Graham Corp. reported a sharp drop in fourth-quarter sales and net income due largely to the timing of an order and a research and development tax credit adjustment, the company said Friday.
For the year, the firm logged record revenues and posted a double-digit increase in net income, driven, in part, by a recent acquisition.
The Batavia, Genesee County, firm reported net income of $400,000, or 4 cents a diluted share, in the fourth quarter compared with $2.7 million, or 27 cents a diluted share, for the same period the prior year. Sales were $20.3 million, down 22 percent from $25.9 million a year earlier.
The results were affected by an extension of the fabrication and delivery schedule for a multiyear naval nuclear propulsion program order and a $433,000, or 4 cents a diluted share, R&D tax credit adjustment, the company said.
For fiscal 2012, the company posted a profit of $10.6 million, or $1.06 a diluted share, up 80 percent from $5.9 million, or 59 cents a diluted share, in fiscal 2011.
Graham reported record annual sales of $103.2 million, up 39 percent from $74.2 million the prior year. The acquisition in late 2010 of Michigan-based Energy Steel & Supply Co. accounted for $17.3 million of the sales.
“This was also our second year of a tale of two halves,” said James Lines, president and CEO, in a statement. “The first part of fiscal 2012 was driven by solid Middle East refinery projects that had been in backlog for some time while the second half reflected the weak order pattern from the prior 12 to 18 months, and the extended fabrication and delivery schedule on the naval nuclear propulsion program order.”
Graham expects sales will be $105 million to $115 million in fiscal 2013, an improvement of roughly 2 percent to 11 percent.
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