The Gorman-Rupp Co. reported net sales during the third quarter 2012 were $91.6 million compared to $90.2 million during the same period in 2011. Net income during the quarter was $6.7 million compared to $7.7 million in the third quarter 2011, a 13-percent decrease. Earnings per share were $0.32 and $0.37 for the respective periods.
Net sales for the nine months ended Sept. 30, 2012 increased 7.7 percent to a record $287.0 million compared to $266.4 million during the same period in 2011. Both years benefited from increases in the seasonal agriculture market business contributed by the 2010 acquisition of National Pump Co. Net income increased 3.4 percent to a record $24.5 million compared to $23.7 million in the first nine months of 2011. Earnings per share were $1.17 and $1.13 for the respective periods.
Sales increased a modest 1.6 percent during the third quarter compared to the same period last year. Sales improved 10.3 percent in the larger water markets group and declined 12.0 percent in non-water markets. Major contributions to water market sales were shipments of pumps for domestic flood control, and shipments of pumps for water supply and sewage systems domestically and internationally.
The quarter’s non-water market decreases were primarily in the OEM market because of the scale-down of U.S. military operations overseas, and shipments of fabricated products related to power generation declined due to the slow and unsteady economic recovery and related reduced power demands in North America.
The company’s backlog of orders was $146.7 million at Sept. 30, compared to $157.9 million a year ago and $155.5 million at Dec. 31, 2011. The planned decrease in backlog from Sept.30, 2011 and Dec.31, 2011 was primarily because of record shipments during the 12 months ending Sept. 30, combined with lower incoming orders for the construction market. The backlog is expected to be boosted in 1Q13 by approximately $70 million based on a letter of intent to supply major flood control pumps for a significant New Orleans flood control project.
In other company news, Gorman-Rupp Africa Proprietary Limited has purchased the business of Pumptron with cash generated from operations. Pumptron has been an international value-added distributor for Gorman-Rupp for more than 25 years and will further enhance the company’s continuing international expansion.
Founded in 1986, Pumptron is a leading provider of water-related pumping solutions primarily serving the construction, mining, agricultural and municipal markets in South Africa and increasingly throughout other sub-Sahara African countries. Pumptron is headquartered in Johannesburg, South Africa, with operating locations in Cape Town and Durban and had approximately $10 million in revenue during its fiscal year 2012, which includes sales of Gorman-Rupp products.
“As we move into the fourth quarter, we remain focused on providing high-quality products, executing on profitable growth and acquisition opportunities, and maintaining a very strong balance sheet that provides excellent financial flexibility,” said Jeffrey Gorman, president and CEO said. “Although there are some positive indicators as mentioned above, we expect to continue to be challenged for at least the next several quarters by well-publicized domestic and global economic conditions affecting most of the markets the company serves. The acquisition of Pumptron will accelerate Gorman-Rupp’s presence in South Africa and serve as a platform for future growth in the rapidly-evolving sub-Sahara Africa region where the needs for water, wastewater, agriculture and construction infrastructure present excellent opportunities for growth in key markets we serve.”
The board of directors of The Gorman-Rupp Co. declared a quarterly cash dividend of $0.10 per share on the common stock payable Dec. 10, to shareholders of record Nov. 15. This marks the 251st consecutive quarterly dividend paid by The Gorman-Rupp Co.
