- Fourth quarter net orders were $47.5 million; a majority of which came from the U.S. Navy
- Demonstrates ongoing success of revenue diversification strategy
- Revenue recognition on new U.S. Navy order anticipated fiscal 2018 through fiscal 2022
BATAVIA, N.Y., April 13, 2015 (GLOBE NEWSWIRE) -- Graham Corporation (NYSE:GHM), a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear energy facilities, announced today that it was awarded $136.5 million of orders during the year that ended March 31, 2015 ("fiscal 2015"). Fourth quarter net orders amounted to $47.5 million, a majority of which came from the U.S. Navy. The naval order is for the engineering design and manufacture of steam surface condensers and ejector systems. Revenue for the new naval order is expected to be recognized over several years, from fiscal 2018 through fiscal 2022.
James R. Lines, Graham's President and Chief Executive Officer, commented, "We are very pleased to have attained a record order level in fiscal 2015, representing a 6% increase over fiscal 2014 orders. The naval order awarded in the fourth quarter is an especially important win for us. We recently expanded our facilities to demonstrate our capability to perform this extremely specialized work at the highest standards. I believe that this win further validates our efforts to strategically diversify our revenue base and increase our predictable base business as we work toward our goal of having the U.S. Navy comprise approximately 10% to 15% of our annual revenue. We look forward to future order opportunities with the U.S. Navy."
Fourth quarter orders totaled $53.4 million; however, two orders for the refining market totaling $5.9 million that were in backlog were cancelled.
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a global designer, manufacturer and supplier of custom-engineered ejectors, pumps, condensers, vacuum systems and heat exchangers. For nearly 80 years, Graham has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principal markets for Graham's equipment are energy, including oil and gas refining and nuclear and other power generation, chemical/petrochemical and other process industries. In addition, Graham's equipment can be found in diverse applications, such as metal refining, pulp and paper processing, shipbuilding, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning, and in nuclear power installations, both inside the reactor vessel and outside the containment vessel.
Graham Corporation's subsidiary Energy Steel & Supply Co. is a leading code fabrication and specialty machining company dedicated exclusively to the nuclear power industry.
Graham Corporation's reach spans the globe. Its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East. Graham routinely posts news and other important information on its website,www.graham-mfg.com, where additional comprehensive information on Graham Corporation and its subsidiaries can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "typically," "anticipates," "believes," "appears," "could," "opportunities," seeking," "plans," and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, its ability to diversify its revenue base, opportunities for future orders with the U.S. Navy, the expected performance of Energy Steel & Supply Co, expected expansion and growth opportunities within the domestic and international markets, anticipated revenue, the timing of conversion of backlog to sales, market presence, profit margins, tax rates, foreign sales operations, its ability to improve cost competitiveness, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation's most recent Annual Report filed with the Securities and Exchange Commission, included under the heading entitled "Risk Factors."
Should one or more of these risks or uncertainties materialize, or should any of Graham Corporation's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation's forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
CONTACT: For more information contact: Jeffrey F. Glajch Vice President - Finance and CFO Phone: (585) 343-2216 Email: firstname.lastname@example.org Deborah K. Pawlowski / Karen L. Howard Kei Advisors LLC Phone: (716) 843-3908 / (716) 843-3942 Email: email@example.com / firstname.lastname@example.orgSource:Graham Corporation