<SEC-DOCUMENT>0001157523-18-000274.txt : 20180209
<SEC-HEADER>0001157523-18-000274.hdr.sgml : 20180209
<ACCEPTANCE-DATETIME>20180209131752
ACCESSION NUMBER:		0001157523-18-000274
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180209
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180209
DATE AS OF CHANGE:		20180209

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GORMAN RUPP CO
		CENTRAL INDEX KEY:			0000042682
		STANDARD INDUSTRIAL CLASSIFICATION:	PUMPS & PUMPING EQUIPMENT [3561]
		IRS NUMBER:				340253990
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06747
		FILM NUMBER:		18590277

	BUSINESS ADDRESS:	
		STREET 1:		600 SOUTH AIRPORT ROAD
		STREET 2:		P.O. BOX 1217
		CITY:			MANSFIELD
		STATE:			OH
		ZIP:			44901
		BUSINESS PHONE:		419-755-1011

	MAIL ADDRESS:	
		STREET 1:		600 SOUTH AIRPORT ROAD
		STREET 2:		P.O. BOX 1217
		CITY:			MANSFIELD
		STATE:			OH
		ZIP:			44901
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51755956.htm
<DESCRIPTION>THE GORMAN-RUPP COMPANY 8-K
<TEXT>
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          &#160;
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    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-family: Times New Roman; font-size: 12pt"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-family: Times New Roman; font-size: 16pt"><b>FORM
      8-K</b></font><br><br><font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT </b></font><br><font style="font-family: Times New Roman; font-size: 12pt"><b>Pursuant
      to Section 13 OR 15(d)&#160;of The Securities Exchange Act of 1934</b></font><br><br><font style="font-family: Times New Roman; font-size: 10pt"><b>Date
      of Report &#160;(Date of earliest event reported): February 9, 2018</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-size: 10pt; font-family: Times New Roman"></font><br><font style="font-size: 20pt"><b>THE
      GORMAN-RUPP COMPANY</b></font><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
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        <td style="border-bottom-style: solid; padding-left: 0.0px; width: 32%; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Ohio</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; width: 32%; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1-6747</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; width: 32%; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>34-0253990</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            of incorporation)
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission&#160;File Number)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; width: 32%; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
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    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="border-bottom-style: solid; padding-left: 0.0px; width: 49%; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>600 South Airport Road, Mansfield, Ohio</b>
          </p>
        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; width: 49%; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>44903</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 49%; text-align: center" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td style="width: 2%">

        </td>
        <td style="padding-left: 0.0px; width: 49%; text-align: center" valign="bottom">
          <font style="font-family: Times New Roman; font-size: 10pt">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">Registrant&#8217;s
      telephone number, including area code</font>: &#160;<b>(419) 755-1011</b>
    </p>
    <div style="text-align:center">
    <table style="width: 60%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman; margin-left:auto;margin-right:auto" cellspacing="0">
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          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Former name or former address, if changed since last report.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Indicate by
      check mark whether the registrant is an emerging growth company as
      defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this
      chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
      (&#167;240.12b-2 of this chapter).</font>
    </p>
    <p>
      Emerging growth company <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>
      If an emerging growth company, indicate by check mark if the registrant
      has elected not to use the extended transition period for complying with
      any new or revised financial accounting standards provided pursuant to
      Section 13(a) of the Exchange Act. <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>

    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item&#160;2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION</b>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px">
      On February 9, 2018, The Gorman-Rupp Company issued a news release
      announcing its financial results for the fourth quarter and year ended
      December 31, 2017.&#160;&#160;This news release is included as Exhibit&#160;99 and is
      being furnished, not filed, with the Current Report on Form 8-K.
    </p>
    <p>
      <b>Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS</b>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px">
      (d) <u>Exhibits</u>
    </p>
    <p>
      <u>Exhibit</u><br>(99)&#160;&#160;&#160;&#160;&#160;&#160;News Release dated February 9, 2018
    </p>
    <p style="white-space: nowrap">

    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt">
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        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
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    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
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        <td style="width: 50%">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top" colspan="2">
          <p style="margin-top: 0px; margin-bottom: 0px">
            THE GORMAN-RUPP COMPANY
          </p>
        </td>
        <td style="width: 6%">

        </td>
      </tr>
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        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 41%">

