The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the second quarter and six months ended June 30, 2010. Net sales during the second quarter ended June 30, 2010 increased 5.9% to $72,380,000 compared to $68,345,000 during the same period in 2009. Net income increased 16.2% to $5,656,000 compared to $4,867,000 in the second quarter 2009. Earnings per share were $0.34 and $0.29 for the two respective periods. Net sales for the six months ended June 30, 2010 totaled $138,166,000, down 1.3% from net sales of $139,943,000 during the same period in 2009. Net income increased 8.3% to $10,153,000 compared to $9,373,000 in the first six months of 2009. Earnings per share were $0.61 and $0.56 for these two periods. The increase in net sales during the quarter was positively impacted by the early stages of economic recovery and is due primarily to increases in sales to the international fire protection market, custom pump applications and the construction and rental market, partially offset by decreases in sales to the OEM and the domestic fire protection markets. The increase in earnings for the quarter reflects continued cost savings implemented in 2009 which also contributed to the 16.8% increase in operating income. Changes in principal operating expenses, including LIFO and employee benefit costs, generally offset each other in the current quarter compared to the same period last year. The Company’s backlog of orders increased to $105.0 million at June 30, 2010 compared to $82.9 million a year ago and $93.7 million at December 31, 2009. The increase from June 30, 2009 was largely due to orders arising from wastewater, rental and international fire protection applications. Cash flow from operations during the first six months of 2010 was $16.5 million, resulting in a continuing strong liquidity position. During the quarter, the remaining $10.0 million of borrowings used to partially finance the expansion and consolidation of the Mansfield Division were re-paid. The Company remains financially strong with positive cash flow and no long-term or short-term debt.