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Jun 30, 2020
Gorman-Rupp Q2 2020 Earnings Report
Reported a decrease in net sales and earnings per share compared to the same quarter last year.
Key Takeaways
Gorman-Rupp reported a decrease in net sales by 20.8% and earnings per share of $0.22 compared to $0.40 for the same quarter last year. The decrease in sales was primarily due to the COVID-19 pandemic. The company highlighted its strong balance sheet with $85.8 million in cash and no debt.
Second quarter earnings per share were $0.22 compared to $0.40 per share for the second quarter of 2019.
Net sales decreased 20.8% compared to the second quarter of 2019.
Backlog of $110.3 million at June 30, 2020, up 5.1% compared to backlog at December 31, 2019.
Strong balance sheet and liquidity with $85.8 million cash on hand and no debt.
Forward Guidance
The company is adapting to global challenges from COVID-19 and emphasizing the health and safety of customers, employees, and communities.
Positive Outlook
- Implemented a heightened focus on managing expenses.
- Slightly improved earnings over the first quarter.
- Continuing to supply our essential products and services.
- Strong financial position allows us to remain focused on our long-term strategic initiatives.
Challenges Ahead
- Ongoing impact of COVID-19 on our economy remains uncertain.
- Sales and incoming orders have softened.
- Sales have decreased across all of our markets.
- Customers are operating in a limited capacity.
- Overall economic downturn that has resulted from the pandemic, slowed demand in the second quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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