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The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the second quarter and six months ended June 30, 2011.
Net sales during the second quarter ended June 30, 2011 increased 27.3% to a quarterly record $92,159,000 compared to $72,380,000 during the same period in 2010. Net income increased 57.8% to $8,925,000 compared to $5,656,000 in the second quarter 2010. Earnings per share were $0.42 and $0.27 for the respective periods.
Net sales for the six months ended June 30, 2011 increased 27.6% to a six-month record $176,233,000 compared to $138,166,000 during the same period in 2010. Net income increased 58.0% to $16,044,000 compared to $10,153,000 in the first six months of 2010. Earnings per share were $0.76 and $0.49, respectively for these two periods. The operating results for 2011 include National Pump Company acquired October 1, 2010.
Higher sales during the quarter were impacted by the improving global economy compared to a year ago. Primary increases were in sales to the industrial, agricultural, construction and rental markets. In addition, sales of custom pumps increased during the quarter as a result of pumps supplied for flood control projects. Partially offsetting these increases was a decrease in sales to the fire protection market.
Increased orders in the aforementioned markets and in the original equipment market during the quarter resulted in a record backlog of $154.2 million at June 30, 2011, a 46.9% increase from a year ago and 43.6% higher than the backlog of $107.4 million at December 31, 2010.
The increase in earnings for the quarter and six months principally reflects improved operating leverage on the higher volume of sales.
The Company continues to maintain a strong and liquid balance sheet with $27.5 million in cash and short-term investments and working capital of $94.6 million at June 30, 2011. During the quarter, $2.0 million of borrowings used to finance the acquisition of National Pump Company were re-paid.