Batavia-based Graham Corp. today announced more than $16 million in new contracts.

Graham manufactures equipment critical oil refineries and the petrochemical industry. The  new contracts are for two refineries in the Middle East and a fertilizer project in Asia.

James R. Lines, Graham`s President and Chief Executive Officer, commented, "It is encouraging to see increased purchasing activity in our international markets, particularly in Asia and the Middle East, where we expected the recovery from the global recession to begin. We are also seeing renewed quoting activity in South America. However, we do not believe our markets are in full recovery, and we continue to expect non-uniform order levels for several more quarters."

Less than a month ago, Graham laid off 15 local workers.

Batavia-based Graham Corp. announced new orders worth about $3.5 million for surface condensers to be installed in two oil refineries in India and South Korea and a fertilizer production facility in the United States.

The orders follow quickly another $5 million in sales for the company's ejector systems, according to the Democrat and Chronicle.

CEO James Lines said:

"While we expect the global recession and tight credit markets to continue to affect the pace and timing of new order placement ... we view the potential bookings pipeline favorably," Lines said. "We believe the long-term fundamentals supporting increased global demand for energy are solid."

Dan Fischer reports on WBTA this morning that Batavia manufacturer Graham Corp. let go 14 full-time employees yesterday. Most of those who received the pink slips were in the engineering department, Fischer says. A brief statement that was issued to the radio station did not give any reason for the layoffs, which were figured at about 5 percent of the total workforce.

We left a message at Graham Corp. to find out more. We will be sure to post any more information as it becomes available.

Sean Dobbin, with Rochester's Democrat & Chronicle, spent some time out at Graham Corp. recently. He put together a fine piece on the Batavia manufacturer.

Following a recent drop in the company's stock price, Graham Corp. executives set up a guided tour of the facilities Wednesday for six potential investors.

From that article:

(Chief Executive Officer Jim) Lines told the group, which was a mix of financial advisory executives and private investors, that the company didn't adequately prepare for the economic downturn, citing improper staffing as the reason for some of Graham's struggles. But the company is in the midst of overhauling its in-house processes in hopes of emerging from the recession stronger.

Dobbin picked up on a sense of optimism among the investors.

Investors seemed impressed with Graham's presentation, which included lunch and a question-answer session with the executives. Some saw Graham's stock as a potential bargain. "It was probably too high at $54, but then it got all the way down to $6.85, and now it sounds like it's too cheap," said Gary Lindsley, a private investor from Clyde, Ohio.

The article also includes a couple of good photographs.

About 80 analysts gathered outside Buffalo yesterday to hear pitches from a number of Western New York companies about the soundness of their investments, according to the D&C.

Among those attending, Graham Corp. The Batavia-based company has seen it's stock slide from a 52-week high of $54.91 to close Friday at $13.90.

Graham, a regular presenter at the conference, has seen its stock fall sharply in recent weeks as oil prices plunged. The company makes vital equipment for the oil refining and petrochemical industries.

"This isn't a Graham problem," said CEO James Lines. "The whole energy sector fell out of favor."

Lines told investors that the long-term prospects of the energy industry are strong, pointing to plans for 17 refineries in China alone.

Batavia-based manufacturer Graham Corp. has seen its sales slow in the second quarter after so many months of strong growth.

From the Buffalo News:

The troubles in the financial market and the plunge in energy prices are taking a toll on Graham Corp.’s sales and orders, but company executives said Tuesday they don’t think the slowdown will last long.

Investors, however, had a more bearish view, focusing on the company’s slowing sales growth and flat profits during the second quarter and causing Graham’s stock to plunge by 27 percent, or $5.70, to $15.25.

Graham Corp. is no more immune to the current credit crisis than anyone else, it would seem.

Because of the upheaval in the energy and credit markets, which have made it difficult for independent refinery operators to borrow the money needed for expansion or upgrade projects, Graham’s new order bookings fell by 15 percent in the summer quarter. Lines said he also expects orders to be “light” during the final three months of the year.

Still, (Graham's President R.) Lines said Graham’s customers continue to work on new projects and noted that the company still has ample opportunities to bid on future work.

Don't expect any economic slowdown to slow down the company's own verve. Lines is already talking aquisitions.

With nearly $43 million in cash on its books and virtually no debt, Lines said he sees the ongoing economic upheaval as creating an opportunity for Graham to use its solid financial position to make acquisitions, although asking prices remain high.

