7/25/2007
CUDAHY, Wis., July 24 /PRNewswire-FirstCall/ — Ladish Co., Inc. (http://www.ladishco.com/) (NASDAQ:LDSH) today reported 2007 second quarter sales of $113.6 million, a 26% improvement over $90.2 million of sales in the second quarter of 2006. The Company had a net income of $10.8 million, resulting in diluted earnings per share of $0.74 for the second quarter of 2007 versus net income of $8.5 million and $0.60 per share in the same period of 2006. First half 2007 sales of $211.3 million reflect 14% growth over 2006, with $16.5 million of net income, $1.14 diluted earnings per share in 2007, in contrast to $16.1 million of net income, $1.14 diluted earnings per share, in 2006.
Ladish will host a conference call on Wednesday, July 25, 2007 at 9:00 a.m. EDT to discuss the second quarter performance for 2007. The telephone number to call to participate in the conference call is (866) 550-6338.
For the Three Months For the Six Months
Ended June 30 Ended June 30
(Dollars in thousands,
except earnings per share)
2007 2006 2007 2006
Net sales $113,594 $90,173 $211,260 $185,179
Cost of goods sold 91,649 71,001 175,625 148,639
Gross profit 21,945 19,172 35,635 36,540
SG&A expense 4,106 4,834 8,048 9,138
Operating income 17,839 14,338 27,587 27,402
Interest expense & other 630 1,028 1,236 1,821
Pretax income 17,209 13,310 26,351 25,581
Income tax provision 6,438 4,747 9,802 9,287
Minority interest in net
earnings of subsidiary 10 61 20 160
Net income $10,761 $8,502 $16,529 $ 16,134
Basic earnings per share $0.74 $0.60 $1.14 $1.15
Basic weighted average
shares outstanding 14,508,242 14,130,599 14,502,785 14,073,162
Diluted earnings per
share $0.74 $0.60 $1.14 $1.14
Diluted weighted average
shares outstanding 14,552,210 14,180,709 14,546,843 14,166,124June 30 December 31
(Dollars in thousands) 2007 2006
Cash $6,470 $3,431
Accounts receivable 81,498 69,144
Inventory 108,085 106,736
Net PP&E 124,232 112,096
Other 37,186 37,199
Total assets $357,471 $328,606Accounts payable $41,570 $32,933
Accrued liabilities 17,454 15,602
Senior bank debt — 2,100
Senior notes 52,000 52,000
Pensions 27,767 35,510
Postretirement benefits 36,864 37,791
Stockholders’ equity 181,816 152,670
Total liabilities and equity $357,471 $328,606
“With a 26% improvement in sales and a 27% growth in net income over the second quarter of 2006, the second quarter of 2007 reflected a strong performance at Ladish and a great recovery from the equipment issues which impacted the first quarter,” says Kerry L. Woody, Ladish President and CEO. “The sales increase was due to continued strong demand in all of the markets served by Ladish. The increased profitability was the result of better absorption of fixed costs through incremental sales, an improved product mix and the contribution from our cost reduction initiatives.”
“Completing the first half of the year with $211 million in sales sets the stage for a robust year,” observed Mr. Woody. “The second half of 2007 presents the annual challenge of fewer production days, but with $256 million of orders in the first half easily outpacing shipments and $543 million of contract backlog, we remain optimistic about the remainder of 2007 and beyond. In the second quarter we continued to book additional aerospace orders at our Polish subsidiary ZKM. Our capacity expansion projects, particularly the new isothermal forging press, remain on schedule as we position the company for future demand.”
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.
