Cudahy, Wis., April 28 /PRNewswire-FirstCall/ — Ladish Co., Inc. (http://www.ladishco.com/) (NASDAQ:LDSH) today reported 2008 first quarter sales of $117.2 million in comparison to $97.7 million of sales in the first quarter of 2007. The Company reported net income of $6.0 million, resulting in diluted earnings per share of $0.41 for the first quarter of 2008, versus a net income of $5.8 million, or $0.40 per share, in the same period of 2007.
Ladish will host a conference call on Tuesday, April 29, 2008 at 9:00 a.m. EDT to discuss the first quarter performance for 2008. The telephone number to call to participate in the conference call is (877) 874-1569.
For the Three Months
Ended March 31
(Dollars in thousands, except per share data) 2008 2007
Net sales $117,197 $97,666
Cost of goods sold 102,376 83,976
Gross profit 14,821 13,690
SG&A expense 4,403 3,942
Operating income 10,418 9,748
Interest expense & other 848 606
Pretax income 9,570 9,142
Income tax provision 3,570 3,364
Minority interest in subsidiary earnings 17 10
Net income $5,983 $5,768
Basic earnings per share $0.41 $0.40
Basic weighted average shares outstanding 14,544,357 14,497,267
Diluted earnings per share $0.41 $0.40
Diluted weighted average shares
outstanding 14,547,570 14,541,415
March 31 December 31
(Dollars in thousands) 2008 2007
Cash and cash equivalents $7,168 $5,952
Accounts receivable, net 81,197 75,226
Inventory 120,063 118,187
Net PP&E 151,634 144,110
Other 38,900 37,976
Total assets $398,962 $381,451
Accounts payable $47,675 $42,116
Accrued liabilities 16,549 18,343
Senior bank debt 11,100 7,500
Senior notes 46,000 46,000
Pensions 30,701 30,484
Postretirement benefits 35,140 35,454
Stockholders’ equity 211,797 201,554
Total liabilities & equity $398,962 $381,451
“In the first quarter of 2008, we booked over $132 million of new orders as our contract backlog grew to a new record high of over $630 million. First quarter of 2008 sales levels were 20% higher than first quarter of 2007 and in line with what we had expected for the period. However, earnings for the period were below our expectations as product mix shifted to accommodate customer build schedules and our employment costs increased as we accelerated the placement of new employees to support the additional sales growth. Unexpected severe weather and a surge in energy costs had a negative impact on our profits. Higher year-over-year raw material prices — even though passed through to customers — lower returns on by-products and delayed tooling sales were also dilutive to margins,” says Kerry L. Woody, Ladish’s President and CEO.
Looking forward to the remainder of 2008, Woody remarked, “We remain optimistic about the strength of the markets we serve. Our capacity expansion projects, the new isothermal press in Wisconsin and the plant expansion with new furnace capacity in Oregon, are well underway and will support our growth in 2009 and beyond. As the strength of our industry continues, we are capitalizing on the upturn to grow our business, internally driving capacity expansions and externally seeking opportunities through strategic acquisitions. These combined efforts will better position our company for the future. We expect all Ladish operating units to experience continued growth in business and profitability. While we are enjoying this positive trend, our established cost reduction programs remain focused on sustaining the profitability of the business and improving our cash position while serving our customers.”
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.
First Call Analyst:
Source: Ladish Co., Inc.
CONTACT: Wayne E. Larsen of Ladish Co., Inc., +1-414-747-2935,
+1-414-747-2890, Fax; or William J. Libby of Libby Communications for Ladish
Co., Inc., +1-231-755-4111, +1-231-755-4144, Fax
Web site: http://www.ladishco.com/