The Gorman-Rupp Co. last week reported record net sales of $81.4 million during the first quarter ended March 31, compared to $74.5 million during the same period in 2007, an increase of 9.4 percent. Net income during the quarter was $7.2 million, an increase of 40.5 percent compared to $5.1 million in 2007, resulting in record earnings per share of $0.43 compared to $0.30 for the first quarter in 2007.
Sales growth during the first quarter 2008 resulted from continued increases in the company’s international sales. In addition, increased sales of fire protection pumps and fabricated components by the company’s subsidiary, Patterson Pump Co., more than replaced revenues from the sale of custom pumps for a flood control project recorded in the first quarter 2007.
Growth in the company’s first-quarter earnings primarily resulted from operating leverage on increased sales and product mix together with a lower effective tax rate.
Continuing the company’s development of the Mansfield, Ohio facilities, the board of directors approved the second phase of consolidation and expansion plans. Projected cost of the expansion is $52.2 million, which is in addition to $5.8 million previously approved for engineering design and site development. Consolidation and expansion of the facilities will result in increased efficiency and capacity. Construction of the second phase of the project is expected to begin during 2008. The company anticipates that the expansion will be funded by cash on-hand, operating cash flow and borrowing capacity.
“We are extremely pleased with the strong first-quarter results,” said Jeffrey Gorman, president and CEO. “This is a very good start for the year in which the company celebrates its 75th anniversary and continues its growth into the areas of water and wastewater handling and infrastructure renewal and expansion. We are excited about the second phase of the expansion of the Mansfield Division’s manufacturing, customer center and office facilities to support our anticipated continuing growth.”
Headquartered in Mansfield, Ohio, The Gorman-Rupp Co. designs, manufactures and sells pumps and related equipment for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, heating ventilating and air conditioning, military and other liquid-handling applications.
