The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the first quarter ended March 31, 2010.
Net sales during the first quarter ended March 31, 2010 decreased 8.1% to $65,786,000 compared to $71,598,000 during the same period in 2009. Net income decreased slightly to $4,497,000 compared to $4,506,000 in the first quarter 2009, a total decrease of 0.2%. Earnings per share were $0.27 and $0.27 for the two compared periods.
Net sales during the quarter continued to be negatively impacted by the global recession. The markets with the largest declines include fire protection, government and custom pump applications.
Although sales were lower, earnings for the quarter were similar to the first quarter of 2009 due to continuing cost savings implemented in 2009. These cost savings also contributed to the 5.2% increase in operating income. In addition, pension expense decreased $0.02 per share as a result of the rebound in the equity markets during 2009. Offsetting this decrease was increased depreciation expense of $0.02 per share primarily due to the Mansfield Division’s new facilities.The Company’s backlog of orders increased to $104.5 million at March 31, 2010 compared to $91.8 million a year ago and $93.7 million at December 31, 2009. The increase from March 31, 2009 was primarily due to orders arising from wastewater and international fire protection applications. Federal stimulus dollars had some favorable impact on orders received in the municipal market during the quarter. Cash flow from operations during the first quarter 2010 was $9.0 million, resulting in a continuing strong liquidity position with $45.5 million of cash and short-term investments. During the quarter, $5.0 million of borrowings used to partially finance the expansion and consolidation of the Mansfield Division were re-paid with the remaining $10.0 million planned to be paid by the end of 2010.