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• Third quarter sales of $17.3 million were lower than expected, primarily due to short-term
delays caused by customers
• Fiscal 2016 revenue expectations were lowered to range of $90 million to $95 million,
adjusted for third quarter sales; Maintained gross margin and SG&A guidance
• Backlog at quarter-end grew to $113.2 million
• $1.3 million in net income for the third quarter, or $0.13 per diluted share,
positively impacted by income from cancellation fees
• Approximately 141,000 shares repurchased in the quarter
BATAVIA, NY, January 29, 2016 – Graham Corporation (NYSE: GHM), a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries, today reported its financial results for its third quarter ended December 31, 2015. Graham’s current fiscal year ("fiscal 2016") ends March 31, 2016.
Net sales in the third quarter of fiscal 2016 were $17.3 million, compared with net sales of $33.6 million in the third quarter of the fiscal year ended March 31, 2015 ("fiscal 2015"). Third quarter fiscal 2016 sales were impacted by weaker market conditions, as well as reduced production hours due to engineering changes by customers. Net income in the third quarter was $1.3 million, or $0.13 per diluted share, positively impacted by income from cancellation fees. The prior year’s third quarter had net income of $4.0 million, or $0.39 per diluted share.
James R. Lines, Graham’s President and Chief Executive Officer, commented, "Third quarter results were impacted by engineering iterations between us and our customers that prevented certain orders in backlog from entering production. This translated into under absorption of overhead and the resulting deterioration in gross profit and margin. We believe this was isolated to the third quarter and expect improved backlog conversion in the fourth quarter and into fiscal 2017."
To read the entire press release, please click on PDF link below.