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| For: | From: |
Ladish Co., Inc. | Libby Communications |
| 5481 South Packard Avenue | 1414 East Harbour Towne Circle |
| Cudahy, WI 53110 | Muskegon, MI 49441 |
| Contact: Wayne E. Larsen | Contact: William J. Libby |
| 414-747-2935 | 231-755-4111 |
| 414-747-2890 Fax | 231-755-4144 Fax |
Release date: 25 April 2006
LADISH REPORTS NET INCOME OF $7.632 MILLION FOR 1ST QUARTER 2006
Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2006 first quarter sales of $95.0 million in comparison to $65.1 million of sales in the first quarter of 2005. The Company reported net income of $7.632 million, resulting in diluted earnings per share of $0.54 for the first quarter of 2006, versus a net income of $2.658 million or $0.19 per share, in the same period of 2005.
Ladish will host a conference call on Thursday, April 27, 2006 at 2:00 p.m. EDT to discuss the first quarter performance for 2006. The telephone number to call to participate in the conference call is (888) 695-0608.
| For the Three Months
Ended March 31
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| (Dollars in thousands, except per share data) | | |
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| 2006
| 2005
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| Net sales | | | $ | 95,006 | | $ | 65,094 | |
| Cost of goods sold | | | | 77,638 | | | 57,831 | |
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| Gross profit | | | | 17,368 | | | 7,263 | |
| SG&A expense | | | | 4,304 | | | 2,584 | |
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| Operating income | | | | 13,064 | | | 4,679 | |
| Interest expense & other | | | | (793 | ) | | (461 | ) |
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| Pretax income | | | | 12,271 | | | 4,218 | |
| Income tax provision | | | | 4,540 | | | 1,560 | |
| Minority interest in net earnings of subsidiary | | | | 99 | | | -- | |
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| Net income | | | $ | 7,632 | | $ | 2,658 | |
| Basic earnings per share | | | $ | 0.54 | | $ | 0.19 | |
| Basic weighted average shares outstanding | | | | 14,015,088 | | | 13,676,585 | |
| Diluted earnings per share | | | $ | 0.54 | | $ | 0.19 | |
| Diluted weighted average shares outstanding | | | | 14,150,903 | | | 13,828,728 | |
more
| (Dollars in thousands) | March 31
2006
| December 31
2005
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Cash | | | $ | 760 | | $ | 14,494 | |
| Accounts receivable | | | | 74,455 | | | 51,497 | |
| Inventory | | | | 90,655 | | | 78,151 | |
| Net PP&E | | | | 103,559 | | | 99,425 | |
| Other | | | | 47,706 | | | 52,462 | |
| Total assets | | | $ | 317,135 | | $ | 296,029 | |
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| Accounts payable | | | $ | 46,029 | | $ | 41,665 | |
| Accrued liabilities | | | | 12,751 | | | 10,213 | |
| Senior bank debt | | | | 33,900 | | | 27,000 | |
| Senior notes | | | | 18,000 | | | 18,000 | |
| Notes payable | | | | 1,912 | | | -- | |
| Pensions | | | | 44,370 | | | 46,203 | |
| Postretirement benefits | | | | 35,145 | | | 35,479 | |
| Stockholders' equity | | | | 125,028 | | | 117,469 | |
| Total liabilities & equity | | | $ | 317,135 | | $ | 296,029 | |
“The 46% sales increase in the first three months of 2006 compared to the first quarter of 2005 is due to the continued improvement of the jet engine and aerospace industries, a full quarter of ZKM sales and the overall strengthening of the economy,” says Kerry L. Woody, Ladish’s President and CEO. “Due to increased sales volumes, higher prices for by-products and better cost absorption from incremental sales growth along with cost reductions, the Company’s operations improved in the first quarter of 2006 as gross margins were 18.3% in contrast to 11.2% in the first quarter of 2005. All of our operating units contributed to the improvement in first quarter 2006 results and were ahead of expectations.”
Looking forward to the remainder of 2006, Woody remarked, “Under the current conditions we see the sales opportunity continuing to improve this year and we expect a more balanced product mix going forward, although we expect a decline in missile and rocket component sales from the 2005 level. We had a backlog of $502 million at the end of the first quarter of 2006 in contrast to $332 million at the end of the same period in 2005. The recovery of our industry is clearly under way and we expect it to continue. As our markets expand, our priority will be on responding to our customers’ requirements while simultaneously working to improve our internal operating efficiencies, assuring availability of critical raw materials and managing the growth of our working capital.”
Ladish Co., Inc. is a leading producer of highly engineered, technically advanced metal components for the jet engine, aerospace and general industrial markets. Ladish is headquartered in Cudahy, Wisconsin with operations in Wisconsin, Oregon, Connecticut and Poland. Ladish common stock trades on Nasdaq under the symbol LDSH.
This release includes forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in them. These risks and uncertainties include, but are not limited to, uncertainties in the company’s major markets, the impact of competition, the effectiveness of operational changes expected to increase efficiency and productivity, worldwide economic and political conditions and the effect of foreign currency fluctuations.
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