Ladish Reports Net Sales of $117.2 Million for 1st Quarter 2008

Cudahy, WI—Ladish Co., Inc. (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.