Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD 2008 SALES AND EARNINGS
WITH WEAKER FOURTH QUARTER
WITH WEAKER FOURTH QUARTER
Mansfield, Ohio — February 12, 2009 — The Gorman-Rupp Company (NYSE Alternext: GRC) reports record results for the year ended December 31, 2008. In addition, the Company achieved its thirty-sixth consecutive year of increased cash dividends paid to shareholders.
Net income during 2008 increased 19.0% on an 8.2% increase in net sales. Record 2008 net income was $27,197,000 compared to $22,859,000 in 2007. Net sales were a record $330,646,000 during 2008 compared to $305,562,000 in 2007. Earnings per share were $1.63 and $1.37, respectively.
Sales growth in water and wastewater applications, fire protection, fabricated components and continued strength in international business contributed to the Company’s record year in 2008. The increase in the 2008 earnings principally resulted from the favorable effect of product mix and operating leverage on increased sales during the first three quarters of the year.
Net sales during the fourth quarter 2008 increased 5.4% to $80,993,000 compared to $76,825,000 for the fourth quarter 2007. Fourth quarter 2008 net income was $4,765,000 compared to $5,754,000 in 2007, a decrease of 17.2%, and resulted in fourth quarter earnings per share of $0.29 in 2008, compared to $0.35 in 2007. The unfavorable impact of changes in product mix, computer system upgrade expense and foreign currency exchange rates were primarily responsible for the reduction in fourth quarter 2008 earnings compared to 2007.
The Company’s backlog of orders was $107.8 million at December 31, 2008 compared to $116.4 million at the end of 2007. This decrease of $8.6 million was primarily due to the economic downturn experienced during the fourth quarter. The economic uncertainty facing many companies and municipalities caused several orders to be delayed and in selective instances a few orders to be cancelled.
Capital expenditures of $23.9 million for the previously announced consolidation and expansion of the Mansfield, Ohio facilities have been incurred as of December 31, 2008, of which $21.5 million has been incurred during 2008. The project is expected to be completed by the end of 2009. The Company’s financial position remains strong and no bank financing has been required to date.
Jeffrey S. Gorman, President and CEO said, “Although we are extremely pleased with the record 2008 results, we clearly are now in the midst of a continuing global economic downturn that will be difficult to escape. Lack of consumer, municipal and overall business confidence has affected the purchase of capital goods. Discussions regarding the possible infusion of Federal stimulus dollars, a portion of which may be directed toward water, wastewater and other infrastructure projects, may be positive for some of the markets we serve. In the midst of these uncertainties we will continue to align costs with changing market demand. Consistent with our first 75 years,we remain focused on our core business of manufacturing pumps and providing pumping solutions for fluid handling needs and will continue to position the Company for long-term growth.”
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President & CFO, Telephone (419) 755-1294.
Exhibit 99
Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income
(Thousands of dollars, except per share data)
Condensed Consolidated Statements of Income
(Thousands of dollars, except per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
(unaudited) | ||||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net sales | $ | 80,993 | $ | 76,825 | $ | 330,646 | $ | 305,562 | ||||||||
Cost of products sold | 64,326 | 59,804 | 253,557 | 238,110 | ||||||||||||
Gross profit | 16,667 | 17,021 | 77,089 | 67,452 | ||||||||||||
Selling, general and administrative expenses | 10,106 | 9,499 | 38,101 | 34,567 | ||||||||||||
Operating income | 6,561 | 7,522 | 38,988 | 32,885 | ||||||||||||
Other income (expense) — net | (297 | ) | 948 | 1,506 | 2,498 | |||||||||||
Income before income taxes | 6,264 | 8,470 | 40,494 | 35,383 | ||||||||||||
Income taxes | 1,499 | 2,716 | 13,297 | 12,524 | ||||||||||||
Net income | $ | 4,765 | $ | 5,754 | $ | 27,197 | $ | 22,859 | ||||||||
Basic and diluted earnings per share | $ | 0.29 | $ | 0.35 | $ | 1.63 | $ | 1.37 |
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of dollars)
Condensed Consolidated Balance Sheets
(Thousands of dollars)
December 31, | December 31, | |||||||
2008 | 2007 | |||||||
Assets | ||||||||
Cash and short-term investments | $ | 23,793 | $ | 30,190 | ||||
Accounts receivable — net | 48,200 | 47,256 | ||||||
Inventories | 56,881 | 53,223 | ||||||
Deferred income taxes and other current assets | 5,392 | 4,619 | ||||||
Total current assets | 134,266 | 135,288 | ||||||
Property, plant and equipment — net | 80,406 | 59,970 | ||||||
Deferred income taxes and other assets | 16,866 | 16,276 | ||||||
Total assets | $ | 231,538 | $ | 211,534 | ||||
Liabilities and shareholders’ equity | ||||||||
Accounts payable | $ | 15,878 | $ | 14,162 | ||||
Accrued liabilities and expenses | 19,691 | 19,319 | ||||||
Total current liabilities | 35,569 | 33,481 | ||||||
Deferred and other long-term income taxes | 1,322 | 1,432 | ||||||
Retirement benefits | 11,421 | — | ||||||
Postretirement benefits | 24,020 | 26,661 | ||||||
Minority interest | 618 | 520 | ||||||
Shareholders’ equity | 158,588 | 149,440 | ||||||
Total liabilities and shareholders’ equity | $ | 231,538 | $ | 211,534 | ||||
Shares outstanding | 16,707,535 | 16,703,035 |
Shares outstanding and per share data reflect the 5 for 4 stock split effective December 10, 2007.