Exhibit 99
Page 1
GORMAN-RUPP REPORTS INCREASES IN THIRD QUARTER 2003
Mansfield, Ohio - October 17, 2003 - The Gorman-Rupp Company (AMEX:GRC) reports
that third quarter sales exceeded sales during each of the eight previous
quarters and increased 8.5% over those during the third quarter, 2002.
Net sales for the third quarter ended September 30, 2003 were $53,336,000
compared to $49,139,000 in 2002, an increase of $4,197,000 or 8.5%. Net income
for the third quarter 2003 was $2,555,000 or $0.30 per share compared to
$1,905,000 or $0.23 per share for the same quarter 2002, an increase of $650,000
or 34.1%.
Net sales for the first nine months of 2003 were $146,212,000 compared to
$147,021,000 in 2002. Net income for the same period was $6,324,000 compared to
$7,308,000 in 2002, equal to earnings per share of $0.74 and $0.86,
respectively.
The increase in net sales was primarily attributable to timing of customer
releases for shipment of product during the quarter rather than the result of a
significant upturn in business. The Company's backlog, currently at $58.5
million, declined $10.0 million or 14.7% from the second quarter 2003. The lack
of any significant improvement in spending in the capital sector continues to
place pressure on companies selling products into these markets. The decline in
orders from the power generation business continues to impact the Company
compared to previous years.
The increased net income for the quarter, reflecting the positive effect of the
Company's operating leverage on increased shipments and the benefit from
continuing cost containment programs, was offset somewhat by increased pension
cost.
Positive cash flow from operations, profitability of all the Company's
subsidiaries and divisions and no bank debt continue to position the Company
well for the future.
While certain indicators show that overall economic activity is starting to
improve, the Company views the economic climate for industrial manufacturers
serving the capital goods sector as remaining stagnant. Jeffrey S. Gorman,
President and CEO, said, "Although I am pleased with the improvement in the
Company's third quarter report, any sustained recovery will need to come through
increased spending in the capital goods sector."
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President,
Telephone (419) 755-1294.
The Gorman-Rupp Company is a manufacturer of pumps and related equipment for
water, wastewater, construction, industrial, petroleum, original equipment,
agricultural, fire and government applications.
Exhibit 99
Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
-------- -------- -------- --------
Net sales $ 53,336 $ 49,139 $146,212 $147,021
Cost of products sold 42,072 39,219 115,241 115,307
-------- -------- -------- --------
Gross profit 11,264 9,920 30,971 31,714
Selling, general &
administrative expenses (1) 7,379 7,067 21,337 20,515
-------- -------- -------- --------
Operating profit 3,885 2,853 9,634 11,199
Other income (expense), net (1) 229 282 567 386
-------- -------- -------- --------
Income before income taxes 4,114 3,135 10,201 11,585
Income taxes 1,559 1,230 3,877 4,277
-------- -------- -------- --------
Net income $ 2,555 $ 1,905 $ 6,324 $ 7,308
======== ======== ======== ========
Basic & diluted earnings
per share $ 0.30 $ 0.23 $ 0.74 $ 0.86
(1) Prior period amounts have been reclassified to conform to current period
presentation.
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands of dollars)
September 30, December 31,
2003 2002
---------- ----------
Assets
Cash & cash equivalents $ 17,250 $ 13,086
Accounts receivable 36,512 29,234
Inventories 35,538 35,587
Other current assets & deferred
income taxes 6,444 5,952
---------- ----------
Total Current Assets 95,744 83,859
Property, plant & equipment - net 55,312 57,757
Other assets 9,985 11,230
---------- ----------
Total Assets $ 161,041 $ 152,846
========== ==========
Liabilities and Shareholders' Equity
Accounts payable $ 7,145 $ 6,557
Accrued liabilities & expenses 14,731 12,257
Income taxes 2,627 468
---------- ----------
Total Current Liabilities 24,503 19,282
Long-term notes payable 145 291
Postretirement benefits 22,225 21,817
Shareholders' Equity 114,168 111,456
---------- ----------
Total Liabilities & Shareholders' Equity $ 161,041 $ 152,846
========== ==========
Shares outstanding 8,543,553 8,540,553