FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from..............to..............
Commission file number 0-684
GOULDS PUMPS, INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 15-0321120
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
300 WillowBrook Office Park, Fairport, New York 14450
(Address of principal executive offices)
(Zip Code)
(716) 387-6600
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X No
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
As of October 31, 1995, 21,264,636 shares of $1 par value
common stock were outstanding.
<F50>
GOULDS PUMPS, INCORPORATED
INDEX
PAGE
PART I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Balance Sheets -
September 30, 1995 and December 31, 1994............ 3
Condensed Consolidated Statements of Earnings -
Three Months Ended September 30, 1995 and 1994
Nine Months Ended September 30, 1995 and 1994....... 4
Condensed Consolidated Statements of Cash Flows -
Nine Months Ended September 30, 1995 and 1994....... 5
Notes to Condensed Consolidated Financial
Statements.......................................... 6-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations....... 9-14
Signature........................................... 15
This amendment is required to correct a footing error in the
Condensed Consolidated Statement of Cash Flow for the Nine
Months Ended September 30, 1995 noted subsequent to filing.
The footing of "Net cash applied to investing activities"
was corrected and related references in Item 2 of the filing
were adjusted.
<F50>
Condensed Consolidated Balance Sheets
Goulds Pumps, Incorporated
September 30, December 31,
1995 1994
(In thousands) (Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $ 9,957 $ 7,374
Receivables - net 152,948 113,777
Inventories 139,872 111,508
Deferred tax asset 14,245 12,494
Prepaid expenses and other current assets 13,568 10,898
Total current assets 330,590 256,051
Property, plant and equipment - net 168,420 152,789
Investment in Vogel -- 17,800
Investments in affiliates 1,185 1,178
Other investments 6,252 6,498
Deferred tax asset 9,943 8,125
Goodwill - net 29,534 1,634
Other assets 13,961 13,166
$559,885 $457,241
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $ 38,347 $ 10,418
Current portion of long-term debt 15,881 24,886
Trade payables 64,879 47,382
Compensation and commissions 22,532 17,552
Income taxes payable 4,316 266
Pension 3,869 2,228
Progress payments 8,746 3,170
Warranty reserves 4,247 3,937
Dividends payable 4,252 4,239
Deferred tax liability 313 391
Restructuring accrual 2,126 3,224
Other 22,881 21,510
Total current liabilities 192,389 139,203
Long-term debt 88,313 53,756
Pension 22,184 16,992
Other postretirement benefit obligation 50,935 51,681
Deferred tax liability and other 4,340 4,322
SHAREHOLDERS' EQUITY:
Common stock - $1.00 par value; authorized
90,000,000; issued and outstanding
21,262,181 and 21,193,054 shares,
respectively 21,262 21,193
Additional paid-in capital 58,795 57,622
Retained earnings 131,558 121,671
Cumulative translation adjustments and other (9,891) (9,199)
Total shareholders' equity 201,724 191,287
$559,885 $457,241
See Accompanying Notes to Condensed Consolidated Financial Statements.
<F50>
Condensed Consolidated Statements of Earnings (Unaudited
Goulds Pumps, Incorporated
Three Months Ended Nine Months Ended
(In thousands except September 30, September 30,
per share data) 1995 1994 1995 1994
Net sales $191,474 $154,858 $532,219 $441,631
Costs and expenses
Cost of sales 135,938 110,499 379,370 315,135
Selling, general and
administrative
expenses 37,431 27,981 105,139 86,290
Research and
development expenses 2,212 2,894 6,304 7,951
Provision for
environmental
litigation -- 3,304 (750) 3,454
Losses (earnings) from
affiliates (16) 96 (1) (606)
Interest expense 3,018 1,665 8,214 4,794
Interest income (308) (1,989) (1,379) (2,762)
Other (income) expense-net (988) 2,091 (659) 3,247
Earnings before income
taxes 14,187 8,317 35,981 24,128
Income taxes 5,263 3,178 13,349 9,675
Net earnings $ 8,924 $ 5,139 $ 22,632 $ 14,453
Net earnings per
common share $ .42 $ .24 $ 1.07 $ .68
Dividends per
common share $ .20 $ .20 $ .60 $ .60
Weighted Average
Shares Outstanding 21,253 21,176 21,231 21,171
See Accompanying Notes to Condensed Consolidated Financial Statements.
