CUDAHY, Wis., Oct. 25 /PRNewswire-FirstCall/ -- Ladish Co., Inc. (http://www.ladishco.com/) today reported 2007 third quarter sales of $105 million, a 15.8% improvement over $90.7 million of sales in the third quarter of 2006. The Company had pretax income of $10.5 million for the third quarter of 2007 versus pretax income of $9.6 million in the same period of 2006. First nine months of 2007 sales of $316.3 million reflect 14.7% growth over 2006, with $36.8 million of pretax income in 2007, in contrast to $35.1 million of pretax income in 2006.
Ladish will host a conference call on Friday, October 26, 2007 at 9:00 a.m. EDT to discuss the third quarter performance for 2007. The telephone number to call to participate in the conference call is (888) 215-6964.
For the For the Three Months Ended Nine Months Ended (Dollars in thousands, except September 30 September 30 earnings per share) 2007 2006 2007 2006 Net sales $105,027 $90,664 $316,287 $275,843 Cost of goods sold 89,922 75,395 265,547 224,034 Gross profit 15,105 15,269 50,740 51,809 SG&A expense 4,097 4,583 12,145 13,721 Operating income 11,008 10,686 38,595 38,088 Interest expense & other 543 1,135 1,779 2,956 Pretax income 10,465 9,551 36,816 35,132 Income tax provision 3,968 3,115 13,770 12,402 Minority interest in net earnings of subsidiary 18 23 38 183 Net income $6,479 $6,413 $23,008 $22,547 Basic earnings per share $0.45 $0.45 $1.59 $1.60 Basic weighted average shares outstanding 14,524,010 14,198,413 14,509,938 14,115,371 Diluted earnings per share $0.45 $0.45 $1.58 $1.59 Diluted weighted average shares outstanding 14,548,642 14,242,600 14,547,521 14,192,07 September 30 December 31 (Dollars in thousands) 2007 2006 Cash $2,484 $3,431 Accounts receivable 83,020 69,144 Inventory 119,023 106,736 Net PP&E 132,161 112,096 Other 36,223 37,199 Total assets $372,911 $328,606 Accounts payable $48,975 $32,933 Accrued liabilities 16,643 15,602 Senior bank debt 6,300 2,100 Senior notes 46,000 52,000 Pensions 28,278 35,510 Postretirement benefits 36,201 37,791 Stockholders' equity 190,514 152,670 Total liabilities and equity $372,911 $328,606
"With a 15.8% improvement in sales and a 9.6% growth in pretax income over the third quarter of 2006, the third quarter of 2007 reflected a continued strong performance at Ladish despite raw material challenges, a less than optimal product mix and a depressed by-product market," says Kerry L. Woody, Ladish President and CEO. "The sales increase was due to continued strong demand in all of our markets. The decrease in profitability as a percentage of sales was the result of less than favorable product mix, higher raw material prices, reduced by-product sales and a higher effective tax rate in 2007."
"With $136 million of new orders in the third quarter and our contract backlog hitting another new high of $574 million, we remain optimistic about our opportunities in 2008 and beyond," observed Mr. Woody. "Our capacity expansion projects, the new isothermal forging press, added casting capacity and value-added capabilities in Poland, remain on schedule. These strategic growth projects will provide Ladish with the organic capabilities to service our customers' widening demands."
Ladish Co., Inc. is a leading producer of highly engineered, technically advanced metal components for the jet engine, aerospace and general industrial markets. Ladish is headquartered in Cudahy, Wisconsin with operations in Wisconsin, Oregon, Connecticut and Poland. Ladish common stock trades on Nasdaq under the symbol LDSH.
This release includes forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in them. These risks and uncertainties include, but are not limited to, uncertainties in the company's major markets, the impact of competition, the effectiveness of operational changes expected to increase efficiency and productivity, worldwide economic and political conditions and the effect of foreign currency fluctuations.
