CUDAHY, Wis., Feb. 9 /PRNewswire-FirstCall/ -- Ladish Co., Inc.
(Nasdaq: LDSH) (www.ladishco.com) today reported 2008 net income was $32.2
million, or $2.15 of diluted earnings per share, on sales of $469.5 million.
During the fourth quarter of 2008 the Company had diluted earnings per share
of $0.60 in comparison to $0.64 in the fourth quarter of 2007.
Ladish will host a conference call on Tuesday, February 10, 2009 at 9:00
a.m. EST to discuss the Company's performance for 2008. The telephone number
to call to participate in the conference call is (877) 795-3649.
For the Three Months For the Year
Ended December 31, Ended December 31,
(Dollars in thousands,
except earnings
per share) 2008 2007 2008 2007
Net sales $112,549 $108,344 $469,466 $424,631
Cost of goods sold 101,767 90,081 410,163 355,628
Gross profit 10,782 18,263 59,303 69,003
SG&A expense 4,444 4,539 19,765 16,684
Operating income 6,338 13,724 39,538 52,319
Interest (income)
expense & other (558) 386 1,288 2,165
Pretax income 6,896 13,338 38,250 50,154
Income tax (benefit)
provision (2,778) 4,028 5,876 17,798
Minority interest in
subsidiary earnings 106 30 169 68
Net income $9,568 $9,280 $32,205 $32,288
Basic earnings per
share $0.60 $0.64 $2.15 $2.22
Basic weighted
average shares
outstanding 15,901,216 14,534,467 14,998,437 14,516,120
Diluted earnings
per share $0.60 $0.64 $2.15 $2.22
Diluted weighted
average shares
outstanding 15,902,647 14,558,269 15,000,844 14,550,258
December 31,
(Dollars in thousands) 2008 2007
Cash and cash equivalents $4,903 $5,952
Accounts receivable, net 78,673 75,226
Inventory 129,307 118,187
Net PP&E 199,269 144,110
Other 97,097 37,976
Total Assets $509,249 $381,451
Accounts payable $39,020 $42,116
Accrued liabilities 24,054 18,343
Senior bank debt 28,900 7,500
Senior notes 90,000 46,000
Pensions 70,608 30,484
Postretirement benefits 33,256 35,454
Stockholders' equity 223,411 201,554
Total Liabilities and Equity $509,249 $381,451
"In 2008, Ladish recorded net sales of $469.5 million, a 11% increase over
2007 levels. Net income in 2008 of $32.2 million equaled 2007 results. The
growth in sales and flat net income in 2008 was attributed to product mix, raw
material pricing and business acquisitions in the third quarter. In addition,
we benefited from a lower effective tax rate for the year due to the
recognition of tax credits," says Kerry L. Woody, Ladish President and CEO.
"The labor stoppage at Boeing along with delays in the production of
next-generation aircraft at Boeing and Airbus forced us to shift production to
programs with lesser returns and fewer incremental opportunities. Raw
material continued to be a challenge in 2008 as it increased from
approximately 46% to 49% of our costs. Our acquisitions of Chen-Tech and
Aerex were successfully integrated in 2008 and benefited sales, although
preliminary purchase accounting adjustments largely negated earnings in 2008."
"Our outlook for 2009 is cautious. Contract backlog remains strong at
$629 million at the start of the year," noted Mr. Woody. "Earnings in 2009
are facing significant challenges from increases in pension expense,
depreciation and taxes. In addition, projected gains from lower raw material
pricing will likely be more than offset by the continued collapse of the
by-product market. While these challenges in 2009 are daunting, we are
confident the Ladish family of businesses are taking the appropriate steps to
control their costs, which have already included a 5% reduction in employment
levels, and reduce expenses. We believe the Company's 2009 results will
generate significant cash flow and position Ladish for sales and incremental
earnings growth in 2010 and 2011 as delivery rates recover, including the
next-generation aircraft."
Ladish Co., Inc. is a leading producer of highly engineered, technically
advanced 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,
unanticipated slowdowns 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.