<F50>
Condensed Consolidated Statements of Cash Flows (Unaudited)
Goulds Pumps, Incorporated
<TABLE>
Nine Months Ended September 30,
<CAPTION>
<C> <S> <C> <C> <C>
(In thousands) 1995 1994
OPERATING ACTIVITIES:
Net earnings $22,632 $14,453
Adjustments to reconcile net earnings to
net cash provided by operations:
Depreciation 20,514 18,829
Amortization 1,464 1,000
Earnings from affiliates (1) (606)
Changes in assets and liabilities, net of
effects from acquisition:
Decrease in deferred tax liability (415) (551)
Decrease (increase) in deferred tax asset (2,474) 213
Increase in accrued taxes 4,160 790
Increase in receivables-net (28,354) (13,870)
Increase in inventories (8,604) (6,965)
Increase in trade payables, accrued
expenses and other 8,147 5,061
Other - net 4,523 3,124
Net cash provided by operating activities 21,592 21,478
INVESTING ACTIVITIES:
Capital additions (18,931) (15,121)
Collection of long-term note receivable -- 3,024
Purchase of other assets (2,509) (3,136)
Decrease in investment of unexpended revenue bond
funds included in other assets -- 2,014
Other - net 99 166
Net cash applied to investing activities (21,341) (13,053)
FINANCING ACTIVITIES:
Proceeds from long-term debt 38,764 2,469
Payments on long-term debt (18,165) (829)
Increase (decrease) in short-term borrowings (4,813) 3,704
Proceeds from issuance of common stock 1,242 431
Dividends paid (12,732) (12,701)
Net cash provided by (applied to) financing activities 4,296 (6,926)
Effect of exchange rate changes on cash (1,964) (74)
Increase in cash and cash equivalents 2,583 1,425
Cash and cash equivalents:
Beginning of period 7,374 7,153
End of period $ 9,957 $ 8,578
<F54>
See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 1
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying unaudited
Condensed Consolidated Financial Statements contain all
adjustments necessary to fairly present the Company's
financial position as of September 30, 1995 and the results of
operations for the three and nine month periods ended
September 30, 1995 and 1994 and cash flows for the nine month
periods ended September 30, 1995 and 1994. All such
adjustments are of a normal recurring nature. The results of
operations for the three and nine month periods ended
September 30, 1995 are not necessarily indicative of the
results to be expected for the entire year of 1995.
The accounting policies followed by the Company are set forth
in Note 1 to the Company's consolidated financial statements
in the 1994 Goulds Pumps, Incorporated Annual Report on Form
10-K, which is incorporated by reference.
2. In October 1995, the Financial Accounting Standards Board
issued Statement of Financial Standards No. 123, "Accounting
for Stock-Based Compensation," which requires adoption no
later than fiscal years beginning December 15, 1995. The new
standard defines a fair value method of accounting for stock
options and similar equity instruments. Under the fair value
method, compensation cost is measured at the grant date based
on the fair value of the award and is recognized over the
service period, which is usually the vesting period.
Pursuant to the new standard, companies are encouraged, but
not required, to adopt the fair value method of accounting for
employee stock-based transactions. Companies are also
permitted to continue to account for such transactions under
Accounting Principles Board Opinion No. 25, "Accounting for
Stock Issued to Employees," but would be required to disclose
in a note to the financial statements pro forma net income
and, if presented, earnings per share as if the company had
applied the new method of accounting.
The accounting requirements of the new method are effective
for all employee awards granted after the beginning of the
fiscal year of adoption. The Company has not yet determined
if it will elect to change to the fair value method, nor has
it determined the effect the new standard will have on net
income and earnings per share should it elect to make such a
change. Adoption of the new standard will have not effect on
the Company's cash flows.
