Ladish Announces Fourth Quarter & Year-End Results

Fourth Quarter                                                      

  • Sales were $83.2 million
  • Net Income was $7.0 million, or $0.44 per share             
  • $10.0 million of Cash from Operations

Year-End

  • Sales were $350 million
  • Net Income was $6.6 million,
  • $58.3 million of Cash from Operations

Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2009 fourth quarter sales of $83.2 million in comparison to $112.5 million of sales in the fourth quarter of 2008.  The Company had net earnings of $7.0 million, resulting in per share net income of $0.44 for the fourth quarter of 2009, compared to net income of $9.6 million, or $0.60 per share, in the same period of 2008.

“The 2009 fourth quarter results signal the early stages of a recovery from the lows we experienced in the third quarter of this year.  A modest 9% Q3-to-Q4 revenue increase combined with improved operating efficiencies returned us to double digit gross profits as a percentage of sales,” said Gary J. Vroman, Ladish’s President and CEO.  “Better performance from all of our domestic operating units enabled us to finish the fourth quarter with $3.3 million of pre-tax income.  The Company also benefited in the fourth quarter from the reversal of a $5.3 million valuation allowance which contributed to a tax benefit of $3.7 million, resulting in $7.0 million of net income, or earnings of $0.44 per share on a fully diluted basis.”

“This was a difficult year, with sales down 25% from 2008 levels, but every Ladish division successfully managed through the myriad of economic challenges they faced.  Cost control measures coupled with operational improvements helped us overcome the loss of incremental sales and still finish the year with positive earnings,” remarked Vroman.  “The impact of these efforts is reflected in the fourth quarter results as well as the $58.3 million of positive cash from operations generated in 2009.  Our order levels hit a low point in July, but we have recovered to end the year with a $504 million backlog.”

“Looking ahead to 2010, we are guardedly optimistic most of the inventory de-stocking is over,” observed Vroman.  “As OEM build rates more closely reflect order levels, we can confidently say the worst is behind us.  We anticipate relatively stable business conditions throughout the first half of the year.  After a few months of moving ‘sideways,’ we believe the second half of 2010 can bring opportunities for growth.  Our manufacturing facilities have available capacity, and our employees are poised to take care of our customers’ increasing demand.”

  For the Three Months
Ended December 31		 For the Year
Ended December 31
(Dollars in thousands, except per share data) 2009 2008 2009 2008
Net sales $ 83,216 $112,549 $349,832 $469,466
Cost of goods sold   74,512   101,767   322,745   410,163
Gross profit 8,704 10,782 27,087 59,303
SG&A expense     3,832       4,444     17,839     19,765
Operating income 4,872 6,338 9,248 39,538
Interest expense (1,456) (953) (5,050) (1,971)
Other        (97)       1,511     (1,062)         683
Pretax income 3,319 6,896 3,136 38,250
Income tax provision (benefit) (3,669) (2,778) (3,441) 5,876
Noncontrolling interest in subsidiary        (12)         106          (64)         169
Net income $  7,000 $    9,568 $    6,641 $  32,205
Basic earnings per share $0.44 $0.60 $0.42 $2.15
Basic weighted average shares outstanding 15,903,004 15,901,216 15,901,833 14,998,437
Diluted earnings per share $0.44 $0.60 $0.42 $2.15
Diluted weighted average shares outstanding 15,903,682 15,902,647 15,902,246 15,000,844
  December 31 December 31
(Dollars in thousands)     2009           2008    
Cash and cash equivalents $  19,917 $    4,903
Accounts receivable, net 59,382 78,673
Inventory 92,697 129,307
Net PP&E 198,436 199,269
Other     99,629     97,314
Total assets $470,061 $509,466
Accounts payable $  24,971 $  39,020
Accrued liabilities 15,400 23,388
Senior bank debt - 28,900
Senior notes 90,000 90,000
Pensions 79,343 70,825
Postretirement benefits 33,679 33,256
Equity   226,668   224,077
Total liabilities & equity $470,061 $509,466

Ladish will host a conference call on Tuesday, February 2, 2010 at 9:00 a.m. EST to discuss the fourth quarter and year-end performance for 2009.  The telephone number to call to participate in the conference call is (866) 439-4712, then enter PIN Code 560018# when prompted.

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.