Fourth quarter year-over-year orders increased 32%; fiscal year 2008 orders were $107 million
Updates fiscal year 2009 revenue to grow by 15% to 20% with gross margins in upper 30’s%
BATAVIA, NY, April 3, 2008 – Graham Corporation (AMEX: GHM) announced today that orders for the fourth quarter of fiscal year 2008, which ended March 31, 2008, were $35 million, a 32% increase compared with the third quarter of fiscal 2008 and a 29% increase compared with the fourth quarter of fiscal 2007. Record orders for the fourth quarter contributed to a record fiscal year for Graham with total orders of $107 million compared with $86.5 million in fiscal 2007.
James R. Lines, Graham’s President and Chief Executive Officer, commented, “We had exceptionally strong bookings in the fourth quarter. There was excellent diversity in geography and markets for the large projects booked in the fourth quarter. Significant orders were received from Saudi Arabia, China, Canada and the United States and are for projects ranging from oil refineries, oil sands and petrochemical plants to alternative fuels operations and power generation facilities. We continue to be optimistic about the outlook for the markets and industries that we serve and the long-term strength of our bookings pipeline.”
Fiscal 2008 revenue is expected to be in the $85 to $86 million range, slightly higher than the upper end of the previously announced $80 to $85 million range. Gross margin is anticipated to be in the high- 30% range for fiscal 2008.
Mr. Lines noted, “Because of the level of orders received in the fourth quarter, we have measurably improved visibility into fiscal 2009 and the strength of the industries we serve. We expect fiscal year 2009 revenue to grow 15% to 20% year-over-year, which is higher than our earlier guidance of expected growth in the 10% to 15% range. Of note, the quality of the orders in our backlog is excellent which supports higher than anticipated gross margins of upper 30’s percent to near 40%. We continue to implement productivity enhancements in both engineering and manufacturing to expand our capacity to meet the strong demand for our products. We will also continue to strategically use domestic and foreign outsourced manufacturing where appropriate to enable us to ship product and meet our customers’ needs.”