        </td>
        <td style="width: 6%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 50%; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; width: 3%; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            By
          </p>
        </td>
        <td style="border-bottom-style: solid; padding-left: 0.0px; width: 41%; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Brigette A. Burnell
          </p>
        </td>
        <td style="width: 6%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; width: 41%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Brigette A. Burnell
          </p>
        </td>
        <td style="width: 6%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; width: 41%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            General Counsel and Corporate Secretary
          </p>
        </td>
        <td style="width: 6%">

        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 41%">

        </td>
        <td style="width: 6%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; width: 50%; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            February 9, 2018
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 41%">

        </td>
        <td style="width: 6%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <b>EXHIBIT&#160;INDEX</b>
    </p>
    <p style="text-align: center">

    </p>
<div style="text-align:left">
    <table style="width: 100%; font-size: 10pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td style="border-bottom-style: solid; padding-left: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: left" valign="top">
          Exhibit
        </td>
      </tr>
      <tr>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <a href="a51755956ex99.htm">(99) News Release dated February 9,
            2018</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">

    </p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>a51755956ex99.htm
<DESCRIPTION>EXHIBIT 99
<TEXT>
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    <title></title>
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    <p style="text-align: right">
      <b>Exhibit 99</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Gorman-Rupp
      Reports Fourth Quarter and Full-Year 2017 Financial Results</b></font>
    </p>
    <p>
      MANSFIELD, Ohio--(BUSINESS WIRE)--February 9, 2018--The Gorman-Rupp
      Company (NYSE: GRC) reports financial results for the fourth quarter and
      year ended December 31, 2017.
    </p>
    <p>
      <u>Fourth Quarter 2017 Highlights</u>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Current quarter earnings per share were $0.31 compared to $0.19 per
        share for the fourth quarter of 2016

