Ladish (LDSH) 10-Q 2007 Q3 Quarterly report

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the Quarter EndedSeptember 30, 2007

Commission File Number0-23539

LADISH CO., INC.

(Exact name of registrant as specified in its charter)

Wisconsin	31-1145953
(State or other Jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
5481 South Packard Avenue, Cudahy, Wisconsin	53110
(Address of principal executive offices)	(Zip Code)

(414) 747-2611

(Registrant’s telephone number, including area code)

        Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

Yes  X         No      

        Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large accelerated filer               Accelerated filer  X           Non-accelerated filer      

        Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes             No  X  

        Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 31, 2007
Common Stock, $0.01 Par Value	14,534,467

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PART I – FINANCIAL INFORMATION

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LADISH CO., INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	(unaudited)						(unaudited)
	2007			2006			2007			2006
Net sales	$	105,027		$	90,664		$	316,287		$	275,843
Cost of sales		89,922			75,395			265,547			224,034
Gross profit		15,105			15,269			50,740			51,809
Selling, general and administrative expenses		4,097			4,583			12,145			13,721
Income from operations		11,008			10,686			38,595			38,088
Other income (expense):
Interest expense		(572	)		(980	)		(2,078	)		(2,639	)
Other, net		29			(155	)		299			(317	)
Income before income tax provision
and minority interest		10,465			9,551			36,816			35,132
Income tax provision		3,968			3,115			13,770			12,402
Minority interest in net earnings of subsidiary		18			23			38			183
Net income	$	6,479		$	6,413		$	23,008		$	22,547
Basic earnings per share	$	0.45		$	0.45		$	1.59		$	1.60
Diluted earnings per share	$	0.45		$	0.45		$	1.58		$	1.59
Basic weighted average shares outstanding		14,524,010			14,198,413			14,509,938			14,115,371
Diluted weighted average shares outstanding		14,548,642			14,242,600			14,547,521			14,192,075

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LADISH CO., INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands, Except Share Data)

	(unaudited) September 30, 2007			December 31, 2006
Assets
Current assets:
Cash and cash equivalents	$	2,484		$	3,431
Accounts receivable, less allowance of $126 at each date		83,020			69,144
Inventories		119,023			106,736
Deferred income taxes		2,777			2,777
Prepaid expenses and other current assets		2,153			1,665
Total current assets		209,457			183,753
Property, plant and equipment:
Land and improvements		6,101			5,856
Buildings and improvements		53,095			50,628
Machinery and equipment		187,812			177,347
Construction in progress		26,180			12,755
		273,188			246,586
Less - accumulated depreciation		(141,027	)		(134,490	)
Net property, plant and equipment		132,161			112,096
Deferred income taxes		18,203			22,811
Other assets		13,090			9,946
Total assets	$	372,911		$	328,606
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	48,975		$	32,933
Senior bank debt		6,300			2,100
Senior notes		6,000			6,000
Accrued liabilities:
Pensions		233			213
Postretirement benefits		4,081			4,081
Wages and salaries		5,372			4,600
Taxes, other than income taxes		223			260
Interest		1,015			722
Profit sharing		2,231			2,882
Paid progress billings		792			36
Income taxes		--			16
Other		6,143			6,146
Total current liabilities		81,365			59,989
Noncurrent liabilities:
Senior notes		40,000			46,000
Postretirement benefits		32,120			33,710
Pensions		22,815			30,291
Officers’ deferred compensation		5,230			5,006
Minority interest in equity of subsidiary		563			635
Other noncurrent liabilities		304			305
Total liabilities		182,397			175,936
Stockholders’ equity:
Common stock - authorized 100,000,000, issued 14,605,591
shares at each date of $.01 par value		146			146
Additional paid-in capital		125,158			115,688
Retained earnings		97,799			74,791
Treasury stock, 71,124 and 404,624 shares of common stock, respectively,
at each date at cost		(521	)		(2,962	)
Accumulated other comprehensive loss		(32,068	)		(34,993	)
Total stockholders’ equity		190,514			152,670
Total liabilities and stockholders’ equity	$	372,911		$	328,606

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LADISH CO., INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)

