The Gorman-Rupp Co. last week reported net sales were $68.3 million for the second quarter ended June 30, 18.7-percent lower than the $84.0 million during the same period in 2008. Net income declined from $7.9 million in the second quarter 2008 to $4.9 million in the second quarter 2009, or 38.4 percent. Earnings per share decreased from $0.47 to $0.29 for the comparable periods.
Net sales for the six months ended June 30, totaled $13.9 million, down 15.4 percent from net sales of $165.5 million during the same period in 2008. Net income declined 37.7 percent from $15.0 million in the first six months of 2008 to $9.4 million in the first six months of 2009. Earnings per share decreased from $0.90 to $0.56 for the comparable periods.
As in the previous two quarters, the global economic downturn continues to have a negative impact on the company’s business compared to its record results in the first half of last year. The decline in sales for the quarter was across most of the markets the company serves, with the largest declines in the construction and rental markets, the fire protection market and the power generation market.
“Our operational and financial initiatives in response to the global economic weakness will allow the company to continue to withstand the current downturn and better compete and grow when the economy recovers,” said Jeffrey Gorman, president and CEO. “We have seen less impact from federal stimulus funding than previously anticipated due to the relatively small allocation of these funds to water, wastewater and similar infrastructure projects to date.”
The company’s backlog of orders was $82.9 million at June 30, compared to $119.6 million a year ago and $107.8 million at Dec. 31, 2008, with the largest decline in the power generation market. The continued economic uncertainty facing most companies and municipalities has caused some orders to be deferred.
The company regularly evaluates its cost structure to ensure that it is appropriately positioned to respond to changing market conditions. In 2008, and continuing in 2009, the company initiated and expanded several initiatives to help adjust costs to current operating levels. During the second-quarter 2009, production plans were further realigned to match current demand and additional compensation reductions were put in place for salary and hourly employees and some workforce reductions occurred at locations where appropriate.
Gorman-Rupp is headquartered in Mansfield, Ohio.
