Graham Corporation (GHM) - Get Graham Corporation Report, a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical and defense industries, today announced that it secured $17.5 million in orders for two defense projects and two oil refining projects. One of the oil refining projects is in India and the other is in North America.
James R. Lines, Graham's President and Chief Executive Officer, commented, "We continue to execute well on our defense strategy. Orders for the defense industry continue to represent more than 50% of total backlog. The defense industry provides terrific visibility into procurement schedules, which translates into improved multiyear planning for our operations. We expect to continue to build defense backlog across the remainder of the current fiscal year." Mr. Lines continued, "In our commercial markets, we are successfully leveraging our large installed base and continue to create follow-on revenue demand. These projects can arise quickly without much visibility and can have conversion cycles that are between 6 to 12 months. The India order is the result of our restructuring and establishing a subsidiary in India enabling us to secure our second large refining order for that region."
The defense projects are existing component orders for new naval vessels in two of the three programs that Graham already participates in. The majority of revenue from the navy orders is expected to convert beyond fiscal 2022. The project in India is a major refinery expansion that will increase throughput capacity 50%, while the other oil refining order is a metallurgical upgrade to equipment supplied by the company approximately 20 years ago.
The projects will all be recognized in backlog during the second quarter of fiscal 2021. The company expects approximately 5% of the new order total to convert to revenue during the remainder of fiscal 2021 and approximately 25% to convert in fiscal 2022, with the remainder converting to revenue beyond fiscal 2022.
ABOUT GRAHAM CORPORATION
Graham is a global business that designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. Energy markets include oil refining, cogeneration, and alternative power. For the defense industry, the Company's equipment is used in nuclear propulsion power systems for the U.S. Navy. Graham's global brand is built upon world-renowned engineering expertise in vacuum and heat transfer technology, responsive and flexible service and unsurpassed quality.
Graham designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. Graham's equipment can also be found in other diverse applications such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. Graham's reach spans the globe and its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East.
Graham routinely posts news and other important information on its website, www.graham-mfg.com, where additional comprehensive information on Graham Corporation and its subsidiaries can be found.
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Should one or more of these risks or uncertainties materialize or should any of Graham Corporation's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation's forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
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