Graham Corp. posted year-over-year gains in third-quarter sales and profit, due in part to increased sales in the power market.
The manufacturer in Batavia, Genesee County, reported net income of $1.8 million, or 19 cents a diluted share, compared with net income of $1.3 million, or 13 cents a diluted share, during the previous year’s third quarter.
The increase in net income reflects higher revenue and improved gross margin, offset by the impact of cancellation charges recorded in last year’s quarter and a lower effective tax rate in last year’s quarter, the company reported.
Sales were $22.7 million, up from $17.3 million a year ago.
“Our diversification strategies positively impacted the third quarter results, with approximately one-third of our sales coming from the U.S. Navy and nuclear power markets,” said James Lines, Graham’s president and CEO.
“Our diversification into markets not directly correlated to energy has certainly benefited recent performance and is expected to drive long-term growth.”
While power market sales and sales to customers in the United States were up, international markets were down.
The company expects ongoing weakness in the global energy market to continue to impact Graham’s traditional refining and chemical/petrochemical businesses for the remainder of fiscal 2017.
Graham anticipates its fiscal 2017 revenue to be in the range of $88 million to $92 million.
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