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Graham Corporation Awarded Orders of $26.8 Million in Q4 FY 2011

Graham Corporation (NYSE Amex: GHM) a global designer and manufacturer of critical equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear power plants, today announced that it was awarded orders totaling $26.8 million in the fourth quarter of fiscal 2011, which ended March 31, 2011.  Approximately 20% of the total order value was won by Energy Steel & Supply Company, a subsidiary of Graham acquired on December 14, 2010.  For fiscal 2011, total orders received were $63.2 million, including $6.1 million associated with Energy Steel.

James R. Lines, Graham’s President and Chief Executive Officer, commented, “There continued to be excellent diversity in geography and markets with the large projects booked in the fourth quarter.  Strong activity in the alternative energy markets enabled us to secure orders for geothermal and biomass power-generating facilities in Asia and the United States.  We also secured ejector system orders for oil refining projects in the US and Asia.  Moreover, there were robust order levels for our short-cycle products that led to bookings in the fourth quarter. The fourth quarter saw roughly 35% more short-cycle orders than the average of the first three quarters of fiscal 2011.” 

In short-cycle products, Graham saw a sharp increase in spare part orders. Orders for spare parts were up over 50% when compared with the average of the prior three quarters.  Graham believes the strong level of orders for spare parts in the fourth quarter was due to restrained purchasing activity during the past several quarters and that it does not represent a trend. Nevertheless, Graham believes that demand for short-cycle products tends to be a leading indicator of recovery in its markets.

“While the pipeline for new orders remains strong, we continue to expect during the initial phases of an economic recovery that order patterns will be uneven from quarter to quarter.  Nonetheless, we are extremely encouraged with the outlook for fiscal 2012 and beyond,” concluded Mr. Lines.

Graham is scheduled to report its results for its fourth quarter and the fiscal year ended March 31, 2011, before the opening of the financial markets on May 27, 2011, followed by a live webcast and teleconference at 11:00 a.m. Eastern Time.

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