        <ul>
          <li style="margin-bottom: 10.0px">
            Fourth quarter of 2016 included a non-cash impairment charge of
            $0.05 per share
          </li>
        </ul>
      </li>
      <li style="margin-bottom: 10.0px">
        Net sales increased 0.8% or $0.7 million. Excluding the PCCP project,
        net sales increased 1.3% or $1.2 million
      </li>
      <li style="margin-bottom: 10.0px">
        Incoming orders increased 6% compared to the fourth quarter of 2016
      </li>
      <li style="margin-bottom: 10.0px">
        The U.S. Tax Cuts and Jobs Act is expected to have a favorable impact
        on our future income tax rate
      </li>
    </ul>
    <p>
      Net sales for the fourth quarter of 2017 were $94.9 million compared to
      $94.2 million for the fourth quarter of 2016, an increase of 0.8% or
      $0.7 million. Excluding sales from the New Orleans Permanent Canal
      Closures &amp; Pumps (&#8220;PCCP&#8221;) project of $0.5 million for the fourth quarter
      of 2016, net sales increased 1.3% or $1.2 million. Domestic sales,
      excluding PCCP, decreased 0.2% or $0.1 million while international sales
      increased 4.0% or $1.3 million compared to the same period in 2016.
    </p>
    <p>
      Sales in our larger water markets, excluding PCCP, decreased 1.2% or
      $0.8 million in the fourth quarter of 2017 compared to the fourth
      quarter of 2016. Sales in the construction market increased $3.2 million
      due primarily to sales to rental market customers related to increased
      oil and gas drilling activity, and sales in the fire protection market
      increased $1.1 million due principally to domestic shipments. These
      increases were offset by decreased sales in the municipal market of $4.2
      million primarily driven by decreased shipments attributable to flood
      control projects and large volume wastewater applications. In addition,
      sales in the agriculture market decreased $0.8 million and sales of
      repair parts decreased $0.1 million.
    </p>
    <p>
      Sales in our non-water markets increased 7.3% or $2.0 million in the
      fourth quarter of 2017 compared to the fourth quarter of 2016. Sales in
      the industrial market increased $2.3 million principally attributable to
      increased capital spending related to oil and gas drilling activity, and
      sales in the OEM market increased $0.3 million. Partially offsetting
      these increases were decreased sales in the petroleum market of $0.6
      million.
    </p>
    <p>
      Gross profit was $25.2 million for the fourth quarter of 2017, resulting
      in gross margin of 26.5%, compared to gross profit of $23.2 million and
      gross margin of 24.7% for the same period in 2016. The 180 basis point
      increase in gross margin was largely driven by favorable sales mix and
      lower manufacturing overhead expenses.
    </p>
    <p>
      Selling, general and administrative expense (&#8220;SG&amp;A&#8221;) was $13.7 million
      and 14.4% of net sales for the fourth quarter of 2017 compared to $14.3
      million and 15.2% of net sales for the same period in 2016. SG&amp;A as a
      percentage of sales improved 80 basis points due principally to a focus
      on cost control and higher sales volume.
    </p>
    <p>
      Operating income was $11.5 million, resulting in operating margin of
      12.1% for the fourth quarter of 2017, compared to operating income of
      $7.1 million and operating margin of 7.5% for the same period in 2016.
      The fourth quarter of 2016 included a non-cash impairment charge of $1.8
      million or 190 basis points. Excluding the non-cash impairment charge,
      operating margin improved $2.6 million or 270 basis points due
      principally to favorable sales mix and lower manufacturing overhead and
      SG&amp;A expenses.
    </p>
    <p>
      Net income was $7.9 million for the fourth quarter of 2017 compared to
      $5.1 million in the fourth quarter of 2016, and earnings per share were
      $0.31 and $0.19 for the respective periods. A non-cash goodwill
      impairment charge decreased the fourth quarter of 2016 earnings by $0.05
      per share.
    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Net sales for the year ended December 31, 2017 were $379.4 million
      compared to $382.1 million for 2016, a decrease of 0.7% or $2.7 million.
      Excluding sales from the PCCP project of $0.7 million in 2017 and $9.9
      million in 2016, net sales in 2017 increased 1.8% or $6.5 million.
      Domestic sales, excluding PCCP, increased $0.1 million while
      international sales increased 4.9% or $6.4 million.
    </p>
    <p>
      Sales in our larger water markets, excluding PCCP, decreased 0.4% or
      $1.1 million in 2017 compared to 2016. Sales in the construction market
      increased $10.4 million due primarily to sales to rental market
      customers, and sales of repair parts increased $2.4 million. These
      increases were offset by decreased sales in the municipal market of $7.3
      million principally driven by decreased shipments attributable to flood
      control projects. In addition, sales in the fire protection market
      decreased $4.2 million principally due to market softness in the Middle
      East, and sales in the agriculture market decreased $2.4 million
      principally due to low farm income and competitive pricing pressure.
    </p>
    <p>
      Sales in our non-water markets increased 6.9% or $7.6 million in 2017
      compared to 2016. Sales increased $7.7 million in the industrial market
      driven by an increase in oil and gas drilling activity. Sales in the OEM
      market increased $2.5 million primarily related to power generation
      equipment and new customers associated with transportation and
      alternative energy applications. These increases were partially offset
      by decreased shipments of $2.6 million in the petroleum market driven by
      challenging market conditions.
    </p>
    <p>
      Gross profit was $98.7 million for 2017, resulting in gross margin of
      26.0%, compared to gross profit of $92.0 million and gross margin of
      24.1% for 2016. Gross margin included a non-cash pension settlement
      charge of $2.6 million or 70 basis points in 2017 which did not occur in
      2016. Excluding the non-cash pension settlement charge, gross margin
      increased by 260 basis points due principally to favorable sales mix.
    </p>
    <p>
      SG&amp;A was $56.8 million and 15.0% of net sales for 2017 compared to $54.5
      million and 14.3% of net sales for 2016. SG&amp;A included a non-cash
      pension settlement charge of $1.4 million or 40 basis points in 2017
      which did not occur last year. SG&amp;A included a gain on the sale of
      property, plant and equipment of $1.0 million or 30 basis points in
      2016. Excluding these items, SG&amp;A decreased slightly compared to last
      year and as a percentage of sales was flat.
    </p>
    <p>
      Operating income was $37.9 million, resulting in operating margin of
      10.0% for 2017, compared to operating income of $35.7 million and
      operating margin of 9.3% for 2016. In 2017, operating income included
      non-cash impairment charges of $4.1 million or 100 basis points and a
      non-cash pension settlement charge of $4.0 million or 110 basis points.
      In 2016, operating income included a non-cash impairment charge of $1.8
      million or 50 basis points and a gain on the sale of property, plant and
      equipment of $0.6 million or 20 basis points. Excluding these items,
      operating income improved $9.1 million or 250 basis points due
      principally to improved gross margin.
    </p>
    <p>
      Net income was $26.6 million for 2017 compared to $24.9 million in 2016,
      and earnings per share were $1.02 and $0.95 for the respective periods.
      Earnings per share for 2017 included non-cash impairment charges of
      $0.10 per share and a non-cash pension settlement charge of $0.10 per
      share. Earnings per share for 2016 included a non-cash impairment charge
