The Gorman-Rupp Company (NYSE Amex: GRC) last week reported net sales during the second quarter ended June 30, increased 5.9 percent to $72.4 million compared to $68.3 million during the same period in 2009. Net income increased 16.2 percent to $5.7 million compared to $4.9 million in the second quarter 2009. Earnings per share were $0.34 and $0.29 for the two respective periods.
Net sales for the six months ended June 30, totaled $138.2 million, down 1.3 percent from net sales of $139.9 million during the same period in 2009. Net income increased 8.3 percent to $10.2 million compared to $9.4 million in the first six months of 2009. Earnings per share were $0.61 and $0.56 for these two periods.
“The company experienced improved financial results during this quarter with earnings largely driven by solid operating performance in what is still an unpredictable environment,” said Jeffrey Gorman, president and CEO. “Customer order growth continues to be encouraging, but we still remain cautious as full economic recovery remains uncertain.”
The increase in net sales during the quarter was positively impacted by the early stages of economic recovery and is due primarily to increases in sales to the international fire protection market, custom pump applications and the construction and rental market, the company said, partially offset by decreases in sales to the OEM and the domestic fire protection markets.
The increase in earnings for the quarter reflects continued cost savings implemented in 2009, which also contributed to the 16.8-percent increase in operating income.
The company’s backlog of orders increased to $105.0 million at June 30, compared to $82.9 million a year ago and $93.7 million at Dec. 31, 2009. The increase from June 30, 2009 was largely because of orders arising from wastewater, rental and international fire protection applications.
The board of directors declared a quarterly cash dividend of 10.5 cents per share on the common stock of the company, payable Sept. 10, to shareholders of record Aug. 13. This marks the 242nd consecutive dividend paid by The Gorman-Rupp Co.
The Gorman-Rupp Company is headquartered in Mansfield, Ohio.
