Mansfield, Ohio-based The Gorman-Rupp Co. last week reported that net sales during the fourth quarter ended Dec. 31, 2009 were $62.2 million, 23.2-percent lower than the $81.0 million during the same period in 2008. Net income was $3.7 million, a decrease of 22.0 percent compared to $4.8 million in the fourth quarter 2008. Earnings per share were $0.22 and $0.29 for the comparable periods.
Net sales during the quarter continued to be negatively impacted by the global recession, the company said. The decline in shipments for the quarter was across most of the markets the company serves, with the largest declines in the construction, industrial, municipal, fire protection and original equipment markets.
Net sales during 2009 were $266.2 million, 19.5-percent lower than the record $330.6 million during 2008. Net income was $18.3 million, a decrease of 32.8 percent from the $27.2 million in 2008. Earnings per share were $1.09 and $1.63 for the comparable periods. The decline in shipments for the year was also because most of the markets the company serves experienced recessionary challenges throughout the year.
“This past year was a challenge for the company as sales and earnings were reduced from our record performance in 2008,” said Jeffrey Gorman, president and CEO. “We anticipate a somewhat better, yet still challenging 2010. Capital spending in the domestic commercial markets is forecast to remain weak, while water and wastewater infrastructure and international markets should show modest growth compared to 2009. We are hopeful the economy will continue to stabilize and grow. However, we do not foresee a robust increase in capital spending, especially in the first half of this year.”
The company’s balance sheet continues to remain strong through this period of reduced sales and earnings. It generated a record $49.6 million in operating cash flow during 2009, primarily due to lower inventory and accounts receivable balances. As a result, the company has strong liquidity with $45.9 million cash and short-term investments at year end. The Mansfield Division’s manufacturing operations and offices moved into new state-of-the-art 460,500-square-foot facilities during the fourth quarter. This expansion and consolidation of Mansfield Division operations positions the company for long-term improved productivity and growth, the company said.