Gorman-Rupp reports net sales down, incoming orders and net income up in the first quarter

The Gorman-Rupp Company reported financial results for the first quarter ending March 31.

Among the highlights, net sales of $159.3 million decreased 0.7%, or $1.2 million, compared to the first quarter of 2023. While sales increased in several markets due to an increase in infrastructure-related projects and strengthening in the broader industrial economy, they were offset by a sales decrease in the fire suppression market partially due to customer-related delays in shipments, the original equipment manufacturer market, and decreases in the agriculture market primarily driven by weather conditions that slowed demand.

Other first quarter highlights: Record incoming orders of $178.9 million increased 7.1%, or $11.9 million, compared to the first quarter of 2023 and increased 27.0%, or $38.1 million, compared to the fourth quarter of 2023; first quarter net income was $7.9 million, or $0.30 per share, compared to net income of $6.5 million, or $0.25 per share, a year ago; and gross margin increased 200 basis points compared to the first quarter of last year.

Gorman-Rupp's backlog of orders was $234.2 million at March 31 compared to $270.6 million at March 31, 2023, and $218.1 million at Dec. 31, 2023. Incoming orders during the first quarter of 2024 of $178.9 million increased 7.1%, or $11.9 million, compared to last year's first quarter.

“We continued to deliver gross margin and earnings improvement despite sales being down slightly to last year," said Scott A. King, president and CEO. "We had record incoming orders during the quarter, in part due to our municipal market, which includes flood control and storm water management applications. As a result, we saw an increase in backlog of $16 million during the quarter to $234.2 million. While backlog remains at elevated levels, we still expect backlog to return to more normal levels by the end of the year. We remain optimistic about our full-year outlook and remain focused on delivering profitable growth.”

The Board of Directors declared a quarterly cash dividend of $0.18 per share on the common stock, payable June 10 to shareholders of record May 15. This will mark the 297th consecutive quarterly dividend paid by The Gorman-Rupp Company.

This article originally appeared on Mansfield News Journal: Gorman-Rupp issues first quarter 2024 financial results