The Gorman-Rupp Co. this week reported record sales, earnings and incoming orders for the year ended Dec. 31, 2011. Net sales during 2011 increased 21.1 percent to a record $359.5 million compared to $296.8 million during 2010. International sales increased 2 percent and were 33 percent of total sales in 2011.
Sales to most markets increased in 2011 with primary increases in the industrial, construction, agricultural and municipal markets, while OEM and international fire protection sales declined due to continued areas of economic weakness. Net income increased 10.8 percent to a record $28.8 million in 2011 compared to the previous record of $26.0 million in 2010. Earnings per share were $1.37 and $1.24 for the respective periods, a 10.5-percent increase. In addition, the company ended the year with record working capital and attained its 39th consecutive year of increased cash dividends paid to shareholders.
Net sales during the quarter ended Dec. 31, 2011 increased 9.8 percent to a record $93.0 million compared to $84.7 million during the same period in 2010. Sales growth in the fourth quarter of 2011 was primarily due to increases in the construction, petroleum, industrial and agricultural markets compared to the same period last year. International sales increased 18 percent and were 36 percent of total fourth-quarter 2011 sales with primary increases in the OEM and petroleum markets. Profitability increased at a slower rate during the quarter due to product mix, including increased sales of larger engine-driven pump systems, slightly reducing fourth quarter 2011 gross margin. Due to new government emissions standards, the costs of these purchased engines will continue to increase and put some margin pressure on our construction market sales.
“Gorman-Rupp delivered outstanding record results for 2011 as sales increased across most of the markets the company serves,” said Jeffrey Gorman, president and CEO. “Our National Pump Company acquisition also performed at record levels. Although concerns over the breadth and strength of a global economic recovery continue, our record level of incoming orders during the year and our near record order backlog at year end provide excellent momentum into 2012.”
Net income was $5.1 million during the quarter compared to a record $9.7 million in the same period a year ago, resulting in earnings per share of $0.24 and $0.46 for the respective periods.
Record sales during 2011 were exceeded by record incoming orders of $408.9 million, contributing to a backlog of $155.5 million on Dec. 31, 44.8-percent higher than the backlog of $107.4 million on Dec. 31, 2010. Due to record fourth-quarter shipments, the backlog decreased 1.5 percent during the fourth quarter 2011 compared to the record of $157.8 million on Sept. 30, 2011.
Gorman-Rupp is headquartered in Mansfield, Ohio.
