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Pump Manufacturer Gorman-Rupp’s Sales Decline 5.4 Percent in First Quarter

May 18, 2020
Pump manufacturer Gorman Rupp posted net sales for the first quarter of 2020 of $91.7 million compared to net sales of $96.9 million for the first quarter of 2019, a 5.4-percent decrease.

Pump manufacturer Gorman Rupp posted net sales for the first quarter of 2020 of $91.7 million compared to net sales of $96.9 million for the first quarter of 2019, a 5.4-percent decrease. Domestic sales declined 3.4 percent and international sales slipped 9.8 percent compared to the first quarter of 2019.

Sales in Gorman Rupp’s water markets slid 5.6 percent of $3.8 million in the first quarter of 2020 compared to a year ago. Sales in the fire protection market increased $2.2 million driven primarily by increased domestic shipments and sales in the agriculture market increased 0.8 percent. These increases were offset by decreased sales in the construction market of $6.1 million driven primarily by softness in oil and gas drilling activity. Also, sales of repair parts decreased $0.5 million, and sales in the municipal market decreased $0.2 million.

Sales in non-water markets decreased 4.9 percent, while sales in the industrial market increased $0.1 million. Sales in the petroleum market dropped $1.1 million with reduced demand from midstream oil and gas customers and decreased sales in the OEM market of $0.4 million. The decrease in international markets was across most of the markets the company serves.

"Unprecedented, pandemic, and COVID-19 are words you will see repeatedly in most companies reports this quarter,” said Jeffrey Gorman, chairman, president and CEO. “Gorman-Rupp is no exception and we are confident that we are prepared to meet the upcoming challenges of today. All of our facilities are currently operating as essential businesses, and we are closely following all national and local guidelines to provide for the health and safety of those working in these facilities. The transition for most of our office staff to ‘work from home’ was accomplished with little disruption.

“While sales will likely continue to be challenging during these times, Gorman-Rupp is in a strong financial position with no debt and significant cash on hand. An infrastructure bill including investment in water, wastewater and flood control would be beneficial to us and the country. While we operate in a lean environment even during good economic conditions, contingency plans are in place to meet upcoming financial challenges arising from the pandemic, should they be necessary. For 87 years, taking care of our customers, employees and shareholders has been part of our core operating philosophy. Today is no exception."