	For the Nine Months Ended September 30,
	(unaudited)
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	23,008		$	22,547
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation		8,354			7,644
Charge in lieu of taxes related to goodwill		29			30
Deferred income taxes		5,106			12,193
Minority interest in net earnings of subsidiary		38			183
(Gain) loss on disposal of property, plant and equipment		(175	)		23
Changes in assets and liabilities:
Accounts receivable		(12,866	)		(19,089	)
Inventories		(11,885	)		(41,551	)
Other assets		(3,549	)		402
Accounts payable and accrued liabilities		15,935			2,995
Other liabilities		1,919			(2,982	)
Net cash provided by (used in) operating activities		25,914			(17,605	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment		(25,766	)		(9,389	)
Proceeds from sale of property, plant and equipment		328			49
Purchase of ZKM stock		(110	)		(521	)
Acquisition of business net of cash acquired		--			(2,849	)
Net cash used in investing activities		(25,548	)		(12,710	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from (repayment of) senior bank debt		4,200			(14,400	)
Repayment of notes payable		--			(1,980	)
Proceeds from senior notes		--			40,000
Repayment of senior notes		(6,000	)		(6,000	)
Deferred financing costs		--			(222	)
Proceeds from exercise of stock options		289			1,707
Net cash provided by (used in) financing activities		(1,511	)		19,105
Effect of exchange rate changes on cash and cash equivalents		198			75
DECREASE IN CASH AND CASH EQUIVALENTS		(947	)		(11,135	)
CASH AND CASH EQUIVALENTS, beginning of period		3,431			14,494
CASH AND CASH EQUIVALENTS, end of period	$	2,484		$	3,359

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LADISH CO., INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Dollars in Thousands, Except Share Data)

(1) Basis of Presentation

In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments necessary to present fairly its financial position at September 30, 2007 and its results of operations and cash flows for the interim periods presented. All adjustments are of a normal recurring nature.

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with Article 10 of Regulation S-X and therefore do not include all disclosures required for annual financial statements presented in conformity with accounting principles generally accepted in the United States of America. The Company has filed a report on Form 10-K which contains audited consolidated financial statements that include all information and footnotes necessary for a fair presentation of its financial position at December 31, 2006 and 2005, and the related consolidated statements of operations, stockholders’ equity, and cash flows for the years ended December 31, 2006, 2005 and 2004.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results will likely differ from those estimates, but management believes such differences will not be material.

The results of operations for any interim period are not necessarily indicative of the results to be expected for a full year.

(2) Inventories

	September 30, 2007			December 31, 2006
Raw material and supplies	$	43,944		$	39,940
Work-in-process and finished goods		79,253			72,195
Less progress payments		(4,174	)		(5,399	)
Total inventories	$	119,023		$	106,736

(3) Interest and Income Tax Payments

	For the Nine Months Ended September 30,
	2007		2006
Interest paid	$	1,745	$	2,396
Income taxes paid		9,401		661

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(4) Cash and Cash Equivalents

Cash in excess of daily requirements is invested in marketable securities consisting of commercial paper and money market instruments which mature in three months or less. Such investments are deemed to be cash equivalents. Outstanding payroll and accounts payable checks related to certain bank accounts are recorded as accounts payable on the balance sheets. These checks amounted to $4,774 and $3,872 as of September 30, 2007 and December 31, 2006, respectively.

(5) Revenue Recognition

Sales revenue is recognized when the title and risk of loss have passed to the customer, there is pervasive evidence of an arrangement, delivery has occurred or the services have been provided, the sales price is determinable and collectibility is reasonably assured. This generally occurs at the time of shipment. Net sales include freight out as well as reductions for returns and allowances, and sales discounts. Progress payments on contracts are generally recognized as reductions of the related inventory costs. Progress payments in excess of inventory costs are reflected as a liability.

(6) Income Taxes

The year-to-date tax provisions for 2007 and 2006 are based on annualized combined federal, state and foreign effective tax rates of 37.4% and 35.3%, respectively. The principal difference, if any, from the expected federal tax rate of 35% is due primarily to state income taxes, offset by the impact of lower income tax rates in Poland and the benefit of the Extra-Territorial Income (“ETI”) exclusion related to export sales in 2006 and the Domestic Production Activities deduction in 2007.

(7) Pension and Postretirement Benefits

The components of net periodic benefit costs recognized for the nine-month periods ended September 30, 2007 and 2006 are presented in the table below.

	Pension Benefits						Other Postretirement Benefits
	2007			2006			2007		2006
Service cost	$	656		$	677		$	112	$	89
Interest cost		8,450			8,491			1,520		1,594
Expected return on plan assets		(11,647	)		(10,856	)		--		--
Amortization of prior service cost		311			320			11		--
Amortization of the net loss		2,822			3,236			14		95
Net periodic benefit cost	$	592		$	1,868		$	1,657	$	1,778

Contributions:

The Company previously disclosed in its financial statements for the year ended December 31, 2006, that it expected to contribute $12,892 to its pension plans in 2007. As of September 30, 2007, the Company has made $11,175 of contributions to the pension plans versus $5,474 during the same period in 2006. $11,124 of contributions in the first nine months of 2007 consisted of 300,000 shares of common stock of the Company which were added to the pension plans on January 3, 2007 and $51 of cash contributions were added in the nine-month period ending September 30, 2007. The Company currently estimates its total contributions to its pension plans in 2007 will be $11,797.

