SOURCE: Ladish Co., Inc.

Ladish Co., Inc.

October 30, 2009 16:00 ET

Ladish Announces Third Quarter Results

CUDAHY, WI--(Marketwire - October 30, 2009) - Ladish Co., Inc. (NASDAQ: LDSH)

--  Sales were $76.2 million
    
--  Operating income positive before special charges
    
--  Net loss was $2.2 million, or $0.14 per share
    
--  $11.0 million of cash from operations
    

Ladish Co., Inc. (www.ladishco.com) (NASDAQ: LDSH) today reported 2009 third quarter sales of $76.2 million in comparison to $120.8 million of sales in the third quarter of 2008. The Company reported a net loss of $2.2 million, resulting in diluted loss per share of $0.14 for the third quarter of 2009, versus a net income of $10.4 million, or $0.70 per share, in the same period of 2008.

"Ladish faced the same difficult market conditions as many of our customers, suppliers, and competitors in the third quarter of 2009. Inventory destocking in aerospace and jet engine markets combined with sagging industrial products demand significantly impacted third quarter sales," said Gary J. Vroman, Ladish's President and CEO. "This step down in top line revenues placed severe pressure on bottom line results, bringing year-to-date net income near break even levels. 2009 has presented us with various headwinds to earnings, including an $8.0 million decline in by-product sales, a $3.3 million increase in pension expense, a $2.7 million charge for employment reductions and separations, a $1.8 million increase in depreciation, and $2.6 million in added interest expense. On a positive note, despite these challenges, our domestic operating units were profitable in the third quarter as well as for the year to date. Our third quarter loss is directly attributable to two causes: first, charges associated with employment reductions, and second, lagging performance of foreign operations. The first of these is a one-time non-recurring event, and the second will be corrected in future periods. In addition, we generated $48.3 million in operating cash flow in the first nine months, allowing us to eliminate $30.6 million of short term debt and significantly improve our cash position."

"We are cautiously optimistic the worst is behind us. The gap between order rates and build rates is narrowing and we view this as an indication we have seen the bottom," remarked Vroman. "Over the past year we have realized significant delivery, productivity, inventory, and quality improvements. We are poised for the anticipated economic recovery, and we are confident the difficult actions taken to date have positioned us to take advantage of opportunities as world aerospace and industrial markets rebound."

                             For the Three Months     For the Nine Months
                              Ended September 30      Ended September 30
(Dollars in thousands,      ----------------------  ----------------------
 except per share data)        2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Net sales                   $   76,191  $  120,761  $  266,616  $  356,917
Cost of goods sold              71,469     102,568     248,233     308,396
                            ----------  ----------  ----------  ----------
Gross profit                     4,722      18,193      18,383      48,521
SG&A expense                     5,692       6,077      14,007      15,321
                            ----------  ----------  ----------  ----------
Operating income (loss)           (970)     12,116       4,376      33,200
Interest expense                (1,428)       (338)     (3,594)     (1,018)
Other                             (632)         56        (965)       (828)
                            ----------  ----------  ----------  ----------
Pretax income (loss)            (3,030)     11,834        (183)     31,354
Income tax provision
 (benefit)                        (780)      1,373         228       8,654
Noncontrolling interest in
 subsidiary                        (41)         26         (52)         63
                            ----------  ----------  ----------  ----------
Net income (loss)           $   (2,209) $   10,435  $     (359) $   22,637
                            ==========  ==========  ==========  ==========
Basic earnings (loss) per
 share                      $    (0.14) $     0.70  $    (0.02) $     1.54
Basic weighted average
 shares outstanding         15,901,877  14,979,002  15,901,439  14,695,315
Diluted earnings (loss) per
 share                      $    (0.14) $     0.70  $    (0.02) $     1.54
Diluted weighted average
 shares outstanding         15,901,877  14,981,118  15,901,439  14,698,048
                            ----------  ----------  ----------  ----------


                                       September 30 December 31
        (Dollars in thousands)             2009         2008
                                       ------------ ------------
        Cash and cash equivalents      $     12,716 $      4,903
        Accounts receivable, net             54,502       78,673
        Inventory                           102,602      129,307
        Net PP&E                            199,337      199,269
        Other                                94,620       97,314
                                       ------------ ------------
        Total assets                   $    463,777 $    509,466
                                       ============ ============
        Accounts payable               $     27,456 $     39,020
        Accrued liabilities                  17,181       23,388
        Senior bank debt                          -       28,900
        Senior notes                         90,000       90,000
        Pensions                             72,415       70,825
        Postretirement benefits              31,786       33,256
        Equity                              224,939      224,077
                                       ------------ ------------
        Total liabilities & equity     $    463,777 $    509,466

Ladish will host a conference call on Monday, November 2, 2009 at 9:00 a.m. EST to discuss the third quarter performance for 2009. The telephone number to call to participate in the conference call is (866) 439-4712, then enter PIN Code 194791# 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