0 million and $928,000, respectively.

The Company also sponsors a non-contributory defined benefit health care plan that provides health benefits to certain domestic and Canadian retirees and their spouses. The Company funds the cost of these benefits as incurred. For measurement purposes and based on maximum benefits as defined by the plan, a zero percent annual rate of increase in the per capita cost of covered health care benefits for retirees age 65 and over was assumed for 2012 and is expected to remain constant going forward. A 5% rate of increase for retirees under age 65 was assumed.

The Company recognizes the obligations associated with its defined benefit pension plan and defined benefit health care plan in its consolidated financial statements. The following table presents the plans’ funded status as of the measurement date reconciled with amounts recognized in the Company’s consolidated balance sheets:

	Pension						Postretirement
	Plan						Plan
	2012			2011			2012			2011
Accumulated benefit obligation at end of year	$	65,427		$	58,278		$	23,794		$	24,094
Change in benefit obligation:
Benefit obligation at beginning of year	$	72,325		$	62,865		$	24,094		$	23,882
Service cost		3,188			2,856			1,156			1,052
Interest cost		2,803			3,068			871			1,107
Settlement		263			177			—			—
Benefits paid		(6,974	)		(6,645	)		(1,324	)		(1,291	)
Effect of foreign exchange		—			—			24			(20	)
Actuarial loss or (gain)		9,543			10,004			(1,027	)		(636	)
Benefit obligation at end of year	$	81,148		$	72,325		$	23,794		$	24,094

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The Gorman-Rupp Company        Annual Report 2012

	Pension Plan						Postretirement Plan
	2012			2011			2012			2011
Change in plan assets:
Fair value of plan assets at beginning of year	$	65,754		$	64,150		$	—		$	—
Actual return on plan assets		7,651			1,049			—			—
Employer contributions		7,200			7,200			1,324			1,291
Benefits paid		(6,974	)		(6,645	)		(1,324	)		(1,291	)
Fair value of plan assets at end of year		73,631			65,754			—			—
Funded status at end of year	$	(7,517	)	$	(6,571	)	$	—		$	—
Amounts recognized in the Consolidated Balance Sheets consist of:
Current liabilities	$	—		$	—		$	(1,394	)	$	(1,389	)
Noncurrent liabilities		(7,517	)		(6,571	)		(22,399	)		(22,705	)
	$	(7,517	)	$	(6,571	)	$	(23,793	)	$	(24,094	)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss or (gain)	$	35,029		$	33,658		$	(8,154	)	$	(7,770	)
Deferred tax (benefit) expense		(13,434	)		(12,931	)		3,160			2,969
After tax actuarial loss or (gain)	$	21,595		$	20,727		$	(4,994	)	$	(4,801	)
Components of net periodic benefit cost:
Service cost	$	3,188		$	2,856		$	1,156		$	1,052
Interest cost		2,803			3,068			871			1,107
Expected return on plan assets		(4,591	)		(4,539	)		—			—
Recognized actuarial loss or (gain)		2,441			1,675			(647	)		(656	)
Settlement loss		2,935			3,010			—			—
Net periodic benefit cost	$	6,776		$	6,070		$	1,380		$	1,503
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net loss (gain)	$	1,371		$	8,985		$	(384	)	$	20
Total expense recognized in net periodic benefit cost and other comprehensive loss	$	8,147		$	15,055		$	996		$	1,523

During the fourth quarter of 2012 and 2011, the Company recorded non-cash settlement losses relating to retirees that received lump-sum distributions from the Company’s defined benefit pension plan totaling $2.9 million and $3.0 million, respectively. These charges were the result of lump-sum payments to retirees in 2012 and 2011 which exceeded the plan’s actuarial service and interest costs threshold in each of 2012 and 2011.

The prior service cost is amortized on a straight-line basis over the average estimated remaining service period of active participants. The unrecognized actuarial gain or loss in excess of the greater of 10% of the benefit obligation or the market value of plan assets is also amortized on a straight-line basis over the average estimated remaining service period of active participants.

	Pension Benefits						Postretirement Benefits
	2012			2011			2012			2011
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate		3.40	%		4.00	%		3.20	%		3.76	%
Rate of compensation increase		3.50	%		3.50	%		—			—
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate		4.00	%		5.00	%		3.76	%		4.85	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%		—			—
Rate of compensation increase		3.50	%		3.50	%		—			—

The investment return of the Company’s Pension Plan asset allocation is currently measured against those of a target portfolio consisting of 60% fixed income securities and 40% equities.

Currently, equities (including all convertible securities) may comprise up to 70% of the Plan’s assets market value, with a minimum requirement of 20%. Fixed income/ floating rate securities (including preferred stocks and cash equivalents) should not exceed 80% of the Plan’s market value and may represent as little as 30%. Cash and cash equivalents (including all senior debt securities with less than one year to maturity) may comprise up to 40% of the Plan’s market value.

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The Gorman-Rupp Company        Annual Report 2012

Notes to Consolidated Financial Statements

(Amounts in tables in thousands of dollars)

Cash and cash equivalents may constitute zero assets in the account at the manager’s discretion. Non-U.S. corporate securities may comprise up to 35% of the account.

Financial instruments included in pension plan assets are categorized into a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology. Level 1 assets are based on unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets. Level 2 assets are valued at inputs other than quoted prices in active markets for identical assets that are observable either directly or indirectly for substantially the full term of the assets. Level 3 assets are valued based on unobservable inputs for the asset (i.e., supported by little or no market activity). These inputs include management’s own assessments about the assumptions that market participants would use in pricing assets (including assumptions about risk). The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.

All of the Plan’s assets are in level 1 within the fair value hierarchy, and the following table sets forth by asset class the Pension Plan’s assets:

	2012		%		2011		%
Asset allocation by category:
U.S. equity	$	18,073		25	$	12,439		19
Non-U.S. equity		9,555		13		6,493		10
Balanced		6,210		8		7,961		12
U.S. fixed income		39,778		54		38,837		59
Cash and cash equivalents		15		—		24		—
Total fair value of Plan assets	$	73,631		100	$	65,754		100

Contributions

The Company currently expects to contribute $7.2 million to its Pension Plan in 2013.

Expected future benefit payments

Future benefit payments are expected to be paid as follows based on most recent actuarial calculations:

	2013		2014		2015		2016		2017		Thereafter
Pension	$	4,776	$	6,837	$	6,723	$	5,924	$	6,677	$	32,292
Postretirement		1,416		1,430		1,489		1,561		1,642		9,234

A one percentage point increase in the assumed health care trend rate would increase postretirement expense by approximately $213,000, changing the benefit obligation by approximately $2.0 million; while a one percentage point decrease in the assumed health care trend rate would decrease postretirement expense by approximately $201,000, changing the benefit obligation by approximately $1.9 million.

A one percentage point change in the assumed rate of return on the defined benefit pension plan assets is estimated to have an approximate $656,000 effect on pension expense. Additionally, a one percentage point increase in the discount rate is estimated to have a $1.4 million decrease in pension expense, while a one percentage point decrease in the discount rate is estimated to have a $1.6 million increase in pension expense.

Note H —  Goodwill and Other Intangible Assets

The major components of goodwill and other intangible assets are:

	2012				2011
	Historical		Accumulated		Historical		Accumulated
	Cost		Amortization		Cost		Amortization
Finite-lived intangible assets:
Customer relationships	$	8,366	$	1,582	$	5,274	$	1,011
Technology & drawings		5,790		1,379		4,600		1,118
Other intangibles		1,560		1,453		1,557		1,413
Total finite-lived instansible assets		15,716		4,414		11,431		3,542
Goodwill		17,452		—		14,672		—
Trade names & trademarks		3,532		—		2,920		—
Total	$	36,700	$	4,414	$	29,023	$	3,542

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The Gorman-Rupp Company        Annual Report 2012

Amortization of intangible assets in 2012, 2011 and 2010 was $869,000, $955,000 and $421,000, respectively. Amortization of these intangible assets for 2013 through 2017 is expected to approximate $1.2 million per year. Pursuant to the acquisitions described in Note J, the Company recognized customer relationships of $3.1 million, technology and drawings of $1.2 million, trade names and trademarks of $612,000 and goodwill of $2.8 million. The remaining changes occurring in 2012 relate to foreign currency translation effects and amortization.

Note I – Business Segment Information

The Company operates in one business segment comprising the design, manufacture and sale of pumps and pump systems. The Company’s products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilation and air conditioning (HVAC), military and other liquid-handling applications. The pumps and pump systems are marketed in the United States and worldwide through a network of more than 1,000 distributors, through manufacturers’ representatives, through third-party distributor catalogs and by direct sales. International sales are made primarily through foreign distributors and representatives. The Company sells to more than 120 countries around the world. The components of customer sales, determined based on the location of customers are:

	2012		%		2011		%		2010		%
United States	$	239,153		64	$	241,405		67	$	180,705		61
Foreign countries		136,538		36		118,085		33		116,103		39
Total	$	375,691		100	$	359,490		100	$	296,808		100

Note J – Acquisitions

During the year ended December 31, 2012, the Company completed two business combinations. The results of operations of the acquired companies have been included in Gorman-Rupp’s consolidated results since the effective date of each transaction. The Company financed the all-cash acquisitions through cash on hand and borrowed $17.0 million under a short-term unsecured bank loan agreement. Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on the Company’s consolidated results of operations individually or in aggregate.

In September, the Company’s wholly-owned subsidiary, G-R Africa, purchased the business of Pumptron through internally generated cash flows. Pumptron has been an international value-added distributor for Gorman-Rupp for over 25 years and will further enhance the Company’s continuing international expansion. Founded in 1986, Pumptron is a leading provider of water-related pumping solutions primarily serving the construction, mining, agricultural and municipal markets in South Africa and increasingly throughout other Sub-Sahara African countries. Pumptron is headquartered in Johannesburg with operating locations in Cape Town and Durban, all in South Africa, and had approximately $10 million in revenue primarily from sales of Gorman-Rupp products during its fiscal year 2012.

In December, the Company’s wholly-owned subsidiary, National Pump Company, acquired substantially all of the assets and certain liabilities of American Turbine. Founded in 1975, American Turbine is a group of companies that collectively are a leading manufacturer and distributor of energy-efficient vertical turbine and submersible pumps primarily serving agricultural, municipal and industrial markets, both domestically and globally. During 2011, American Turbine had approximately $15 million in revenue from sales of its products through its Lubbock, Texas headquarters and two other locations in Houston, Texas and Fresno, California. American Turbine will expand sales in target growth markets and complement existing brands of National Pump Company which was acquired in 2010. In addition, the acquired facilities will provide additional capacity, including machining and testing capabilities.

14

The Gorman-Rupp Company        Annual Report 2012

Management’s Discussion and Analysis

Executive Overview and Outlook

The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for use in diverse water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid-handling applications. The Company attributes its success to long-term product quality, applications and performance combined with delivery and service, and continually develops initiatives to improve performance in these key areas.

Gorman-Rupp actively pursues growth opportunities through organic growth, international business opportunities and acquisitions. We continually invest in training for our employees, new product development and modern manufacturing equipment and technology designed to increase production efficiency and capacity and drive growth by delivering innovative solutions to our customers.

The following discussion of results of operations includes certain non-GAAP financial measures. The adjusted gross margins, operating margins and earnings per share amounts exclude non-cash pension settlement charges. Management utilizes these adjusted financial measures to assess comparative operations against those of prior periods without the distortion of this non-operating factor. The Company believes that these non-GAAP financial measures will be useful to investors as well as to assess the continuing strength of the Company’s underlying operations.

The Company achieved record sales during 2012 and attained its 40th consecutive year of increased cash dividends paid to shareholders. Taking advantage of our strong financial flexibility, the Company continued to make strategic investments during 2012 for future growth. These investments included the international acquisition of South Africa-based Pumptron and the domestic acquisition of Texas-based American Turbine which complement and broaden our existing pump and pump systems portfolio and provide additional opportunities for global expansion of our major water markets and certain non-water markets. Pumptron and American Turbine were acquired in the third and fourth quarters of 2012, respectively, and are included in the operating results from their effective dates of acquisition.

Net sales for the year ended December 31, 2012 increased 4.5% to a record $375.7 million compared to $359.5 million during the same period in 2011. Encouragingly, total international sales increased more than 15% to a record $136.5 million. Sales improved 6.0% in our larger water end markets and 4.9% in our non-water end markets. Major contributions to water market sales were international shipments of pumps for fire protection and an increase in agricultural market sales, partially offset by reduced construction market demand for pumps for natural gas drilling applications and from rental businesses. The increase in non-water market sales was primarily due to petroleum market shipments and international industrial market shipments.

Gross profit was $90.2 million in 2012, resulting in gross margin of 24.0% compared to 24.4% in 2011. The decline in gross margin was principally due to a less favorable product mix combined with increases in healthcare costs and depreciation expense. Operating income was $42.2 million resulting in operating margin of 11.2% compared to 12.0% in 2011. The decline in operating margin was further impacted by non-recurring acquisition-related expenses. The Company recognized a $2.9 million non-cash pension settlement charge in the fourth quarter 2012; this was comparable to the $3.0 million non-cash pension settlement charge recorded in the fourth quarter 2011. Excluding these non-cash charges, gross margin was 24.5% and 25.0% and operating margin was 12.0% and 12.8% for 2012 and 2011, respectively.

Net income for 2012 was $28.2 million, the Company’s second highest net income, compared to a record $28.8 million in 2011. Earnings per share were $1.34 and $1.37 for the respective years. Excluding the decreases of $0.09 and $0.10 per share due to the non-cash pension settlement charges described above, earnings per share were $1.43 and $1.47 for 2012 and 2011, respectively.

The Company’s backlog of orders was $143.4 million at December 31, 2012 compared to $155.5 million a year ago and $146.7 million at September 30, 2012. The Company could see the backlog increase in the second

15

The Gorman-Rupp Company        Annual Report 2012

quarter of 2013 by approximately $70 million based on a letter of intent to the Company to supply major flood control pumps to a member of a joint venture construction group for a significant New Orleans flood control project as announced by the Company on October 1, 2012. The award of this joint venture project has been protested by unsuccessful bidders and is expected to be resolved by mid-2013.