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In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 was enacted. In May 2004, the FASB issued FASB Staff Position No. 106-2,Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003 in response to the new law which may provide a federal subsidy to sponsors of retiree healthcare benefit plans. The Company has concluded that certain benefits provided by its postretirement benefit plan are actuarially equivalent to Medicare Part D under the Act and has filed a refund request with the Claims Management Services, a division of the Health and Human Services Department. In the first quarter of 2007, the Company received a $172 refund and recognized the refund as a reduction to cost of sales and SG&A expenses in its financial statements.

(8) Debt

The Company sold $30,000 of Series A senior notes (the “Series A Notes”) in a private placement to certain institutional investors on July 20, 2001. The Series A Notes are unsecured and bear interest at a rate of 7.19% per annum with the interest being paid semiannually. The Series A Notes have a seven-year duration with the principal amortizing equally over the duration after the third year. Amortization payments of $6,000 annually were made on July 20, 2004, 2005, 2006 and 2007.

On May 16, 2006, the Company sold $40,000 of Series B senior notes (the “Series B Notes”) in a private placement to certain institutional investors. The Series B Notes are unsecured and bear interest at a rate of 6.14% per annum with interest being paid semiannually. The Series B Notes have a ten-year duration with the principal amortizing equally over the duration after the third year.

The Company and a syndicate of Lenders have entered into a revolving credit facility (the “Facility”) which was most recently renewed on April 28, 2006. The Facility consists of a $35,000 unsecured revolving line of credit which bears interest at a rate of LIBOR plus 1.25%. At September 30, 2007, there were $6,300 of borrowings under the Facility and $28,700 was available pursuant to the terms of the Facility.

(9) Earnings Per Share

The incremental difference between basic weighted average shares outstanding and diluted weighted average shares outstanding is due to the dilutive impact of outstanding options.

(10) Stockholders’ Equity

The Company has a Stock Option Plan (the “Plan”) that covers certain employees. Under the Plan, incentive stock options for up to 983,333 shares may be granted to employees of the Company, of which 943,833 options have been granted. These options expire ten years from the grant date. Options granted vest over two years. There were no options granted in the nine months ended September 30, 2007. As of September 30, 2007, 32,336 options granted under the Plan remain outstanding and exercisable. During the first nine months of 2007, 33,500 options were exercised (for cash of $289) and shares were issued from Treasury Stock.

(11) Legal Proceedings

From time to time the Company is involved in legal proceedings relating to claims arising out of its operations in the normal course of business. Although the Company believes that there are no material legal proceedings pending or threatened against the Company or any of its properties, the Company has been named as a defendant in a number of asbestos cases in Mississippi, six asbestos cases in Illinois and one asbestos case in California. As of the date of this filing, the Company has been dismissed from a majority of the cases in Mississippi and five of the cases in Illinois. The Company has never manufactured or processed asbestos. The Company’s only exposure to asbestos involves products the Company purchased from third parties. The Company has notified its insurance carriers of these claims and is vigorously defending these actions. The Company has not made any provision in its financial statements for the asbestos litigation.

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(12) New Accounting Pronouncements

FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109,” requires that an enterprise evaluate all tax positions recognized in that enterprise’s financial statements for any uncertainty that the tax positions will not be sustained under examination. The evaluation process is twofold. First, an enterprise must determine whether it is more likely than not that a tax position will be sustained upon examination. Secondly, the enterprise must measure the amount of benefit to recognize in its financial statements for tax positions which meet the more likely than not threshold. FASB Interpretation No. 48 became effective for fiscal years beginning after December 15, 2006. For the nine-month period ending September 30, 2007, the Company does not believe there is any uncertainty with respect to the tax positions reflected in its financial statements which would result in a material change in the amount of benefit recognized in the financial statements; therefore, no provision has been made for the adoption of FASB Interpretation No. 48.

