NEWS
| For: | From: |
Ladish Co., Inc. | Libby Communications |
| 5481 South Packard Avenue | 1414 East Harbour Towne Circle |
| Cudahy, WI 53110-8902 | 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: 20 October 2006
LADISH REPORTS SALES OF $90.7 MILLION AND NET INCOME OF $6.4 MILLION FOR
3RD QUARTER 2006
Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2006 third quarter sales of $90.7 million, a 40% improvement over $64.8 million of sales in the third quarter of 2005. The Company had a net income of $6.4 million, resulting in diluted earnings per share of $0.45 for the third quarter of 2006 versus net income of $3.3 million and $0.23 per share in the same period of 2005, a 96% improvement. Sales for the first nine months 2006 of $275.8 million reflect a 40% growth over 2005, with $22.5 million of net income, $1.59 per share, in contrast to $10.6 million of net income, $0.76 per share, in 2005, a 109% improvement in per share earnings.
Ladish will host a conference call on Monday, October 23, 2006 at 10:00 a.m. EDT to discuss the third quarter performance for 2006. The telephone number to call to participate in the conference call is (800) 481-9591.
| For the Three Months
Ended September 30
| For the Nine Months
Ended September 30
|
|---|
| (Dollars in thousands, except earnings per share) | 2006 | 2005 | 2006 | 2005 |
| Net sales | | | | $90,664 | | | $64,832 | | | $275,843 | | | $196,459 | |
| Cost of goods sold | | | | 75,395 | | | 54,578 | | | 224,034 | | | 169,000 | |
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| Gross profit | | | | 15,269 | | | 10,254 | | | 51,809 | | | 27,459 | |
| SG&A expense | | | | 4,583 | | | 4,436 | | | 13,721 | | | 8,981 | |
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| Operating income | | | | 10,686 | | | 5,818 | | | 38,088 | | | 18,478 | |
| Interest expense & other | | | | 1,135 | | | 498 | | | 2,956 | | | 1,407 | |
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| Pretax income | | | | 9,551 | | | 5,320 | | | 35,132 | | | 17,071 | |
| Income tax provision | | | | 3,115 | | | 2,044 | | | 12,402 | | | 6,507 | |
| Minority interest in net earnings of subsidiary | | | | 23 | | | -- | | | 183 | | | -- | |
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| Net income | | | | $6,413 | | | $3,276 | | | $22,547 | | | $10,564 | |
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Basic earnings per share | | | | $0.45 | | | $0.24 | | | $1.60 | | | $0.77 | |
| Basic weighted average shares outstanding | | | | 14,198,413 | | | 13,797,349 | | | 14,115,371 | | | 13,725,036 | |
| Diluted earnings per share | | | | $0.45 | | | $0.23 | | | $1.59 | | | $0.76 | |
| Diluted weighted average shares outstanding | | | | 14,242,600 | | | 13,989,775 | | | 14,192,075 | | | 13,883,798 | |
NEWS
| (Dollars in thousands) | September 30
2006
| December 31
2005
|
| Cash | | | $ | 3,359 | | $ | 14,494 | |
| Accounts receivable | | | | 70,981 | | | 51,497 | |
| Inventory | | | | 119,829 | | | 78,151 | |
| Net PP&E | | | | 106,583 | | | 99,425 | |
| Other | | | | 46,879 | | | 52,462 | |
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| Total Assets | | | $ | 347,631 | | $ | 296,029 | |
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| Accounts payable | | | $ | 43,131 | | $ | 41,665 | |
| Accrued liabilities | | | | 19,422 | | | 10,213 | |
| Senior bank debt | | | | 12,600 | | | 27,000 | |
| Senior notes | | | | 52,000 | | | 18,000 | |
| Pensions | | | | 41,444 | | | 46,203 | |
| Postretirement benefits | | | | 34,463 | | | 35,479 | |
| Stockholders’ equity | | | | 144,571 | | | 117,469 | |
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| Total Liabilities and Equity | | | $ | 347,631 | | $ | 296,029 | |
“The 40% sales increase in 2006 compared to 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 third quarter of 2006 as gross margins were 16.8% in contrast to 15.8% in the third quarter of 2005.”
Looking forward to the remainder of 2006 and into 2007, Woody remarked, “Currently, orders supporting the Airbus A380 have moved out of the remainder of 2006 and 2007 and into 2008 and beyond. Managing the associated raw material issues will be a challenge in the fourth quarter. Alternative program demands will utilize the capacity of the rescheduled A380 orders in 2007. Our backlog continues to grow and reached a record high of $559 million at the end of the third quarter of 2006 in contrast to $395 million at the same date in 2005. We expect 2007 to reflect this strength with improved revenues and earnings. We are seeking opportunities to capitalize on this upturn to grow our business both internally and externally to better position our company for the future. All of the operating units of Ladish are experiencing an improvement in business and profitability. We continue to be optimistic in the sustainability of the overall aerospace market. Our investment plans and established cost reduction programs remain focused on 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.