The Company’s consolidated balance sheet continues to remain strong with $20.4 million of cash, cash equivalents and short-term investments at December 31, 2012. The Company generated $32.6 million in operating cash flow during 2012 compared to $21.1 million during 2011 and has excellent liquidity and flexibility. Working capital increased 5.6% to $110.9 million at December 31, 2012 compared to $105.0 million a year ago largely due to increased inventory of additional engines to reduce future delivery lead-times and from the two acquisitions made during the latter part of 2012. Short-term debt totaled $22.0 million at year end 2012 which includes $17.0 million borrowed by the Company in the fourth quarter 2012 to finance the acquisition of American Turbine.

Incoming orders have moderated from record levels experienced during 2011 in some key end markets. Although we are encouraged by our growth in the agriculture, petroleum and international markets during 2012, we anticipate the municipal and construction markets to remain somewhat sluggish for the near future due to the ongoing uncertain domestic economy. The Company remains focused on providing high quality products and maintaining a very strong balance sheet which provides excellent financial flexibility to position us for future growth opportunities.

We believe that the Company is well positioned to grow organically at generally comparable operating margins over the long term by expanding our customer base, both domestically and globally, and through new product offerings. We expect that the increasing need for water and wastewater infrastructure rehabilitation within the United States, and similar needs internationally, along with increasing demand for pumps and pump systems for industrial and agricultural applications, will provide excellent growth opportunities for Gorman-Rupp in the future.

Results of Operations – 2012 Compared to 2011:

The Company attained record net sales of $375.7 million in 2012 compared to net sales of $359.5 million in 2011, an increase of $16.2 million or 4.5%. Sales improved 6.0% in our larger water markets group and 4.9% in our non-water markets. Sales of repair parts decreased 3.5% during the year as sales during 2011 were bolstered by pent-up demand.

Major contributions to water market sales were increased international shipments of pumps of $10.3 million for fire protection as a result of more higher-priced, heavily engineered products and increased sales for the agricultural market of $7.1 million primarily due to agricultural cash-flow benefits from high commodity prices and drought conditions in the United States. Partially offsetting these increases were lower sales for the construction market of $6.3 million due to reduced demand for pumps for natural gas drilling applications and from sales to rental businesses. The growth in non-water market sales was primarily due to increased petroleum market shipments of pumps of $4.5 million for the domestic pipeline industry and in industrial market shipments of $2.4 million primarily for desalination.

International sales were a record $136.5 million in 2012 compared to $118.1 million in 2011, an increase of $18.5 million or 15.6%. International sales represented 36.3% and 32.8% of total sales for the Company in 2012 and 2011, respectively. The increase is primarily due to higher sales in the fire protection market noted above.

The Company’s backlog of orders was $143.4 million at December 31, 2012 compared to $155.5 million a year ago and $146.7 million at September 30, 2012. The expected decrease in backlog from December 31, 2011 was primarily due to anticipated shipments combined with anticipated lower incoming orders from the construction, municipal, industrial and OEM markets during the year ended December 31, 2012. Approximately 92% of the Company’s backlog of unfilled orders at December 31, 2012 is scheduled to be shipped during 2013, with the remainder during early 2014.

Cost of products sold in 2012 was $285.5 million compared to $271.7 million in 2011, an increase of $13.9 million or 5.1%. Gross profit was $90.2 million

16

The Gorman-Rupp Company        Annual Report 2012

Management’s Discussion and Analysis

in 2012 compared to $87.8 million in 2011, an increase of 2.6% resulting in gross margins of 24.0% and 24.4% in 2012 and 2011, respectively. Excluding the non-cash pension settlement charges described above, gross margins were 24.5% and 25.0% for 2012 and 2011, respectively. The decrease in gross profit primarily reflects increased material costs due to a less favorable product mix combined with increases in healthcare costs of 20 basis points and in depreciation expense of 10 basis points due to larger than normal capital expenditures during 2012.

Selling, general and administrative (“SG&A”) expenses for 2012 were $48.0 million, or 12.8% of net sales, compared with $44.8 million, or 12.5% of net sales for 2011. The increase in SG&A expenses as a percent of net sales was primarily driven by the impact of acquisitions during 2012, including non-recurring acquisition-related expenses of 10 basis points. In addition, travel and advertising expenses increased 10 basis points.

Operating income in 2012 was $42.2 million compared to $43.0 million in 2011, resulting in operating margins of 11.2% and 12.0%, respectively. Excluding the non-cash pension settlement charges described above, operating margins were 12.0% and 12.8% for 2012 and 2011, respectively.

The effective income tax rate was 33.6% in 2012 compared to 32.5% in 2011. The difference in the effective tax rate is primarily due to the federal research and development tax credit that was not enacted for 2012 until January 2013, and not permitted to be recorded in 2012 under current accounting regulations. The effective tax rate was also unfavorably impacted by I.R.S. audit adjustments paid in 2012 relating to transfer pricing for tax years 2009 and 2010.

Net income for 2012 was $28.2 million, the Company’s second highest, compared to a record $28.8 million in 2011, a decrease of $601,000 or 2.1%. The non-cash pension settlement charges described above reduced net income by $1.9 million and $2.0 million in 2012 and 2011, respectively. As a percent of net sales, net income was 7.5% and 8.0% in 2012 and 2011, respectively.

Earnings per share were $1.34 in 2012 compared to $1.37 in 2011, a decrease of $0.03 per share or 2.1%. The non-cash pension settlement charges described above reduced net income by $0.09 and $0.10 per share in 2012 and 2011, respectively.

Results of Operations – 2011 Compared to 2010:

The Company attained record net sales of $359.5 million in 2011 compared to net sales of $296.8 million in 2010, an increase of $62.7 million or 21.1%. The increase in net sales principally resulted from improved economic and business conditions in 2011 compared to 2010, with increases in sales in most of the markets the Company serves.

Sales in the industrial and construction markets increased $18.6 million and $17.8 million from 2010, respectively, primarily due to volume growth related to increases in oil and gas drilling and the expansion and replacement of heavy equipment user fleets. Sales into the agriculture and petroleum markets increased $15.9 million and $6.2 million, respectively, primarily due to the acquisition of National Pump Company. The municipal market sales increased $11.3 million from 2010, principally due to higher demand for pumps supplied for domestic flood control projects. Partially offsetting these increases were decreases in the OEM market of $3.3 million related to slow power generation demand and the fire protection market of $9.3 million primarily due to a decline in international sales as a result of an unstable global economy.

International sales amounted to $118.1 million in 2011 compared to $116.1 million in 2010, an increase of $2.0 million or 1.7%. International sales represented 33% and 39% of total sales for the Company in 2011 and 2010, respectively. The percentage decrease is primarily due to the increase in the domestic sales ratio as a result of the acquisition of National Pump Company and a decline in international fire protection sales as a result of an unstable global economy.

The backlog of orders at December 31, 2011 was a year-end record $155.5 million compared to $107.4 million at December 31, 2010, an increase of $48.1 million or 44.8%. The backlog increase was primarily due to record incoming orders during the year of $408.9 million with notable increases in all of the markets the Company serves, except for fire protection which was flat compared to 2010. Approximately 98% of the Company’s backlog of unfilled orders at December 31, 2011 is scheduled to be shipped during 2012, with the remainder during 2013.

17

The Gorman-Rupp Company        Annual Report 2012

Cost of products sold in 2011 was $271.7 million compared to $220.5 million in 2010, an increase of $51.2 million or 23.2%. Gross profit was $87.8 million in 2011 compared to $76.3 million in 2010, an increase of 15.1% resulting in gross margins of 24.4% and 25.7% in 2011 and 2010, respectively. The increase in gross profit primarily reflects higher sales volume and the acquisition of National Pump Company. The decline in gross margin results largely from $2.0 million of the total $3.0 million GAAP-required pension settlement charge discussed above recorded in cost of products sold. In addition, 2011 results include increased LIFO expense of $4.2 million principally due to a non-recurring benefit in 2010 from the partial liquidation of LIFO quantities and historically lower post-recessionary producer price indexes.

Selling, general and administrative expenses for 2011 were $44.8 million, or 12.5% of net sales, compared with $37.4 million, or 12.6% of net sales for 2010. The $7.5 million increase was primarily due to higher sales volume and the impact of the acquisition of National Pump Company. Also, pension expense increased $1.0 million as part of the total $3.0 million GAAP-required pension settlement charge discussed above.

Operating income in 2011 was unfavorably impacted by a GAAP-required $3.0 million non-cash pension settlement charge discussed above and a full year of additional amortization expense of intangible assets of $540,000 related to the acquisition of National Pump Company. In the future, the Company will not incur further expense associated with building demolition and property reclamation relating to the former Mansfield manufacturing and office facilities, which were $770,000 and $556,000 in 2011 and 2010, respectively, as these activities were completed during 2011.

The effective income tax rate was 32.5% in 2011 compared to 32.3% in 2010.

Net income for 2011 was a record $28.8 million compared to $26.0 million in 2010, an increase of $2.8 million or 10.8%. The non-cash pension settlement charge described above reduced net income by $2.0 million. As a percent of net sales, net income was 8.0% and 8.7% in 2011 and 2010, respectively.

Earnings per share were $1.37 in 2011 compared to $1.24 in 2010, an increase of $0.13 per share or 10.5%.

The non-cash pension settlement charge described above reduced net income by $0.10 per share in 2011.

Trends

The Company does not believe that it is exposed to material market risks as a result of its export sales or operations outside of the United States. Export sales are denominated predominately in U.S. dollars and made on open account or with letters of credit.

For more than 10 years, numerous business entities in the pump and fluid-handling industries, as well as a multitude of companies in many other industries, have been targeted in a series of lawsuits in several jurisdictions by various individuals seeking redress to claimed injury as a result of the entities’ alleged use of asbestos in their products. The Company and two of its subsidiaries remain drawn into mass-scale asbestos-related litigation, typically as one of many co-defendants in a particular proceeding; the vast majority of these cases are against Patterson Pump Company. The allegations in the lawsuits involving the Company and/or its subsidiaries are vague, general and speculative, and most cases have not advanced beyond the early stage of discovery. In certain situations, the plaintiffs have voluntarily dismissed the Company and/or its subsidiaries from some of the lawsuits after the plaintiffs have acknowledged that there is no basis for their claims. In other situations, the Company and/or its subsidiaries have been dismissed from some of the lawsuits as a result of court rulings in favor of motions to dismiss and/or motions for summary judgment. During the fourth quarter 2011, Patterson Pump Company entered into an agreement with plaintiffs’ counsel for the voluntary dismissal of more than 95% of the cases against it at no cost to Patterson Pump Company or its insurer. In sixty-five cases the Company and/or its subsidiaries have entered into nominal economic settlements recommended and paid for by its insurers, coupled with dismissal of the lawsuits. Insurers of the Company have engaged legal counsel to represent the Company and its subsidiaries and to protect their interests. Management does not currently believe that the small number of legal proceedings arising in the ordinary course of business, or the industry-wide asbestos litigation, will materially impact the Company’s consolidated results of operations, liquidity or financial condition.

18

The Gorman-Rupp Company        Annual Report 2012

Management’s Discussion and Analysis

Liquidity and Sources of Capital

The Company places a strong emphasis on cash flow generation and having excellent liquidity and financial flexibility. This focus has afforded us the ability to strategically deploy our cash resources while preserving a strong balance sheet to position us for future opportunities. The $82.3 million of cash generated by operating activities over the past three years was used primarily to fund growth-oriented acquisitions and productivity-enhancing capital expenditures, pay dividends, repay acquisition-related short-term debt and fund the Company’s defined benefit pension plan.

Cash, cash equivalents and short-term investments totaled $20.4 million and there was $22.0 million in outstanding bank debt at December 31, 2012. In addition, the Company had $24.2 million available in bank lines of credit after deducting $5.8 million in outstanding letters of credit primarily related to customer orders. The Company was in compliance with its nominal restrictive covenants, including limits on additional borrowings and maintenance of certain operating and financial ratios, at December 31, 2012.

Capital expenditures for 2013, consisting principally of machinery and equipment, are estimated to be in the range of $10 to $12 million and are expected to be financed through internally generated funds and existing lines of credit. During 2012, 2011 and 2010, the Company financed its capital improvements and working capital requirements principally through internally generated funds.

Working capital increased 5.6% to $110.9 million at December 31, 2012 compared to $105.0 million a year ago largely due to increased inventory of additional engines to reduce future delivery lead-times and from the two acquisitions made during the latter part of 2012. The Company’s days sales in accounts receivable, days in accounts payable and inventory turnover rates were:

	2012		2011		2010
Days sales in accounts receivable		56		55		55
Days in accounts payable		28		27		26
Inventory turnover ratio		2.1		2.3		2.2

Gross cash flow, representing net income plus depreciation and amortization, was $40.3 million for 2012 and 2011 and $36.6 million for 2010.

Financial Cash Flow

Net cash provided by operating activities was $32.6 million, $21.1 million and $28.6 million for 2012, 2011 and 2010, respectively. The primary driver of operating cash flows during 2012 was net earnings after removing the impact of non-cash pension settlement charges and reductions in growth of both inventory and accounts receivable compared to 2011 and 2010. Increased sales during 2011 and 2010 resulted in increased inventory and accounts receivable during these years, whereas these items generally declined during the severe 2009 recession.

Cash used for investing activities was $36.4 million, $10.2 million and $42.7 million for 2012, 2011 and 2010, respectively. Net cash paid for acquisitions was $20.8 million in 2012 and $33.9 million in 2010. Capital expenditures were approximately $16.4 million, $11.2 million and $8.3 million in 2012, 2011 and 2010, respectively. The increase in capital expenditures in 2012 was primarily due to investments in machinery and equipment and expansion of the National Pump Company facilities.

Net cash provided by (used for) financing activities was $3.8 million in 2012, ($22.4) million in 2011 and $1.7 million in 2010. During 2012, financing activities consisted principally of short-term bank borrowings of $17.0 million used to finance the acquisition of American Turbine. In addition, the Company repaid short-term bank borrowings of $5.0 million and paid dividends of $8.2 million.

The changes in foreign currency translation against the U.S. dollar decreased cash by $77,000 and $572,000 in 2012 and 2011, respectively and increased cash by $130,000 in 2010.

The ratio of current assets to current liabilities was 2.7 to 1 and 3.1 to 1 at December 31, 2012 and 2011, respectively. Management believes that cash on hand, combined with cash provided by operating activities and existing financing capabilities, will be sufficient to meet cash requirements for the next twelve months, including capital expenditures, the expected payment of quarterly dividends, and principal and interest on debt outstanding.

