MANSFIELD, Ohio — Feb. 16, 2006 — The Gorman-Rupp Company (AMEX:GRC – News) reports record net sales of $231,249,000 for the year ended December 31, 2005, a 13.6% increase over net sales of $203,554,000 during 2004. Net income increased 17.5% to $10,903,000 during 2005 compared to $9,277,000 in 2004. Earnings per share were $1.02 during 2005 compared to $0.87 during 2004.
Record sales in 2005 reflected double-digit percentage increases in commercial, municipal and international sales, principally from the Company’s Mansfield Division. Sales to most markets improved over 2004.
Net sales during the fourth quarter 2005 were $64,123,000 compared to $50,927,000 in 2004, an increase of 25.9%. Net income increased 26.2% to $3,237,000 during the same period compared to $2,565,000 during 2004, equal to earnings per share of $0.30 and $0.24 respectively.
The Company’s record backlog of orders at December 31, 2005 was $94.1 million compared to $69.0 million at the end of 2004, an increase of 36.4%. The record backlog includes an increase in orders at the Company’s subsidiary Patterson Pump Company of approximately $20.0 million, an increase of 43.2% over 2004.
All of the Company’s subsidiaries and divisions were profitable during 2005. In particular, Patterson Pump Company earnings during the fourth quarter were much improved over the previous three quarters. The material weakness in internal controls identified during 2004 at Patterson has been remediated.
The Company remains financially strong with no bank debt at December 31, 2005.
President and CEO Jeffrey Gorman stated, “2005 was a much-improved and solid growth year for the Company. We are especially encouraged by the growth in international sales. The Patterson Pump Company has made substantial progress and its improved contribution is expected to continue during 2006. The record backlog at year-end is also a very positive sign as we move into the new year.”