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.