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Mar 31, 2020
Gorman-Rupp Q1 2020 Earnings Report
Gorman-Rupp's first quarter results for 2020 were reported, revealing a decrease in net sales and earnings per share compared to the same period in 2019, but gross margin improved due to lower material costs.
Key Takeaways
Gorman-Rupp reported a decrease in net sales by 5.4% to $91.7 million and a decrease in earnings per share to $0.21 for the first quarter of 2020. The results were impacted by decreased sales in water and non-water markets, offset by increases in fire protection and agriculture markets. Gross margin improved due to lower material costs.
First quarter earnings per share were $0.21, down from $0.28 in the first quarter of 2019, including a non-cash pension settlement charge of $0.04 per share.
Net sales decreased by 5.4% to $91.7 million compared to $96.9 million in the first quarter of 2019.
Incoming orders decreased 3.3% compared to the first quarter of 2019 but increased 3.5% compared to the fourth quarter of 2019.
The company maintains a strong balance sheet with $82.4 million in cash and no debt.
Forward Guidance
Gorman-Rupp is prepared to meet the upcoming challenges of today, with all facilities operating as essential businesses and contingency plans in place to meet financial challenges arising from the pandemic.
Positive Outlook
- All facilities are currently operating as essential businesses.
- The transition for most of our office staff to “work from home” was accomplished with little disruption.
- Gorman-Rupp is in a strong financial position with no debt and significant cash on hand.
- An infrastructure bill including investment in water, wastewater and flood control would be beneficial to us and the country.
- Taking care of our customers, employees and shareholders has been part of our core operating philosophy.
Challenges Ahead
- Sales will likely continue to be challenging during these times.
- The report mentions the impact of COVID-19 pandemic.
- Decrease in sales in water and non-water markets
Historical Earnings Impact
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Avg. Return Before/After Earnings
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