The Gorman-Rupp Co. last week reported net sales and earnings for the first quarter ended March 31, 2011, of $84.1 million compared to $65.8 million during the same period in 2010, a 27.8-percent increase. Net income increased 58.3 percent to $7.1 million compared to $4.5 million in the first quarter 2010. Earnings per share were $0.42 and $0.27 for the respective periods.
Higher sales during the quarter, which includes sales of National Pump Co. acquired Oct. 1, 2010, were positively impacted by the improved global economy compared to a year ago. Primary increases were in sales to the industrial, agricultural, construction and rental markets. In addition, sales of custom pumps increased during the quarter as a result of pumps supplied for flood control projects.
Strong incoming orders in the aforementioned markets during the quarter resulted in a record backlog of $141.1 million at March 31, a 35-percent increase from a year ago and 31.4-percent higher than the backlog of $107.4 million at Dec. 31, 2010.
The increase in earnings for the quarter principally reflects improved operating leverage on the higher volume of sales. First-quarter earnings also benefited from the inclusion of National Pump Co., partially offset by additional LIFO expense of $0.03 per share primarily due to increases in price indexes.
“We are very encouraged by the amount and diversity of new orders received during the quarter and by the much-improved financial results compared to a year ago,” said Jeffrey Gorman, president and CEO. “Strong domestic sales growth combined with continued expansion in international markets and improved operating leverage have contributed to the company’s performance. The record backlog at the end of the quarter favorably positions the company for the coming months.”
At its April 28, meeting, the board of directors of the company declared a five-for-four split of the company’s common shares in the form of a distribution of one additional common share for each four common shares previously issued. The distribution will be made on June 10, to shareholders of record at the close of business on May 13.
Computershare Investor Services, the transfer agent and registrar for the common shares of the company, will accept instructions from brokers and nominees regarding their requirements for the distribution until June 3.
In an additional action, the board declared a quarterly cash dividend of $0.09 per share on the common stock of the company, payable June 10, to shareholders of record May 13. The cash dividend is payable on post-split shares and represents a 7.1-percent increase over the equivalent post-split dividend paid during the previous quarter. This marks the 245th consecutive dividend paid by The Gorman-Rupp Co.
Headquartered in Mansfield, Ohio, The 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 (HVAC), military and other liquid handling applications.