Graham is interested in deals that would be less than $100 million in size and broaden the company’s line of custom- engineered products for the energy industry, ranging from refinery projects to the renewable energy field. The company also is interested in deals that would expand the company’s geographic footprint, he said.

Recognitions keep on coming for Batavia's Graham Corp. The vacuum and heat transfer manufacturer has climbed 100 spots on the Forbes list of the 200 Best Small Companies and cracked the top ten, landing at No. 10 and boasting a 41 percent return on equity for the past 12 months. Forbes had this to say of the company:

Graham Corp., in Batavia, N.Y., makes pumps, condensers, vacuum and heat transfer equipment for heavy industry, especially oil refineries. Revenue increased 31% last year and the backlog 40%. The domestic, Canadian and Middle East markets are booming. The 72-year-old company has branched into Suzhou, China.

Graham got a nod from Business Week earlier this year, making the list of the fastest growing small companies.

We've got a call into Graham to get some comment from the company on the recognition. We'll be sure to pass that along as it comes to us.

Batavia-based Graham Corp. hasn't been immune to the recent tumble in stock prices.

The company, which traded at a 52-week high of $109.82 in mid-August, closed Friday at $40.18, only 18 cents above it's 52-week low of $40, achieved in early January.

The stock lost 32 percent of its value in the past week, falling $18.68 per share.

On August 31, the Democrat and Chronicle ran a story noting that Graham was the region's best performing stock for the previous 12 months.

You can read company press releases and see it remains a strong financial performer.

In July, GHM announced a dividend increase and a 2-for-1 stock split to take effect tomorrow.

A state grant for $50,000 recently awarded to Batavia-based Graham Corp. will be used to certify the company with the International Organization for Standaridization, better known by its acronym: ISO. In particular, the funds will pay for the consultant who needs to be hired to guide the company through the standardization process and the subsequent training and development in the ISO procedures.

Dan Harvey, Graham's human resources director, said that the company is pursuing its "ISO-9000 quality system" certification. Such certification from the ISO essentially provides a stamp of approval for manufacturers that says the company and its products meet specifications accepted around the world.

"We're still in the process of meeting specifications," said Harvey. "We have not yet reached those. We're still doing some more training and development, and there are different milestones we're looking to acheive."

This kind of grant is called "an insutrial effectiveness grant," according to Stefanie Zakowicz, spokesperson for Empire State Development, the state economic development group that authorized the grant for Graham.

Said Zakowicz:

"The purpose of the grant is to pay consultant fees that provide technical and financial services to help a firm improve its productivity, efficiency and market share. It's only for New York State manufacturers that employ fewer than 500 workers, so small to mid-size. The more employees you have, the more you can get. In their case, at the time of application, they had 280 employees. Anything over 100, would make you eligible for up to $50,000."

Graham Corp. applied for the grant on June 17, of this year. They are on schedule to complete the project by the end of September.

Helen H. Berkeley, the widow of Frederick D. Berkeley III, the former CEO of Batavia-based Graham Corp. (AMEX: GHM) has donated $1 million to the Memorial Art Gallery in Rochester.

The donation is intended to transform the gallery's antiquities collection into a showcase of Near and Middle Eastern treasures.

"I've traveled a lot in the Middle East," said Berkeley, former president of the museum's Gallery Council, a volunteer fundraising organization. "You could call me a frustrated archaeologist. I'm delighted to have the opportunity to help with this gallery."

Her gift is one of the largest that the museum has ever received from a single donor.

...

The future Berkeley Gallery of Ancient Art probably won't debut until November 2009, said chief curator Marjorie B. Searl. Most of the construction will take place next summer — new cabinetry, lighting, humidity controls and alterations to the ceiling and walls. The space already is heavily trafficked by Rochester students on field trips.

"We're looking to provide better interpretation for these ancient collections," said Searl. "In the new gallery, students will understand more about their significance. These user-friendly displays will be integrated into their school programming."

Helen H. Berkeley is a member of the Graham Corp. board of directors. 

Batavia-based Graham Corp. (AMEX: GHM) received a $50,000 grant from the Empire Development board this week, according to a press release.

No word on the grant will be used. We'll see what we can find out Monday.

The grant was part of $67 million package of funds handed out by the agency. The funds are intended to spur economic growth.

