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 |
| 414-747-2602 Fax | 231-755-4144 Fax |
Cudahy, WI—Ladish Co., Inc. (NASDAQ: LDSH) (www.ladishco.com) today reported 2007 net income was $32.3 million, or $2.22 of diluted earnings per share, on sales of $424.6 million. During the fourth quarter of 2007 the Company had diluted earnings per share of $0.64 in comparison to $0.42 in the fourth quarter of 2006.
Ladish will host a conference call on Wednesday, February 6, 2008 at 9:00 a.m. EST to discuss the Company’s performance for 2007. The telephone number to call to participate in the conference call is (877) 856-1969.
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||
| (Dollars in thousands, except earnings per share) | 2007 | 2006 | 2007 | 2006 | ||||||||||
| Net sales | $ | 108,344 | $ | 93,447 | $ | 424,631 | $ | 369,290 | ||||||
| Cost of goods | 90,081 | 78,089 | 355,628 | 302,123 | ||||||||||
| Gross profit | 18,263 | 15,358 | 69,003 | 67,167 | ||||||||||
| SG&A | 4,539 | 4,486 | 16,684 | 18,207 | ||||||||||
| Operating income | 13,724 | 10,872 | 52,319 | 48,960 | ||||||||||
| Interest expense & other | 386 | 1,310 | 2,165 | 4,266 | ||||||||||
| Pretax income | 13,338 | 9,562 | 50,154 | 44,694 | ||||||||||
| Income tax provision | 4,028 | 3,632 | 17,798 | 16,034 | ||||||||||
| Minority interest in subsidiary earnings | 30 | (4 | ) | 68 | 179 | |||||||||
| Net income | $ | 9,280 | $ | 5,934 | $ | 32,288 | $ | 28,481 | ||||||
| Basic earnings per share | $ | 0.64 | $ | 0.42 | $ | 2.22 | $ | 2.01 | ||||||
| Basic weighted average | ||||||||||||||
| shares outstanding | 14,534,467 | 14,200,967 | 14,516,120 | 14,136,946 | ||||||||||
| Diluted earnings per share | $ | 0.64 | $ | 0.42 | $ | 2.22 | $ | 2.00 | ||||||
| Diluted weighted average | ||||||||||||||
| shares outstanding | 14,558,269 | 14,245,636 | 14,550,258 | 14,205,641 | ||||||||||
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NEWS
| December 31, | ||||||||
| (Dollars in thousands) | 2007 | 2006 | ||||||
| Cash and cash equivalents | $ | 5,952 | $ | 3,431 | ||||
| Accounts receivable, net | 75,226 | 69,144 | ||||||
| Inventory | 118,187 | 106,736 | ||||||
| Net PP&E | 144,110 | 112,096 | ||||||
| Other | 37,976 | 37,199 | ||||||
| Total Assets | $ | 381,451 | $ | 328,606 | ||||
| Accounts payable | $ | 42,116 | $ | 32,933 | ||||
| Accrued liabilities | 18,343 | 15,602 | ||||||
| Senior bank debt | 7,500 | 2,100 | ||||||
| Senior notes | 46,000 | 52,000 | ||||||
| Pensions | 30,484 | 35,510 | ||||||
| Postretirement benefits | 35,454 | 37,791 | ||||||
| Stockholders’ equity | 201,554 | 152,670 | ||||||
| Total Liabilities and Equity | $ | 381,451 | $ | 328,606 | ||||
“Ladish finished 2007 with $108.3 million of net sales in the fourth quarter, a 16% improvement over 2006. Fourth quarter net income of $9.3 million was a 56% gain over the same period in 2006. These fourth quarter results ensured that 2007 was another strong year for Ladish. With a 15% increase in sales to $424.6 million and a 13% increase in net income to $32.3 million, Ladish’s 2007 performance continued the solid trend of year-over-year improved results,” says Kerry L. Woody, Ladish’s President and CEO. “The robust growth in sales and profitability was driven by increased demand in all three markets served by Ladish along with our continued drive to reduce costs and improve productivity. While general aerospace sales reflected the largest growth with a 47% improvement over 2006, sales of jet engine components and general industrial components also expanded from 2006 levels.”
“The outlook for 2008 and beyond is optimistic. Contract backlog at December 31, 2007 was a record $611 million in comparison to $500 million at the end of 2006,” observed Mr. Woody. “Progress continues on the new 12,500-ton isothermal press in Wisconsin which we expect to be installed by the end of the second quarter. Our titanium investment casting business will grow in 2008 and into the future with the added capacity of a new furnace and facility expansion in our Albany, Oregon facility along with the start-up of a complementary casting operation in Mexico. The development of an aerospace forging business at ZKM continues as we are also developing value-added machining and inspection capabilities in Poland. The continued strength of aerospace markets worldwide provides the basis for Ladish to drive its improved performance in the future.”
Ladish Co., Inc. is a leading producer of highly engineered, technically advanced 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, unanticipated slowdowns 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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LCI-08-02
