All Things Business

Gorman-Rupp Announces First Quarter Financials; Declares Divided

28 Apr , 2018  

The Gorman-Rupp Company has reported financial results for the first quarter ended March 31, 2018.

Highlights of that report included:

  • First quarter earnings per share were $0.37 compared to $0.19 per share for the first quarter of 2017
    • First quarter of 2018 included a non-cash pension settlement charge of $0.01 per share
    • First quarter of 2017 included a non-cash pension settlement charge of $0.04 per share
    • Lower effective tax rate due primarily to the U.S. Tax Cuts and Job Act
  • Net sales increased 4.3% or $4.0 million
  • Incoming orders increased 21% compared to the first quarter of 2017

Actual net sales for the first quarter of 2018 were $96.6 million compared to $92.6 million for the first quarter of 2017, an increase of 4.3% or $4.0 million. Domestic sales increased 8.9% or $5.3 million while international sales decreased 3.8% or $1.3 million compared to the same period in 2017

Net income was $9.6 million for the first quarter of 2018 compared to $5.1 million in the first quarter of 2017, and earnings per share were $0.37 and $0.19 for the respective periods. The Company’s backlog of orders was $127.3 million at March 31, 2018 compared to $96.9 million at March 31, 2017 and $114.0 million at December 31, 2017. The backlog at March 31, 2018 increased 31% as compared to March 31, 2017 driven by increased incoming orders in most of the markets the Company serves, most notably in the municipal, industrial and fire protection markets.

Capital expenditures for the quarter ended March 31, 2018 were $2.0 million and consisted primarily of machinery and equipment. Capital expenditures for the full-year 2018 are presently planned to be in the range of $10-$15 million and are expected to be financed through internally generated funds and existing lines of credit.

Jeffrey S. Gorman, President and CEO commented, “We are pleased to be off to a strong start in 2018 with increased sales plus continued improvement in gross and operating margins. Incoming orders continue to increase across many of the markets we serve. Although the agriculture market has improved somewhat, it remains soft compared to historical levels. We are closely monitoring the possible effect new tariffs may have on material costs and international sales. The impact of lower taxes however will complement our already strong balance sheet and cash flow. In addition, increased emphasis on infrastructure improvements at both the federal and state levels could be a positive factor over the next several years.

This year, Gorman-Rupp is celebrating its 85th anniversary. Our history of product excellence, innovation and customer service continue as catalyst for the future. We look forward to continuing the traditions of the past into the future.”

The Board of Directors of The Gorman-Rupp Company have also declared a quarterly cash dividend of $0.125 per share on the common stock of the Company, payable June 8, 2018, to shareholders of record May 15, 2018. This will mark the 273rd consecutive quarterly dividend paid by The Gorman-Rupp Company.

Source: Press Release

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