Graham Q4 Profit, Orders Down; Issues FY17 Revenue View - Quick Facts

(RTTNews) - Graham Corp. (GHM), a manufacturer of critical equipment for the oil refining, petrochemical, power and defense industries, reported Wednesday that its fourth-quarter net income declined 88 percent to $0.5 million or $0.05 per share from last year's $4.17 million or $0.41 per share.

On average, three analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales in the fourth quarter were $22.30 million, down 40 percent from $37.46 million last year. Similar to earlier fiscal 2016 quarters, fourth quarter sales were impacted by weak market conditions. Analysts were looking for revenues of $23.54 million.

Orders were $17.1 million, down from $47.4 million in the prior-year fourth quarter which included significant orders from the U.S. Navy.

James Lines, Graham's President and Chief Executive Officer, said, "The dramatic decline in crude oil prices over the past 12 to 18 months presented significant challenges to our business. The impact on Graham is evidenced by year-over-year revenue and order declines from last year's record levels, as well as lower earnings."

Looking ahead, for fiscal 2017, the company expects revenue to be between $80 million and $95 million. This is compared to fiscal 2016 revenues of $90 million. Analysts expect revenues of $90.89 million.

Gross margin for fiscal 2017 is expected to be between 24% and 26%, reflecting continued pricing pressure

The company expects revenue from the U.S. Navy will meaningfully expand in fiscal 2018.