Ladish Reports Sales of $121 Million and Net Income of $10.4 Million

Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2008 third quarter sales of $121 million, a 15% improvement over $105 million of sales in the third quarter of 2007.  The Company had a net income of $10.4 million, resulting in diluted earnings per share of $0.70 for the third quarter of 2008 versus net income of $6.5 million and $0.45 per share in the same period of 2007.  First nine months 2008 sales of $357 million reflect a 13% growth over 2007, with $23 million of net income, $1.54 diluted earnings per share in 2008, in contrast to $23 million of net income, $1.58 diluted earnings per share, in 2007.

Ladish will host a conference call on Tuesday, October 28, 2008 at 9:00 a.m. EDT to discuss the third quarter performance for 2008.  The telephone number to call to participate in the conference call is (877) 856-1968.

 

For the Three Months
Ended September 30

For the Nine Months
Ended September 30

(Dollars in thousands, except earnings per share)

 2008 2007 2008 2007

Net sales

    $120,761    $105,027    $356,917    $316,287

Cost of goods sold

      102,568        89,922      308,396      265,547

Gross profit

        18,193        15,105        48,521        50,740

SG&A expense

          6,077          4,097        15,321        12,145

Operating income

        12,116        11,008        33,200        38,595

Interest expense

           (338)           (572)        (1,018)        (2,078)

Other income (expense), net

              56              29           (828)            299

Pretax income

        11,834        10,465        31,354        36,816

Income tax provision

          1,373          3,968          8,654        13,770

Minority interest in net earnings of subsidiary

              26              18              63              38

Net income

    $  10,435    $    6,479    $  22,637    $  23,008
         

Basic earnings per share

          $0.70          $0.45          $1.54          $1.59

Basic weighted average shares outstanding

 14,979,002 14,524,010 14,695,315 14,509,938

Diluted earnings per share

          $0.70          $0.45          $1.54          $1.58

Diluted weighted average shares outstanding

 14,981,118 14,548,642 14,698,048 14,547,521

 

September 30

December 31

(Dollars in thousands)

           2008      

           2007     

Cash

       $    5,939

$    5,952

Accounts receivable

           85,625

75,226

Inventory

         143,025

118,187

Net PP&E

         193,010

144,110

Goodwill

           52,852

8,931

Other

           33,137

    29,045

Total assets

        $513,588

$381,451
     

Accounts payable

       $  54,589

$  42,116

Accrued liabilities

           26,060

18,343

Senior bank debt

           26,200

7,500

Senior notes

           90,000

46,000

Pensions

           23,910

30,484

Postretirement benefits

           34,191

35,454

Stockholders’ equity

         258,638

  201,554

Total liabilities and equity

        $513,588

$381,451

“With revenue of $121 million, the third 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.  “Our recent acquisitions, Chen-Tech and Aerex, have both provided positive results since their respective closings in the third quarter.  We were also able to recognize a significant federal tax credit of approximately $5.3 million in the period which reduced our effective tax rate to 11.6% in the quarter.  This full credit was offset by an additional $1 million of related professional fees which is reflected in our higher SG&A expenses in the quarter.”

“The results for the first nine months of 2008 were similar to the same period in 2007.  A positive 13% sales increase over the same period in 2007, but flat earnings due to many of the same factors which negatively impacted the first and second quarters.  Our outlook for the future remains very positive, with near-term planning to address the events at Boeing and the related uncertainties on the timing of production rates.  Our backlog is at $673 million and product demand remains strong.  The organic growth programs we have undertaken are nearing completion and will contribute in the forthcoming year.  The new isothermal press has been assembled and cycled in the third quarter with tryout production planned in December.  Pacific Cast’s new furnace and expansion are well under way with release for production by year-end.  Our recent acquisitions of Aerex and Chen-Tech are already providing positive contributions to both earnings and cash flow.”

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, California, Connecticut, Oregon 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.