Ladish (LDSH) 8-K Results of Operations and Financial Condition

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

Release date: 27 October 2008

LADISH REPORTS SALES OF $121 MILLION AND NET INCOME OF $10.4 MILLION
FOR 3^RD QUARTER 2008

Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2008 third quarter sales of $121 million, a 15% improvement over $105 million of sales in the third quarter of 2007. The Company had a net income of $10.4 million, resulting in diluted earnings per share of $0.70 for the third quarter of 2008 versus net income of $6.5 million and $0.45 per share in the same period of 2007. First nine months 2008 sales of $357 million reflect a 13% growth over 2007, with $23 million of net income, $1.54 diluted earnings per share in 2008, in contrast to $23 million of net income, $1.58 diluted earnings per share, in 2007.

Ladish will host a conference call on Tuesday, October 28, 2008 at 9:00 a.m. EDT to discuss the third quarter performance for 2008. The telephone number to call to participate in the conference call is (877) 856-1968.

	For the Three Months Ended September 30						For the Nine Months Ended September 30
(Dollars in thousands, except earnings per share)	2008			2007			2008			2007
Net sales	$	120,761		$	105,027		$	356,917		$	316,287
Cost of goods sold		102,568			89,922			308,396			265,547
Gross profit		18,193			15,105			48,521			50,740
SG&A expense		6,077			4,097			15,321			12,145
Operating income		12,116			11,008			33,200			38,595
Interest expense		(338	)		(572	)		(1,018	)		(2,078	)
Other income (expense), net		56			29			(828	)		299
Pretax income		11,834			10,465			31,354			36,816
Income tax provision		1,373			3,968			8,654			13,770
Minority interest in net earnings of subsidiary		26			18			63			38
Net income	$	10,435		$	6,479		$	22,637		$	23,008
Basic earnings per share	$	0.70		$	0.45		$	1.54		$	1.59
Basic weighted average shares outstanding		14,979,002			14,524,010			14,695,315			14,509,938
Diluted earnings per share	$	0.70		$	0.45		$	1.54		$	1.58
Diluted weighted average shares outstanding		14,981,118			14,548,642			14,698,048			14,547,521

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LCI-08-13

(Dollars in thousands)	September 30 2008		December 31 2007
Cash	$	5,939	$	5,952
Accounts receivable		85,625		75,226
Inventory		143,025		118,187
Net PP&E		193,010		144,110
Goodwill		52,852		8,931
Other		33,137		29,045
Total assets	$	513,588	$	381,451
Accounts payable	$	54,589	$	42,116
Accrued liabilities		26,060		18,343
Senior bank debt		26,200		7,500
Senior notes		90,000		46,000
Pensions		23,910		30,484
Postretirement benefits		34,191		35,454
Stockholders' equity		258,638		201,554
Total liabilities and equity	$	513,588	$	381,451

“With revenue of $121 million, the third quarter of 2008 was another example of period over period and year over year sales growth for Ladish,” said Kerry L. Woody, Ladish President and CEO. “Our recent acquisitions, Chen-Tech and Aerex, have both provided positive results since their respective closings in the third quarter. We were also able to recognize a significant federal tax credit of approximately $5.3 million in the period which reduced our effective tax rate to 11.6% in the quarter. This full credit was offset by an additional $1 million of related professional fees which is reflected in our higher SG&A expenses in the quarter.”

“The results for the first nine months of 2008 were similar to the same period in 2007. A positive 13% sales increase over the same period in 2007, but flat earnings due to many of the same factors which negatively impacted the first and second quarters. Our outlook for the future remains very positive, with near-term planning to address the events at Boeing and the related uncertainties on the timing of production rates. Our backlog is at $673 million and product demand remains strong. The organic growth programs we have undertaken are nearing completion and will contribute in the forthcoming year. The new isothermal press has been assembled and cycled in the third quarter with tryout production planned in December. Pacific Cast’s new furnace and expansion are well under way with release for production by year-end. Our recent acquisitions of Aerex and Chen-Tech are already providing positive contributions to both earnings and cash flow.”

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, California, Connecticut, Oregon 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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LCI-08-13