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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 July 2006
LADISH REPORTS SALES OF $90.2 MILLION AND NET INCOME OF $8.5 MILLION FOR 2ND QUARTER 2006
Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2006 second quarter sales of $90.2 million, a 36% improvement over $66.5 million of sales in the second quarter of 2005. The Company had a net income of $8.5 million, resulting in diluted earnings per share of $0.60 for the second quarter of 2006 versus net income of $4.6 million and $0.33 per share in the same period of 2005. First half 2006 sales of $185.2 million reflect a 41% growth over 2005, with $16.1 million of net income, $1.14 per share, in contrast to $7.3 million of net income, $0.53 per share, in 2005.
Ladish will host a conference call on Thursday, July 27, 2006 at 11:00 a.m. EDT to discuss the second quarter performance for 2006. The telephone number to call to participate in the conference call is (866) 550-6338.
| For the Three Months
Ended June 30
| For the Six Months
Ended June 30
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| (Dollars in thousands, except earnings per share) | 2006
| 2005
| 2006
| 2005
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Net sales | | | $ | 90,173 | | $ | 66,533 | | $ | 185,179 | | $ | 131,627 | |
| Cost of goods sold | | | | 71,001 | | | 56,591 | | | 148,639 | | | 114,422 | |
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| Gross profit | | | | 19,172 | | | 9,942 | | | 36,540 | | | 17,205 | |
| SG&A expense | | | | 4,834 | | | 1,961 | | | 9,138 | | | 4,545 | |
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| Operating income | | | | 14,338 | | | 7,981 | | | 27,402 | | | 12,660 | |
| Interest expense & other | | | | 1,028 | | | 448 | | | 1,821 | | | 909 | |
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| Pretax income | | | | 13,310 | | | 7,533 | | | 25,581 | | | 11,751 | |
| Income tax provision | | | | 4,747 | | | 2,903 | | | 9,287 | | | 4,463 | |
| Minority interest in net earnings of subsidiary | | | | 61 | | | -- | | | 160 | | | -- | |
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| Net income | | | $ | 8,502 | | $ | 4,630 | | $ | 16,134 | | $ | 7,288 | |
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| Basic earnings per share | | | $ | 0.60 | | $ | 0.34 | | $ | 1.15 | | $ | 0.53 | |
| Basic weighted average shares outstanding | | | | 14,130,599 | | | 13,699,847 | | | 14,073,162 | | | 13,688,280 | |
| Diluted earnings per share | | | $ | 0.60 | | $ | 0.33 | | $ | 1.14 | | $ | 0.53 | |
| Diluted weighted average shares outstanding | | | | 14,180,709 | | | 13,831,563 | | | 14,166,124 | | | 13,830,209 | |
| June 30 | December 31 |
| (Dollars in thousands) | 2006
| 2005
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| Cash | | | $ | 7,789 | | $ | 14,494 | |
| Accounts receivable | | | | 66,828 | | | 51,497 | |
| Inventory | | | | 109,811 | | | 78,151 | |
| Net PP&E | | | | 104,687 | | | 99,425 | |
| Other | | | | 46,609 | | | 52,462 | |
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| Total Assets | | | $ | 335,724 | | $ | 296,029 | |
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| Accounts payable | | | $ | 46,292 | | $ | 41,665 | |
| Accrued liabilities | | | | 16,075 | | | 10,213 | |
| Senior bank debt | | | | -- | | | 27,000 | |
| Senior notes | | | | 58,000 | | | 18,000 | |
| Pensions | | | | 43,416 | | | 46,203 | |
| Postretirement benefits | | | | 34,726 | | | 35,479 | |
| Stockholders’ equity | | | | 137,215 | | | 117,469 | |
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| Total Liabilities and Equity | | | $ | 335,724 | | $ | 296,029 | |
“The 36% sales increase in the second quarter of 2006 compared to the same period of 2005 is due to the continued strength of the aerospace industry and the integration of the acquisitions of ZKM and Valley Machining,” says Kerry L. Woody, Ladish’s President and CEO. “Due to increased sales volumes, product mix, favorable by-product sales and continued focus on cost reductions, the Company’s operations improved in the second quarter of 2006 as gross margins were 21.3% in contrast to 14.9% in the second quarter of 2005.”
Looking forward to the remainder of 2006, Woody remarked, “Although the second half of 2006 will contain raw material challenges, we remain optimistic that the aerospace recovery is sustainable. Orders supporting the Airbus A380 may be stretched out but we have experienced no cancellations. Our backlog continues to grow and reached a record $526 million at the end of the second quarter of 2006 in contrast to $377 million at the same date in 2005. As the recovery of our industry continues we are seeking opportunities to capitalize on this upturn to grow our business both internally and externally in order to better position our company for the future. All of the operating units of Ladish are experiencing an upturn in business and profitability. While we are enjoying this positive trend, our established cost reduction programs remain focused at sustaining the profitability of the business and improving our cash position while serving the needs of our customers.”
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.
