GRC 35.03 - Gorman-Rupp Reports First Quarter 2008 Record Results
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MANSFIELD, Ohio--(BUSINESS WIRE)--The Gorman-Rupp Company reports record net sales of $81,434,000 during the first quarter ended March 31, 2008 compared to $74,461,000 during the same period in 2007, an increase of 9.4%. Net income during the quarter was $7,152,000, an increase of 40.5% compared to $5,092,000 in 2007, resulting in record earnings per share of $0.43 compared to $0.30 for the first quarter in 2007.
Sales growth during the first quarter 2008 resulted from continued increases in the Company’s international sales. In addition, increased sales of fire protection pumps and fabricated components by the Company’s subsidiary, Patterson Pump Company, more than replaced revenues from the sale of custom pumps for a flood control project recorded in the first quarter 2007. Incoming orders increased backlog slightly to $116.6 million from December 31, 2007.
Growth in the Company’s first quarter earnings primarily resulted from operating leverage on increased sales and product mix together with a lower effective tax rate.
Continuing the Company’s development of the Mansfield, Ohio facilities, the Board of Directors approved the second phase of consolidation and expansion plans. Projected cost of the expansion is $52.2 million, which is in addition to $5.8 million previously approved for engineering design and site development. Consolidation and expansion of the facilities will result in increased efficiency and capacity. Construction of the second phase of the project is expected to begin during 2008. The Company anticipates that the expansion will be funded by cash on-hand, operating cash flow and borrowing capacity.
President and CEO Jeffrey Gorman stated, “We are extremely pleased with the strong first quarter results. This is a very good start for the year in which the Company celebrates its seventy-fifth anniversary and continues its growth into the areas of water and wastewater handling and infrastructure renewal and expansion. We are excited about the second phase of the expansion of the Mansfield Division’s manufacturing, customer center and office facilities to support our anticipated continuing growth.”
The Gorman-Rupp Company designs, manufactures and sells pumps and related equipment (pumps and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, heating ventilating and air conditioning (HVAC), military and other liquid handling applications.
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