Gorman-Rupp Reports Results for Second Quarter 2002
The Gorman-Rupp Company (AMEX:GRC)announced that financial results for the second quarter and first six months of 2002 reflect slowed economic conditions in the capital goods and industrial sectors.
Net sales for the quarter ended June 30,2002 were $52,583,000 compared to $54,838,000 in 2001.Net income for the same period was $3,250,000 compared to $3,998,000 in the second quarter 2001,equal to $0.38 and $0.47 per share, respectively.
Net sales for the first six months of 2002 were $97,882,000 compared to $104,509,000 in 2001.Net income for the period was $5,403,000 compared to $7,602,000 in 2001,equal to earnings per share of $0.63 and $0.89,respectively. The downturn in business is principally reflective of two factors;slowness in capital goods spending affecting the commercial pump business,and the cancellation of orders for components to the power generation business. Although Patterson Pump will continue to be a major supplier of fabricated components to G.E.Power Systems,this portion of Patterson ’s
business will be affected during the remainder of 2002 and into 2003.
While indications of U.S.economic recovery are being reported,the industrial sector has been slow to respond and any measurable improvement may not occur until 2003.
On a positive note,all of the Company ’s divisions remained profitable during the reporting period and some improvement in international business is occurring.The Company expects to complete integration of the operations of its two recent acquisitions during the second half of 2002.As reflected on the June 30,2002 balance sheet,the Company has repaid all bank loan obligations related to its acquisitions.
In June,the Company was again named among the top 100 public Ohio companies with an improved ranking by the Cleveland Plain Dealer in "The Plain Dealer 100".The Company is pleased to be included in this elite group,and the recognition again confirms the financial and business success of Gorman-Rupp.
Although 2002 is expected to be another profitable year,it is not likely to match last year ’s performance.During these times of economic uncertainty,the Company remains confident of its business positioning for the future and the value and strength in its balance sheet.
Source: The Gorman-Rupp Company