Ladish Co., Inc. (NASDAQ: LDSH)
-- Sales were $76.2 million
-- Operating income positive before special charges
-- Net loss was $2.2 million, or $0.14 per share
-- $11.0 million of cash from operations
Ladish Co., Inc. (www.ladishco.com) (NASDAQ: LDSH) today
reported 2009 third quarter sales of $76.2 million in comparison to
$120.8 million of sales in the third quarter of 2008. The Company
reported a net loss of $2.2 million, resulting in diluted loss per
share of $0.14 for the third quarter of 2009, versus a net income
of $10.4 million, or $0.70 per share, in the same period of
2008.
"Ladish faced the same difficult market conditions as many of
our customers, suppliers, and competitors in the third quarter of
2009. Inventory destocking in aerospace and jet engine markets
combined with sagging industrial products demand significantly
impacted third quarter sales," said Gary J. Vroman, Ladish's
President and CEO. "This step down in top line revenues placed
severe pressure on bottom line results, bringing year-to-date net
income near break even levels. 2009 has presented us with various
headwinds to earnings, including an $8.0 million decline in
by-product sales, a $3.3 million increase in pension expense, a
$2.7 million charge for employment reductions and separations, a
$1.8 million increase in depreciation, and $2.6 million in added
interest expense. On a positive note, despite these challenges, our
domestic operating units were profitable in the third quarter as
well as for the year to date. Our third quarter loss is directly
attributable to two causes: first, charges associated with
employment reductions, and second, lagging performance of foreign
operations. The first of these is a one-time non-recurring event,
and the second will be corrected in future periods. In addition, we
generated $48.3 million in operating cash flow in the first nine
months, allowing us to eliminate $30.6 million of short term debt
and significantly improve our cash position."
"We are cautiously optimistic the worst is behind us. The gap
between order rates and build rates is narrowing and we view this
as an indication we have seen the bottom," remarked Vroman. "Over
the past year we have realized significant delivery, productivity,
inventory, and quality improvements. We are poised for the
anticipated economic recovery, and we are confident the difficult
actions taken to date have positioned us to take advantage of
opportunities as world aerospace and industrial markets
rebound."
For the Three Months For the Nine Months
Ended September 30 Ended September 30
(Dollars in thousands, ---------------------- ----------------------
except per share data) 2009 2008 2009 2008
---------- ---------- ---------- ----------
Net sales $ 76,191 $ 120,761 $ 266,616 $ 356,917
Cost of goods sold 71,469 102,568 248,233 308,396
---------- ---------- ---------- ----------
Gross profit 4,722 18,193 18,383 48,521
SG&A expense 5,692 6,077 14,007 15,321
---------- ---------- ---------- ----------
Operating income (loss) (970) 12,116 4,376 33,200
Interest expense (1,428) (338) (3,594) (1,018)
Other (632) 56 (965) (828)
---------- ---------- ---------- ----------
Pretax income (loss) (3,030) 11,834 (183) 31,354
Income tax provision
(benefit) (780) 1,373 228 8,654
Noncontrolling interest in
subsidiary (41) 26 (52) 63
---------- ---------- ---------- ----------
Net income (loss) $ (2,209) $ 10,435 $ (359) $ 22,637
========== ========== ========== ==========
Basic earnings (loss) per
share $ (0.14) $ 0.70 $ (0.02) $ 1.54
Basic weighted average
shares outstanding 15,901,877 14,979,002 15,901,439 14,695,315
Diluted earnings (loss) per
share $ (0.14) $ 0.70 $ (0.02) $ 1.54
Diluted weighted average
shares outstanding 15,901,877 14,981,118 15,901,439 14,698,048
---------- ---------- ---------- ----------
September 30 December 31
(Dollars in thousands) 2009 2008
------------ ------------
Cash and cash equivalents $ 12,716 $ 4,903
Accounts receivable, net 54,502 78,673
Inventory 102,602 129,307
Net PP&E 199,337 199,269
Other 94,620 97,314
------------ ------------
Total assets $ 463,777 $ 509,466
============ ============
Accounts payable $ 27,456 $ 39,020
Accrued liabilities 17,181 23,388
Senior bank debt - 28,900
Senior notes 90,000 90,000
Pensions 72,415 70,825
Postretirement benefits 31,786 33,256
Equity 224,939 224,077
------------ ------------
Total liabilities & equity $ 463,777 $ 509,466
Ladish will host a conference call on Monday, November 2, 2009
at 9:00 a.m. EST to discuss the third quarter performance for 2009.
The telephone number to call to participate in the conference call
is (866) 439-4712, then enter PIN Code 194791# 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.
Contact: Wayne E. Larsen 414-747-2935 414-747-2602 Fax William
J. Libby 231-755-4111 blibby@libbycom.com
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