Ladish Reports Net Sales of $99 Million for 2nd Quarter 2010

Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2010 second quarter sales of $99.4 million in comparison to $84.7 million of sales in the second quarter of 2009.  The Company reported net income of $7.5 million, resulting in diluted earnings per share of $0.48 for the second quarter of 2010, versus a net income of $0.65 million, or $0.04 per share, in the same period of 2009.

Ladish will host a conference call on Tuesday, July 20, 2010 at 9:00 a.m. EDT to discuss the second quarter performance for 2010.  To access the conference call, dial (866) 439-4712 and enter the PIN Code 917034# when prompted.

  For the Three Months
Ended June 30		 For the Six Months
Ended June 30
(Dollars in thousands, except per share data) 2010 2009 2010 2009
Net sales $ 99,407 $ 84,686 $ 198,355 $ 190,425
Cost of goods sold    82,709    78,349    167,994    176,764
Gross profit 16,698 6,337 30,361 13,661
SG&A expense     4,032      4,273     8,232        8,315
Operating income 12,666 2,064 22,129 5,346
Interest expense (1,419) (1,321) (2,894) (2,166)
Other, net        404         101        654         (333)
Pretax income 11,651 844 19,889 2,847
Income tax provision 4,092 205 6,978 1,008
Noncontrolling interest in subsidiary earnings           21         (11)           25           (11)
Net income $  7,538 $      650 $ 12,886 $     1,850
Basic earnings per share $0.48 $0.04 $0.82 $0.12
Basic weighted average shares outstanding 15,703,004 15,901,216 15,780,352 15,901,216
Diluted earnings per share $0.48 $0.04 $0.82 $0.12
Diluted weighted average shares outstanding 15,704,594 15,901,539 15,781,692 15,901,393

  June 30 December 31
(Dollars in thousands)              2010              2009     
Cash and cash equivalents $  22,984 $  19,917
Accounts receivable, net 75,074 59,382
Inventory 91,956 92,697
Net PP&E 192,133 198,436
Other     91,914     99,082
Total assets $474,061 $469,514
Accounts payable $  30,315 $  23,613
Accrued liabilities 20,832 16,758
Senior notes 84,285 90,000
Pensions 75,417 79,343
Postretirement benefits 33,131 33,679
Equity   230,081   226,121
Total liabilities & equity $474,061 $469,514

"Ladish delivered solid second quarter and first half results driven by our employees' continued focus on cost control coupled with improved operating performance," said Gary J. Vroman, Ladish President & CEO.  "All of our business units contributed positively in the second quarter, and year-to-date 2010 earnings increased by $11.0 million over 2009 on sales revenues which grew a modest $7.9 million, or 4.2%. Our stand-alone second quarter EPS of $0.48 exceeds last year's $0.04 EPS by a factor of twelve. We are proud of the earnings rebound we have put together so far this year. And the balance sheet story is just as positive. Ladish generated $18.2 million of operating cash flow in the first half of 2010. We used $5.7 million of that cash to pay down long term debt, $3.2 million to buy back Ladish stock, $5.9 million on capital improvements, and increased our cash holdings by $3.1 million."

"We see the second half of 2010 as a period of transition and preparation," noted Vroman. "Customer demand looks flat for the next few months, but we know we must continue to prepare for more growth in 2011 and beyond. Our general industrial and aerospace markets have been solid, but jet engine demand has been inconsistent this year. We remain bullish on our long-term opportunities but cautious about predicting the precise rate of recovery. When commercial aerospace markets improve, jet engine requirements will firm up, and we will be ready. Our $520 million of contract backlog at the end of June positions us well for the growth expected in our served markets."

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.