The Gorman-Rupp Co. posted net sales during the first quarter of $99.2 million compared to $110.1 million during its record first quarter of 2014, a 9.9-percent decrease. Domestic sales decreased 9.3 percent or $6.6 million, while international sales droped 10.9 percent of $4.2 million compared to the first quarter of 2014.
Sales in water end markets slid 11.6 percent or $9.2 million and sales in non-water end markets dropped 5.3 percent or $1.6 million. The decrease in water end markets was largely the result of lower sales in the construction market, including sales to rental companies because of the rapid decline in oil-and-gas production, which affected domestic and international sales.
“Multiple headwinds affected our first quarter results, including our comparisons to 2014’s historical record sales and operating results,” said Jeffrey Gorman, president and CEO of Gorman-Rupp Co. “The economic impacts of the rapid decline in prices and related production of oil directly affected our construction, rental and industrial pump markets, and indirectly impacted our other markets. Additionally, the strong U.S. dollar worked against export and international sales, and lower commodity prices combined with wet weather conditions in many parts of the country negatively impacted irrigation supply pump sales.
“On the brighter side, we do feel that fire protection and municipal pump sales will continue to improve gradually and our portion of the New Orleans PCCP flood control project will remain on schedule. Although the headwinds may well continue for some time, we will remain focused on our long-term track of solid domestic and international organic growth combined with strategic acquisition opportunities.”
Gorman-Rupp Co. is based in Mansfield, Ohio.
