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Graham Fiscal 4Q Profit Falls On Charge

The Associated Press

BATAVIA, N.Y. (AP) — Industrial equipment maker Graham Corp. said Friday its fiscal fourth-quarter profit fell 15 percent as the company took a charge for restructuring and job cuts.

Graham said it earned $3.6 million, or 35 cents per share, in the quarter ended March 31, compared with $4.2 million, or 41 cents per share, a year earlier.

The company said it eliminated some management, office and manufacturing positions and took a restructuring charge of $559,000 including severance costs.

Analysts expected a more modest profit of 27 cents per share, according to Thomson Reuters.

Revenue rose 9 percent to $24.8 million.

Chief Executive James R. Lines said the job cuts — no number was given — were needed to respond to a sudden drop in orders from industrial customers. He said sales could face a "significant" decline, but the impact on profits will be less severe than in previous downturns.

For the year, Graham earned $17.5 million, or $1.71 per share, on sales of $101.1 million, compared with profit of $15 million, or $1.49 per share, on sales of $86.4 million the year before.

The Batavia-based company makes condensers, heat exchangers and other equipment for refineries and other customers.

Shares fell 76 cents, or 5 percent, to $14.46 in afternoon trading.