Graham Corporation Reports 42% Sales Growth and Record Backlog of $63.0 Million for Third Quarter of Fiscal 2008
biz.yahoo.com
Monday January 28, 6:45 am ET
-- Third quarter sales grew to $20.6 million
-- Continued strong margins with gross margin of 41.9% and operating margin of 26.2%
-- Earnings per diluted share expands to $0.74 compared with $0.14 in the third quarter fiscal 2007
-- Several projects awarded in quarter result in orders of $26.6 million and a record backlog of $63.0 million
BATAVIA, N.Y.--(BUSINESS WIRE)--Graham Corporation (AMEX: GHM - News), a critical equipment manufacturer for the oil refinery, petrochemical and power industries, today reported revenue of $20.6 million for the third quarter of fiscal 2008, a 42.2% increase compared with revenue of $14.5 million in the third quarter of fiscal 2007. Net income for the third quarter was $3.8 million, or $0.74 earnings per diluted share, compared with $666 thousand, or $0.14 earnings per diluted share, in the prior year's third quarter. All per share amounts have been adjusted to reflect a five-for-four stock split which was distributed on or about January 3, 2008.
Sales increased $6.1 million in the quarter when compared with the same quarter last year. Condenser sales accounted for $4.2 million of this increase and $1.3 million came from aftermarket sales. Condenser sales of $7.1 million were 34% of total sales in the third quarter of fiscal 2008 compared with $2.9 million, or 20%, of total sales in the prior year's third quarter. Ejector system sales of $7.0 million were 34% of total sales in the third quarter of fiscal 2008 compared with $5.7 million, or 40%, of total sales in the prior year's third quarter. Aftermarket sales were 17% and 16% of total sales in the third quarter of fiscal 2008 and fiscal 2007, respectively. Graham's product sales mix in the third quarter reflected greater export sales to the petrochemical markets, as several surface condenser orders that were booked nine to twelve months ago are now in production.
Domestic sales were 52% of total sales for the third quarter of fiscal 2008 compared with 61% in the same period the prior fiscal year.
Sales by industry in the third quarter of fiscal 2008 were 38% to the refining industry, 42% to the chemical and petrochemical industries and 20% to other industrial applications compared with 42% to the refining industry, 29% to the chemical and petrochemical industries and 29% to other industrial applications in the prior year's third quarter. Additional historical information regarding sales by industry and region are contained in the tables at the end of this press release.
Mr. James R. Lines, President and Chief Executive Officer of Graham Corporation commented, "Expansions and upgrades in the oil refining and petrochemical industry continue to drive demand for our products and services. We believe that we are able to capitalize on the current strength of the market as a result of our productivity enhancements. Not only has our use of selective outsourcing further expanded production capacity, but our ongoing initiatives in both engineering and production to expand capacity are focused on leveraging our infrastructure while being mindful of managing fixed costs." |