3. During December 1994, which was subsequent to the October 1994
year-end of the Company's subsidiary Goulds Pumps Europe, B.V.
(GPE), all of the outstanding common stock of Pumpenfabrik
<F50>
Ernst Vogel AG (Vogel) was acquired for $17.8 million.
Although this acquisition occurred subsequent to GPE's year-
end, the investment in Vogel was recorded as a line item on
the consolidated balance sheet at December 31, 1994 since the
borrowing for the acquisition had been completed, together
with the corresponding advance to the Company's subsidiary.
In 1995, the financial statements of Vogel are consolidated in
the Company's financial statements presented herein under the
purchase accounting method. For reporting purposes, Vogel has
an October 31 year-end, like that of its direct parent, GPE.
The excess of the allocated purchase price over the fair value
of net tangible assets acquired was recorded as goodwill in
the amount of $25.7 million and is being amortized over
periods of 30 years or less. In the accompanying consolidated
financial statements, the allocation of the purchase price to
the acquired assets and liabilities of Vogel is preliminary
and may change as various studies, evaluations, and appraisals
are completed under purchase accounting principles.
The Company's pro forma unaudited results of operations for
the nine months ended September 30, 1994, assuming acquisition
of Vogel had occurred as of the beginning of the year, would
have increased net sales by approximately $47.2 million and
decreased net earnings per share by approximately $.05.
Adjustments made in arriving at preliminary pro forma
unaudited results of operations included additional interest
expense of $.6 million related to the $17.8 million of
acquisition debt at 4.5% for the first nine months, related
income tax adjustments and amortization of goodwill of $.4
million. The unaudited pro forma results of operations are
not necessarily indicative of results that would have been
attained had the Vogel business been acquired at the beginning
of 1994, nor are they consistent with management's expectation
of future performance.
4. In the fourth quarter of 1994, the Company executed a
restructuring plan to align its continuing global operations
with management's long-term objectives. As a result, a
restructuring charge of $3.5 million pre-tax and a related
liability for such costs were recorded in the Company's
consolidated financial statements in the fourth quarter. The
restructuring plan included the downsizing of the Company's
California, Netherlands, and Mexican based operations, and the
consolidation of sales offices, PRO Service Centers, and other
Company facilities. As a result, the related cost to exit
owned and leased facilities was $1.1 million. The
restructuring included the termination of 149 employees from
manufacturing, selling, and general and administrative
departments. The related termination benefits included in the
restructuring charge were $2.4 million.
The balance in the restructuring reserve at December 31, 1994
was $3.2 million. The following charges against the
restructuring reserve were recorded in the first nine months
of 1995 relating to the following components: costs to exit
owned and leased facilities were $.6 million and costs of
<F50>
termination benefits were $.5 million. Changes in economic
conditions and resulting changes in business strategies may
have an impact on the implementation of the restructuring
plan. Presently, the Company believes the September 30, 1995
reserve balance of $2.1 million is adequate to complete the
restructuring plan. The restructuring plan is currently
anticipated to result in savings in the range of $2.2 million
pre-tax in 1995 with annual savings estimated to be $3.3
million pre-tax in 1996 and beyond.
5. Supplemental Schedule of Cash Flow Information (in thousands):
For the nine months ended
Sept. 30, 1995 Sept. 30, 1994
Interest paid $ 8,013 $5,064
Income taxes paid 11,454 9,281
6. Net income per share of common stock is based upon the
weighted average number of shares of common stock and common
stock equivalents outstanding during the period. No effect
has been given to options outstanding under the Company's
Stock Option Plans as no significant dilutive effect would
result from the exercise of these options.
7. Inventories were as follows (in thousands):
September 30, December 31,
1995 1994
(Unaudited) (Audited)
Raw Materials $ 44,463 $ 40,608
Work-in-Process 56,181 39,895
Finished Goods 70,706 61,895
Inventories Valued at FIFO 171,350 142,398
LIFO Allowance (31,478) (30,890)
Inventories Valued at LIFO $139,872 $111,508
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations
Overview
The Company's third quarter 1995 results reflected record
quarterly orders and sales levels, with earnings per share
increasing 75.0% over third quarter 1994 results.
