SOURCE: Ladish Co., Inc.

Ladish Co., Inc.

February 01, 2010 16:00 ET

Ladish Announces Fourth Quarter & Year-End Results

CUDAHY, WI--(Marketwire - February 1, 2010) - Ladish Co., Inc. (NASDAQ: LDSH)

Fourth Quarter                      Year-End

-- Sales were $83.2 million         -- Sales were $350 million
-- Net Income was $7.0 million,     -- Net Income was $6.6 million,
    or $0.44 per share                  or $0.42 per share
-- $10.0 million of Cash from       -- $58.3 million of Cash from
    Operations                          Operations

Ladish Co., Inc. (www.ladishco.com) (NASDAQ: LDSH) today reported 2009 fourth quarter sales of $83.2 million in comparison to $112.5 million of sales in the fourth quarter of 2008. The Company had net earnings of $7.0 million, resulting in per share net income of $0.44 for the fourth quarter of 2009, compared to net income of $9.6 million, or $0.60 per share, in the same period of 2008.

"The 2009 fourth quarter results signal the early stages of a recovery from the lows we experienced in the third quarter of this year. A modest 9% Q3-to-Q4 revenue increase combined with improved operating efficiencies returned us to double digit gross profits as a percentage of sales," said Gary J. Vroman, Ladish's President and CEO. "Better performance from all of our domestic operating units enabled us to finish the fourth quarter with $3.3 million of pre-tax income. The Company also benefited in the fourth quarter from the reversal of a $5.3 million valuation allowance which contributed to a tax benefit of $3.7 million, resulting in $7.0 million of net income, or earnings of $0.44 per share on a fully diluted basis."

"This was a difficult year, with sales down 25% from 2008 levels, but every Ladish division successfully managed through the myriad of economic challenges they faced. Cost control measures coupled with operational improvements helped us overcome the loss of incremental sales and still finish the year with positive earnings," remarked Vroman. "The impact of these efforts is reflected in the fourth quarter results as well as the $58.3 million of positive cash from operations generated in 2009. Our order levels hit a low point in July, but we have recovered to end the year with a $504 million backlog."

"Looking ahead to 2010, we are guardedly optimistic most of the inventory de-stocking is over," observed Vroman. "As OEM build rates more closely reflect order levels, we can confidently say the worst is behind us. We anticipate relatively stable business conditions throughout the first half of the year. After a few months of moving 'sideways,' we believe the second half of 2010 can bring opportunities for growth. Our manufacturing facilities have available capacity, and our employees are poised to take care of our customers' increasing demand."

                          For the Three Months       For the Year Ended
                            Ended December 31           December 31
(Dollars in thousands,  ------------------------  ------------------------
 except per share data)     2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
Net sales               $    83,216  $   112,549  $   349,832  $   469,466
Cost of goods sold           74,512      101,767      322,745      410,163
                        -----------  -----------  -----------  -----------
Gross profit                  8,704       10,782       27,087       59,303
SG&A expense                  3,832        4,444       17,839       19,765
                        -----------  -----------  -----------  -----------
Operating income              4,872        6,338        9,248       39,538
Interest expense             (1,456)        (953)      (5,050)      (1,971)
Other                           (97)       1,511       (1,062)         683
                        -----------  -----------  -----------  -----------
Pretax income                 3,319        6,896        3,136       38,250
Income tax provision
 (benefit)                   (3,669)      (2,778)      (3,441)       5,876
Noncontrolling interest
 in subsidiary                  (12)         106          (64)         169
                        -----------  -----------  -----------  -----------
Net income              $     7,000  $     9,568  $     6,641  $    32,205
                        ===========  ===========  ===========  ===========
Basic earnings per
 share                  $      0.44  $      0.60  $      0.42  $      2.15
Basic weighted average
 shares outstanding      15,903,004   15,901,216   15,901,833   14,998,437
Diluted earnings per
 share                  $      0.44  $      0.60  $      0.42  $      2.15
Diluted weighted
 average shares
 outstanding             15,903,682   15,902,647   15,902,246   15,000,844




                                         December 31  December 31
       (Dollars in thousands)                2009         2008
                                         ------------ ------------
       Cash and cash equivalents         $     19,917 $      4,903
       Accounts receivable, net                59,382       78,673
       Inventory                               92,697      129,307
       Net PP&E                               198,436      199,269
       Other                                   99,629       97,314
                                         ------------ ------------
       Total assets                      $    470,061 $    509,466
                                         ============ ============
       Accounts payable                  $     24,971 $     39,020
       Accrued liabilities                     15,400       23,388
       Senior bank debt                             -       28,900
       Senior notes                            90,000       90,000
       Pensions                                79,343       70,825
       Postretirement benefits                 33,679       33,256
       Equity                                 226,668      224,077
                                         ------------ ------------
       Total liabilities & equity        $    470,061 $    509,466

Ladish will host a conference call on Tuesday, February 2, 2010 at 9:00 a.m. EST to discuss the fourth quarter and year-end performance for 2009. The telephone number to call to participate in the conference call is (866) 439-4712, then enter PIN Code 560018# 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 Information

  • Contact:
    Wayne E. Larsen
    414-747-2935
    414-747-2602 Fax

    William J. Libby
    231-755-4111
    blibby@libbycom.com