Exhibit 99, Page 1
GORMAN-RUPP REPORTS SECOND QUARTER 2004 RESULTS
Mansfield, Ohio - July 20, 2004 - The Gorman-Rupp Company (AMEX:GRC) reports net
sales for the second quarter ended June 30, 2004 were $50,804,000 compared to
$49,264,000 for the same quarter in 2003, an increase of 3.1%. Net income for
the second quarter 2004 was $2,449,000 compared to $2,567,000 in 2003, equal to
earnings per share of $0.29 and $0.30, respectively.
Sales increases in the industrial, construction and international markets during
the second quarter principally reflect favorable response to the general
economic recovery. However, the water and wastewater market, one of the
Company's largest, remained slow due to municipal and state government budget
issues.
The benefit of increased sales during the second quarter 2004 was more than
offset by cost of material increases, product mix changes and under-utilization
of the resources of some divisions whose markets have not yet responded to the
economic rebound.
Net sales for the first six months of 2004 were $100,235,000, compared to
$93,167,000 during the same period in 2003, an increase of 7.6%. Net income for
the first six months of 2004 was $4,656,000, compared to $3,769,000 in 2003, an
increase of 23.5% and equal to earnings per share of $0.55 and $0.44,
respectively.
The Company's backlog of orders at June 30, 2004 was $60.3 million compared to
$58.4 million at December 31, 2003.
The Company continues to be financially well positioned with positive cash flow
and no debt contributing to its balance sheet strength.
Company President and Chief Executive Officer, Jeffrey S. Gorman stated, "While
we are pleased with the improvement at several of our divisions, some have been
slow to respond to the general economic upturn as a result of market demand not
yet materializing. We are optimistic that capital spending for pumping equipment
will continue to increase as the general economy improves."
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President & CFO, Tel
(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 June 30, Six Months Ended June 30,
2004 2003 2004 2003
-------- -------- -------- --------
Net sales $ 50,804 $ 49,264 $100,235 $ 93,167
Cost of products sold 39,946 37,995 79,247 73,460
-------- -------- -------- --------
Gross profit 10,858 11,269 20,988 19,707
Selling, general &
administrative expenses 7,102 7,195 13,961 13,958
-------- -------- -------- --------
Operating income 3,756 4,074 7,027 5,749
Other income (expense), net 132 77 364 338
-------- -------- -------- --------
Income before income taxes 3,888 4,151 7,391 6,087
Income taxes 1,439 1,584 2,735 2,318
-------- -------- -------- --------
Net income $ 2,449 $ 2,567 $ 4,656 $ 3,769
======== ======== ======== ========
Basic & diluted earnings
per share $ 0.29 $ 0.30 $ 0.55 $ 0.44
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands of dollars)
June 30, December 31,
Assets 2004 2003
---------- ----------
Cash & cash equivalents $ 22,545 $ 17,446
Accounts receivable 35,669 32,148
Inventories 35,003 38,062
Other current assets & deferred income taxes 5,918 6,606
---------- ----------
Total Current Assets 99,135 94,262
Property, plant & equipment - net 53,372 54,338
Other assets 12,117 12,339
---------- ----------
Total Assets $ 164,624 $ 160,939
========== ==========
Liabilities and Shareholders' Equity
Accounts payable $ 7,137 $ 6,163
Accrued liabilities & expenses 14,031 13,203
Income taxes 2,643 2,542
---------- ----------
Total Current Liabilities 23,811 21,908
Postretirement benefits 22,862 22,569
Shareholders' Equity 117,951 116,462
---------- ----------
Total Liabilities & Shareholders' Equity $ 164,624 $ 160,939
========== ==========
Shares outstanding 8,543,553 8,543,553