Third quarter 1995 net sales of $191.5 million were 23.6%
greater than the third quarter of 1994 and net earnings of $8.9
million increased 73.7% for the same period. Without the effect of
the Company's latest acquisition, Vogel, Austria's leading pump
manufacturer, sales would have increased 11.1% and net earnings
would have increased 62.6% for the same period. Third quarter
orders in 1995 were $199.9 million, up 24.2% over 1994 third
quarter orders of $160.9 million. Without Vogel, third quarter
orders would have increased 11.2% compared with the third quarter
of 1994. Backlog at September 30, 1995 was a record $159.4
million, 63.2% higher than backlog of $97.7 million at September
30, 1994. Without Vogel's backlog of $30.1 million, the increase
would have been 32.3%.
For the first nine months of the year, orders of $551.2
million increased 24.5%; sales of $532.2 million increased 20.5%
and net earnings of $22.6 million increased 56.6% over the first
nine months of 1994. Without Vogel, orders would have increased
13.7%; sales would have increased 9.9% and net income would have
increased 52.1%.
The Company's results for the third quarter of 1995 were
favorably impacted by a $.7 million pre-tax gain ($.02 per share)
on the sale of the BFI barrel pump product line. The Company's
third quarter 1994 financial results were negatively impacted by a
$3.3 million pre-tax charge ($.10 per share) for legal and other
fees related to the Company's defense of lawsuits in California
alleging leaching of lead from submersible pumps. This litigation
was settled in July, 1995, with $.8 million of the remaining legal
reserve reversed in the second quarter of 1995.
In September 1995, Eric L. Steenburgh joined the Company as
President - Industrial Products Group. Steenburgh will report to
Thomas C. McDermott, Chairman, Chief Executive Officer and
President. Prior to joining Goulds, Steenburgh, 54, was President
and Chief Operating Officer for Ricoh Corporation (USA), located in
West Caldwell, NJ. Before joining Ricoh in 1992, he spent 27 years
with Xerox Corporation, and held several senior management
positions including having responsibility for all manufacturing
operations worldwide.
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Results of Operations
The increase in sales of $90.6 million in the first nine
months of 1995 compared with the first nine months of 1994 is
composed of a $30.3 million or a 12.7% increase in Industrial
Products sector sales and a $60.3 million or a 29.8% increase in
Water Technologies sector sales. Without Vogel sales, the
Industrial Products sales increase would have been 4.2% over 1994.
Within the sector, the Engineered Products manufacturing facility
achieved record quarterly sales. This achievement reflects
improvements in the throughput levels as the facility began the
implementation of "focused factories", expanded its subcontracting
base and hired additional production workers to meet higher levels
of demand. Strong sales increases were also posted at the Vertical
Products, Slurry Pump and Canadian business units for the quarter.
Excluding Vogel's results, the Water Technologies sales
increase would have been 16.6% in 1995 compared with 1994's first
nine months. Leading the sector's increase was WTG-Europe (WTG-E)
which achieved sales growth of 24.2% on a translated basis largely
due to an expanded European sales presence.
Third quarter sales results are discussed in the "Overview"
section of Management's Discussion and Analysis above.
Gross margin as a percentage of sales remained relatively
constant at 28.7% for the first nine months of 1995 compared with
the first nine months of 1994. Excluding Vogel, the Industrial
Products sector gross profit percentage increased to 27.9% in 1995
from 27.3% for the first nine months of 1994, primarily due to
margin improvements on a percentage basis at the PRO Shops, Mexico
and Municipal Business Unit. For the first nine months of 1995,
excluding Vogel, the Water Technologies sector's gross profit
percentage decreased to 29.7% from 30.2% in the first nine months
of 1994. Gross margins were impacted by significantly higher raw
material costs in Italy due to the recent weakness of the Italian
lira compared to other European currencies.
