CUDAHY, Wis., July 28 /PRNewswire-FirstCall/ — Ladish Co., Inc. (www.ladishco.com) (NASDAQ:LDSH) today reported 2008 second quarter sales of $119.0 million, a 5% improvement over $113.6 million of sales in the second quarter of 2007. The Company had a net income of $6.2 million, resulting in diluted earnings per share of $0.43 for the second quarter of 2008 versus net income of $10.8 million and $0.74 per share in the same period of 2007. First half 2008 sales of $236.2 million reflect a 12% growth over 2007, with $12.2 million of net income, $0.84 diluted earnings per share in 2008, in contrast to $16.5 million of net income, $1.14 diluted earnings per share, in 2007.
Ladish will host a conference call on Tuesday, July 29, 2008 at 9:00 a.m. EDT to discuss the second quarter performance for 2008. The telephone number to call to participate in the conference call is (800) 344-6491.
For the Three Months For the Six Months
Ended June 30 Ended June 30
(Dollars in thousands,
except earnings per
share) 2008 2007 2008 2007
Net sales $118,959 $113,594 $236,156 $211,260
Cost of goods sold 103,452 91,649 205,828 175,625
Gross profit 15,507 21,945 30,328 35,635
SG&A expense 4,841 4,106 9,244 8,048
Operating income 10,666 17,839 21,084 27,587
Interest expense
& other 716 630 1,564 1,236
Pretax income 9,950 17,209 19,520 26,351
Income tax provision 3,711 6,438 7,281 9,802
Minority interest in
net earnings of
subsidiary 20 10 37 20
Net income $6,219 $10,761 $12,202 $16,529
Basic earnings
per share $0.43 $0.74 $0.84 $1.14
Basic weighted
average shares
outstanding 14,559,467 14,508,242 14,551,912 14,502,785
Diluted earnings
per share $0.43 $0.74 $0.84 $1.14
Diluted weighted
average shares
outstanding 14,562,338 14,552,210 14,554,954 14,546,843
June 30 December 31
(Dollars in thousands) 2008 2007
Cash $4,713 $5,952
Accounts receivable 84,190 75,226
Inventory 115,950 118,187
Net PP&E 164,945 144,110
Other 41,408 37,976
Total assets $411,206 $381,451
Accounts payable $48,034 $42,116
Accrued liabilities 18,252 18,343
Senior bank debt 13,900 7,500
Senior notes 46,000 46,000
Pensions 30,406 30,484
Postretirement benefits 34,594 35,454
Stockholders’ equity 220,020 201,554
Total liabilities and equity $411,206 $381,451
“With revenue of $119.0 million, the second quarter of 2008 was another example of period over period and year over year sales growth for Ladish,” said Kerry L. Woody, Ladish President and CEO. “While we are encouraged by the continued sales growth, we are not satisfied with the level of earnings. In the second quarter, we continued to experience margin pressure from higher raw material prices, higher energy costs and reduced credit from by-product sales. Those challenges along with higher depreciation expense and less than optimal product mix prevented us from duplicating 2007’s record earnings.”
“The results for the first six months of 2008 were similar to the second quarter. A positive 12% sales increase over the same period in 2007, but a fall off in earnings due to many of the same factors which negatively impacted the second quarter. Looking out at the remainder of 2008 and beyond, we remain optimistic. Our backlog at $619 million and product demand remain strong. The organic expansion programs we have undertaken are nearing completion and will soon bear fruit. The new isothermal press is being assembled and will operate in the third quarter. Pacific Cast’s new furnace and expansion are well under way. Due diligence issues on the potential expansion in Mexico continue at a determined pace. In addition, our recent acquisition of Aerex Manufacturing in July of 2008 will be accretive in 2008 as we further focus on the military helicopter sector.”
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.
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Source: Ladish Co., Inc.