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The Gorman-Rupp Company        Annual Report 2012

On January 24, 2013, the Board of Directors authorized the payment of a quarterly dividend of $0.10 per share, representing the 252nd consecutive quarterly dividend to be paid by the Company. During 2012 the Company again paid increased dividends and thereby attained its 40th consecutive year of increased dividends. These consecutive years place Gorman-Rupp in the top 50 of all U.S. public companies with respect to number of consecutive years of increased dividend payments. The dividend yield at December 31, 2012 was 1.3%. Due to several stock splits, the dividend yield on shares held since the Company’s initial public offering in 1968 was 28.7% at December 31, 2012.

The Company currently expects to continue its long history of paying regular quarterly dividends and increased annual dividends. However, any future dividends will be reviewed individually and declared by our Board of Directors at its discretion, dependent on our assessment of the Company’s financial condition and business outlook at the applicable time.

Contractual Obligations

Capital commitments in the table below include commitments to purchase machinery and equipment that have been approved by the Board of Directors and are enforceable and legally binding on the Company. These capital commitments do not represent the entire anticipated purchases in the future, but represent only those material items for which the Company is contractually obligated as of December 31, 2012. Also, the Company has some operating leases for certain specified offices, manufacturing facilities, land, office equipment and automobiles. Rental expenses relating to these leases were $1.1 million, $866,000 and $852,000 in 2012, 2011 and 2010, respectively.

The following table summarizes the Company’s contractual obligations at December 31, 2012:

(Thousands of dollars)	Total		Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years
Capital commitments	$	560	$	560	$	—	$	—	$	—
Operating leases		4,082		919		1,179		574		1,410
Total	$	4,642	$	1,479	$	1,179	$	574	$	1,410

Critical Accounting Policies

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. When more than one accounting principle, or the method of its application, is generally accepted, management selects the principle or method that is appropriate in the Company’s specific circumstances. Application of these accounting principles requires management to make estimates about the future resolution of existing uncertainties; as a result, actual results could differ from these estimates.

In preparing these consolidated financial statements, management has made its best estimates and judgments of the amounts and disclosures included in the consolidated financial statements, giving due regard to materiality. The Company does not believe there is a great likelihood that materially different amounts would be reported under different conditions or using different assumptions pertaining to the accounting policies described below.

Revenue Recognition

Substantially all of the Company’s revenues from product sales are recognized when all of the following criteria are met: persuasive evidence of a sale arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers, and collectability is probable. Product delivery occurs when the risks and rewards of ownership and title pass, which usually occurs upon shipment to the customer.

Allowance for Doubtful Accounts

The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings, substantial downgrading of credit scores, etc.), the Company records a specific allowance for bad debts against amounts due to reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes allowances for bad debts based on the length of time the receivables are past due. If circumstances change (e.g., an unexpected material adverse change in a major customer’s ability to

20

The Gorman-Rupp Company        Annual Report 2012

Management’s Discussion and Analysis

meet its financial obligations), the Company’s estimates of the recoverability of amounts due could be reduced by a material amount. Historically, the Company’s collection history has been good.

Inventories and Related Allowance

Inventories are valued at the lower of cost or market value and have been reduced by an allowance for excess and obsolete inventories. The estimated allowance is based on a variety of factors, including historical inventory usage and management evaluations. Historically, the Company has not experienced substantive write-offs due to obsolescence. The Company uses the last-in, first-out (LIFO) method for the majority of its inventories.

Pension Plans and Other Postretirement Benefit Plans

The Company recognizes the obligations associated with its defined benefit pension plan and defined benefit health care plan in its consolidated financial statements. The measurement of liabilities related to pension plans and other postretirement benefit plans is based on management’s assumptions related to future events including interest rates, return on pension plan assets, rate of compensation increases and health care cost trend rates. Actual pension plan asset performance will either reduce or increase pension losses included in accumulated other comprehensive loss, which ultimately affects net income. The Company uses a measurement date of December 31 for benefit plan determinations. The discount rates used to determine the present value of future benefits are based on estimated yields of investment grade fixed income investments.

The discount rate used to value pension plan obligations was 3.40% and 4.00% in 2012 and 2011, respectively. The discount rate used to value postretirement obligations was 3.20% and 3.76% at December 31, 2012 and 2011, respectively. The discount rate was determined by constructing a zero-coupon spot yield curve derived from a universe of high-quality bonds as of the measurement date. The expected rate of return on pension assets is designed to be a long-term assumption that will be subject to year-to-year variability. The rate for 2012 and 2011 was 7.00%. Actual pension plan asset performance will either reduce or increase unamortized losses included in accumulated other comprehensive loss, which will ultimately affect net income. The assumed rate of compensation increase was 3.5% in 2012 and 2011.

Substantially all retirees elect to take lump sum settlements of their benefits. This subjects the Company to the risk of exceeding an actuarial threshold computed on an annual basis and triggering a GAAP-required non-cash pension settlement loss. This event occurred in 2012, 2011 and in 2003.

The assumption used for the rate of increase in medical costs over the next five years was unchanged in 2012 from 2011. A one percentage point increase in the assumed health care trend rate would increase postretirement expense by approximately $213,000, changing the benefit obligation by approximately $2.0 million; while a one percentage point decrease in the assumed health care trend rate would decrease postretirement expense by approximately $201,000, changing the benefit obligation by approximately $1.9 million.

Income Taxes

The basic principles related to accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns.

Realization of the Company’s deferred tax assets is principally dependent upon the Company’s achievement of projected future taxable income, which management believes will be sufficient to fully utilize the deferred tax assets recorded.

Goodwill and Other Intangibles

The Company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired. Business combinations can also result in other intangible assets being recognized. Amortization of intangible assets, if applicable, occurs over their estimated useful lives.

Goodwill and indefinite-lived intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350, Intangibles – Goodwill and Other.

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The Gorman-Rupp Company        Annual Report 2012

Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary.

In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgments and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

When performing a quantitative assessment of goodwill impairment if necessary, a discounted cash flow model is used to estimate the fair value of each reporting unit, which considers forecasted cash flows discounted at an estimated weighted-average cost of capital. The forecasted cash flows are based on the Company’s long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return. Other valuation techniques including comparative market multiples are used when appropriate. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units.

Based upon our fiscal 2012 and 2011 qualitative impairment analyses, the Company concluded that it is more likely than not that the fair value of our reporting units continued to substantially exceed the respective carrying amounts.

Indefinite-lived intangible assets primarily consist of trademarks and trade names. In July 2012, the FASB issued ASU 2012-02 which amends the rules for testing indefinite-lived intangible assets other than goodwill for impairment. Under the new rules, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount similar to the goodwill impairment testing described above. The Company early adopted ASU 2012-02 for its October 1, 2012 annual impairment test. The Company has completed its annual impairment test and concluded that the fair value of indefinite-lived intangible assets substantially exceeded the respective carrying values.

When performing a quantitative assessment of indefinite lived intangible assets impairment if necessary, the fair value of these assets are determined using a royalty relief methodology similar to that employed when the associated assets were acquired, but using updated estimates of future sales, cash flows and profitability.

Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets.

Other Matters

Transactions with related parties are in the ordinary course of business and are not material to the Company’s balance sheets, statements of income or cash flows.

The Company does not have any off-balance sheet arrangements, financings or other relationships with unconsolidated “special purpose entities.”

The Company is not a party to any long-term debt agreements, or any material capital leases or purchase obligations.

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Report of Management on Internal Control

Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company (as defined in Exchange Act rules 13[a]–15[f ]). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures of the Company are being made only in accordance with authorizations of Management and Directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, Management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2012.

The independent registered public accounting firm of Ernst & Young LLP that has audited the consolidated financial statements included in this annual report on Form 10-K, has also issued an attestation report on the Company’s internal control over financial reporting as of December 31, 2012. This report is included on the following page.

/s/ Jeffery S. Gorman

Jeffery S. Gorman

President and Chief Executive Officer

/s/ Wayne L. Knabel

Wayne L. Knabel

Chief Financial Officer

March 4, 2013

23

The Gorman-Rupp Company        Annual Report 2012

Report of Independent Registered

Public Accounting Firm

The Board of Directors and Shareholders

of The Gorman-Rupp Company

We have audited The Gorman-Rupp Company’s internal control over financial reporting as of December 31, 2012, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Gorman-Rupp Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report of Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, The Gorman-Rupp Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2012, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board

(United States), the consolidated balance sheets of The Gorman-Rupp Company as of December 31, 2012 and 2011, and the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2012 of The Gorman-Rupp Company and our report dated March 4, 2013 expressed an unqualified opinion thereon.

/s/ ERNST & YOUNG LLP

Cleveland, Ohio

March 4, 2013

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The Gorman-Rupp Company        Annual Report 2012

Eleven-Year Summary of Selected Financial Data

(Thousands of dollars, except per share amounts)

	2012		2011		2010		2009
Operating Results
Net sales	$	375,691	$	359,490	$	296,808	$	266,242
Gross profit		90,151		87,837		76,337		61,773
Income taxes		14,244		13,881		12,370		8,986
Net income		28,203		28,804		25,963		18,269
Depreciation and amortization		12,066		11,459		10,601		8,955
Interest expense		122		179		175		170
Return on net sales (%)		7.5		8.0		8.7		6.9
Sales dollars per employee		326.4		327.1		304.4		264.1
Income dollars per employee		24.5		26.2		26.6		18.1
Financial Position
Current assets	$	175,675	$	155,872	$	143,194	$	131,400
Current liabilities		64,821		50,873		59,678		43,175
Working capital		110,854		104,999		83,516		88,225
Current ratio		2.7		3.1		2.4		3.0
Property, plant and equipment—net	$	123,066	$	114,349	$	113,526	$	108,523
Capital additions—net		16,373		11,175		8,310		38,071
Total assets		335,183		298,700		286,707		249,424
Long-term debt		—		—		—		—
Equity		234,719		214,764		199,834		177,612
Dividends paid		8,188		7,430		7,024		6,767
Average number of employees		1,151		1,099		975		1,008
Shareholder Information
Earnings per share	$	1.34	$	1.37	$	1.24	$	0.87
Cash dividends per share		0.390		0.354		0.336		0.324
Equity per share at December 31		11.18		10.23		9.56		8.50
Average number of shares outstanding		20,993,893		20,987,663		20,905,728		20,886,309

Summary of Quarterly Results of Operations

(Thousands of dollars, except per share amounts)

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2012 and 2011:

Quarter Ended 2012	Net Sales		Gross Profit		Net Income		Earnings per Share
First quarter	$	102,825	$	26,674	$	10,241	$	0.49
Second quarter		92,583		22,741		7,568		0.36
Third quarter		91,626		21,830		6,706		0.32
Fourth quarter		88,657		18,906		3,688		0.17
Total	$	375,691	$	90,151	$	28,203	$	1.34

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The Gorman-Rupp Company        Annual Report 2012

2008		2007		2006		2005		2004		2003		2002
$	330,646	$	305,562	$	270,910	$	231,249	$	203,554	$	195,826	$	195,081
	77,089		67,452		58,676		47,071		42,425		41,851		41,451
	13,297		12,524		8,654		6,235		5,075		4,613		5,267
	27,197		22,859		19,072		10,903		9,277		9,787		8,936
	7,848		7,597		6,688		6,808		7,179		7,274		7,035
	45		49		41		25		40		56		72
	8.2		7.5		7.0		4.7		4.6		5.0		4.6
	302.5		286.9		258.3		233.3		211.4		196.4		185.1
	24.9		21.5		18.2		11.0		9.6		9.8		8.5
$	134,266	$	135,288	$	120,118	$	110,501	$	96,974	$	95,718	$	85,315
	35,569		33,481		27,646		28,219		21,112		21,908		19,282
	98,697		101,807		92,472		82,282		75,862		73,810		66,033
	3.8		4.0		4.3		3.9		4.6		4.4		4.4
$	80,406	$	59,970	$	52,351	$	51,505	$	54,812	$	54,338	$	57,757
	27,909		12,826		7,258		3,189		7,500		3,698		5,765
	231,538		211,534		187,540		179,541		165,673		162,395		154,302
	—		—		—		—		—		—		291
	159,206		149,960		128,142		127,048		121,898		117,918		112,912
	6,682		6,503		6,126		5,983		5,907		5,809		5,550
	1,093		1,065		1,049		991		963		997		1,054
$	1.30	$	1.10	$	0.91	$	0.53	$	0.44	$	0.46	$	0.43
	0.320		0.310		0.292		0.286		0.283		0.278		0.266
	7.62		7.18		6.14		6.09		5.84		5.66		5.42
	20,881,513		20,876,469		20,871,203		20,865,341		20,858,746		20,851,433		20,844,109

Quarter Ended 2011	Net Sales		Gross Profit		Net Income		Earnings per Share
First quarter	$	84,074	$	21,386	$	7,119	$	0.34
Second quarter		92,159		24,249		8,925		0.42
Third quarter		90,215		22,467		7,655		0.37
Fourth quarter		93,042		19,735		5,105		0.24
Total	$	359,490	$	87,837	$	28,804	$	1.37

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The Gorman-Rupp Company        Annual Report 2012

Shareholder Information

Comparison of 5-Year Cumulative Total Shareholder Return Among The Gorman-Rupp Company,

NYSE MKT Composite Index and SIC Code Index

ASSUMES $100 INVESTED ON JANUARY 1, 2008 AND DIVIDENDS REINVESTMENT THROUGH YEAR ENDING DECEMBER 31, 2012.

Set forth above is a line graph comparing the yearly percentage change in the cumulative total shareholder return, including reinvested cash dividends, on the Company’s common shares against the cumulative total return of the NYSE MKT Exchange Index and a Peer Group Index for the period of five fiscal years commencing January 1, 2008 and ending December 31, 2012. The issuers in the SIC Code Index were selected on a line-of-business basis by reference to SIC Code 3561— Pumps and Pumping Equipment. The SIC Code Index is composed of the following issuers: Ampco-Pittsburgh Corp., Colfax Corp., Entech Solar Inc., Flowserve Corp., Graco Inc., Idex Corp., ITT Corp., Pentair Limited, Robbins & Myers Inc., The Gorman-Rupp Company and Xylem Inc.