Gross margin as a percentage of sales increased to 29.0% in
the third quarter of 1995 compared with 28.6% for the third quarter
of 1994. Excluding Vogel, the Industrial Products sector gross
profit percentage increased to 27.2% in 1995 from 26.3% for the
third quarter of 1994, primarily due to margin improvements at the
Vertical Products Division, PRO Shops and the Municipal Business
Unit. For the third quarter of 1995, excluding Vogel, the Water
Technologies sector's gross profit percentage remained relatively
constant at 31.1% compared with the third quarter of 1994. Gross
margin decreases at WTG-E were offset by margin improvements at
WTG-America (WTG-A) and the Company's Philippine subsidiary.
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
At the Company's Environamics subsidiary, sales levels during
1995 have been too low to cover production and operating costs,
resulting in operating losses. The Company is evaluating ways to
reduce the cost infrastructure of this business unit in order to
eliminate the losses presently being sustained.
As a percentage of sales, SG&A expenses were 19.8% and 19.5%
for the first nine months and third quarter of 1995, respectively,
compared with 19.5% and 18.1% for the same periods a year ago.
These increases reflect the impact of Vogel's SG&A expenses in 1995
at a higher percentage to sales than other Goulds locations, and
SG&A costs associated with Environamics in 1995 which were
classified as research and development expenses in 1994 since the
division did not begin shipping products until late 1994.
Research and development (R&D) expenses decreased 20.7% and
23.6% compared with the first nine months and third quarter,
respectively, of 1994. The higher level in 1994 relates primarily
to Environamics costs which were classified as R&D expenses as
noted above.
Earnings from affiliates decreased $.6 million for the first
nine months of 1995 compared with the same period in 1994. This
decrease is due primarily to the shift in control of Oil Dynamics,
Inc. (ODI), formerly a 50%-owned joint venture, to Franklin
Electric Co. in late 1994. In 1995, the Company's investment in
ODI, currently at 3%, is recorded under the "cost method" of
accounting and therefore ODI's results are not reflected in the
Company's financial statements.
Interest expense increased $3.4 million and $1.4 million in
the first nine months and third quarter, respectively, of 1995
compared with the first nine months and third quarter of 1994.
These increases were primarily accounted for by the bank and
capital lease debt of Vogel assumed or incurred in connection with
the acquisition, in addition to increases in WTG-E debt levels used
to fund higher working capital needs.
Interest income decreased $1.4 million and $1.7 million for
the first nine months and third quarter, respectively, of 1995
compared with the same periods in 1994. During the second and
third quarter 1994, WTG-E entered into and completed a short-term
investment agreement whereby 8.3 billion lire were invested in
Brazil. The net effect of this transaction was to increase WTG-E's
"other expense" due to transaction losses on the foreign exchange
of $1.7 million and increase interest income due to earnings from
the investment of $1.4 million. This transaction resulted in
increased profit after taxes due to tax credits available in Italy.
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Excluding the impact of exchange losses on the 1994 WTG-E
Brazilian investment discussed above, other (income) expense - net
increased $2.2 million for the first nine months of 1995 compared
with the first nine months of 1994. This increase was caused by
the May 1994 devaluation of the Venezuelan bolivar which increased
1994 other expense by $.7 million and the positive impacts of other
income items in 1995, such as the gain on the sale of the BFI
barrel pump product line and Vogel customs refunds.
The provision for income taxes represents 37.1% and 40.1% of
earnings before income taxes in the first nine months of 1995 and
1994, respectively, and 37.1% and 38.2% respectively, for the third
quarter of 1995 and 1994. The higher tax rate during the first
nine months of 1994 was largely due to the negative tax impact
associated with adjustments for Mexican accounting irregularities
recorded in the first quarter of 1994. The reduction in the tax
rate noted in the third quarter of 1995 compared with 1994 resulted
from a favorable tax rate mix within European tax jurisdictions.
