The Gorman-Rupp Co. last week reported net sales and earnings for the second quarter and six months ended June 30. Net sales during the second quarter increased 27.3 percent to a quarterly record $92.2 million compared to $72.4 million during the same period in 2010. Net income increased 57.8 percent to $8.9 million compared to $5.7 million in the second quarter 2010. Earnings per share were $0.42 and $0.27 for the respective periods.
Net sales for the six months ended June 30, increased 27.6 percent to a six-month record $176.2 million compared to $138.2 million during the same period in 2010. Net income increased 58.0 percent to $16.0 million compared to $10.2 million in the first six months of 2010. Earnings per share were $0.76 and $0.49, respectively for these two periods. The operating results for 2011 include National Pump Co. acquired Oct. 1, 2010.
Higher sales during the quarter were impacted by the improving 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. Partially offsetting these increases was a decrease in sales to the fire protection market.
Increased orders in the aforementioned markets and in the original equipment market during the quarter resulted in a record backlog of $154.2 million at June 30, a 46.9-percent increase from a year ago and 43.6-percent higher than the backlog of $107.4 million at Dec. 31, 2010. The increase in earnings for the quarter and six months principally reflects improved operating leverage on the higher volume of sales.
"We are extremely pleased with our record sales performance for the second quarter and six months 2011 and are encouraged by our record backlog,” said Jeffrey Gorman, president and CEO said. “Although the economic recovery remains uneven, the company has achieved solid order, revenue and earnings growth in the first half of 2011. We believe this continued growth demonstrates the quality of our products and the depth of our markets and we look forward to a good second half of the year."
The company continues to maintain a strong and liquid balance sheet with $27.5 million in cash and short-term investments and working capital of $94.6 million at June 30. During the quarter, $2.0 million of borrowings used to finance the acquisition of National Pump Co. were re-paid.
The Gorman-Rupp Co. is headquartered in Mansfield, Ohio.