Quarterly Stock Prices and Dividends

The high and low sales price and dividends per share for common shares traded on the NYSE MKT Exchange were:

	Sales Price of Common Shares								Dividends Per Share
	2012				2011				2012		2011
	High		Low		High		Low
First quarter	$	34.65	$	27.19	$	31.58	$	24.39	$	0.090	$	0.084
Second quarter		29.50		26.68		36.74		29.61		0.100		0.090
Third quarter		31.55		26.56		35.40		22.10		0.100		0.090
Fourth quarter		29.97		25.51		29.70		22.60		0.100		0.090

There were approximately 8,027 shareholders as of February 1, 2013, of which 1,590 were registered holders of common shares.

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Safe Harbor Statement

In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, The Gorman-Rupp Company provides the following cautionary statement: This Annual Report contains various forward-looking statements based on assumptions concerning The Gorman-Rupp Company’s operations, future results and prospects. These forward-looking statements are based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, the absence of which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions.

Such factors include, but are not limited to: (1) continuation of the current and projected future business environment, including interest rates and capital and consumer spending; (2) competitive factors and competitor responses to Gorman-Rupp initiatives; (3) successful development and market introductions of anticipated new products; (4) stability of government laws and regulations, including taxes; (5) stable governments and business conditions in emerging economies; (6) successful penetration of emerging economies; and (7) continuation of the favorable environment to make acquisitions, domestic and foreign, including regulatory requirements and market values of candidates.

28

EX-14

Exhibit (14)

THE GORMAN-RUPP COMPANY

CODE OF ETHICS

Introduction

This Code of Ethics was first adopted by the Board of Directors of The Gorman-Rupp Company on October 23, 2003 for application to the Company’s Chief Executive Officer, Chief Financial Officer and Treasurer. The Board of Directors expanded the scope of this Code of Ethics by the adoption of an amending resolution on April 22, 2004 so that it applies to all employees, officers and Directors of the Company. On January 24, 2013 the Board of Directors approved updating amendments of this Code of Ethics to clarify its applicability to all subsidiaries and divisions of the Company, expand international enforcement emphasis of the U.S. Foreign Corrupt Practices Act, include reference to the new U.K. Bribery Act, and provide for its annual review by the Board of Directors.

This Code of Ethics describes the basic principles of conduct that apply to all employees, officers and Directors of The Gorman-Rupp Company (“Company”) and its subsidiaries and divisions. This Code is intended to provide a broad overview of basic ethical principles that guide our conduct. Violation of this Code may result in disciplinary action as deemed appropriate by the Company’s Board of Directors, varying from reprimand to dismissal.

The requirement that we adhere to each of the policies and principles contained in this Code may only be waived by the Board of Directors. The Company will promptly disclose to the Company’s shareholders and the investing public any waiver of this Code.

Compliance with Laws, Rules and Regulations

We strive to comply with all laws, rules and regulations of the places where the Company conducts business.

Conflicts of Interest

We conduct our business affairs in the best interests of the Company and shall therefore avoid situations where our private interests interfere with the Company’s interests. We shall be especially sensitive to situations that have the appearance of impropriety.

Record-Keeping

We require honest and accurate recording and reporting of financial and other information.

All of the Company’s records, accounts and financial statements are maintained in reasonable detail, appropriately reflect its transactions, and conform both to applicable legal and financial accounting requirements.

Public Reporting

We endeavor to make full, fair, accurate, timely and understandable disclosure in reports and documents filed with, or submitted to, the Securities and Exchange Commission and the NYSE MKT and in the Company’s news releases and other public communications.

29

We require cooperation and open communication with our internal and external auditors. We consider any action to fraudulently influence, coerce, manipulate or mislead any auditor engaged in the performance of an audit of the Company’s financial statements to be an illegal activity.

Insider Trading

Consistent with the federal securities laws, we confirm that the conduct of any person who buys or sells the Company’s securities on the basis of material, non-public information concerning the Company is illegal.

We further confirm the illegal conduct of any person in possession of material, non-public information who provides another person with such information or recommends that he or she buy or sell the Company’s securities. These prohibitions also apply to material, non-public information obtained about any other company during the course of working for the Company.

Corporate Opportunities

We do not personally take advantage of opportunities that are discovered because of our position without the prior consent of the Board of Directors. We shall not compete with the Company and shall fulfill our fiduciary duties to the Company to advance its legitimate interests whenever the opportunity to do so arises.

Competition and Fair Dealing

We manage the Company so that it competes fairly and honestly. We do not engage in unethical or illegal business practices such as stealing proprietary information, possessing trade secret information that was obtained without the owner’s consent, or inducing disclosure of this type of information by past or present employees of other companies. We shall respect the confidentiality of our customers’, suppliers’ and competitors’ information.

Business Entertainment and Gifts

We recognize that business entertainment and gifts are meant to create goodwill and sound working relationships, not to gain unfair advantage with customers, suppliers or government officials. We shall not offer, give or accept any gift or entertainment unless it: (i) is not a cash gift, (ii) is not excessive in value, (iii) cannot be construed as a bribe or payoff, and (iv) does not violate any laws or regulations.

Discrimination and Harassment

We provide equal opportunity in employment and will not tolerate discrimination or harassment in the workplace. Derogatory comments based on racial or ethnic characteristics, unwelcome sexual advances and similar behavior are prohibited by the Company’s policies.

Health and Safety

We strive to provide a safe and healthful work environment by following safety and health rules and practices.

We do not permit violence or threatening behavior in the workplace.

Confidentiality

We protect the Company’s confidential, proprietary and trade secret information. We also protect information that suppliers and customers have entrusted to the Company on a confidential basis. Our personal obligation to safeguard the Company’s confidential, proprietary and trade secret information continues even after our employment with the Company ends.

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Protection and Proper Use of Company Assets

We shall not engage in theft or careless use of the Company’s assets. We shall never use the Company’s assets for illegal purposes.

Activities Concerning Foreign Governments

In compliance with the United States Foreign Corrupt Practices Act, The Organisation for Economic Co-operation and Development (OECD) Anti-Bribery Convention 2009 Anti-Bribery Recommendation, and the United Kingdom (UK) Bribery Act 2010, we do not give anything of value, directly or indirectly, to officials of foreign governments or foreign political candidates in order to obtain or retain business. We do not promise, offer or deliver to any foreign or domestic government employee or official any gift, favor or other gratuity that would be illegal.

Our policy is to comply with the laws of other nations in which the Company conducts business.

Reporting Illegal or Unethical Behavior

To encourage good faith reports of illegal or unethical behavior (including violations of this Code) through the Company’s Ethics Hotline to the Company’s Corporate Manager Internal Audit, we keep all reports confidential and do not allow retaliation for reports of misconduct by others. We will cooperate in internal investigations of alleged misconduct.

We shall not permit any form of retribution against any employee who, in good faith, reports violations or suspected violations of Company policy.

Conclusion

Our business conduct on behalf of the Company shall be guided by the policies and principles set forth in this Code. This Code shall be reviewed annually by the Board of Directors.

31

EX-21

Exhibit (21)

SUBSIDIARIES OF THE COMPANY

The Gorman-Rupp Company is publicly-held and has no parent corporation. The Company’s subsidiaries as of December 31, 2012, and the state or country in which each was organized, are as follows:

Consolidated subsidiaries	Where organized
Patterson Pump Company	Ohio
National Pump Company	Ohio
The Gorman-Rupp International Company	Ohio
GRC International LLC	Ohio
American Machine and Tool Co., Inc. of Pennsylvania	Delaware
Gorman-Rupp of Canada Limited	Canada
Patterson Pump Ireland Limited	Ireland
GRC International C.V.	The Netherlands
Gorman-Rupp International B.V.	The Netherlands
G-R Europe B.V.	The Netherlands
Gorman-Rupp Africa Proprietary Limited	Republic of South Africa
Pumptron (Proprietary) Limited	Republic of South Africa

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EX-23

Exhibit (23)

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in this Annual Report (Form 10-K) of The Gorman-Rupp Company of our reports dated March 4, 2013, with respect to the consolidated financial statements of The Gorman-Rupp Company, and the effectiveness of internal control over financial reporting of The Gorman-Rupp Company, included in the 2012 Annual Report to Shareholders of The Gorman-Rupp Company.

We also consent to the incorporation by reference in the following Registration Statements: (1) Registration Statement (Form S-8 No. 333-85982) pertaining to the Employee Stock Purchase Plan of The Gorman-Rupp Company, (2) Registration Statement (Form S-8 No. 333-105682) pertaining to the 401(k) Plan of The Gorman-Rupp Company, and (3) Registration Statement (Form S-8 No. 333-30159) pertaining to the Non-Employee Directors’ Compensation Plan of The Gorman-Rupp Company; of our reports dated March 4, 2013, with respect to the consolidated financial statements of The Gorman-Rupp Company and the effectiveness of internal control over financial reporting of The Gorman-Rupp Company incorporated by reference in this Annual Report (Form 10-K) of The Gorman-Rupp Company for the year ended December 31, 2012.

/s/ ERNST & YOUNG LLP

Cleveland, Ohio

March 4, 2013

33

EX-24

Exhibit (24)

THE GORMAN-RUPP COMPANY

CERTIFICATE OF THE SECRETARY

The undersigned hereby certifies that he is the duly elected, qualified and acting Corporate Secretary of The Gorman-Rupp Company, an Ohio corporation (the “Company”), and that the following resolutions were duly adopted by the Company’s Board of Directors at a duly noticed and called meeting held on February 28, 2013 at which a quorum was present and acting throughout, which resolutions have not been amended, rescinded or modified and are in full force and effect on the date hereof.

RESOLVED, that the Executive Officers of the Company, and each of them, hereby are authorized, for and on behalf of the Company, to prepare, sign and file, or cause to be prepared, signed and filed, with the Securities and Exchange Commission, under the Securities Exchange Act of 1934, as amended, the Company’s 2012 Annual Report on Form 10-K, and any and all amendments thereto, and to do or cause to be done all things necessary or advisable in connection therewith.

FURTHER RESOLVED, that Jeffrey S. Gorman, David P. Emmens and Douglas A. Neary, and each of them, hereby are appointed attorneys for the Company, with full power of substitution and resubstitution, for and in the name, place and stead of the Company, to sign and file the Company’s 2012 Annual Report on Form 10-K and any and all amendments thereto, and any and all other documents in connection therewith, with full power and authority to do and perform any and all acts necessary or advisable.

FURTHER RESOLVED, that the Executive Officers of the Company and each of them, hereby are authorized, for and on behalf of the Company, to execute a power of attorney evidencing the foregoing appointments.

IN WITNESS WHEREOF, I have hereunto signed this Certificate this 4th day of March, 2013.

/s/ DAVID P. EMMENS

David P. Emmens

Corporate Secretary

34

Exhibit (24)

POWER OF ATTORNEY

The undersigned, The Gorman-Rupp Company (the “Company”), by the undersigned Executive Officer of the Company hereunto duly authorized, hereby appoints Jeffrey S. Gorman, Wayne L. Knabel, David P. Emmens and Douglas A. Neary, and each of them, as attorneys for the Company, with full power of substitution and resubstitution, for and in its name, place and stead, to sign and file with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, the Company’s 2012 Annual Report on Form 10-K and any and all amendments thereto, and any and all other documents to be filed with the Securities and Exchange Commission or otherwise in connection therewith, with full power and authority to do and perform any and all acts whatsoever necessary or advisable.

Executed this 4th day of March 2013.

THE GORMAN-RUPP COMPANY

BY:	/s/ DAVID P. EMMENS
David P. Emmens
Corporate Secretary

35

Exhibit (24)

POWER OF ATTORNEY

The undersigned Directors and Executive Officers of The Gorman-Rupp Company (the “Company”) hereby appoint Jeffrey S. Gorman, Wayne L. Knabel, David P. Emmens and Douglas A. Neary, and each of them, as attorneys for each of the undersigned, with full power of substitution and resubstitution, for and in the name, place and stead of each of the undersigned, to sign and file with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, the Company’s 2012 Annual Report on Form 10-K and any and all amendments thereto, and any and all other documents to be filed with the Securities and Exchange Commission or otherwise in connection therewith, with full power and authority to do and perform any and all acts whatsoever necessary or advisable.

Executed as of the 28th day of February, 2013

*JEFFREY S. GORMAN	President and Chief Executive Officer and Director
Jeffrey S. Gorman	(Principal Executive Officer)
*WAYNE L. KNABEL	Chief Financial Officer
Wayne L. Knabel	(Principal Financial and Accounting Officer)
*JAMES C. GORMAN	Director
James C. Gorman
*M. ANN HARLAN	Director
M. Ann Harlan
*THOMAS E. HOAGLIN	Director
Thomas E. Hoaglin
*CHRISTOPHER H. LAKE	Director
Christopher H. Lake
*PETER B. LAKE	Director
Peter B. Lake
*RICK R. TAYLOR	Director
Rick R. Taylor
*W. WAYNE WALSTON	Director
W. Wayne Walston

36

EX-31.A

Exhibit (31)(a)

CERTIFICATIONS

I, Jeffrey S. Gorman, certify that:

1. I have reviewed this annual report on Form 10-K of The Gorman-Rupp Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

37

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 4, 2013

/s/ JEFFREY S. GORMAN

Jeffrey S. Gorman

President and Chief Executive Officer

The Gorman-Rupp Company

(Principal Executive Officer)

38

EX-31.B

Exhibit (31)(b)

CERTIFICATIONS

I, Wayne L. Knabel, certify that:

1. I have reviewed this annual report on Form 10-K of The Gorman-Rupp Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

39

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 4, 2013

/s/ WAYNE L. KNABEL

Wayne L. Knabel

Chief Financial Officer

The Gorman-Rupp Company

(Principal Financial Officer)

40

EX-32

Exhibit (32)

Certification Pursuant to 18 U. S. C. Section 1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of The Gorman-Rupp Company on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U. S. C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

(1) The Report fully complies with the requirements of Section 13(a) and 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

Date: March 4, 2013

/s/ JEFFREY S. GORMAN

Jeffrey S. Gorman

President and Chief Executive Officer

(Principal Executive Officer)

/s/ WAYNE L. KNABEL

Wayne L. Knabel

Chief Financial Officer

(Principal Financial Officer)

The foregoing certification is being furnished solely pursuant to 18 U. S. C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

