Gorman-Rupp: Major investments put off by public utilities
More pumps are being sold to businesses than utilities as municipalities continue to defer major water and sewage facility upgrades, Gorman-Rupp Co. president and CEO Jeffrey S. Gorman told Dow Jones Newswires...
MANSFIELD, OH, Aug. 13, 2004 -- More pumps are being sold to businesses than utilities as municipalities continue to defer major water and sewage facility upgrades, Gorman-Rupp Co. president and CEO Jeffrey S. Gorman told Dow Jones Newswires.
On July 20, the company reported net sales for the second quarter ended June 30 were $50,804,000 compared to $49,264,000 for the same quarter in 2003, an increase of 3.1%. Net income for the second quarter 2004 was $2,449,000 compared to $2,567,000 in 2003, equal to earnings per share of $0.29 and $0.30, respectively.
Sales increases in the industrial, construction and international markets during the second quarter principally reflect favorable response to the general economic recovery. However, the water and wastewater market, one of Gorman-Rupp's largest, remained slow due to municipal and state government budget issues.
The benefit of increased sales during the second quarter 2004 was more than offset by cost of material increases, product mix changes and under-utilization of the resources of some divisions whose markets have not yet responded to the economic rebound.
Net sales for the first six months were $100,235,000, compared to $93,167,000 during the same period in 2003, an increase of 7.6%. Net income for the first six months was $4,656,000, compared to $3,769,000 in 2003, an increase of 23.6% and equal to earnings per share of $0.55 and $0.44, respectively.
Gorman-Rupp's backlog of orders at June 30 was $60.3 million compared to $58.4 million at the end of 2003. The company continues to be financially well positioned with positive cash flow and no debt contributing to its balance sheet strength.
CEO Gorman said, "While we are pleased with the improvement at several of our divisions, some have been slow to respond to the general economic upturn as a result of market demand not yet materializing. We are optimistic that capital spending for pumping equipment will continue to increase as the general economy improves."
In other news, Gorman-Rupp chose TDCI Inc.'s BuyDesign™ Product Customization Management Suite for online ecommerce through its distributor website. Sales BuyDesign has been implemented along with BuyDesign Control Center to provide ordering and order status inquiry capabilities for Gorman-Rupp's custom-configured products. Integration with existing manufacturing and business systems has been done using BuyDesign Integrator. The new storefront is now in use by a steadily growing number of Gorman-Rupp's over 1,000 world-wide distributors, who have started placing a significant percentage of their orders online in favor of placing them by phone or fax.