Gorman-Rupp Falls Short of Record Q314 Revenues in Third Quarter

Gorman-Rupp Falls Short of Record Q314 Revenues in Third Quarter

Pump manufacturer The Gorman-Rupp Co. posted net sales of $104.2 million during the third quarter compared to a record $110.2 million during the third quarter of 2014, a 5.4-percent decline. Domestic sales decreased 7.9 percent or $6.2 million, while international sales were largely flat, increasing by $237,000. Sales in the water end markets decreased 2.9 percent or $2.2 million and sales in non-water end markets dropped 10.8 percent or $3.8 million. Of the decrease in net sales, 28.8 percent was caused by unfavorable foreign currency translation.

Although Gorman-Rupp increase shipments to the Permanent Canal Closures and Pumps project in New Orleans by $6.4 million, sales in the municipal market decreased $3.9 million overall, primarily driven by reduced demand for large volume pumps for wastewater and flood control projects. Sales in the construction market declined $3.5 million primarily because of the drop in drilling of oil and gas in North America. Decreased sales in the non-water end markets were primarily the result of $2.3 million in lower sales in the industrial market because of the oil-and-gas downturn. Sales in the OEM market decreased $1.1 million because of lower military sales.

Net sales for the first nine months of 2015 were $307.4 million compared to a record $330 million during the first nine months of 2014, a 6.8-percent drop, with domestic sales declining 9.3 percent and international sales 1.3 percent.

“During the third quarter we continued to experience uphill sales challenges across a number of the markets we serve compared to record prior year periods, especially those markets with close relationships to oil, gas and agriculture,” said Jeffrey Gorman, president and CEO. “However, fire protection pumps remained a positive source of growth during the quarter as related building construction markets improved and the company gained market share, both in domestic and international areas. While we expect the near term, including most of 2016, to be challenging, our outlook for the long term is positive based on our proven track record of providing industry-leading high quality products, a long-standing commitment to customer service and a very strong and flexible balance sheet. Our longer range outlook was enhanced in September by our acquisition of the Hydro companies in Belgium, which, combined with our European operations based in The Netherlands, should position us well in the recovery of the Euro-zone.”

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