      of $0.05 per share.
    </p>
    <p>
      The Company&#8217;s backlog of orders was $114.0 million at December 31, 2017
      compared to $98.8 million at December 31, 2016, an increase of 15.4%.
      The increase in backlog was primarily due to increases in the fire
      protection, municipal and construction markets principally driven by
      improved economic conditions both domestically and internationally.
    </p>
    <p>
      Capital expenditures for 2017 of $7.8 million consisted primarily of
      machinery and equipment. Capital additions for 2018 are presently
      planned to be in the range of $10-$15 million primarily for machinery
      and equipment purchases, and are expected to be financed through
      internally-generated funds.
    </p>
    <p>
      On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the &#8220;Tax Act&#8221;) was
      enacted. The transitional impacts of the Tax Act resulted in a
      provisional net charge of $0.4 million for the fourth quarter of 2017,
      comprised of an estimated repatriation tax charge of $2.0 million (which
      includes U.S. repatriation taxes and foreign withholding taxes) and a
      net deferred tax benefit of approximately $1.6 million. The provisional
      estimates are based on the Company's initial analysis of the Tax Act.
      Given the significant complexity of the Tax Act, anticipated guidance
      from the U. S. Treasury about implementing the Tax Act, and the
      potential for additional guidance from the Securities and Exchange
      Commission or the Financial Accounting Standards Board related to the
      Tax Act, these estimates may be adjusted during 2018. The Company&#8217;s
      preliminary estimate of its future effective tax rate attributable to
      the Tax Act is between 23% and 26%. The Company continues to evaluate
      the impact of the Tax Act, and will update its estimates as appropriate.
    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      Jeffrey S. Gorman, President and CEO commented, &#8220;We finished 2017 with
      strong fourth quarter results. A continued focus on production
      efficiencies and cost control has delivered another quarter of improved
      gross and operating margins. While we continue to experience softness in
      the agriculture and certain oil and gas driven markets, we enter 2018
      with a stronger backlog and sales momentum in many of our other markets.
      Increased emphasis on infrastructure improvements at both the federal
      and state levels, along with the newly enacted tax legislation, could be
      additional positive factors over the next several years. As we celebrate
      our 85th anniversary in 2018, we would like to thank our customers,
      associates and shareholders for their continued support.&#8221;
    </p>
    <p>
      About The Gorman-Rupp Company
    </p>
    <p>
      Founded in 1933, The Gorman-Rupp Company is a leading designer,
      manufacturer and international marketer of pumps and pump systems for
      use in diverse water, wastewater, construction, dewatering, industrial,
      petroleum, original equipment, agriculture, fire protection, heating,
      ventilating and air conditioning (HVAC), military and other
      liquid-handling applications.
    </p>
    <p>
      Safe Harbor Statement
    </p>
    <p>
      In connection with the &#8220;safe harbor&#8221; provisions of the Private
      Securities Litigation Reform Act of 1995, The Gorman-Rupp Company
      provides the following cautionary statement: This news release contains
      various forward-looking statements based on assumptions concerning The
      Gorman-Rupp Company&#8217;s operations, future results and prospects. These
      forward-looking statements are based on current expectations about
      important economic, political, and technological factors, among others,
      and are subject to risks and uncertainties, which could cause the actual
      results or events to differ materially from those set forth in or
      implied by the forward-looking statements and related assumptions. Such
      factors include, but are not limited to: (1)&#160;continuation of the current
      and projected future business environment; (2)&#160;highly competitive
      markets; (3)&#160;availability of raw materials; (4)&#160;loss of key management;
      (5)&#160;cyber security threats; (6)&#160;acquisition performance and integration;
      (7)&#160;compliance with, and costs related to, a variety of import and
      export laws and regulations; (8) environmental compliance costs and
      liabilities; (9) exposure to fluctuations in foreign currency exchange
      rates; (10) conditions in foreign countries in which The Gorman-Rupp
      Company conducts business; (11) changes in our tax rates and exposure to
      additional income tax liabilities; (12) impairment in the value of
      intangible assets, including goodwill; (13) defined benefit pension plan
      settlement expense; (14) family ownership of common equity; and
      (15)&#160;risks described from time to time in our reports filed with the
      Securities and Exchange Commission. Except to the extent required by
      law, we do not undertake and specifically decline any obligation to
      review or update any forward-looking statements or to publicly announce
      the results of any revisions to any of such statements to reflect future
      events or developments or otherwise.
    </p>
    <p>
      Brigette A. Burnell<br>Corporate Secretary<br>The Gorman-Rupp Company<br>Telephone
      (419) 755-1246<br>NYSE: GRC
    </p>
    <p>
      For additional information, contact James C. Kerr, Chief Financial
      Officer, Telephone (419) 755-1548.
    </p>
    <div style="margin-right: 0pt; width: 100%; margin-left: 0pt; margin-bottom: 10pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="13">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="13">
          The Gorman-Rupp Company
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="13">
          Condensed Consolidated Statements of Income (Unaudited)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="13">
          (thousands of dollars, except per share data)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center" valign="top" colspan="5">
          Three Months Ended December 31,
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center" valign="top" colspan="5">
          Year Ended December 31,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom" colspan="2">
          2017
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom" colspan="2">
          2016
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom" colspan="2">
          2017
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom" colspan="2">
          2016
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Net sales
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          94,938
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          94,203
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          379,389
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          382,071
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Cost of products sold
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          69,732
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          70,985
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          280,644
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          290,046
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          25,206
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          23,218
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          98,745
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          92,025
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Selling, general and administrative expenses
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          13,682
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          14,338
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          56,789
