Exhibit 99
Page 1
GORMAN-RUPP REPORTS IMPROVED 2003 RESULTS
Mansfield, Ohio - February 6, 2004 - The Gorman-Rupp Company (AMEX:GRC) reports
2003 profits improved 9.5% over 2002.
Net income for the year ended December 31, 2003 was $9,787,000 compared to
$8,936,000 in 2002, equal to earnings per share of $1.15 and $1.05,
respectively. Net sales during 2003 were $195,826,000 compared to $195,081,000
in 2002.
Net income for the fourth quarter ended December 31, 2003 was $3,463,000 or
$0.41 per share compared to $1,628,000 or $0.19 per share during the same
quarter in 2002, an increase of $1,835,000 or $0.22 per share. Net sales for the
quarter were $49,159,000 compared to $47,425,000 in 2002, an increase of
$1,734,000 or 3.7%. Income during the fourth quarter 2003 benefited
approximately $776,000 or $0.09 per share as a result of the application of tax
credits determined during the quarter and a lower effective tax rate.
Increased sales of pumps and related products were principally offset by a
decline in sales to the power generation business resulting in a slight overall
increase in net sales for the year 2003.
The favorable effect of cost containment programs and productivity improvements
during the year were reduced by increased pension cost which impacted earnings
per share $0.15 for the year.
Positive cash flow from operations, continuing profitability of all the
Company's subsidiaries and divisions and no bank debt continue to position the
Company well for the future.
Jeffrey S. Gorman, President and CEO, said that he is pleased with the Company's
fourth quarter and year-end results and is encouraged that certain indicators
are starting to show an increase in overall economic activity. The Company is
cautiously optimistic that domestic capital spending will increase during 2004.
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
(in thousands of dollars, except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
(unaudited)
2003 2002 2003 2002
-------- -------- -------- --------
Net sales (1) $ 49,159 $ 47,425 $195,826 $195,081
Cost of products sold (1) 38,136 37,688 153,832 153,630
-------- -------- -------- --------
Gross profit 11,023 9,737 41,994 41,451
Selling, general &
administrative expenses 6,637 7,406 27,974 27,921
-------- -------- -------- --------
Operating income 4,386 2,331 14,020 13,530
Other income (expense), net (187) 287 380 673
-------- -------- -------- --------
Income before income taxes 4,199 2,618 14,400 14,203
Income taxes 736 990 4,613 5,267
-------- -------- -------- --------
Net income $ 3,463 $ 1,628 $ 9,787 $ 8,936
======== ======== ======== ========
Basic & diluted earnings
per share $ 0.41 $ 0.19 $ 1.15 $ 1.05
(1) Prior period amounts have been reclassified to conform to the 2003
presentation.
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
December 31, December 31,
2003 2002
---------- ----------
Assets
Cash & cash equivalents $ 17,446 $ 13,086
Accounts receivable 32,148 29,234
Inventories 38,062 35,587
Other current assets & deferred
income taxes 6,606 5,952
---------- ----------
Total Current Assets 94,262 83,859
Property, plant & equipment, net 54,338 57,757
Other assets 12,339 11,230
---------- ----------
Total Assets $ 160,939 $ 152,846
========== ==========
Liabilities and Shareholders' Equity
Accounts payable $ 6,163 $ 6,557
Accrued liabilities & expenses 15,745 12,725
---------- ----------
Total Current Liabilities 21,908 19,282
Long-term notes payable -- 291
Postretirement benefits 22,569 21,817
Shareholders' Equity 116,462 111,456
---------- ----------
Total Liabilities & Shareholders'
Equity $ 160,939 $ 152,846
========== ==========
Shares outstanding 8,543,553 8,540,553