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Dec 31, 2020
Gorman-Rupp Q4 2020 Earnings Report
Gorman-Rupp's Q4 2020 earnings decreased compared to Q4 2019.
Key Takeaways
Gorman-Rupp reported a decrease in net sales by 11.9% and a decrease in earnings per share from $0.32 to $0.26 for the fourth quarter of 2020, compared to the same period in 2019. The decrease in sales was attributed to the COVID-19 pandemic and reduced demand from midstream oil and gas customers. Despite these challenges, the company ended the year in a strong financial condition and with an increased backlog of orders.
Earnings per share decreased to $0.26, compared to $0.32 in Q4 2019.
Net sales decreased by 11.9% to $82.5 million, compared to $93.7 million in Q4 2019.
Domestic sales decreased by 7.4%, while international sales decreased by 21.3%.
Backlog of orders increased by 7.7% compared to December 31, 2019.
Forward Guidance
The company expects sales during the first half of the year to continue to be challenging due to the world-wide pandemic. The company expects its effective tax rate for 2021 to be between 21.0% and 23.0%.
Positive Outlook
- Company ended 2020 in strong financial condition and well positioned for the future.
- Company is prepared for the eventual recovery.
- Company has continued to focus on its long-term strategic initiatives across its diverse markets.
- Company built on its strong inventory position while also maintaining its highly skilled workforce.
- Company begins 2021 with an increase in backlog from the same time last year.
Challenges Ahead
- Ongoing impact of the global pandemic on the economy remains uncertain.
- Sales during the first half of the year to continue to be challenging due to the world-wide pandemic.
- Company will continue to manage its SG&A expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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