Graham Corporation Wins $5 Million of Orders for Investments in New Petrochemical Capacity
12 February 2014 - 10:55PM
- U.S. Orders From Ongoing Investments in Petrochemical
Capacity Expansion
- China Order to Provide Innovative Surface Condenser
Designs to New Petrochemical Plant
Graham Corporation (NYSE MKT:GHM) ("Graham" or the "Company"), a
global business that engineers, manufactures, and sells critical
equipment for the oil refining, petrochemical and power industries,
and also supplies components and raw materials for nuclear energy
facilities, announced that it was recently awarded four orders for
three projects valued at approximately $5 million. The projects are
for the petrochemical markets in the U.S. and China and are
expected to ship during the next 9 to 12 months.
The two U.S. orders are for new petrochemical production
facilities in the Gulf Coast region, specifically an ethylene plant
and a propane dehydrogenation plant. Recent investments in
U.S. petrochemical capacity have been driven by the abundance of
low cost natural gas and natural gas liquids from the development
of shale formations. As a result, petrochemical feedstock
production costs have been reduced significantly, which in turn has
created an improved competitive landscape for the U.S.
petrochemical market.
James R. Lines, Graham's President and Chief Executive Officer,
commented, "We have considerable presence in the U.S. petrochemical
industry and continue to experience strong bidding activity for new
or expanded production capacity, particularly for ethylene,
methanol and ammonia. These feedstocks in turn drive many
other downstream production facilities that can also present
opportunities for our equipment. We believe our proven
capabilities, long-term experience and large installed base have
driven our dominant U.S. market share to date for surface
condensers and ejector systems in this current expansion
cycle."
The two orders for the project in China are also for a new
petrochemical plant. Mr. Lines noted, "We engineered an
innovative surface condenser to provide improved facility
efficiency for our customer. This order follows the successful
operation of our first installation of similar specialized
equipment in China two years ago."
He concluded, "Given current market dynamics, the strongest
demand for our products recently has come from the North American
chemical/petrochemical markets. Nonetheless, the active bids
included in our $800 million to $1 billion pipeline are for diverse
geographies and end markets. We believe the active bids in our
pipeline demonstrates the breadth of our potential growth
opportunities."
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 more than
75 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," "goal," "anticipates,"
"target," "potential," "believes," "appears," "could," "plan," and
other similar words. All statements addressing operating
performance, events, or developments that Graham Corporation
expects or anticipates will occur in the future are forward-looking
statements, including but not limited to: the current and future
economic environments affecting Graham Corporation and the markets
it serves; expectations regarding investments in new projects by
customers; sources of revenue and anticipated revenue, including
the contribution from the growth of new products, services and
markets; expectations regarding achievement of revenue and
profitability expectations; plans for future products and services
and for enhancements to existing products and services; operations
in foreign countries; Graham Corporation's ability to continue to
pursue its acquisition and growth strategy; the ability to expand
nuclear power work, including into new markets; the ability to
successfully execute existing contracts; estimates regarding
liquidity and capital requirements; the timing of conversion of
backlog to sales; the ability to attract or retain customers; the
outcome of any existing or future litigation; and the ability to
increase productivity and capacity. 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 and Quarterly Reports filed with the Securities and
Exchange Commission, including 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: Jeffrey F. Glajch
Vice President - Finance and CFO
Phone: (585) 343-2216
Email: jglajch@graham-mfg.com
Deborah K. Pawlowski / Karen L. Howard
Kei Advisors LLC
Phone: (716) 843-3908 / (716) 843-3942
Email: dpawlowski@keiadvisors.com / khoward@keiadvisors.com
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