Ladish Co (LDSH) Reports a Q3 Loss

October 30, 2009 4:07 PM EDT

Ladish Co., Inc. (NASDAQ: LDSH) reports a Q4 loss of $0.14 vs. consensus of $0.06 profit. Revenues were $76.2 million vs. $92.63 million consensus.

"Ladish faced the same difficult market conditions as many of our customers, suppliers, and competitors in the third quarter of 2009. Inventory destocking in aerospace and jet engine markets combined with sagging industrial products demand significantly impacted third quarter sales," said Gary J. Vroman, Ladish's President and CEO. "This step down in top line revenues placed severe pressure on bottom line results, bringing year-to-date net income near break even levels. 2009 has presented us with various headwinds to earnings, including an $8.0 million decline in by-product sales, a $3.3 million increase in pension expense, a $2.7 million charge for employment reductions and separations, a $1.8 million increase in depreciation, and $2.6 million in added interest expense. On a positive note, despite these challenges, our domestic operating units were profitable in the third quarter as well as for the year to date. Our third quarter loss is directly attributable to two causes: first, charges associated with employment reductions, and second, lagging performance of foreign operations. The first of these is a one-time non-recurring event, and the second will be corrected in future periods. In addition, we generated $48.3 million in operating cash flow in the first nine months, allowing us to eliminate $30.6 million of short term debt and significantly improve our cash position."

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