CUDAHY, Wis., Oct. 20 /PRNewswire-FirstCall/ -- Ladish Co., Inc.
(http://www.ladishco.com ) (Nasdaq: LDSH) today reported 2006 third quarter
sales of $90.7 million, a 40% improvement over $64.8 million of sales in
the third quarter of 2005. The Company had a net income of $6.4 million,
resulting in diluted earnings per share of $0.45 for the third quarter of
2006 versus net income of $3.3 million and $0.23 per share in the same
period of 2005, a 96% improvement. Sales for the first nine months 2006 of
$275.8 million reflect a 40% growth over 2005, with $22.5 million of net
income, $1.59 per share, in contrast to $10.6 million of net income, $0.76
per share, in 2005, a 109% improvement in per share earnings.
Ladish will host a conference call on Monday, October 23, 2006 at 10:00
a.m. EDT to discuss the third quarter performance for 2006. The telephone
number to call to participate in the conference call is (800) 481-9591.
For the Three Months For the Nine Months
Ended September 30 Ended September 30
(Dollars in thousands,
except earnings per share)
2006 2005 2006 2005
Net sales $90,664 $64,832 $275,843 $196,459
Cost of goods sold 75,395 54,578 224,034 169,000
Gross profit 15,269 10,254 51,809 27,459
SG&A expense 4,583 4,436 13,721 8,981
Operating income 10,686 5,818 38,088 18,478
Interest expense & other 1,135 498 2,956 1,407
Pretax income 9,551 5,320 35,132 17,071
Income tax provision 3,115 2,044 12,402 6,507
Minority interest in
net earnings of
subsidiary 23 -- 183 --
Net income $6,413 $3,276 $22,547 $10,564
Basic earnings
per share $0.45 $0.24 $1.60 $0.77
Basic weighted average
shares outstanding 14,198,413 13,797,349 14,115,371 13,725,036
Diluted earnings
per share $0.45 $0.23 $1.59 $0.76
Diluted weighted
average shares
outstanding 14,242,600 13,989,775 14,192,075 13,883,798
September 30 December 31
(Dollars in thousands) 2006 2005
Cash $3,359 $14,494
Accounts receivable 70,981 51,497
Inventory 119,829 78,151
Net PP&E 106,583 99,425
Other 46,879 52,462
Total Assets $347,631 $296,029
Accounts payable $43,131 $41,665
Accrued liabilities 19,422 10,213
Senior bank debt 12,600 27,000
Senior notes 52,000 18,000
Pensions 41,444 46,203
Postretirement benefits 34,463 35,479
Stockholders' equity 144,571 117,469
Total Liabilities and Equity $347,631 $296,029
"The 40% sales increase in 2006 compared to 2005 is due to the
continued strength of the aerospace industry and the integration of the
acquisitions of ZKM and Valley Machining," says Kerry L. Woody, Ladish's
President and CEO. "Due to increased sales volumes, product mix, favorable
by-product sales and continued focus on cost reductions, the Company's
operations improved in the third quarter of 2006 as gross margins were
16.8% in contrast to 15.8% in the third quarter of 2005."
Looking forward to the remainder of 2006 and into 2007, Woody remarked,
"Currently, orders supporting the Airbus A380 have moved out of the
remainder of 2006 and 2007 and into 2008 and beyond. Managing the
associated raw material issues will be a challenge in the fourth quarter.
Alternative program demands will utilize the capacity of the rescheduled
A380 orders in 2007. Our backlog continues to grow and reached a record
high of $559 million at the end of the third quarter of 2006 in contrast to
$395 million at the same date in 2005. We expect 2007 to reflect this
strength with improved revenues and earnings. We are seeking opportunities
to capitalize on this upturn to grow our business both internally and
externally to better position our company for the future. All of the
operating units of Ladish are experiencing an improvement in business and
profitability. We continue to be optimistic in the sustainability of the
overall aerospace market. Our investment plans and established cost
reduction programs remain focused on sustaining the profitability of the
business and improving our cash position while serving the needs of 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.
SOURCE Ladish Co., Inc.
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Related links:
http://www.ladishco.com
CONTACT:
Wayne E. Larsen of Ladish Co., Inc.,
+1-414-747-2935, Fax: +1-414-747-2890; or William J. Libby of
Libby Communications, +1-231-755-4111, Fax: +1-231-755-4144, for
Ladish Co., Inc.
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