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MANAGEMENT’S DISCUSSION
AND ANALYSIS OF RESULTS OF OPERATIONS AND
CHANGES IN FINANCIAL POSITION
(Dollars in Thousands, except per share data)

RESULTS OF OPERATIONS

Third Quarter 2007 Compared to Third Quarter 2006

Net sales for the three months ended September 30, 2007 were $105,027 compared to $90,664 for the same period in 2006. The 15.8% increase in net sales for the third quarter of 2007 versus 2006 was due to growth in all markets served by the Company along with the pass through to net sales of the increase in costs for the raw materials utilized by the Company. Gross profit for the third quarter of 2007 decreased to 14.4% of net sales in contrast to 16.8% of net sales in the third quarter of 2006 primarily as a result of the increased raw material costs in the quarter which resulted in raw material being a higher percentage of net sales in the third quarter of 2007 in comparison to the same period in 2006 and thereby decreasing gross profit as a percent of net sales. In addition, gross profits for the third quarter of 2007 were negatively impacted by reduced by-product sales.

Selling, general and administrative expenses, as a percentage of net sales, were 3.9% for the third quarter of 2007 compared to 5.1% for the same period in 2006. The decrease in SG&A expenses between the periods was attributable to the Company’s transition to using internal staffing for international sales, partially offset by an increased provision for incentive compensation.

Interest expense for the third quarter of 2007 was $572 in contrast to $980 for the same period in 2006. The lower interest expense in 2007 is due primarily to increased capitalization of interest expense on capital projects and reduced level of debt. During the third quarter of 2007, the Company’s revolving line of credit had an interest rate equal to the LIBOR rate plus 1.25% per annum. Series A and Series B senior notes bore interest at the rate of 7.19% and 6.14%, respectively, per annum. The Company had $6,300 of borrowings under the revolving line of credit facility and had $46,000 of senior notes outstanding at the end of the third quarter of 2007.

The 2007 and 2006 third quarter income tax provisions are based on effective tax rates of 37.9% and 32.6%, respectively. At December 31, 2006, the Company has $4,429 of net operating loss (“NOL”) carryforwards which reduce current income taxes payable. For financial statement purposes, the Company previously recorded a deferred tax asset for the tax benefits attributable to the NOL carryforwards. Therefore, the Company uses an effective tax rate which reflects federal and state taxes without a reduction for actual NOL usage. See Note 6 to the consolidated financial statements and “Liquidity and Capital Resources.”

The Company’s net income for the third quarter of 2007 was $6,479, approximately the same as the third quarter of 2006. Profitability, as a percentage of net sales, declined in the period due to the higher raw material prices in 2007 resulting in raw material being a higher percentage of net sales. The Company’s contract backlog at September 30, 2007 was $574,506 as the Company received $136,243 of new orders in the third quarter of 2007, in comparison to backlogs of $558,702 and $499,764 at September 30, 2006 and December 31, 2006, respectively, and $123,666 of new orders in the third quarter of 2006.

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First Nine Months 2007 Compared to First Nine Months 2006

During the first nine months of 2007, the Company had $316,287 of net sales in contrast to $275,843 of net sales in the comparable period in 2006. This 14.7% increase in net sales is attributable to the strength of the jet engine, aerospace and industrial markets served by the Company and to higher prices for the raw materials which are passed through to the net sales prices by the Company. Gross profits in the first nine months of 2007 were $50,740 or 16.0% of sales. During the same period of 2006, gross profits were $51,809 or 18.8% of sales. The decline in gross profits, as a percentage of sales, is due to the equipment issues the Company faced in the first quarter of 2007 along with significantly higher raw material prices in 2007.

The Company incurred $12,145 of SG&A expenses in the first nine months of 2007 at a rate of 3.8% of net sales. In the same period of 2006, the Company had $13,721 of SG&A expenses, or 5.0% of net sales. The decrease in SG&A expenses, as a percentage of sales, resulted from a switch to internal staffing for international sales and a continued focus on cost controls.

Interest expense for the first nine months of the year was $2,078 in comparison to $2,639 in the same period of 2006. The decrease is due primarily to increased capitalization of interest expense on capital projects.

The Company used an annualized effective tax rate of 37.4% for the first nine months of 2007. For the same period in 2006, the Company used an annualized effective tax rate of 35.3%. The difference from the federal statutory rate of 35% is due primarily to the impact of state income taxes offset by the lower income tax rate for the Company’s subsidiary in Poland and the benefit of the ETI exclusion related to export sales in 2006 and the Domestic Production Activities deduction in 2007. See Note 6 to the consolidated financial statements and “Liquidity and Capital Resources.”

For the first nine months of 2007, the Company had $23,008 of net income, or $1.58 of income per share on a fully diluted basis. During the first nine months of 2006, net income was $22,547, or $1.59 per share on a fully diluted basis.

