| [April 24, 2006] |
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Graham Corporation Provides Outlook for Fiscal Year 2007; 25% to 30% Growth in Sales for Fiscal 2007 Anticipated; Fourth Quarter 2006 Bookings of $18.6 Million, up 40% from the Prior Year
BATAVIA, N.Y. --(Business Wire)-- April 24, 2006 -- Graham Corporation (AMEX: GHM) announced today that it anticipates sales in the range of $69 to $72 million for fiscal year 2007, which ends March 31, 2007. Graham also expects its gross margin for fiscal year 2007 to approximate 28% and selling, general and administrative costs to approximate 17% of sales.
William C. Johnson, Graham's President and CEO, commented, "The success of our efforts to expand our engineering capacity is reflected in the strong level of fourth quarter orders, which were $18.6 million, up 40% over fiscal 2005. Our order-to-ship cycle, which generally runs between six to nine months, provides us with reasonable visibility of potential sales. Likewise, sales by quarter do not necessarily reflect where our business currently is, but rather what our business looked like six to nine months back. We expect fiscal year 2007 sales to reflect, in part, the strength of our bookings during the last two quarters of fiscal year 2006 of $33 million."
Mr. Johnson continued, "The demand for our products continues to be strong. During fiscal 2007, we expect to advance our strategy to geographically diversify our market reach in order to broaden the customer base we serve, specifically in Asia. We continue to grow our engineering capacity, both with automation and through outsourcing aspects of basic project drafting to low cost providers."
Graham plans to release its financial results for its fourth quarter and year ended March 31, 2006 before the opening of the financial markets on June 7, 2006. The release of Graham's financial results will be followed by a teleconference at 10:00 a.m., Eastern Time on Wednesday, June 7, 2006.
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat transfer technology, Graham Corporation is a designer, manufacturer and global supplier of ejectors, pumps, condensers, vacuum systems and heat exchangers. Over the past 70 years, Graham Corporation has built a reputation for top quality, reliable products and high-standards of customer service. Sold either as components or complete system solutions, the principle markets for Graham's equipment are the petrochemical, oil refining and electric power generation industries, including cogeneration and geothermal plants. Graham equipment can be found in diverse applications, such as metal refining, pulp and paper processing, ship-building, water heating, refrigeration, desalination, food processing, drugs, heating, ventilating and air conditioning. Graham's equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East. More information regarding Graham can be found at its website: www.graham-mfg.com
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Graham's Annual and Quarterly Reports filed with the Securities and Exchange Commission, include the Company's ability to successfully execute its strategy, that sales and profitability measures will be achieved, customer preferences and changes in market conditions in the industries in which Graham operates. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.
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