Ladish Co., Inc. has reported 2008 net income was $32.2 million, or $2.15 of diluted earnings per share, on sales of $469.5 million. During the fourth quarter of 2008 the Company had diluted earnings per share of $0.60 in comparison to $0.64 in the fourth quarter of 2007. “Our outlook for 2009 is cautious. Contract backlog remains strong at $629 million at the start of the year," said Kerry L. Woody, Ladish president and CEO.
"Earnings in 2009 are facing significant challenges from increases in pension expense, depreciation and taxes. In addition, projected gains from lower raw material pricing will likely be more than offset by the continued collapse of the by-product market.
“While these challenges in 2009 are daunting,” he noted, “we are confident the Ladish family of businesses are taking the appropriate steps to control their costs, which have already included a 5% reduction in employment levels, and reduce expenses. We believe the Company's 2009 results will generate significant cash flow and position Ladish for sales and incremental earnings growth in 2010 and 2011 as delivery rates recover, including the next-generation aircraft."
According to Wood, "In 2008, Ladish recorded net sales of $469.5 million, a 11% increase over 2007 levels. Net income in 2008 of $32.2 million equaled 2007 results. The growth in sales and flat net income in 2008 was attributed to product mix, raw material pricing and business acquisitions in the third quarter. In addition, we benefited from a lower effective tax rate for the year due to the recognition of tax credits.
"The labor stoppage at Boeing along with delays in the production of next-generation aircraft at Boeing and Airbus forced us to shift production to programs with lesser returns and fewer incremental opportunities. Raw material continued to be a challenge in 2008 as it increased from approximately 46% to 49% of our costs. Our acquisitions of Chen-Tech and Aerex were successfully integrated in 2008 and benefited sales, although preliminary purchase accounting adjustments largely negated earnings in 2008."
Ladish Co., Inc. is a leading producer of components for the jet engine, aerospace, and general industrial markets. Ladish is headquartered in Cudahy, WI, with operations in Wisconsin, California, Connecticut, Oregon, and Poland.