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          54,528
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Impairment of goodwill and other intangible assets
          </p>
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          1,800
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          4,098
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          1,800
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          Operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          11,524
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          7,080
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          37,858
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          35,697
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Other income, net
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          770
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          109
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          1,520
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          785
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          Income before income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          12,294
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          7,189
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          39,378
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          36,482
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Income taxes
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          4,354
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          2,135
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          12,823
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          11,599
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; padding-bottom: 4.0px; text-align: left" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          7,940
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          5,054
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          26,555
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          24,883
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Earnings per share
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          0.31
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          0.19
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          1.02
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          0.95
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
<div style="text-align:left">
    <table style="width: 100%; font-size: 8pt; margin-bottom: 10.0px; font-family: Times New Roman" cellspacing="0">
      <tr>
        <td colspan="8">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="8">
          The Gorman-Rupp Company
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="8">
          Condensed Consolidated Balance Sheets (Unaudited)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top" colspan="8">
          (thousands of dollars)
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center" valign="top" colspan="2">
          December 31,
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: center" valign="top" colspan="2">
          December 31,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom" colspan="2">
          2017
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: center" valign="bottom" colspan="2">
          2016
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Assets</u>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          79,680
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          57,604
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          67,369
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          71,424
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Inventories, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          74,967
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          69,049
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Prepaid and other
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          5,918
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          5,823
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          227,934
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          203,900
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Property, plant and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          117,071
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          122,067
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          7,779
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          7,769
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Prepaid pension benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          4,313
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          6,211
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Goodwill and other intangible assets, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          37,918
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          42,871
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; padding-bottom: 4.0px; text-align: left" valign="top">
          Total assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          395,015
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          382,818
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Liabilities and shareholders' equity</u>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          15,798
        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          16,306
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Accrued liabilities and expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          29,898
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          33,046
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          Total current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          45,696
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          49,352
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Postretirement benefits
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          15,737
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          20,709
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Other long-term liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          8,087
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          9,869
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          Total liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          69,520
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          79,930
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left" valign="top">
          Shareholders' equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          325,495
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td style="border-bottom-style: solid; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 1.0pt; text-align: right" valign="bottom">
          302,888
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; padding-bottom: 4.0px; text-align: left" valign="top">
          Total liabilities and shareholders' equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          395,015
        </td>
        <td>

        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          $
        </td>
        <td style="border-bottom-style: double; white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; border-bottom-color: black; border-bottom-width: 2.25pt; text-align: right" valign="bottom">
          382,818
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Shares outstanding
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          26,106,623
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="white-space: nowrap; padding-left: 0.0px; padding-right: 0.0px; text-align: right" valign="bottom">
          26,093,123
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>The Gorman-Rupp Company<br>James C. Kerr, 419-755-1548<br>Chief
      Financial Officer
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