41

XML

Note F - Income Taxes (Detail) - Reconciliation of the Beginning and Ending Amount Of Unrecognized Tax Benefits (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance at beginning of year	$ 1,423,000	$ 1,298,000	$ 1,461,000
Additions based on tax positions related to the current year	68,000	132,000	106,000
(Reduction) additions for tax positions of prior years	(1,000)	117,000	149,000
Reductions due to lapse of applicable statute of limitations	(131,000)	(124,000)	(157,000)
Settlements	(938,000)		(261,000)
Balance at end of year	$ 421,000	$ 1,423,000	$ 1,298,000

XML

Note I - Business Segment Information (Detail) - Components of Customer Sales Determined Based on the Location of Customers (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Sales by Location (in Dollars)	$ 375,691	$ 359,490	$ 296,808
Percentage of Sales	100.00%	100.00%	100.00%
United States [Member]
Sales by Location (in Dollars)	239,153	241,405	180,705
Percentage of Sales	64.00%	67.00%	61.00%
Foreign Countries [Member]
Sales by Location (in Dollars)	$ 136,538	$ 118,085	$ 116,103
Percentage of Sales	36.00%	33.00%	39.00%

XML

Note H - Goodwill and Other Intangible Assets (Detail) - Major Components of Goodwill and Other Intangible Assets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Goodwill [Member]
Historical Cost	$ 17,452	$ 14,672
Trade Names And Trade Marks [Member]
Historical Cost	3,532	2,920
Total [Member]
Historical Cost	36,700	29,023
Accumulated Amortization	4,414	3,542
Customer Relationships [Member]
Historical Cost	8,366	5,274
Accumulated Amortization	1,582	1,011
Technology And Drawings [Member]
Historical Cost	5,790	4,600
Accumulated Amortization	1,379	1,118
Other Intangible Assets [Member]
Historical Cost	1,560	1,557
Accumulated Amortization	1,453	1,413
Total [Member]
Historical Cost	15,716	11,431
Accumulated Amortization	$ 4,414	$ 3,542

XML

Note E - Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss as Reported in the Consolidated Balance Sheet (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance	$ (16,282)	$ (16,044)
Currency Translation Adjustments [Member]
Balance	(118)	768	675
Current period credit (charge)	437	(886)	139
Other			(46)
Balance	319	(118)	768
Pension And OPEB Adjustments [Member]
Balance	(15,926)	(10,196)	(11,745)
Current period credit (charge)	(987)	(9,012)	2,413
Income tax benefit (expense)	312	3,282	(864)
Balance	(16,601)	(15,926)	(10,196)
Accumulated Other Comprehensive Income (Loss) [Member]
Balance	(16,044)	(9,428)	(11,070)
Current period credit (charge)	(550)	(9,898)	2,552
Income tax benefit (expense)	312	3,282	(864)
Other			(46)
Balance	$ (16,282)	$ (16,044)	$ (9,428)

XML

Note H - Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Intangible Assets and Goodwill [Table Text Block]

	2012				2011
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Finite-lived intangible assets:
Customer relationships	$	8,366	$	1,582	$	5,274	$	1,011
Technology & drawings		5,790		1,379		4,600		1,118
Other intangibles		1,560		1,453		1,557		1,413
Total finite-lived intangible assets		15,716		4,414		11,431		3,542
Goodwill		17,452		-		14,672		-
Trade names & trademarks		3,532		-		2,920		-
Total	$	36,700	$	4,414	$	29,023	$	3,542

XML

Note G - Pensions and Other Postretirement Benefits (Detail) - Assumptions Used	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Discount rate	10.00%
Expected long-term rate of return on plan assets	1.00%
Pension Benefits [Member]
Discount rate	3.40%	4.00%
Rate of compensation increase	3.50%	3.50%
Discount rate	4.00%	5.00%
Expected long-term rate of return on plan assets	7.00%	7.00%
Rate of compensation increase	3.50%	3.50%
Postretirment Benefits [Member]
Discount rate	3.20%	3.76%
Discount rate	3.76%	4.85%

XML

Note F - Income Taxes (Detail) - Reconciliation Of Income Tax Expense By Applying The Statutory Federal Rate (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income taxes at statutory rate	$ 14,856	$ 14,940	$ 13,417
State and local income taxes, net of federal tax benefit	719	611	547
Research and development tax credits		(375)	(350)
Domestic production activities	(980)	(811)	(599)
Lower foreign taxes differential	(528)	(577)	(439)
Uncertain tax positions	(236)	49	(234)
Other	413	44	28
	$ 14,244	$ 13,881	$ 12,370

XML

Note I - Business Segment Information (Detail)	12 Months Ended
	Dec. 31, 2012
Number of Reportable Segments	1
Number of Countries in which Entity Operates	120

XML

Note A - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Significant Accounting Policies [Text Block]

Note A - Summary of Significant Accounting Policies

Consolidation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. Earnings per share are calculated based on the weighted-average number of common shares outstanding.

Cash Equivalents and Short-Term Investments

The Company considers highly liquid instruments with maturities of 90 days or less to be cash equivalents. The Company periodically makes short-term investments for which cost approximates fair value. Short-term investments at December 31, 2012 and 2011 consist primarily of certificates of deposit.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on knowledge of the financial condition of customers, review of historical receivables and reserve trends and other relevant information.

Inventories

Inventories are stated at the lower of cost or market. The costs for approximately 73% of inventories at December 31, 2012 and 82% of inventories at December 31, 2011 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out method (FIFO) applied on a consistent basis. Cost components include materials, inbound freight costs, labor and allocations of fixed and variable overheads on an absorption costing basis.

Long-Lived Assets

Property, plant and equipment are stated on the basis of cost. Repairs and maintenance costs are expensed as incurred. Depreciation for property, plant and equipment and amortization for finite-lived intangible assets are computed principally by the straight-line method over the estimated useful lives of the assets and are included in cost of products sold and selling, general and administrative expenses based on the use of the assets. Depreciation expense was $11.2 million, $10.5 million and $10.2 million during 2012, 2011 and 2010, respectively.

Depreciation of property, plant and equipment is determined based on the following lives:

Buildings (years)	20	-	50
Machinery and equipment (years)	5	-	15
Software (years)	3	-	5

Amortization of finite-lived intangible assets is determined based on the following lives:

Technology and drawings (years)	15	-	20
Customer relationships (years)	9	-	10
Other intangibles (years)	2	-	18

Long-lived assets, except goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets. Impairment losses may be recorded when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts based on the excess of the carrying amounts over the estimated fair value of the assets.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and indefinite-lived intangible assets recognized in connection with business combinations are not amortized to expense. Indefinite-lived intangible assets primarily consist of trademarks and trade names.  Goodwill and indefinite-lived intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other.

Goodwill is tested for impairment at the applicable reporting unit level and is based on the net assets for the applicable reporting unit, including goodwill and intangible assets. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.  If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary.

In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgements and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, a discounted cash flow model is used to estimate the fair value of each reporting unit which considers forecasted cash flows discounted at a market based weighted-average cost of capital. The forecasted cash flows are based on the Company’s long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return of market participants. Other valuation techniques including comparative market multiples are used when appropriate. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units.

The Company has completed its annual goodwill impairment test for each year presented and concluded no reporting unit was at risk of failing the impairment test for any periods presented herein.

In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02 which amends the rules for testing indefinite-lived intangible assets other than goodwill for impairment. Under the new rules, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount similar to the goodwill impairment testing described above. The Company early-adopted ASU 2012-02 for its October 1, 2012 annual impairment test. The Company has completed its annual impairment test and concluded that the fair value of indefinite-lived intangible assets substantially exceeded the respective carrying values.

Revenue Recognition

The Company’s revenues from product sales are generally recognized when all of the following criteria are met:  persuasive evidence of a sale arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers and collectability is probable.  Product delivery occurs when the risks and rewards of ownership and title pass, which normally occurs upon shipment to the customer.

Concentration of Credit Risk

The Company generally does not require collateral from its customers and has a very good collection history.  There were no sales to a single customer that exceeded 10% of total net sales for the years ended December 31, 2012, 2011 or 2010.

Shipping and Handling Costs

The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects related shipping and handling costs in cost of products sold.

Advertising

The Company expenses all advertising costs as incurred, which for the years ended December 31, 2012, 2011 and 2010 totaled $3.5 million, $3.4 million and $3.2 million, respectively.

Product Warranties

A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures. The Company expenses warranty costs directly to cost of products sold. Changes in the Company’s product warranty liability are:

	2012			2011			2010
Balance at beginning of year	$	1,228		$	1,543		$	1,863
Provision		1,394			1,081			1,217
Claims		(1,489	)		(1,396	)		(1,537	)
Balance at end of year	$	1,133		$	1,228		$	1,543

Foreign Currency Translation

Assets and liabilities of the Company’s operations outside the United States which are accounted for in a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenues and expenses are translated at weighted-average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) within equity.

Gains and losses resulting from foreign currency transactions, the amounts of which are not material, are included in net income.

Fair Value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximates their fair value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Reclassification

Certain amounts for 2010 and 2011 have been reclassified to conform to the 2012 presentation.

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Note G - Pensions and Other Postretirement Benefits (Detail) - Allocation of Plan Assets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Amounts Allocated by Category	$ 73,631	$ 65,754
Percentage Allocations	100.00%	100.00%
Equity Securities [Member]
Amounts Allocated by Category	18,073	12,439
Percentage Allocations	25.00%	19.00%
Non US Corporate Securities [Member]
Amounts Allocated by Category	9,555	6,493
Percentage Allocations	13.00%	10.00%
Balanced [Member]
Amounts Allocated by Category	6,210	7,961
Percentage Allocations	8.00%	12.00%
Fixed Income Securities [Member]
Amounts Allocated by Category	39,778	38,837
Percentage Allocations	54.00%	59.00%
Cash and Cash Equivalents [Member]
Amounts Allocated by Category	$ 15	$ 24

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Note B - Allowance for Doubtful Accounts (Detail) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts Receivable	$ 561,000	$ 433,000

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Note A - Summary of Significant Accounting Policies (Detail) - Product Warranties (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Balance at beginning of year	$ 1,228	$ 1,543	$ 1,863
Provision	1,394	1,081	1,217
Claims	(1,489)	(1,396)	(1,537)
Balance at end of year	$ 1,133	$ 1,228	$ 1,543

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Note G - Pensions and Other Postretirement Benefits (Detail) - Expected Future Benefit Payments (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Pension Plan [Member]
2013	$ 4,776
2014	6,837
2015	6,723
2016	5,924
2017	6,677
Thereafter	32,292
Postretirment Benefits [Member]
2013	1,416
2014	1,430
2015	1,489
2016	1,561
2017	1,642
Thereafter	$ 9,234

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Note C - Inventories (Detail) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Excess of Replacement or Current Costs over Stated LIFO Value	$ 53.2	$ 50.7
Inventory Valuation Reserves	$ 3.3	$ 3.0

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Note D - Financing Arrangements (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 17, 2012	Oct. 01, 2010
Unsecured Debt	$ 5,000,000	$ 10,000,000		$ 17,000,000	$ 35,000,000
Debt Instrument, Basis Spread on Variable Rate	0.75%				0.75%
Line of Credit Facility, Amount Outstanding	19,300,000	20,000,000
Letters of Credit Outstanding, Amount	5,100,000
Line of Credit Facility, Remaining Borrowing Capacity	4,900,000	5,000,000
Interest Expense, Debt	122,000	179,000	175,000
Operating Leases, Rent Expense	1.1	866,000	852,000
LIBOR Rate Spread On Unsecured Bank Loan [Member]
Debt Instrument, Basis Spread on Variable Rate				0.75%
Bank Line Of Credit Maturing November 2013 [Member]
Line of Credit Facility, Maximum Borrowing Capacity	20,000,000
LIBOR Rate Spread On Bank Line Of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate	0.75%
Bank Line Of Credit Maturing November 2012 [Member]
Letters of Credit Outstanding, Amount	700,000
Bank Line Of Credit Maturing May 2013 [Member]
Line of Credit Facility, Maximum Borrowing Capacity	10,000,000
Bank Line Of Credit Maturing May 2012 [Member]
Letters of Credit Outstanding, Amount		$ 5,000,000

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income	$ 28,203	$ 28,804	$ 25,963
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,066	11,459	10,601
Pension expense	6,946	6,070	3,024
Contributions to pension plan	(7,200)	(7,200)	(7,200)
Deferred income taxes	2,193	1,608	4,166
Other	(213)	250	1,369
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable - net	710	(4,423)	(10,618)
Inventories - net	(8,583)	(21,744)	(1,223)
Accounts payable	(1,911)	3,637	655
Commissions payable	(189)	1,166	2,243
Accrued expenses	4,727	8,211	67
Other	(4,116)	(6,706)	(404)
Net cash provided by operating activities	32,633	21,132	28,643
Capital additions, net	(16,373)	(11,175)	(8,310)
Redemptions (purchases) of short-term investments	805	958	(512)
Payments for acquisitions, net of cash acquired	(20,823)		(33,856)
Net cash used for investing activities	(36,391)	(10,217)	(42,678)
Cash flows from financing activities:
Cash dividends	(8,188)	(7,430)	(7,024)
Proceeds from bank borrowings	17,000	0	35,000
Payments to bank for borrowings	(5,000)	(15,000)	(25,000)
Treasury stock purchase		0	(638)
Purchase of noncontrolling interest			(607)
Net cash provided by (used for) financing activities	3,812	(22,430)	1,731
Effect of exchange rate changes on cash	(77)	(572)	130
Net decrease in cash and cash equivalents	(23)	(12,087)	(12,174)
Cash and cash equivalents:
Beginning of year	20,142	32,229	44,403
End of year	$ 20,119	$ 20,142	$ 32,229

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Note D - Financing Arrangements (Detail) - Future Minimum Lease Payments (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
	$ 919
	781
	398
	356
	218
	1,410
	$ 4,082

