Wins continue to validate success of
Graham’s strategy
Graham Corporation (NYSE: GHM), a global business that designs,
manufactures and sells critical equipment for the oil refining,
petrochemical and defense industries, today announced that it
secured $17.5 million in orders for two defense projects and two
oil refining projects. One of the oil refining projects is in India
and the other is in North America.
James R. Lines, Graham’s President and Chief Executive Officer,
commented, “We continue to execute well on our defense strategy.
Orders for the defense industry continue to represent more than 50%
of total backlog. The defense industry provides terrific visibility
into procurement schedules, which translates into improved
multiyear planning for our operations. We expect to continue to
build defense backlog across the remainder of the current fiscal
year.” Mr. Lines continued, “In our commercial markets, we are
successfully leveraging our large installed base and continue to
create follow-on revenue demand. These projects can arise quickly
without much visibility and can have conversion cycles that are
between 6 to 12 months. The India order is the result of our
restructuring and establishing a subsidiary in India enabling us to
secure our second large refining order for that region.”
The defense projects are existing component orders for new naval
vessels in two of the three programs that Graham already
participates in. The majority of revenue from the navy orders is
expected to convert beyond fiscal 2022. The project in India is a
major refinery expansion that will increase throughput capacity
50%, while the other oil refining order is a metallurgical upgrade
to equipment supplied by the company approximately 20 years
ago.
The projects will all be recognized in backlog during the second
quarter of fiscal 2021. The company expects approximately 5% of the
new order total to convert to revenue during the remainder of
fiscal 2021 and approximately 25% to convert in fiscal 2022, with
the remainder converting to revenue beyond fiscal 2022.
ABOUT GRAHAM CORPORATION
Graham is a global business that designs, manufactures and sells
critical equipment for the energy, defense and
chemical/petrochemical industries. Energy markets include oil
refining, cogeneration, and alternative power. For the defense
industry, the Company’s equipment is used in nuclear propulsion
power systems for the U.S. Navy. Graham’s global brand is built
upon world-renowned engineering expertise in vacuum and heat
transfer technology, responsive and flexible service and
unsurpassed quality.
Graham designs and manufactures custom-engineered ejectors,
vacuum pumping systems, surface condensers and vacuum systems.
Graham’s equipment can also be found in other diverse applications
such as metal refining, pulp and paper processing, water heating,
refrigeration, desalination, food processing, pharmaceutical,
heating, ventilating and air conditioning. Graham’s reach spans the
globe and 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,” “confidence,” “projects,” “typically,” “outlook,”
“anticipates,” “believes,” “appears,” “could,” “opportunities,”
“seeking,” “plans,” “aim,” “pursuit,” “look towards” 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,
effects of the COVID-19 global pandemic, expected expansion and
growth opportunities within its 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 and
productivity, customer preferences, changes in market conditions in
the industries in which it operates, the effect on its business of
volatility in commodities prices, including, but not limited to,
the extreme price volatility seen in the first six months of
calendar year 2020, changes in general economic conditions and
customer behavior, forecasts regarding the timing and scope of the
economic recovery in its markets, its acquisition and growth
strategy and its operations in China, India and other international
locations, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200924005104/en/
Jeffrey F. Glajch Vice President – Finance and CFO Phone:
(585) 343-2216 jglajch@graham-mfg.com
Deborah K. Pawlowski / Christopher M. Gordon Kei Advisors
LLC Phone: (716) 843-3908 / (716) 843-3748
dpawlowski@keiadvisors.com / cgordon@keiadvisors.com
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