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-- 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 | Quote | Chart | News | PowerRating) 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: Wayne E. Larsen 414-747-2935 414-747-2602 Fax William J. Libby 231-755-4111 blibby@libbycom.com
SOURCE: Ladish Co., Inc.
mailto:blibby@libbycom.com
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