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Fourth quarter net orders were $47.5 million; a majority of which came from the U.S. Navy – Demonstrates ongoing success of revenue diversification strategy – Revenue recognition on new U.S. Navy order anticipated fiscal 2018 through fiscal 2022
Graham Corporation (NYSE:GHM), a global business that designs, manufactures and sells equipment for the oil refining, petrochemical and power industries, including the supply of components and raw materials to nuclear energy facilities, announced today that it was awarded $136.5 million of orders during the year that ended March 31, 2015. Fourth quarter net orders amounted to $47.5 million, a majority of which came from the U.S. Navy. The naval order is for the engineering design and manufacture of steam surface condensers and ejector systems. Revenue for the new naval order is expected to be recognized over several years, from fiscal 2018 through fiscal 2022.
James R. Lines, Graham’s President and Chief Executive Officer, commented, “We are very pleased to have attained a record order level in fiscal 2015, representing a 6% increase over fiscal 2014 orders. The naval order awarded in the fourth quarter is an especially important win for us. We recently expanded our facilities to demonstrate our capability to perform this extremely specialized work at the highest standards. I believe that this win further validates our efforts to strategically diversify our revenue base and increase our predictable base business as we work toward our goal of having the U.S. Navy comprise approximately 10% to 15% of our annual revenue. We look forward to future order opportunities with the U.S. Navy.”
Fourth quarter orders totaled $53.4 million; however, two orders for the refining market totaling $5.9 million that were in backlog were cancelled.
In a statement the company said “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 nearly 80 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.