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Note G - Pensions and Other Postretirement Benefits (Detail) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 01, 2012
Pension and Other Postretirement Benefit Contributions (in Dollars)		$ 7,200,000	$ 7,200,000	$ 7,200,000
Noncash Contribution Expense (in Dollars)	3,000,000	2,900,000
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate		10.00%
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year (in Dollars)					7,200,000
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components (in Dollars)		213,000
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation (in Dollars)		2,000,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components (in Dollars)		201,000
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation (in Dollars)		1,900,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets		1.00%
Defined Benefit Plan Effect On Pension Expense (in Dollars)		1,600,000
Contributions To 401K Plan [Member]
Pension and Other Postretirement Benefit Contributions (in Dollars)		1.3	1.0	928,000
Fixed Income Securities [Member] | Maximum [Member]
Defined Benefit Plan, Target Plan Asset Allocations		80.00%
Fixed Income Securities [Member] | Minimum [Member]
Defined Benefit Plan, Target Plan Asset Allocations		30.00%
Fixed Income Securities [Member]
Defined Benefit Plan, Target Plan Asset Allocations		60.00%
Equity Securities [Member] | Maximum [Member]
Defined Benefit Plan, Target Plan Asset Allocations		70.00%
Equity Securities [Member] | Minimum [Member]
Defined Benefit Plan, Target Plan Asset Allocations		20.00%
Equity Securities [Member]
Defined Benefit Plan, Target Plan Asset Allocations		40.00%
Cash Equivalents [Member] | Maximum [Member]
Defined Benefit Plan, Target Plan Asset Allocations		40.00%
Cash Equivalents [Member] | Minimum [Member]
Defined Benefit Plan, Target Plan Asset Allocations		0.00%
Non US Corporate Securities [Member]
Defined Benefit Plan, Target Plan Asset Allocations		35.00%
Retirees Under Age 65 [Member]
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate		5.00%
Percentage Increase In Health Care Trend [Member]
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate		1.00%
Percentage Decrease In Health Care Trend [Member]
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate		1.00%
Change In Return On Plan Assets [Member]
Defined Benefit Plan Effect On Pension Expense (in Dollars)		656,000
Percentage Increase In Discount Rate [Member]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate		1.00%
Change In Discount Rate [Member]
Defined Benefit Plan Effect On Pension Expense (in Dollars)		$ 1,400,000
Percentage Decrease In Discount Rate [Member]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate		1.00%

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Consolidated Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net sales	$ 375,691	$ 359,490	$ 296,808
Cost of products sold	285,540	271,653	220,471
Gross profit	90,151	87,837	76,337
Selling, general and administrative expenses	47,968	44,843	37,378
Operating income	42,183	42,994	38,959
Other income	907	409	362
Other expense	(643)	(718)	(988)
Income before income taxes	42,447	42,685	38,333
Income taxes	14,244	13,881	12,370
Net income	$ 28,203	$ 28,804	$ 25,963
Earnings per share (in Dollars per share)	$ 1.34	$ 1.37	$ 1.24
Average number of shares outstanding (in Shares)	20,993,893	20,987,663	20,905,728

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Note H - Goodwill and Other Intangible Assets (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Amortization of Intangible Assets	$ 869,000	$ 955,000	$ 421,000
Amortization	1,200,000
Customer Relationships [Member]
Finite-lived Intangible Assets Acquired	3,100,000
Technology And Drawings [Member]
Finite-lived Intangible Assets Acquired	1,200,000
Trade Names And Trade Marks [Member]
Finite-lived Intangible Assets Acquired	612,000
Goodwill [Member]
Finite-lived Intangible Assets Acquired	$ 2,800,000

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Consolidated Statements of Equity (USD $) In Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]	Total
Balances at Dec. 31, 2009	$ 5,100	$ 498	$ 182,377	$ (11,070)	$ 707	$ 177,612
Net income			25,963		66	26,029
Currency translation adjustments				139	(46)	93
Pension and OPEB adjustments				1,549		1,549
Total comprehensive income			25,963	1,688	20	27,671
Purchase of noncontrolling interest		166		(46)	(727)	(607)
Purchase of 31,250 treasury shares	(8)	(487)	(143)			(638)
Issuance of treasury shares	35	2,223	562			2,820
Cash dividends			(7,024)			(7,024)
Balances at Dec. 31, 2010	5,127	2,400	201,735	(9,428)		199,834
Net income			28,804			28,804
Currency translation adjustments				(886)		(886)
Pension and OPEB adjustments				(5,730)		(5,730)
Total comprehensive income	0	0	28,804	(6,616)	0	22,188
Issuance of treasury shares	1	144	27			172
Cash dividends			(7,430)			(7,430)
Balances at Dec. 31, 2011	5,128	2,544	223,136	(16,044)	0	214,764
Net income			28,203			28,203
Currency translation adjustments				437		437
Pension and OPEB adjustments				(675)		(675)
Total comprehensive income			28,203	(238)		27,965
Issuance of treasury shares	2	149	27			178
Cash dividends			(8,188)			(8,188)
Balances at Dec. 31, 2012	$ 5,130	$ 2,693	$ 243,178	$ (16,282)	$ 0	$ 234,719

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Note F - Income Taxes (Detail) - Components of Income Before Income Taxes (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
United States	$ 40,019	$ 37,329	$ 34,593
Foreign countries	2,428	5,356	3,740
Income tax expense	$ 42,447	$ 42,685	$ 38,333

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Note E - Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Comprehensive Income (Loss) [Table Text Block]

	Currency Translation Adjustments			Pension and OPEB Adjustments			Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2010	$	675		$	(11,745	)	$	(11,070	)
Current period credit		139			2,413			2,552
Income tax expense		--			(864	)		(864	)
Other		(46	)		--			(46	)
Balance at December 31, 2010		768			(10,196	)		(9,428	)
Current period charge		(886	)		(9,012	)		(9,898	)
Income tax benefit		--			3,282			3,282
Balance at December 31, 2011		(118	)		(15,926	)		(16,044	)
Current period credit (charge)		437			(987	)		(550	)
Income tax benefit		--			312			312
Balance at December 31, 2012	$	319		$	(16,601	)	$	(16,282	)

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Note F - Income Taxes (Detail) - Components of Income Tax Expense (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current expense:
Federal	$ 11,542	$ 10,037	$ 6,369
Foreign	(324)	1,576	1,064
State and local	1,021	761	771
	12,239	12,374	8,204
Deferred expense (benefit):
Federal	2,109	1,429	4,138
Foreign	(189)	(101)	(42)
State and local	85	179	70
	2,193	1,608	4,166
Income tax expense	14,244	13,881	12,370
Total [Member]
Deferred expense (benefit):
	$ 2,005	$ 1,507	$ 4,166

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Note G - Pensions and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Changes in Projected Benefit Obligations [Table Text Block]

	Pension Plan						Postretirement Plan
	2012			2011			2012			2011
Accumulated benefit obligation at end of year	$	65,427		$	58,278		$	23,794		$	24,094
Change in benefit obligation:
Benefit obligation at beginning of year	$	72,325		$	62,865		$	24,094		$	23,882
Service cost		3,188			2,856			1,156			1,052
Interest cost		2,803			3,068			871			1,107
Settlement loss		263			177			-			-
Benefits paid		(6,974	)		(6,645	)		(1,324	)		(1,291	)
Effect of foreign exchange		-			-			24			(20	)
Actuarial loss or (gain)		9,543			10,004			(1,027	)		(636	)
Benefit obligation at end of year	$	81,148		$	72,325		$	23,794		$	24,094
Change in plan assets:
Fair value of plan assets at beginning of year	$	65,754		$	64,150		$	-		$	-
Actual return on plan assets		7,651			1,049			-			-
Employer contributions		7,200			7,200			1,324			1,291
Benefits paid		(6,974	)		(6,645	)		(1,324	)		(1,291	)
Fair value of plan assets at end of year		73,631			65,754			-			-
Funded status at end of year	$	(7,517	)	$	(6,571	)	$	-		$	-
Amounts recognized in the Consolidated Balance Sheets consist of:
Current liabilities	$	-		$	-		$	(1,394	)	$	(1,389	)
Noncurrent liabilities		(7,517	)		(6,571	)		(22,399	)		(22,705	)
	$	(7,517	)	$	(6,571	)	$	(23,793	)	$	(24,094	)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss or (gain)	$	35,029		$	33,658		$	(8,154	)	$	(7,770	)
Deferred tax (benefit) expense		(13,434	)		(12,931	)		3,160			2,969
After tax actuarial loss or (gain)	$	21,595		$	20,727		$	(4,994	)	$	(4,801	)
Components of net periodic benefit cost:
Service cost	$	3,188		$	2,856		$	1,156		$	1,052
Interest cost		2,803			3,068			871			1,107
Expected return on plan assets		(4,591	)		(4,539	)		-			-
Recognized actuarial loss or (gain)		2,441			1,675			(647	)		(656	)
Settlement loss		2,935			3,010			-			-
Net periodic benefit cost	$	6,776		$	6,070		$	1,380		$	1,503
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net loss (gain)	$	1,371		$	8,985		$	(384	)	$	20
Total income recognized in net periodic benefit cost and other comprehensive income	$	8,147		$	15,055		$	996		$	1,523

Schedule of Assumptions Used [Table Text Block]

	Pension Benefits						Postretirement Benefits
	2012			2011			2012			2011
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate		3.40	%		4.00	%		3.20	%		3.76	%
Rate of compensation increase		3.50	%		3.50	%		-			-
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate		4.00	%		5.00	%		3.76	%		4.85	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%		-			-
Rate of compensation increase		3.50	%		3.50	%		-			-

Schedule of Allocation of Plan Assets [Table Text Block]

	2012		%		2011		%
Asset allocation by category:
U.S. equity	$	18,073		25	$	12,439		19
Non-U.S. equity		9,555		13		6,493		10
Balanced		6,210		8		7,961		12
U.S. fixed income		39,778		54		38,837		59
Cash and cash equivalents		15		-		24		-
Total fair value of Plan assets	$	73,631		100	$	65,754		100

Schedule of Expected Benefit Payments [Table Text Block]

	2013		2014		2015		2016		2017		Thereafter
Pension	$	4,776	$	6,837	$	6,723	$	5,924	$	6,677	$	32,292
Postretirement		1,416		1,430		1,489		1,561		1,642		9,234

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Consolidated Statements of Equity (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Pension and OPEB adjustments income tax benefit (in Dollars)	$ 312	$ 3,282	$ 864
Purchase of treasury shares - shares purchased (in Shares)			31,250
Issuance of treasury shares - shares (in Shares)	6,000	6,000	128,750
Cash dividends - per share amount (in Dollars per share)	$ 0.390	$ 0.354	$ 0.336

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net income	$ 28,203	$ 28,804	$ 25,963
Cumulative translation adjustments	437	(886)	139
Pension and postretirement medical liability adjustments, net of tax	(675)	(5,730)	1,549
Total adjustments	(238)	(6,616)	1,688
Non controlling interest			20
Comprehensive income	$ 27,965	$ 22,188	$ 27,671

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Note I - Business Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

Note I – Business Segment Information

The Company operates in one business segment comprising the design, manufacture and sale of pumps and pump systems. The Company’s products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilation and air conditioning (HVAC), military and other liquid-handling applications. The pumps and pump systems are marketed in the United States and worldwide through a network of more than 1,000 distributors, through manufacturers’ representatives, through third-party distributor catalogs and by direct sales. International sales are made primarily through foreign distributors and representatives. The Company sells to more than 120 countries around the world. The components of customer sales, determined based on the location of customers are:

	2012		%		2011		%		2010		%
United States	$	239,153		64	$	241,405		67	$	180,705		61
Foreign countries		136,538		36		118,085		33		116,103		39
Total	$	375,691		100	$	359,490		100	$	296,808		100

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Mar. 01, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	GORMAN RUPP CO
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		20,996,893
Entity Public Float			$ 388,384,369
Amendment Flag	false
Entity Central Index Key	0000042682
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

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Note J - Acquisitions

12 Months Ended

Dec. 31, 2012

Business Combination Disclosure [Text Block]

Note J – Acquisitions

During the year ended December 31, 2012, the Company completed two business combinations. The results of operations of the acquired companies have been included in Gorman-Rupp’s consolidated results since the effective date of each transaction. The Company financed the all-cash acquisitions through cash on hand and borrowed $17.0 million under a short-term unsecured bank loan agreement. Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on the Company’s consolidated results of operations individually or in aggregate.

In September, the Company’s wholly-owned subsidiary, GR Africa, purchased the business of Pumptron through internally generated cash flows. Pumptron has been an international value-added distributor for Gorman-Rupp for over 25 years and will further enhance the Company’s continuing international expansion. Founded in 1986, Pumptron is a leading provider of water-related pumping solutions primarily serving the construction, mining, agricultural and municipal markets in South Africa and increasingly throughout other sub-Sahara African countries. Pumptron is headquartered in Johannesburg with operating locations in Cape Town and Durban, all in South Africa, and had approximately $10 million in revenue primarily from sales of Gorman-Rupp products during its fiscal year 2012.

In December, the Company’s wholly-owned subsidiary, National Pump Company, acquired substantially all of the assets and certain liabilities of American Turbine. Founded in 1975, American Turbine is a group of companies that collectively are a leading manufacturer and distributor of energy-efficient vertical turbine and submersible pumps primarily serving agricultural, municipal and industrial markets, both domestically and globally. During 2011, American Turbine had approximately $15 million in revenue from sales of its products through its Lubbock, Texas headquarters and two other locations in Houston, Texas and Fresno, California. American Turbine will expand sales in target growth markets and complement existing brands of National Pump Company which was acquired in 2010. In addition, the acquired facilities will provide additional capacity, including machining and testing capabilities.

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Cash and cash equivalents	$ 20,119	$ 20,142
Short-term investments	254	1,060
Accounts receivable, net	58,712	56,419
Raw materials and in-process	23,967	30,480
Finished parts	52,607	36,451
Finished products	14,324	6,262
	90,898	73,193
Deferred income taxes	2,803	2,711
Prepaid and other	2,889	2,347
Total current assets	175,675	155,872
Land	3,048	2,270
Buildings	96,261	91,395
Machinery and equipment	143,471	132,743
	242,780	226,408
Accumulated depreciation	119,714	112,059
Property, plant and equipment - net	123,066	114,349
Deferred income taxes	153	205
Other	4,003	2,793
Goodwill and other intangible assets - net	32,286	25,481
	335,183	298,700
Accounts payable	14,897	15,679
Short-term debt	22,000	10,000
Payroll and employee related liabilities	10,646	10,283
Commissions payable	7,568	7,757
Accrued expenses	9,710	7,154
Total current liabilities	64,821	50,873
Pension benefits	7,517	6,571
Postretirement benefits	22,399	22,705
Deferred and other income taxes	5,727	3,787
Common Shares, without par value: Authorized - 35,000,000 shares; Outstanding - 20,996,893 shares in 2012 and 20,990,893 shares in 2011 (after deducting treasury shares of 642,603 in 2012 and 648,603 in 2011) at stated capital amount	5,130	5,128
Additional paid-in capital	2,693	2,544
Retained earnings	243,178	223,136
Accumulated other comprehensive loss	(16,282)	(16,044)
Total equity	234,719	214,764
	$ 335,183	$ 298,700

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Note D - Financing Arrangements

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Text Block]

Note D- Financing Arrangements

On December 17, 2012, the Company borrowed $17.0 million under an unsecured bank loan agreement to finance the acquisition of American Turbine. The loan bears interest at LIBOR plus 0.75%, adjustable and payable monthly, and matures in November 2013.

