The Gorman-Rupp Co. reported net sales during the third quarter 2013 increased 10.4 percent to $101.2 million compared to $91.6 million during the same period in 2012. Domestic sales increased 18.3 percent or $10.7 million while international sales decreased 3.3 percent or $1.1 million. The increase in sales in the company’s water end markets of $1.8 million was primarily due to increased shipments for the agriculture and fire protection markets of $5.6 million, partially offset by decreased shipments for Gulf Coast flood control projects of $3.9 million. Sales in its non-water end markets of $7.7 million increased primarily due to shipments for the OEM market of $4.3 million related to power generation equipment and military applications and for the industrial market of $2.2 million.
Net sales for the nine months ended Sept. 30, were a record $300.1 million compared to $287.0 million during the same period in 2012, an increase of 4.5 percent. The increase in water end market sales of $11.5 million was primarily the result of shipments for the fire and agricultural markets and for Gulf Coast flood control projects in the first half of 2013. This increase was partially offset by reduced construction market demand for pumps from rental businesses as compared to this market’s strong sales early last year. Increased international shipments for the petroleum market were the major contributor to the increase in non-water market sales of $1.5 million.
Third-quarter operating income was $12.0 million resulting in operating margin of 11.9 percent compared to 11.0 percent in the third quarter 2012. Net income increased 18.5 percent during the quarter to $7.9 million compared to $6.7 million in the third quarter 2012 and earnings per share were $0.38 and $0.32 for the respective periods.
Operating income for the first nine months was $33.8 million resulting in operating margin of 11.3 percent compared to 12.8 percent in the first nine months of 2012. Net income was $22.9 million during the first nine months of 2013 compared to $24.5 million in the same period last year and earnings per share were $1.09 and $1.17 for the respective periods.
The company’s backlog of orders was $190.7 million at Sept. 30, compared to $146.7 million a year ago and $143.4 million at Dec. 31, 2012. The increase in backlog reflects the award of the Permanent Canal Closure Project contract of approximately $60.0 million to supply major flood control pumps to a member of a joint venture construction group for a significant New Orleans flood control project. The pumps are expected to be shipped primarily in the second half of 2014 and first half of 2015.
“We delivered strong third-quarter results driven by increased sales and profitability within a difficult business environment, as U.S. and global economic and political uncertainties continue to be a negative influence on capital goods investment within most of our markets,” said Jeffrey Gorman, president and CEO. “Although our fourth quarter is typically softer seasonally, we remain focused on providing high-quality products with timely deliveries and are gaining confidence over the longer term. The PCCP contract should provide a positive impact on sales and earnings as we move into 2014 and 2015.”
At its Oct. 24, meeting, the board of directors 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 Dec. 10, to shareholders of record at the close of business on Nov. 15.
In an additional action, the board of directors of the company declared a quarterly cash dividend of $0.09 per share on the common stock of the company, payable Dec. 10, to shareholders of record Nov. 15. The cash dividend is payable on post-split shares and represents a 12.5-percent increase over the equivalent post-split dividend paid during the previous quarter. This marks the 255th consecutive dividend paid by The Gorman-Rupp Co. and the 41st consecutive year of increased dividends paid to its shareholders.
The Gorman-Rupp Co. is based in Mansfield, Ohio.