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Higher gross margin helps boost Graham’s profit

Graham Corp. on Friday reported a 900 percent increase in fiscal 2018 first-quarter earnings per share, but a 7 percent decrease in revenues, compared with last year’s first quarter.

The company posted a net income of $900,000, or 10 cents a share, compared with $100,000, or a penny a share. Its fiscal 2017 first quarter was unfavorably affected by $400,000 net of tax restructuring charge, the company said. In the year-ago quarter, the company reduced its hgraham-logoeadcount by approximately 10 percent and incurred a $600,000 restructuring charge.

The increased net income, compared with the prior year’s first quarter, primarily was driven by improved gross margin and the impact of last year’s restructuring charge, the company explained
Graham logged $20.9 million in revenues, down from $22.4 million a year ago. The decrease in revenues was due to a fluctuation in timing and size of projects based on geographic area and industries, the company said. This resulted in a decline in sales to the refining market and the power market.

“Our operations team executed well during the quarter, realizing solid productivity at low production levels and accelerating certain projects,” said James Lines, president and CEO. “We are focusing our efforts on plant level energy opportunities, as well as the nuclear power and U.S. Navy markets. We believe that our diversification strategy is significantly benefiting us during these tough times in the energy markets.”

Graham’s chemical and petrochemical sales grew by $2 million to $7.2 million. The company’s commercial, industrial and defense markets increased to $6.1 million, up from $800,000 a year ago.

The firm’s refining market, however, decreased by 50 percent to $3.6 million and the power market declined $700,000 to $4 million.

Shares of Graham Corp. (NYSE: GHM) were trading at $20.06 midday, down from Thursday’s close at $20.16.

(c) 2017 Rochester Business Journal. To obtain permission to reprint this article, call 585-363-7269 or email madams@bridgetowermedia.com.

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