Ladish Reports $469.5 Million of Sales and $32.2 Million of Net Income for Fiscal 2008

Cudahy, WI—Ladish Co., Inc. (NASDAQ: LDSH) (www.ladishco.com) today reported 2008 net income was $32.2 million, or $2.15 of diluted earnings per share, on sales of $469.5 million.  During the fourth quarter of 2008 the Company had diluted earnings per share of $0.60 in comparison to $0.64 in the fourth quarter of 2007.

Ladish will host a conference call on Tuesday, February 10, 2009 at 9:00 a.m. EST to discuss the Company’s performance for 2008.  The telephone number to call to participate in the conference call is (877) 795-3649.

 

For the Three Months
Ended December 31,

For the Year
Ended December 31,

(Dollars in thousands, except earnings per share) 2008 2007 2008 2007
Net sales  $112,549  $108,344 $469,466  $424,631
Cost of goods sold   101,767  90,081 410,163  355,628
Gross profit 10,782 18,263  59,303 69,003
SG&A expense  4,444  4,539 19,765  16,684
Operating income 6,338 13,724  39,538 52,319
Interest (income) expense & other  (558)  386 1,288 2,165
Pretax income 6,896 13,338  38,250 50,154
Income tax (benefit) provision (2,778) 4,028 5,876 17,798
Minority interest in subsidiary earnings  106 30 169 68
Net income $9,568 $9,280 $32,205  $32,288
Basic earnings per share $0.60 $0.64 $2.15 $2.22
Basic weighted average
shares outstanding		 15,901,216 14,534,467    14,998,437  14,516,120
Diluted earnings per share $0.60 $0.64 $2.15 $2.22
Diluted weighted average
shares outstanding		 15,902,647 14,558,269    15,000,844  14,550,258

 

 December 31,
(Dollars in thousands) 2008 2007
Cash and cash equivalents $ 4,903 $ 5,952
Accounts receivable, net 78,673 75,226
Inventory 129,307 118,187
Net PP&E 199,269 144,110
Other 97,097 37,976
Total Assets $509,249 $381,451
Accounts payable $ 39,020 $ 42,116
Accrued liabilities 24,054 18,343
Senior bank debt 28,900 7,500
Senior notes 90,000 46,000
Pensions 70,608 30,484
Postretirement benefits 33,256 35,454
Stockholders’ equity 223,411 201,554
Total Liabilities and Equity $509,249 $381,451

"In 2008, Ladish recorded net sales of $469.5 million, a 11% increase over 2007 levels.  Net income in 2008 of $32.2 million equaled 2007 results.  The growth in sales and flat profitability in 2008 was attributed to product mix, raw material pricing and business acquisitions in the third quarter. In addition, we benefited from a lower effective tax rate for the year due to the recognition of tax credits,” says Kerry L. Woody, Ladish President and CEO.  “The labor stoppage at Boeing along with delays in the production of next-generation aircraft at Boeing and Airbus forced us to shift production to programs with lesser returns and fewer incremental opportunities.  Raw material continued to be a challenge in 2008 as it increased from approximately 46% to 49% of our costs.  Our acquisitions of Chen-Tech and Aerex were successfully integrated in 2008 and benefited sales, although preliminary purchase accounting adjustments largely negated earnings in 2008.”

“Our outlook for 2009 is cautious.  Contract backlog remains strong at $629 million at the start of the year,” noted Mr. Woody.  “Earnings in 2009 are facing significant challenges from increases in pension expense, depreciation and taxes.  In addition, projected gains from lower raw material pricing will likely be more than offset by the continued collapse of the by-product market.  While these challenges in 2009 are daunting, we are confident the Ladish family of businesses are taking the appropriate steps to control their costs, which have already included a 5% reduction in employment levels, and reduce expenses.  We believe the Company’s 2009 results will generate significant cash flow and position Ladish for sales and incremental earnings growth in 2010 and 2011 as delivery rates recover, including the next-generation aircraft.”

Ladish Co., Inc. is a leading producer of highly engineered, technically advanced 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, unanticipated slowdowns 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.