Graham Corporation Announces Record Orders in Fiscal 2015 of $136.5 Million
April 13 2015 - 4:05PM
- Fourth quarter net orders were $47.5 million; a
majority of which came from the U.S. Navy
- Demonstrates ongoing success of revenue diversification
strategy
- Revenue recognition on new U.S. Navy order anticipated
fiscal 2018 through fiscal 2022
Graham Corporation (NYSE:GHM), a global business that designs,
manufactures and sells critical equipment for the oil refining,
petrochemical and power industries, including the supply of
components and raw materials to nuclear energy facilities,
announced today that it was awarded $136.5 million of orders during
the year that ended March 31, 2015 ("fiscal 2015"). Fourth quarter
net orders amounted to $47.5 million, a majority of which came from
the U.S. Navy. The naval order is for the engineering design and
manufacture of steam surface condensers and ejector systems.
Revenue for the new naval order is expected to be recognized over
several years, from fiscal 2018 through fiscal 2022.
James R. Lines, Graham's President and Chief Executive Officer,
commented, "We are very pleased to have attained a record order
level in fiscal 2015, representing a 6% increase over fiscal 2014
orders. The naval order awarded in the fourth quarter is an
especially important win for us. We recently expanded our
facilities to demonstrate our capability to perform this extremely
specialized work at the highest standards. I believe that this win
further validates our efforts to strategically diversify our
revenue base and increase our predictable base business as we work
toward our goal of having the U.S. Navy comprise approximately 10%
to 15% of our annual revenue. We look forward to future order
opportunities with the U.S. Navy."
Fourth quarter orders totaled $53.4 million; however, two orders
for the refining market totaling $5.9 million that were in backlog
were cancelled.
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat
transfer technology, Graham Corporation is a global designer,
manufacturer and supplier of custom-engineered ejectors, pumps,
condensers, vacuum systems and heat exchangers. For nearly 80
years, Graham has built a reputation for top quality, reliable
products and high-standards of customer service. Sold either as
components or complete system solutions, the principal markets for
Graham's equipment are energy, including oil and gas refining and
nuclear and other power generation, chemical/petrochemical and
other process industries. In addition, Graham's equipment can be
found in diverse applications, such as metal refining, pulp and
paper processing, shipbuilding, water heating, refrigeration,
desalination, food processing, pharmaceutical, heating, ventilating
and air conditioning, and in nuclear power installations, both
inside the reactor vessel and outside the containment vessel.
Graham Corporation's subsidiary Energy Steel & Supply Co. is
a leading code fabrication and specialty machining company
dedicated exclusively to the nuclear power industry.
Graham Corporation's reach spans the globe. Its equipment
is installed in facilities from North and South America to Europe,
Asia, Africa and the Middle East. Graham routinely posts news
and other important information on its website,www.graham-mfg.com,
where additional comprehensive information on Graham Corporation
and its subsidiaries can be found.
Safe Harbor Regarding Forward Looking
Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended.
Forward-looking statements are subject to risks, uncertainties
and assumptions and are identified by words such as "expects,"
"estimates," "projects," "typically," "anticipates," "believes,"
"appears," "could," "opportunities," seeking," "plans," and
other similar words. All statements addressing operating
performance, events, or developments that Graham Corporation
expects or anticipates will occur in the future, including but not
limited to, its ability to diversify its revenue base,
opportunities for future orders with the U.S. Navy, the expected
performance of Energy Steel & Supply Co, expected expansion and
growth opportunities within the domestic and international markets,
anticipated revenue, the timing of conversion of backlog to sales,
market presence, profit margins, tax rates, foreign sales
operations, its ability to improve cost competitiveness, customer
preferences, changes in market conditions in the industries in
which it operates, changes in general economic conditions and
customer behavior, forecasts regarding the timing and scope of the
economic recovery in its markets, and its acquisition and growth
strategy are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important
risk factors and uncertainties. These risk factors and
uncertainties are more fully described in Graham Corporation's most
recent Annual Report filed with the Securities and Exchange
Commission, included under the heading entitled "Risk
Factors."
Should one or more of these risks or uncertainties materialize,
or should any of Graham Corporation's underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed
on Graham Corporation's forward-looking statements. Except as
required by law, Graham Corporation disclaims any obligation to
update or publicly announce any revisions to any of the
forward-looking statements contained in this news release.
CONTACT: For more information contact:
Jeffrey F. Glajch
Vice President - Finance and CFO
Phone: (585) 343-2216
Email: jglajch@graham-mfg.com
Deborah K. Pawlowski / Karen L. Howard
Kei Advisors LLC
Phone: (716) 843-3908 / (716) 843-3942
Email: dpawlowski@keiadvisors.com / khoward@keiadvisors.com
Graham (NYSE:GHM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Graham (NYSE:GHM)
Historical Stock Chart
From Jul 2023 to Jul 2024