On October 1, 2010, the Company borrowed $35.0 million under an unsecured bank loan agreement to help finance the acquisition of National Pump Company.  The loan bears interest at LIBOR plus 0.75%, adjustable and payable monthly, and matures in November 2013 after being extended in 2011 and 2012 through first and second amendments to the loan agreement, respectively.  At December 31, 2012 and 2011, $5.0 million and $10.0 million were outstanding against this agreement, respectively.

The Company may borrow up to $20.0 million with interest at LIBOR plus 0.75% or at alternative rates as selected by the Company under an unsecured bank line of credit which matures in November 2013. At December 31, 2012 and 2011, $19.3 million and $20.0 million, respectively, was available for borrowing after deducting $700,000 in outstanding letters of credit in 2012.

The Company also has a $10.0 million unsecured bank line of credit with interest at LIBOR plus 0.75% payable monthly which matures in May 2013. At December 31, 2012 and 2011, $4.9 million and $5.0 million, respectively, was available for borrowing after deducting $5.1 million and $5.0 million in outstanding letters of credit, respectively.

The financing arrangements described above contain nominal restrictive covenants, including limits on additional borrowings and maintenance of certain operating and financial ratios. At December 31, 2012, the Company was in compliance with all requirements.

Interest expense, which approximates interest paid, was $122,000, $179,000 and $175,000 in 2012, 2011 and 2010, respectively.

The Company has operating leases for certain offices, manufacturing facilities, land, office equipment and automobiles. Rental expense relating to operating leases was $1.1 million, $866,000 and $852,000 in 2012, 2011 and 2010, respectively.

The future minimum lease payments due under these operating leases as of December 31, 2012 are:

2013		2014		2015		2016		2017		Thereafter		Total
$	919	$	781	$	398	$	356	$	218	$	1,410	$	4,082

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Note C - Inventories

12 Months Ended

Dec. 31, 2012

Inventory Disclosure [Text Block]

Note C – Inventories

Inventories are stated at the lower of cost or market.  Replacement cost approximates current cost and the excess over LIFO cost is approximately $53.2 million and $50.7 million at December 31, 2012 and 2011, respectively. Allowances for excess and obsolete inventory totaled $3.3 million and $3.0 million at December 31, 2012 and 2011, respectively.

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Note F - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	2012		2011		2010
United States	$	40,019	$	37,329	$	34,593
Foreign countries		2,428		5,356		3,740
Income tax expense	$	42,447	$	42,685	$	38,333

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	2012			2011			2010
Current expense:
Federal	$	11,542		$	10,037		$	6,369
Foreign		(324	)		1,576			1,064
State and local		1,021			761			771
		12,239			12,374			8,204
Deferred expense (benefit):
Federal		2,109			1,429			4,138
Foreign		(189	)		(101	)		(42	)
State and local		85			179			70
		2,005			1,507			4,166
Income tax expense	$	14,244		$	13,881		$	12,370

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2012			2011			2010
Income taxes at statutory rate	$	14,856		$	14,940		$	13,417
State and local income taxes, net of federal tax benefit		719			611			547
Research and development tax credits		-			(375	)		(350	)
Domestic production activities		(980	)		(811	)		(599	)
Lower foreign taxes differential		(528	)		(577	)		(439	)
Uncertain tax positions		(236	)		49			(234	)
Other		413			44			28
	$	14,244		$	13,881		$	12,370

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2012			2011			2010
Deferred tax assets:
Inventories	$	170		$	49		$	-
Accrued liabilities		2,430			2,506			2,237
Postretirement health benefits obligation		7,848			8,060			7,849
Pension		1,217			873			-
Other		452			1,634			1,834
		12,117			13,122			11,920
Deferred tax liabilities:
Inventories		-			-			391
Depreciation and amortization		14,376			13,419			11,524
Pension		-			-			2,001
		14,376			13,419			13,916
Net deferred tax liabilities	$	(2,259	)	$	(297	)	$	(1,996	)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	2012			2011			2010
Balance at beginning of year	$	1,423		$	1,298		$	1,461
Additions based on tax positions related to the current year		68			132			106
(Reduction) additions for tax positions of prior years		(1	)		117			149
Reductions due to lapse of applicable statute of limitations		(131	)		(124	)		(157	)
Settlements		(938	)		-			(261	)
Balance at end of year	$	421		$	1,423		$	1,298

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Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2012

Consolidation, Policy [Policy Text Block]

Consolidation

The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. Earnings per share are calculated based on the weighted-average number of common shares outstanding.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Equivalents and Short-Term Investments

The Company considers highly liquid instruments with maturities of 90 days or less to be cash equivalents. The Company periodically makes short-term investments for which cost approximates fair value. Short-term investments at December 31, 2012 and 2011 consist primarily of certificates of deposit.

Receivables, Policy [Policy Text Block]

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are stated at the historical carrying amount net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses from the failure of its customers to make required payments for products delivered. The Company estimates this allowance based on knowledge of the financial condition of customers, review of historical receivables and reserve trends and other relevant information.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or market. The costs for approximately 73% of inventories at December 31, 2012 and 82% of inventories at December 31, 2011 are determined using the last-in, first-out (LIFO) method, with the remainder determined using the first-in, first-out method (FIFO) applied on a consistent basis. Cost components include materials, inbound freight costs, labor and allocations of fixed and variable overheads on an absorption costing basis.

Property, Plant and Equipment, Policy [Policy Text Block]

Long-Lived Assets

Property, plant and equipment are stated on the basis of cost. Repairs and maintenance costs are expensed as incurred. Depreciation for property, plant and equipment and amortization for finite-lived intangible assets are computed principally by the straight-line method over the estimated useful lives of the assets and are included in cost of products sold and selling, general and administrative expenses based on the use of the assets. Depreciation expense was $11.2 million, $10.5 million and $10.2 million during 2012, 2011 and 2010, respectively.

Depreciation of property, plant and equipment is determined based on the following lives:

Buildings (years)	20	-	50
Machinery and equipment (years)	5	-	15
Software (years)	3	-	5

Amortization of finite-lived intangible assets is determined based on the following lives:

Technology and drawings (years)	15	-	20
Customer relationships (years)	9	-	10
Other intangibles (years)	2	-	18

Long-lived assets, except goodwill and indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered through future net cash flows generated by the assets. Impairment losses may be recorded when the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts based on the excess of the carrying amounts over the estimated fair value of the assets

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and indefinite-lived intangible assets recognized in connection with business combinations are not amortized to expense. Indefinite-lived intangible assets primarily consist of trademarks and trade names.  Goodwill and indefinite-lived intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other.

Goodwill is tested for impairment at the applicable reporting unit level and is based on the net assets for the applicable reporting unit, including goodwill and intangible assets. The Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount.  If, after assessing the totality of events or circumstances, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary.

In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgements and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact.

If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, a discounted cash flow model is used to estimate the fair value of each reporting unit which considers forecasted cash flows discounted at a market based weighted-average cost of capital. The forecasted cash flows are based on the Company’s long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return of market participants. Other valuation techniques including comparative market multiples are used when appropriate. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units.

The Company has completed its annual goodwill impairment test for each year presented and concluded no reporting unit was at risk of failing the impairment test for any periods presented herein.

In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02 which amends the rules for testing indefinite-lived intangible assets other than goodwill for impairment. Under the new rules, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount similar to the goodwill impairment testing described above. The Company early-adopted ASU 2012-02 for its October 1, 2012 annual impairment test. The Company has completed its annual impairment test and concluded that the fair value of indefinite-lived intangible assets substantially exceeded the respective carrying values.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company’s revenues from product sales are generally recognized when all of the following criteria are met:  persuasive evidence of a sale arrangement exists, the price is fixed or determinable, product delivery has occurred or services have been rendered, there are no further obligations to customers and collectability is probable.  Product delivery occurs when the risks and rewards of ownership and title pass, which normally occurs upon shipment to the customer.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

The Company generally does not require collateral from its customers and has a very good collection history.  There were no sales to a single customer that exceeded 10% of total net sales for the years ended December 31, 2012, 2011 or 2010.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping and Handling Costs

The Company classifies all amounts billed to customers for shipping and handling as revenue and reflects related shipping and handling costs in cost of products sold.

Advertising Costs, Policy [Policy Text Block]

Advertising

The Company expenses all advertising costs as incurred, which for the years ended December 31, 2012, 2011 and 2010 totaled $3.5 million, $3.4 million and $3.2 million, respectively.

Standard Product Warranty, Policy [Policy Text Block]

Product Warranties

A liability is established for estimated future warranty and service claims based on historical claims experience and specific product failures. The Company expenses warranty costs directly to cost of products sold.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Assets and liabilities of the Company’s operations outside the United States which are accounted for in a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenues and expenses are translated at weighted-average exchange rates effective during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) within equity.

Gains and losses resulting from foreign currency transactions, the amounts of which are not material, are included in net income.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximates their fair value.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Reclassification, Policy [Policy Text Block]

Reclassification

Certain amounts for 2010 and 2011 have been reclassified to conform to the 2012 presentation.

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Note G - Pensions and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note G - Pensions and Other Postretirement Benefits

The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008.  Employees hired after this date participate in an enhanced 401(k) plan instead of the defined benefit pension plan.

Additionally, the Company sponsors defined contribution pension plans covering certain domestic employees and all Canadian employees. Total contributions for the plans in 2012, 2011 and 2010 were $1.3 million, $1.0 million and $928,000, respectively.

The Company also sponsors a non-contributory defined benefit health care plan that provides health benefits to certain domestic and Canadian retirees and their spouses.  The Company funds the cost of these benefits as incurred.  For measurement purposes, and based on maximum benefits as defined by the plan, a zero percent annual rate of increase in the per capita cost of covered health care benefits for retirees age 65 and over was assumed for 2012 and is expected to remain constant going forward. A 5% rate of increase for retirees under age 65 was assumed.

The Company recognizes the obligations associated with its defined benefit pension plan and defined benefit health care plan in its consolidated financial statements. The following table presents the plans’ funded status as of the measurement date reconciled with amounts recognized in the Company’s consolidated balance sheets:

	Pension Plan						Postretirement Plan
	2012			2011			2012			2011
Accumulated benefit obligation at end of year	$	65,427		$	58,278		$	23,794		$	24,094
Change in benefit obligation:
Benefit obligation at beginning of year	$	72,325		$	62,865		$	24,094		$	23,882
Service cost		3,188			2,856			1,156			1,052
Interest cost		2,803			3,068			871			1,107
Settlement loss		263			177			-			-
Benefits paid		(6,974	)		(6,645	)		(1,324	)		(1,291	)
Effect of foreign exchange		-			-			24			(20	)
Actuarial loss or (gain)		9,543			10,004			(1,027	)		(636	)
Benefit obligation at end of year	$	81,148		$	72,325		$	23,794		$	24,094
Change in plan assets:
Fair value of plan assets at beginning of year	$	65,754		$	64,150		$	-		$	-
Actual return on plan assets		7,651			1,049			-			-
Employer contributions		7,200			7,200			1,324			1,291
Benefits paid		(6,974	)		(6,645	)		(1,324	)		(1,291	)
Fair value of plan assets at end of year		73,631			65,754			-			-
Funded status at end of year	$	(7,517	)	$	(6,571	)	$	-		$	-
Amounts recognized in the Consolidated Balance Sheets consist of:
Current liabilities	$	-		$	-		$	(1,394	)	$	(1,389	)
Noncurrent liabilities		(7,517	)		(6,571	)		(22,399	)		(22,705	)
	$	(7,517	)	$	(6,571	)	$	(23,793	)	$	(24,094	)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss or (gain)	$	35,029		$	33,658		$	(8,154	)	$	(7,770	)
Deferred tax (benefit) expense		(13,434	)		(12,931	)		3,160			2,969
After tax actuarial loss or (gain)	$	21,595		$	20,727		$	(4,994	)	$	(4,801	)
Components of net periodic benefit cost:
Service cost	$	3,188		$	2,856		$	1,156		$	1,052
Interest cost		2,803			3,068			871			1,107
Expected return on plan assets		(4,591	)		(4,539	)		-			-
Recognized actuarial loss or (gain)		2,441			1,675			(647	)		(656	)
Settlement loss		2,935			3,010			-			-
Net periodic benefit cost	$	6,776		$	6,070		$	1,380		$	1,503
Other changes in plan assets and benefit obligations recognized in other comprehensive loss:
Net loss (gain)	$	1,371		$	8,985		$	(384	)	$	20
Total income recognized in net periodic benefit cost and other comprehensive income	$	8,147		$	15,055		$	996		$	1,523

During the fourth quarter of 2012 and 2011, the Company recorded non-cash settlement losses relating to retirees that received lump-sum distributions from the Company’s defined benefit pension plan totaling $2.9 million and $3.0 million, respectively. These charges were the result of lump-sum payments to retirees in 2012 and 2011 which exceeded the plan’s actuarial service and interest costs threshold in each of 2012 and 2011.

The prior service cost is amortized on a straight-line basis over the average estimated remaining service period of active participants. The unrecognized actuarial gain or loss in excess of the greater of 10% of the benefit obligation or the market value of plan assets is also amortized on a straight-line basis over the average estimated remaining service period of active participants.

	Pension Benefits						Postretirement Benefits
	2012			2011			2012			2011
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate		3.40	%		4.00	%		3.20	%		3.76	%
Rate of compensation increase		3.50	%		3.50	%		-			-
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate		4.00	%		5.00	%		3.76	%		4.85	%
Expected long-term rate of return on plan assets		7.00	%		7.00	%		-			-
Rate of compensation increase		3.50	%		3.50	%		-			-

The investment return of the Company’s Pension Plan asset allocation is currently measured against those of a target portfolio consisting of 60% fixed income securities and 40% equities.

