The Gorman-Rupp Company reported net sales of $168.2 million for the third quarter of 2024, a modest increase of 0.4% compared to $167.5 million in the same period of 2023. This sales growth was primarily attributed to pricing increases implemented earlier in the year, partially offset by a decrease in sales volume.
Net income for the quarter surged by 43.3% to $12.9 million, or $0.49 per share, compared to $9.0 million, or $0.34 per share, in the third quarter of 2023. This significant increase in profitability was largely due to an improved gross margin of 31.3% and a substantial decrease in interest expense to $7.8 million from $10.5 million, following debt refinancing completed on May 31, 2024.
Operating income rose to $23.9 million, resulting in an operating margin of 14.2%, up from 13.1% in the prior year. The company's backlog of orders stood at $207.8 million at September 30, 2024, while year-to-date incoming orders increased by 4.1% to $496.1 million, indicating continued demand in key markets.
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