The Gorman-Rupp Co. posted record sales for the fourth quarter and full year ended Dec. 31, 2012, and attained 40 consecutive years of increased cash dividends paid to shareholders. Net sales for the full year increased 4.5 percent to a record $375.7 million compared to $359.5 million for 2011. Total international sales jumped more than 15 percent to a record $136.5 million.
Sales improved 6 percent in Gorman Rupp’s larger water end markets and 4.9 percent in its non-water end markets. Major contributions to water market sales were international shipments of pumps for fire protection and an increase in agricultural market sales, partially offset by reduced construction market demand for pumps for natural gas drilling applications and from rental business.
Gross profit was $90.2 million in 2012, resulting in gross margin of 24 percent compared to 24.4 percent in 2011. The decline was primarily the result of a less favorable product mix combined with increases in healthcare costs and depreciation expense.
Net sales during the fourth quarter of 2012 were $88.7 million compared to a record $93 million during the same period of 2011, a 4.7-percent decrease. The decrease in water-market sales was primarily because of a reduced construction market, partially offset by an increase in agricultural market sales.
“We are pleased with again achieving record sales primarily as a result of organic revenue growth,” said president and CEO Jeffrey Gorman. “However, incoming orders have moderated from record levels experienced during 2011 in some key end markets. Although we are encouraged by our growth in the agriculture, petroleum and international markets this past year, we anticipated the municipal and construction markets to remain somewhat sluggish for the near future due to the ongoing uncertain domestic economy. Taking advantage of our strong financial flexibility, the company continued to make strategic investments during the year for future growth. These included the international acquisition of South Africa-based Pumptron and the domestic acquisition of Texas-based American Turbine, which complement and broaden our existing pump portfolio and provide additional opportunities for global expansion of our major water markets and certain non-water markets.”
Gorman added that the company is celebrating its 80th anniversary of the company’s founding during 2013.
