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.

Jeffrey S. Gorman, President and CEO said, “We are extremely pleased with our record sales performance for the second quarter and six months 2011 and are encouraged by our record backlog. Although the economic recovery remains uneven, the Company has achieved solid order, revenue and earnings growth in the first half of 2011. We believe this continued growth demonstrates the quality of our products and the depth of our markets and we look forward to a good second half of the year.”

         
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(in thousands of dollars, except per share data)
   
Three Months Ended June 30, Six Months Ended June 30,
 
2011 2010 2011 2010
 
 
Net sales $92,159 $72,380 $176,233 $138,166
Cost of products sold 67,910 55,094 130,598 105,431
 
Gross profit 24,249 17,286 45,635 32,735

 

Selling, general and administrative expenses
10,768 8,375 21,495 17,134
 
Operating income 13,481 8,911 24,140 15,601
 
Other income (expense) - net (66) (400) (97) (391)
 
Income before income taxes 13,415 8,511 24,043 15,210
Income taxes 4,490 2,855 7,999 5,057
 
Net income $8,925 $5,656 $16,044 $10,153
 
Earnings per share $0.42 $0.27 $0.76 $0.49
 
 
 
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)

Unaudited
June 30, December 31,
2011 2010
Assets
Cash and short-term investments $27,477 $34,246
Accounts receivable - net 61,267 51,996
Inventories 64,971 51,449
Deferred income taxes and other current assets 4,443 5,503
 
Total current assets 158,158 143,194
 
Property, plant and equipment - net 114,313 113,526
 
Prepaid pension and other assets 6,685 3,545
 
Goodwill and other intangible assets 25,953 26,442
 
Total assets $305,109 $286,707
 
Liabilities and shareholders' equity
 
Accounts payable $17,770 $12,042
Short-term debt 20,000 25,000
Accrued liabilities and expenses 25,772 22,636
 
Total current liabilities 63,542 59,678
 
Postretirement benefits 22,554 22,241
 
Deferred and other income taxes 4,954 4,954
 
Shareholders' equity 214,059 199,834
 
Total liabilities and shareholders' equity $305,109 $286,707
 
Shares outstanding 20,984,893 20,984,893
 
Shares outstanding and per share data reflect the 5 for 4 stock split effective June 10, 2011.

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