EX-99 2 l36255aexv99.htm EX-99

EX-99

Exhibit 99
Page 1

GORMAN-RUPP REPORTS FIRST QUARTER 2009 RESULTS

Mansfield, Ohio — April 23, 2009 — The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales during the first quarter ended March 31, 2009 decreased 12.1% to $71,598,000 from $81,434,000 during the same period in 2008. Net income during the quarter was $4,506,000, a decrease of 37.0% compared to $7,152,000 in 2008. Earnings per share were $0.27 and $0.43, respectively.

The decline in sales resulted from the continuing impact of the global economic downturn and affected most of the markets the Company serves. The decline in earnings principally reflects decreased operating leverage on the lower volume of operations and increased pension expense.

The Company’s backlog of orders was $91.8 million at March 31, 2009 compared to $116.6 million a year ago and $107.8 million at December 31, 2008. These decreases from March 31, 2008 were due to the worldwide recession which the Company began experiencing during the fourth quarter of 2008. The economic uncertainty facing most companies and municipalities has caused some orders to be delayed, deferred or cancelled.

In response to the current economic reality, the Company expanded several initiatives during the quarter to help adjust cost structures to current operating levels. Production plans have been realigned to match current demand. The Company stopped adding new personnel at all locations and some locations reduced personnel. Also, temporary personnel and overtime were eliminated and compensation reductions have been put in place for salary and hourly workers at locations where appropriate.

Capital expenditures totaling $30.1 million for the previously announced consolidation and expansion of the Mansfield, Ohio facilities have been incurred as of March 31, 2009, of which $6.2 million was incurred in 2009. During the quarter the Company borrowed $5.7 million under an unsecured loan agreement to partially finance this construction project which is expected to be completed by the end of 2009.

The Company is pleased to have been recognized again as one of the “Top 100 public companies that have displayed the highest corporate integrity” by Audit Integrity, Inc.

Jeffrey S. Gorman, President and CEO said, “While our financial performance was impacted by the decline in spending in the capital goods sector, we have implemented measures to allow us to remain financially sound during this period of unusual economic uncertainty. We remain optimistic that the infusion of Federal stimulus dollars targeted toward water, wastewater and other infrastructure projects will be positive for some of the markets we serve. We are continuing to provide high quality products with timely deliveries and we remain confident over the longer term.”

Released by David P. Emmens, Corporate Secretary, Telephone (419) 755-1477.

For information contact Robert E. Kirkendall, Senior Vice President & Chief Financial Officer, Telephone (419) 755-1294, or Wayne L. Knabel, Vice President Finance, Telephone (419) 755-1397.

Exhibit 99
Page 2

The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(Thousands of dollars, except per share data)

		Three Months Ended March 31,
		2009				2008
Net sales		$	71,598			$	81,434
Cost of products sold			56,253				61,590
Gross profit			15,345				19,844
Selling, general and administrative expenses			8,988				9,499
Operating income			6,357				10,345
Other income (expense) — net			511				543
Income before income taxes			6,868				10,888
Income taxes			2,362				3,736
Net income		$	4,506			$	7,152
Basic and diluted earnings per share		$	0.27			$	0.43

The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of dollars)

		Unaudited
		March 31,				December 31,
		2009				2008
Assets
Cash and short-term investments		$	30,476			$	23,793
Accounts receivable — net			43,859				48,200
Inventories			52,423				56,881
Deferred income taxes and other current assets			2,573				5,392
Total current assets			129,331				134,266
Property, plant and equipment — net			87,698				80,406
Deferred income taxes and other assets			16,791				16,866
Total assets		$	233,820			$	231,538
Liabilities and shareholders’ equity
Accounts payable		$	10,147			$	15,878
Short-term debt			5,671				—
Accrued liabilities and expenses			19,687				19,691
Total current liabilities			35,505				35,569
Deferred and other long-term income taxes			1,320				1,322
Retirement benefits			10,876				11,421
Postretirement benefits			24,292				24,020
The Gorman-Rupp Company shareholders’ equity			161,214				158,588
Noncontrolling interest			613				618
Total shareholders’ equity			161,827				159,206
Total liabilities and shareholders’ equity		$	233,820			$	231,538
Shares outstanding			16,707,535				16,707,535