The Gorman-Rupp Co. last week reported record results for the year ended Dec. 31. In addition, the company achieved its 36th consecutive year of increased cash dividends paid to shareholders.
Net income during 2008 increased 19 percent on an 8.2-percent increase in net sales. Record 2008 net income was $27.2 million compared to $22.9 million in the prior year. Net sales were a record $330.6 million during 2008 compared to $305.6 million in 2007. Earnings per share were $1.63 and $1.37, respectively.
Sales growth in water and wastewater applications, fire protection, fabricated components and continued strength in international business contributed to the company’s record year in 2008. The increase in the 2008 earnings principally resulted from the favorable effect of product mix and operating leverage on increased sales during the first three quarters of the year.
Net sales during the fourth quarter 2008 increased 5.4 percent to $81.0 million compared to $76.8 million for the fourth quarter 2007. Fourth-quarter 2008 net income was $4.8 million compared to $5.8 million in 2007, a decrease of 17.2 percent, and resulted in fourth-quarter earnings per share of $0.29 in 2008, compared to $0.35 in 2007. The unfavorable impact of changes in product mix, computer system upgrade expense and foreign currency exchange rates were primarily responsible for the reduction in fourth quarter 2008 earnings compared to 2007.
The company’s backlog of orders was $107.8 million at Dec. 31, compared to $116.4 million at the end of 2007. This decrease of $8.6 million was primarily caused by the economic downturn experienced during the fourth quarter. The economic uncertainty facing many companies and municipalities caused several orders to be delayed and a few orders to be cancelled.
“Although we are extremely pleased with the record 2008 results, we clearly are now in the midst of a continuing global economic downturn that will be difficult to escape,” said Jeffrey Gorman, president and CEO. “Lack of consumer, municipal and overall business confidence has affected the purchase of capital goods. Discussions regarding the possible infusion of federal stimulus dollars, a portion of which may be directed toward water, wastewater and other infrastructure projects, may be positive for some of the markets we serve. In the midst of these uncertainties we will continue to align costs with changing market demand. Consistent with our first 75 years, we remain focused on our core business of manufacturing pumps and providing pumping solutions for fluid handling needs and will continue to position the company for long-term growth.”
Mansfield, Ohio-based Gorman-Rupp Co. designs, manufactures and sells pumps and related equipment for use in water, wastewater, construction, industrial, petroleum, original equipment, agriculture, fire protection, heating ventilating and air conditioning , military and other liquid-handling applications.