The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the third quarter and nine months ended September 30, 2010.
Net sales during the third quarter ended September 30, 2010 increased 15.4% to $73,953,000 compared to $64,096,000 during the same period in 2009. Net income increased 18.9% to $6,155,000 compared to $5,177,000 in the third quarter 2009. Earnings per share were $0.37 and $0.31 for the respective periods.
Net sales for the nine months ended September 30, 2010 increased 4.0% to $212,119,000 compared to $204,039,000 during the same period in 2009. Net income increased 12.1% to $16,308,000 compared to $14,550,000 in the first nine months of 2009. Earnings per share, respectively, were $0.98 and $0.87 for the two periods.
The increase in net sales during the quarter continued to be positively impacted by the slowly rebounding global economy and is due primarily to increases in sales to the international fire protection market, the municipal market, and the construction, rental and industrial markets, partially offset by decreased sales in the OEM market.
The 19.8% increase in operating income and the increase in earnings for the quarter reflect the impact of the $9.9 million of increased sales and the ongoing benefits of cost savings and operating efficiencies initiated in 2009 and continuing in 2010. Offsetting the impact of increased sales and cost savings were increases in LIFO expense of $0.04 per share primarily due to the partial liquidation of LIFO quantities during the third quarter 2009 as a result of reduced inventory levels, and overtime compensation of $0.03 per share associated with meeting increased customer demand during the quarter.
The Company’s backlog of orders increased to $104.6 million at September 30, 2010 compared to $85.2 million a year ago and $93.7 million at December 31, 2009. The increase from September 30, 2009 was largely due to orders arising from the custom pump, wastewater, rental and international fire protection markets.