Liquidity and Capital Resources

The Company’s cash position as of September 30, 2007 is $947 less than its position at December 31, 2006. For the first nine months of 2007, the Company generated $25,914 of cash from operating activities in contrast to using $17,605 of cash for operations in the same period of 2006. The Company expended $25,766 and $9,389 of cash on capital expenditures in the first three quarters of 2007 and 2006, respectively.

On July 20, 2001, the Company sold $30,000 of Series A Notes in a private placement to certain institutional investors. The Series A Notes are unsecured and bear interest at a rate of 7.19% per annum with the interest being paid semiannually. The Series A Notes have a seven-year duration with the principal amortizing equally over the duration after the third year. Amortization payments of $6,000 annually were made on July 20, 2004, 2005, 2006 and 2007.

On May 16, 2006, the Company sold $40,000 of Series B Notes in a private placement to certain institutional investors. The Series B Notes are unsecured and bear interest at a rate of 6.14% per annum with interest being paid semiannually. The Series B Notes have a ten-year duration with the principal amortizing equally over the duration after the third year.

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In addition, the Company and a syndicate of Lenders have entered into the revolving credit facility which was most recently renewed on April 28, 2006. The revolving credit facility consists of a $35,000 unsecured revolving line of credit which bears interest at a rate of LIBOR plus 1.25%. At September 30, 2007, there were $6,300 of borrowings under the revolving credit facility and $28,700 of credit was available pursuant to the terms of the revolving credit facility.

As of December 31, 2006, the Company has NOL carryforwards of $4,285 that were generated prior to its 1993 reorganization and $144 of NOL carryforwards that were generated in 2004. The NOLs generated prior to the reorganization in 1993 are subject to an IRS imposed annual usage limitation of $2,142 and expire in 2008. There is no limitation on the usage of the NOLs generated in 2004 and these NOLs expire in 2024.

Realization of the domestic net deferred tax assets, including those attributable to the NOL carryforwards, over time is dependent upon the Company generating sufficient taxable income in future periods. In determining that realization of the domestic net deferred tax assets was more likely than not, the Company has given consideration to a number of factors including its recent earnings history, expectations for earnings in the future, the timing of reversal of temporary differences, tax planning strategies available to the Company and the expiration dates associated with NOL carryforwards. If, in the future, the Company determines that it is no longer more likely than not that the domestic net deferred tax assets will be realized, a valuation allowance will be established against all or part of the domestic net deferred tax assets with an offsetting charge to the income tax provision.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company believes that its exposure to market risk related to changes in foreign currency exchange rates and trade accounts receivable is immaterial as the vast majority of the Company’s sales are made in U.S. dollars. The Company does not consider itself subject to the market risks addressed by Item 305 of Regulation S-K.

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These forward-looking statements include expectations, beliefs, plans, objectives, future financial performance, estimates, projections, goals and forecasts. Potential factors which could cause the Company’s actual results of operations to differ materially from those in the forward-looking statements include:

•	Market conditions and demand for the Company's products	•	Competition
•	Interest rates and capital costs	•	Technologies
•	Unstable governments and business conditions in emerging economies	•	Raw material and
•	Legal, regulatory and environmental issues		energy prices
•	Health care costs	•	Taxes

Any forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Item 4. Controls and Procedures

Under the direction of the principal executive officer and principal financial officer, the Company has evaluated the effectiveness of its disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2007. Based on that evaluation, the Company has concluded that its disclosure controls and procedures were effective in providing reasonable assurance that material information required to be disclosed is included on a timely basis in the reports filed with the Securities and Exchange Commission.

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There were no significant changes in the Company’s internal controls over financial reporting or in other factors that could significantly affect these controls during the quarter ended September 30, 2007, including any corrective actions with regard to significant deficiencies and material weaknesses.

PART II – OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

There were no matters submitted to a vote of stockholders of the Company during the three-month period ending September 30, 2007.

Item 5. Other Information

On October 30, 2007, the Board of Directors voted to amend its agreement with the President of its Pacific Cast Technologies, Inc. to increase his severance benefit from six months’ to twelve months’ pay in the event of involuntary separation.

Item 6. Exhibits

Exhibit 31.1 is the written statement of the chief executive officer of the Company certifying this Form 10-Q complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934.

Exhibit 31.2 is the written statement of the chief financial officer of the Company certifying this Form 10-Q complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934.

Exhibit 32.1 is the written statement of the chief executive officer and chief financial officer of the Company pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LADISH CO., INC.
Date:  October 31, 2007	By:  /s/ WAYNE E. LARSEN
	Wayne E. Larsen
	Vice President Law/Finance
	& Secretary