- Supplying a new petrochemical
facility in U.S. Gulf Coast
- Adding capacity expansion at a
Mideast crude oil refinery
- Replacing and upgrading equipment in
Graham’s refinery installed base
Graham Corporation (NYSE:GHM), a global business that designs,
manufactures and sells critical equipment for the oil refining,
petrochemical, power and defense industries, today announced that
it received three orders totaling approximately $17.5 million.
The first order is for a new petrochemical facility to be built
in the U.S. Gulf Coast, for which Graham will provide vacuum
condensers and ejector systems. For the second order, Graham will
provide ejector systems for capacity expansion at a Mideast crude
oil refinery. The third order involves replacing a Graham surface
condenser that was installed in a U.S. crude oil refinery more than
40 years ago. Equipment delivery for all three orders is planned
for Graham’s fiscal year ending March 31, 2020. No revenue
contribution associated with these orders is expected in the
current fiscal year ending March 31, 2019, which we refer to as
fiscal 2019.
James R. Lines, Graham’s President and Chief Executive Officer
commented, “We are pleased to secure these hard fought orders and
add to our existing backlog for fiscal 2020. The order for a new
U.S. Gulf Coast petrochemical facility adds to our successful
record of orders for North American petrochemical capacity
investment. The investment is predicated on the U.S. now having one
of the lowest feedstock costs globally, due to an abundant supply
of natural gas from shale fracking.
“The order for a Mideast refinery that is expanding its capacity
results both from a number of successful Graham installations at
that refinery as well as our in-country support over the past two
decades. Our technical services personnel have provided performance
improvement and reliability assessments over many years that led to
strong relations between Graham and the refiner. The third order
comes from our large installed base, where a refiner needs to
replace our equipment due to its age.”
He concluded, “As we look forward to fiscal 2020, we continue to
project growth compared with our current guidance for fiscal 2019.
This expectation is based on our growing backlog of work for the
U.S. Navy and our traditional oil refining and chemical industries,
along with a positive outlook for our key end markets.”
ABOUT GRAHAM CORPORATION
Graham is a global business that designs, manufactures and sells
critical equipment for the energy, defense and
chemical/petrochemical industries. Energy markets include oil
refining, cogeneration, nuclear and alternative power. For the
defense industry, the Company’s equipment is used in nuclear
propulsion power systems for the U.S. Navy. Graham’s global brand
is built upon world-renowned engineering expertise in vacuum and
heat transfer technology, responsive and flexible service and
unsurpassed quality. Graham designs and manufactures
custom-engineered ejectors, vacuum pumping systems, surface
condensers and vacuum systems. Graham is also a leading nuclear
code accredited fabrication and specialty machining company. Graham
supplies components used inside reactor vessels and outside
containment vessels of nuclear power facilities. Graham’s equipment
can also be found in other diverse applications such as metal
refining, pulp and paper processing, water heating, refrigeration,
desalination, food processing, pharmaceutical, heating, ventilating
and air conditioning. Graham’s reach spans the globe and its
equipment is installed in facilities from North and South America
to Europe, Asia, Africa and the Middle East.
Graham routinely posts news and other important information on
its website, www.graham-mfg.com, where additional comprehensive
information on Graham Corporation and its subsidiaries can be
found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended.
Forward-looking statements are subject to risks, uncertainties
and assumptions and are identified by words such as “expects,”
“estimates,” “confidence,” “projects,” “typically,” “outlook,”
“anticipates,” “believes,” “appears,” “could,” “opportunities,”
“seeking,” “plans,” “aim,” “pursuit,” and other similar words. All
statements addressing operating performance, events, or
developments that Graham Corporation expects or anticipates will
occur in the future, including but not limited to, expected
expansion and growth opportunities within its domestic and
international markets, anticipated revenue, the timing of
conversion of backlog to sales, market presence, profit margins,
tax rates, foreign sales operations, its ability to improve cost
competitiveness, customer preferences, changes in market conditions
in the industries in which it operates, changes in commodities
prices, the effect on its business of volatility in commodities
prices, changes in general economic conditions and customer
behavior, forecasts regarding the timing and scope of the economic
growth in its markets, its acquisition and growth strategy and the
expected performance of Energy Steel & Supply Co. and its
operations in China and other international locations, are
forward-looking statements. Because they are forward-looking, they
should be evaluated in light of important risk factors and
uncertainties. These risk factors and uncertainties are more fully
described in Graham Corporation’s most recent Annual Report filed
with the Securities and Exchange Commission, included under the
heading entitled “Risk Factors.”
Should one or more of these risks or uncertainties materialize,
or should any of Graham Corporation’s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on
Graham Corporation’s forward-looking statements. Except as required
by law, Graham Corporation disclaims any obligation to update or
publicly announce any revisions to any of the forward-looking
statements contained in this news release.
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version on businesswire.com: https://www.businesswire.com/news/home/20180918005196/en/
Graham CorporationJeffrey F. Glajch,
585-343-2216VP–Finance & Administration and
CFOjglajch@graham-mfg.comorKei Advisors LLCDeborah K.
Pawlowski, 716-843-3908dpawlowski@keiadvisors.comorKaren L.
Howard, 716-843-3942khoward@keiadvisors.com
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