The Gorman-Rupp Co. last week reported net sales and earnings for the third quarter and nine months ended Sept. 30. Net sales were $64.1 million in the third quarter, 23.9-percent lower than the record $84.2 million during the same period in 2008. Net income during the quarter was $5.2 million, a decrease of 29.9 percent compared to $7.4 million in the third quarter 2008. Earnings per share were $0.31 and $0.44 for the comparable periods.
“As we move into the fourth quarter, some indicators appear to show the beginning of improvement in the general economy, but we have yet to see a clear indication of a sustained recovery in the capital goods sector,” said Jeffrey Gorman, president and CEO. “Despite the effects of the sluggish economy, we are pleased that our team’s ongoing financial and operational initiatives have continued to make a positive impact on our profitability.”
Net sales for the nine months ended Sept. 30, were $204.0, down 18.3 percent from net sales of $249.7 million during the same period in 2008. Net income in the first nine months of 2009 was $14.6 million, a decrease of 35.1 percent compared to $22.4 million in the first nine months of 2008. Earnings per share were $0.87 and $1.34 for the comparable periods.
The global economic downturn continues to have a negative impact on the company’s business, particularly compared to its record results in the first nine months 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, rental, fire protection and power generation markets.
The decline in earnings for the quarter principally reflects decreased operating leverage on the lower volume of operations, and increased pension expense of $0.02 per share. This increased expense was offset by a decrease in LIFO expense of $0.09 per share, of which $0.04 per share was due to the partial liquidation of LIFO quantities during the third quarter 2009 as a result of lower sales levels.
The Gorman-Rupp Co. is headquartered in Mansfield, Ohio.