Currently, equities (including all convertible securities) may comprise up to 70% of the Plan’s assets market value, with a minimum requirement of 20%. Fixed income/floating rate securities (including preferred stocks and cash equivalents) should not exceed 80% of the Plan’s market value and may represent as little as 30%. Cash and cash equivalents (including all senior debt securities with less than one year to maturity) may comprise up to 40% of the Plan’s market value. Cash and cash equivalents may constitute zero assets in the Account at the manager’s discretion. Non-U.S. corporate securities may comprise up to 35% of the account.

Financial instruments included in pension plan assets are categorized into a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology. Level 1 assets are based on unadjusted quoted prices in active markets that are accessible to the reporting entity at the measurement date for identical assets. Level 2 assets are valued at inputs other than quoted prices in active markets for identical assets that are observable either directly or indirectly for substantially the full term of the assets. Level 3 assets are valued based on unobservable inputs for the asset (i.e., supported by little or no market activity). These inputs include management’s own assessments about the assumptions that market participants would use in pricing assets (including assumptions about risk). The level in the fair value hierarchy within which the fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measure in its entirety.

All of the Plan’s assets are in level 1 within the fair value hierarchy, and the following table sets forth by asset class the Pension Plan’s assets:

	2012		%		2011		%
Asset allocation by category:
U.S. equity	$	18,073		25	$	12,439		19
Non-U.S. equity		9,555		13		6,493		10
Balanced		6,210		8		7,961		12
U.S. fixed income		39,778		54		38,837		59
Cash and cash equivalents		15		-		24		-
Total fair value of Plan assets	$	73,631		100	$	65,754		100

Contributions

The Company currently expects to contribute $7.2 million to its Pension Plan in 2013.

Expected future benefit payments

Future benefit payments are expected to be paid as follows based on most recent actuarial calculations:

	2013		2014		2015		2016		2017		Thereafter
Pension	$	4,776	$	6,837	$	6,723	$	5,924	$	6,677	$	32,292
Postretirement		1,416		1,430		1,489		1,561		1,642		9,234

A one percentage point increase in the assumed health care trend rate would increase postretirement expense by approximately $213,000, changing the benefit obligation by approximately $2.0 million; while a one percentage point decrease in the assumed health care trend rate would decrease postretirement expense by approximately $201,000, changing the benefit obligation by approximately $1.9 million.

A one percentage point change in the assumed rate of return on the defined benefit pension plan assets is estimated to have an approximate $656,000 effect on pension expense. Additionally, a one percentage point increase in the discount rate is estimated to have a $1.4 million decrease in pension expense, while a one percentage point decrease in the discount rate is estimated to have a $1.6 million increase in pension expense.

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Note E - Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2012

Accumulated Other Comprehensive Loss [Text Block]

Note E – Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss as reported in the Consolidated Balance Sheets are:

	Currency Translation Adjustments			Pension and OPEB Adjustments			Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2010	$	675		$	(11,745	)	$	(11,070	)
Current period credit		139			2,413			2,552
Income tax expense		--			(864	)		(864	)
Other		(46	)		--			(46	)
Balance at December 31, 2010		768			(10,196	)		(9,428	)
Current period charge		(886	)		(9,012	)		(9,898	)
Income tax benefit		--			3,282			3,282
Balance at December 31, 2011		(118	)		(15,926	)		(16,044	)
Current period credit (charge)		437			(987	)		(550	)
Income tax benefit		--			312			312
Balance at December 31, 2012	$	319		$	(16,601	)	$	(16,282	)

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Note F - Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Text Block]

Note F - Income Taxes

The components of income before income taxes are:

	2012		2011		2010
United States	$	40,019	$	37,329	$	34,593
Foreign countries		2,428		5,356		3,740
Income tax expense	$	42,447	$	42,685	$	38,333

The components of income tax expense are:

	2012			2011			2010
Current expense:
Federal	$	11,542		$	10,037		$	6,369
Foreign		(324	)		1,576			1,064
State and local		1,021			761			771
		12,239			12,374			8,204
Deferred expense (benefit):
Federal		2,109			1,429			4,138
Foreign		(189	)		(101	)		(42	)
State and local		85			179			70
		2,005			1,507			4,166
Income tax expense	$	14,244		$	13,881		$	12,370

The reconciliation between income tax expense and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes is:

	2012			2011			2010
Income taxes at statutory rate	$	14,856		$	14,940		$	13,417
State and local income taxes, net of federal tax benefit		719			611			547
Research and development tax credits		-			(375	)		(350	)
Domestic production activities		(980	)		(811	)		(599	)
Lower foreign taxes differential		(528	)		(577	)		(439	)
Uncertain tax positions		(236	)		49			(234	)
Other		413			44			28
	$	14,244		$	13,881		$	12,370

Deferred tax assets and liabilities consist of:

	2012			2011			2010
Deferred tax assets:
Inventories	$	170		$	49		$	-
Accrued liabilities		2,430			2,506			2,237
Postretirement health benefits obligation		7,848			8,060			7,849
Pension		1,217			873			-
Other		452			1,634			1,834
		12,117			13,122			11,920
Deferred tax liabilities:
Inventories		-			-			391
Depreciation and amortization		14,376			13,419			11,524
Pension		-			-			2,001
		14,376			13,419			13,916
Net deferred tax liabilities	$	(2,259	)	$	(297	)	$	(1,996	)

The Company made income tax payments of $12.0 million, $10.3 million and $8.1 million in 2012, 2011 and 2010, respectively.

At December 31, 2012, total unrecognized tax benefits were $421,000. Of the total, $311,000 of unrecognized tax benefits, if ultimately recognized, would reduce the Company’s annual effective tax rate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2012			2011			2010
Balance at beginning of year	$	1,423		$	1,298		$	1,461
Additions based on tax positions related to the current year		68			132			106
(Reduction) additions for tax positions of prior years		(1	)		117			149
Reductions due to lapse of applicable statute of limitations		(131	)		(124	)		(157	)
Settlements		(938	)		-			(261	)
Balance at end of year	$	421		$	1,423		$	1,298

The Company is subject to income taxes in the U.S. federal and various state, local and foreign jurisdictions.  Income tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply.  With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before 2009.

During 2012, examinations were completed by the Canadian Revenue Agency for years 2004 through 2006 and by the Internal Revenue Service for 2009 and 2010.  An adjustment for $140,000 was made to the 2009 and 2010 U.S. tax returns, which also resulted in a $40,000 refund on the Company’s Irish tax returns. An adjustment of $315,000 was made to the Company’s 2004 through 2008 Canadian tax returns, partially offset by approximately $250,000 from U.S. tax refunds due to additional foreign tax credits generated from the Canadian exam.

The statutes of limitations in taxing jurisdictions expire in varying periods. The Company has no unrecognized tax benefits recorded for periods which the relevant statutes of limitations expire in the next 12 months.

The Company has not provided an estimate for any U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries that might be payable if these earnings were repatriated since the Company considers these amounts to be permanently invested.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense for all periods presented. The Company accrued approximately $91,000, $361,000 and $310,000 for the payment of interest and penalties at December 31, 2012, 2011 and 2010 respectively.

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Note H - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

Note H – Goodwill and Other Intangible Assets

The major components of goodwill and other intangible assets are:

	2012				2011
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Finite-lived intangible assets:
Customer relationships	$	8,366	$	1,582	$	5,274	$	1,011
Technology & drawings		5,790		1,379		4,600		1,118
Other intangibles		1,560		1,453		1,557		1,413
Total finite-lived intangible assets		15,716		4,414		11,431		3,542
Goodwill		17,452		-		14,672		-
Trade names & trademarks		3,532		-		2,920		-
Total	$	36,700	$	4,414	$	29,023	$	3,542

Amortization of intangible assets in 2012, 2011 and 2010 was $869,000, $955,000 and $421,000, respectively. Amortization of these intangible assets for 2013 through 2017 is expected to approximate $1.2 million per year. Pursuant to the acquisitions described in Note J, the Company recognized customer relationships of $3.1 million, technology and drawings of $1.2 million, trade names and trademarks of $612,000 and a goodwill of $2.8 million. The remaining changes occurring in 2012 relate to foreign currency translation effects and amortization.

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Note F - Income Taxes (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	35.00%
Income Taxes Paid	$ 12,000,000	$ 10,300,000	$ 8,100,000
Unrecognized Tax Benefits	421,000	1,423,000	1,298,000	1,461,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	311,000
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority	250,000
Income Tax Examination, Penalties and Interest Accrued	91,000	361,000	310,000
Internal Revenue Service (IRS) [Member]
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority	140,000
Irish Tax Returns [Member]
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority	40,000
Canadian Tax Returns [Member]
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority	$ 315,000

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Note D - Financing Arrangements (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

2013		2014		2015		2016		2017		Thereafter		Total
$	919	$	781	$	398	$	356	$	218	$	1,410	$	4,082

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Note I - Business Segment Information (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	2012		%		2011		%		2010		%
United States	$	239,153		64	$	241,405		67	$	180,705		61
Foreign countries		136,538		36		118,085		33		116,103		39
Total	$	375,691		100	$	359,490		100	$	296,808		100

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Note J - Acquisitions (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Number of Businesses Acquired	2
Unsecured Debt, Current	$ 17.0
Business Acquisition Revenue Of Acquired Entity	$ 10	$ 15

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Note G - Pensions and Other Postretirement Benefits (Detail) - Amounts Recognized in the Company’s Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Fair value of plan assets at end of year	$ 73,631	$ 65,754
Noncurrent liabilities	7,517	6,571
Pension Plan [Member]
Accumulated benefit obligation at end of year	65,427	58,278
Benefit obligation at beginning of year	72,325	62,865
Service cost	3,188	2,856
Interest cost	2,803	3,068
Settlement loss	263	177
Benefits paid	(6,974)	(6,645)
Actuarial loss or (gain)	9,543	10,004
Benefit obligation at end of year	81,148	72,325
Fair value of plan assets at beginning of year	65,754	64,150
Actual return on plan assets	7,651	1,049
Employer contributions	7,200	7,200
Fair value of plan assets at end of year	73,631	65,754
Funded status at end of year	(7,517)	(6,571)
Noncurrent liabilities	(7,517)	(6,571)
	(7,517)	(6,571)
Net actuarial loss or (gain)	35,029	33,658
Deferred tax (benefit) expense	(13,434)	(12,931)
After tax actuarial loss or (gain)	21,595	20,727
Service cost	3,188	2,856
Expected return on plan assets	(4,591)	(4,539)
Recognized actuarial loss or (gain)	2,441	1,675
Settlement loss	2,935	3,010
Net periodic benefit cost	6,776	6,070
Net loss (gain)	1,371	8,985
Total income recognized in net periodic benefit cost and other comprehensive income	8,147	15,055
Postretirement Plan [Member]
Accumulated benefit obligation at end of year	23,794	24,094
Benefit obligation at beginning of year	24,094	23,882
Service cost	1,156	1,052
Interest cost	871	1,107
Benefits paid	(1,324)	(1,291)
Effect of foreign exchange	24	(20)
Actuarial loss or (gain)	(1,027)	(636)
Benefit obligation at end of year	23,794	24,094
Employer contributions	1,324	1,291
Current liabilities	(1,394)	(1,389)
Noncurrent liabilities	(22,399)	(22,705)
	(23,793)	(24,094)
Net actuarial loss or (gain)	(8,154)	(7,770)
Deferred tax (benefit) expense	3,160	2,969
After tax actuarial loss or (gain)	(4,994)	(4,801)
Service cost	1,156	1,052
Recognized actuarial loss or (gain)	(647)	(656)
Net periodic benefit cost	1,380	1,503
Net loss (gain)	(384)	20
Total income recognized in net periodic benefit cost and other comprehensive income	$ 996	$ 1,523

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Consolidated Balance Sheets (Parentheticals) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Common sharеs - authorizеd (in Shares)	35,000,000	35,000,000
Common sharеs - sharеs outstanding nеt of trеasury sharеs (in Shares)	20,996,893	20,990,893
Common sharеs - nеt of trеasury sharеs (in Shares)	642,603	648,603
Common sharеs, par valuе (in Dollars per share)	$ 0	$ 0

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Note B - Allowance for Doubtful Accounts

12 Months Ended

Dec. 31, 2012

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note B – Allowance for Doubtful Accounts

The allowance for doubtful accounts was $561,000 and $433,000 at December 31, 2012 and 2011, respectively.

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Note A - Summary of Significant Accounting Policies (Detail) (USD $) In Millions, unless otherwise specified	12 Months Ended			24 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011
Percentage of LIFO Inventory	73.00%	82.00%		82.00%
Depreciation (in Dollars)	$ 11.2	$ 10.5	$ 10.2
Concentration Risk, Percentage		10.00%		10.00%
Advertising Expense (in Dollars)	$ 3.5	$ 3.4	$ 3.2
Percentage Of Total Sales Benchmark [Member]
Concentration Risk, Percentage	10.00%
Building [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	20 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	50 years
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	15 years
Software [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Software [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	5 years
Minimum [Member] | Technology And Drawings [Member]
Finite-Lived Intangible Asset, Useful Life	15 years
Minimum [Member] | Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life	9 years
Minimum [Member] | Other Intangible Assets [Member]
Finite-Lived Intangible Asset, Useful Life	2 years
Maximum [Member] | Technology And Drawings [Member]
Finite-Lived Intangible Asset, Useful Life	20 years
Maximum [Member] | Customer Relationships [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
Maximum [Member] | Other Intangible Assets [Member]
Finite-Lived Intangible Asset, Useful Life	18 years

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Note F - Income Taxes (Detail) - Deferred Tax Assets and Liabilities (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred tax assets:
Inventories	$ 170	$ 49
Accrued liabilities	2,430	2,506	2,237
Postretirement health benefits obligation	7,848	8,060	7,849
Pension	1,217	873
Other	452	1,634	1,834
	12,117	13,122	11,920
Deferred tax liabilities:
Inventories			391
Depreciation and amortization	14,376	13,419	11,524
Pension			2,001
	14,376	13,419	13,916
Net deferred tax liabilities	$ (2,259)	$ (297)	$ (1,996)

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Note A - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Product Warranty Liability [Table Text Block]

	2012			2011			2010
Balance at beginning of year	$	1,228		$	1,543		$	1,863
Provision		1,394			1,081			1,217
Claims		(1,489	)		(1,396	)		(1,537	)
Balance at end of year	$	1,133		$	1,228		$	1,543