NEWS
| 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 |
| 414-747-2602 Fax | 231-755-4144 Fax |
Release date: 30 October 2009
LADISH ANNOUNCES THIRD QUARTER RESULTS
| | • | Sales were $76.2 million |
| | • | Operating income positive before special charges |
| | • | Net loss was $2.2 million, or $0.14 per share |
| | • | $11.0 million of cash from operations |
Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2009 third quarter sales of $76.2 million in comparison to $120.8 million of sales in the third quarter of 2008. The Company reported a net loss of $2.2 million, resulting in diluted loss per share of $0.14 for the third quarter of 2009, versus a net income of $10.4 million, or $0.70 per share, in the same period of 2008.
“Ladish faced the same difficult market conditions as many of our customers, suppliers, and competitors in the third quarter of 2009. Inventory destocking in aerospace and jet engine markets combined with sagging industrial products demand significantly impacted third quarter sales,” said Gary J. Vroman, Ladish’s President and CEO. “This step down in top line revenues placed severe pressure on bottom line results, bringing year-to-date net income near break even levels. 2009 has presented us with various headwinds to earnings, including an $8.0 million decline in by-product sales, a $3.3 million increase in pension expense, a $2.7 million charge for employment reductions and separations, a $1.8 million increase in depreciation, and $2.6 million in added interest expense. On a positive note, despite these challenges, our domestic operating units were profitable in the third quarter as well as for the year to date. Our third quarter loss is directly attributable to two causes: first, charges associated with employment reductions, and second, lagging performance of foreign operations. The first of these is a one-time non-recurring event, and the second will be corrected in future periods. In addition, we generated $48.3 million in operating cash flow in the first nine months, allowing us to eliminate $30.6 million of short term debt and significantly improve our cash position.”
“We are cautiously optimistic the worst is behind us. The gap between order rates and build rates is narrowing and we view this as an indication we have seen the bottom,” remarked Vroman. “Over the past year we have realized significant delivery, productivity, inventory, and quality improvements. We are poised for the anticipated economic recovery, and we are confident the difficult actions taken to date have positioned us to take advantage of opportunities as world aerospace and industrial markets rebound.”
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LCI-09-09
NEWS
| For the Three Months
Ended September 30
| For the Nine Months
Ended September 30
|
|---|
(Dollars in thousands, except per share data)
| 2009
| 2008
| 2009
| 2008
|
| Net sales | | | $ | 76,191 | | $ | 120,761 | | $ | 266,616 | | $ | 356,917 | |
| Cost of goods sold | | | | 71,469 | | | 102,568 | | | 248,233 | | | 308,396 | |
|
| |
| |
| |
| |
| Gross profit | | | | 4,722 | | | 18,193 | | | 18,383 | | | 48,521 | |
| SG&A expense | | | | 5,692 | | | 6,077 | | | 14,007 | | | 15,321 | |
|
| |
| |
| |
| |
| Operating income | | | | (970) | | | 12,116 | | | 4,376 | | | 33,200 | |
| Interest expense | | | | (1,428 | ) | | (338 | ) | | (3,594 | ) | | (1,018 | ) |
| Other | | | | (632 | ) | | 56 | | | (965 | ) | | (828 | ) |
|
| |
| |
| |
| |
| Pretax income (loss) | | | | (3,030 | ) | | 11,834 | | | (183 | ) | | 31,354 | |
| Income tax provision (benefit) | | | | (780 | ) | | 1,373 | | | 228 | | | 8,654 | |
| Noncontrolling interest in subsidiary | | | | (41 | ) | | 26 | | | (52 | ) | | 63 | |
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| |
| |
| |
| |
| Net income | | | $ | (2,209 | ) | $ | 10,435 | | $ | (359 | ) | $ | 22,637 | |
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| |
| |
| |
| |
Basic earnings (loss) per share | | | $ | (0.14 | ) | $ | 0.70 | | $ | (0.02 | ) | $ | 1.54 | |
| Basic weighted average shares outstanding | | | | 15,901,877 | | | 14,979,002 | | | 15,901,439 | | | 14,695,315 | |
| Diluted earnings (loss) per share | | | $ | (0.14 | ) | $ | 0.70 | | $ | (0.02 | ) | $ | 1.54 | |
| Diluted weighted average shares outstanding | | | | 15,901,877 | | | 14,981,118 | | | 15,901,439 | | | 14,698,048 | |
(Dollars in thousands)
| September 30
2009
| December 31
2008
|
| Cash and cash equivalents | | | $ | 12,716 | | $ | 4,903 | |
| Accounts receivable, net | | | | 54,502 | | | 78,673 | |
| Inventory | | | | 102,602 | | | 129,307 | |
| Net PP&E | | | | 199,337 | | | 199,269 | |
| Other | | | | 94,620 | | | 97,314 | |
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| |
| |
| Total assets | | | $ | 463,777 | | $ | 509,466 | |
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|
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| Accounts payable | | | $ | 27,456 | | $ | 39,020 | |
| Accrued liabilities | | | | 17,181 | | | 23,388 | |
| Senior bank debt | | | | -- | | | 28,900 | |
| Senior notes | | | | 90,000 | | | 90,000 | |
| Pensions | | | | 72,415 | | | 70,825 | |
| Postretirement benefits | | | | 31,786 | | | 33,256 | |
| Equity | | | | 224,939 | | | 224,077 | |
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| |
| |
| Total liabilities & equity | | | $ | 463,777 | | $ | 509,466 | |
Ladish will host a conference call on Monday, November 2, 2009 at 9:00 a.m. EST to discuss the third quarter performance for 2009. The telephone number to call to participate in the conference call is (866) 439-4712, then enter PIN Code 194791# when prompted.
LCI-09-09
NEWS
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-09-09
