Ladish Reports Sales of $119.0 Million and Net Income of $6.2 Million

Cudahy, WI—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
Ended June 30

For the Six Months
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.