Other area grants include:

• One Aid to Localities grant, totaling $150,000, to World Trade Center Buffalo Niagara for salaries and wages associated with outreach and service efforts in the twelve-county Western New York and the Finger Lakes region
• $50,000 to the Livingston County Agricultural Society and Fair
• $50,000 for Erie County Industrial Development Agency (Erie County)
• $25,600 for Qualicoat Inc. (Monroe County)

Graham was recently named one of Business Week's top 100 small companies. In Q2 2008, Graham reported $27.5 million in revenue and a 20 percent net profit margin. Graham employs 281 people. It's stock currently trades at $69.63.

High oil prices are pushing refinery upgrades and expansion, which is good news to Batavia-based Graham Corp. Its revenue and profits are soaring, reports the Buffalo News.

Graham is coming off a fiscal year where profits and sales were the highest ever by a wide margin. The company’s stock, which traded for just over $10 in January 2007, now stands at $89.

And Graham’s order backlog and new order bookings are running at a record pace, prompting Lines to predict that the company’s growth spurt is far from over, with sales expected to rise by another 15 percent to 20 percent during the fiscal year that began in March. That would push revenues to around $100 million for the first time ever.

The article indicates that Graham is continuing to expand its work force, at home and aboard.

From the Daily News (Wednesday):

• Graham Corporation's Chief Finanicial Officer J. Ronald Hansen will reture August 1. Hansen has been with the company since 1993. The Batavia-based manufacturer of "vacuum-and-heat exchangers" has seen tremendous financial growth over the past few years.
• For commentary on the article about Youth Football and the school board, see our earlier post.
• Construction of the shopping plaza off Veterans Memorial Drive in the town of Batavia resumed after a delay to get the plans for the plaza in accord with state environmental regulations. No mention in the article of the length of the delay.
• The city's Neighborhood Improvement Committee will meet tonight at 6:30pm in the Council Board Room at City Hall.
• Virginia Kropf's "Around the Towns" column in today's paper addresses her membership in the "crazy group of older women called 'Red Hatters.'" It's a delight. I look forward to Kropf's columns.
• Well, I'm sure at least Sen. Chuck Schumer would be pleased with the front page of today's Daily News. In a huge photo that dominates the top half of the paper, the senator almost seems lifesize, a giant among the puny windmills in the distance behind him — yikes! Apparently, he was in Wetherfield looking for support for a windmill bill he's excited about.

For the complete stories, the Daily News is available on local newsstands, or you can subscribe on BataviaNews.com.

Batavia-based Graham Corp. (AMEX: GHM) has made Business Week's list of fastest growing small companies.

From the article:

This year's Hot Growth ranking also features a whole lot of heavy metal. Dotting the list are small manufacturers with low-cost structures and the ability to make specialized products that can't easily be copied by foreign rivals. Among the success stories: Graham (GHM), a Batavia (N.Y.) maker of heat-transfer equipment, and Haynes International (HAYN), a Kokomo (Ind.) supplier of specialty alloys used by jetmakers and gas drillers.

This morning, the stock opens at $63.50 per share.  It's 52-week high is $71.58 and 52-week low is $13.45

Graham's 2007 revenue was $65 million, with an EBIDTA margin of 11 pecent. Graham employs 265 people.

The company, which claims no long-term debt and $36 million in available cash, is announcing this week that for fiscal 2008 revenue is $86.4 million.

According to it's corporate history page, Graham was founded in 1936 and moved to Batavia in 1942.  The company went public in 1968.

Jerald D. Bidlack, 71, is chairman of the board, and James R. Lines, 46, is president and CEO.

Business Week's description of the company:

Graham Corporation engages in the design, manufacture, and sale of vacuum and heat transfer equipment used in the chemical, petrochemical, petroleum refining, and power generating industries worldwide. Its products include steam jet ejector vacuum systems; surface condensers for steam turbines; vacuum pumps and compressors; various types of heat exchangers, including helical coil heat exchangers marketed under the Heliflow name; and plate and frame exchangers. These products are available in various metal and non-metallic corrosion resistant materials. Graham Corporation’s products are used in a range of industrial process applications, including petroleum refineries, chemical plants, pharmaceutical plants, plastics plants, fertilizer plants, liquefied natural gas production facilities, soap manufacturing plants, air conditioning systems, food processing plants, and other process industries, as well as power generation facilities, such as fossil fuel, nuclear, cogeneration, and geothermal power plants.