Liquidity and Capital Resources
As reflected on the Condensed Consolidated Statements of Cash
Flows, $21.6 million of cash generated by net operating activities
and $4.3 millon of cash generated from financing activities
combined with a $2.0 million negative translation effect were
utilized to fund $21.3 million of net investing activities while
increasing cash and cash equivalents by $2.6 million.
Significant items impacting cash flow from operating
activities (net of the effects of Vogel's opening balance sheet) in
1995 include a $28.4 million increase in receivables-net due to the
high level of third quarter shipments, and an $8.6 million increase
in inventories primarily at WTG-E to support its expanded European
sales presence.
In the first nine months of 1995, capital additions were $18.9
million. Significant projects included equipment and building
additions, primarily at WTG-E. The Company expects to spend
approximately $30 million in total capital expenditures for the
year.
The Company expects that debt levels by the end of 1995 will
be higher than those at December 31, 1994, due primarily to the
bank and capital lease debt assumed in connection with the
acquisition of Vogel. The Company believes cash from operations
and available credit facilities are sufficient to meet its
liquidity needs during 1995.
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
Cumulative translation adjustments on the accompanying
Condensed Consolidated Balance Sheet at September 30, 1995 were
$9.9 million compared to $9.2 million at December 31, 1994,
reflecting the weakening of the Italian lira and the Mexican peso
against the U.S. dollar since the fourth quarter of 1994. Future
currency devaluations could occur at some of the Company's
international locations, including Venezuela. The Company
evaluates on an on-going basis methods to minimize the impact of
devaluations on operations and reported operating results.
In the fourth quarter of 1994, the Company executed a
restructuring plan to align its continuing global operations with
management's long-term objectives. See Note 4 to the Condensed
Consolidated Financial Statements for a more detailed discussion.
Environmental Matters
During the third quarter of 1995, the Company was named as a
defendant in an action brought by Seneca Meadows, Inc. and Macedon
Homes, Inc. in the United States District Court for the Western
District of New York (Rochester) seeking recovery of costs incurred
by Seneca Meadows, Inc. in responding to environmental
contamination at the Tantallo Landfill Site, located in the Town of
Seneca Falls, New York and by Macedon Homes, Inc. for damages
resulting from alleged contamination of certain property it owns in
the vicinity of the Tantallo Landfill Site. In addition to the
Company, 22 other defendants are named in the action.
Although the Company has just commenced its investigation into
the matters alleged in the complaint, the Company believes that
under applicable laws it should not bear any liability for the
claims of Seneca Meadows, Inc., which purchased the Tantallo
Landfill Site with full knowledge of its prior use and continued to
operate that Landfill after its acquisition. The Company has no
information regarding the claim of Macedon Homes, Inc., but
believes, based upon applicable principles of law, that it has no
liability to Macedon Homes, Inc.
The Company has answered the complaint by denying the material
allegations and asserting various affirmative defenses, cross-
claims and counter-claims. The Company's investigation into the
allegations in these actions is in preliminary phases, and,
therefore, no reserve has been established relative to these
claims.
The Company recorded a $2.0 million provision in the fourth
quarter of 1991 for estimated environmental costs to monitor and
remediate an inactive Company landfill site in Seneca Falls, New
<F50>
Goulds Pumps, Incorporated Form 10-Q/A
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)
York. At September 30, 1995, the remaining reserve was $1.7
million. The remediation plan has been approved by the New York
State DEC and is expected to be completed by the end of 1996. The
Company does not currently expect any additional material expenses
in future years associated with this site.
Apart from issues discussed above, the Company is not
currently aware of other environmental matters which would have any
material impact on recurring costs, capital expenditures, or
mandated expenditures.
Orders and Backlog
For the third quarter of 1995, orders were a record $199.9
million, a 24.2% increase compared with orders for the third
quarter of 1994 of $160.9 million. Without Vogel, total third
quarter 1995 orders were $179.0 million or an 11.2% increase over
third quarter 1994 orders levels. The increase in orders,
excluding Vogel, is composed of a $9.8 million or 12.7% increase in
Water Technologies orders while Industrial Products orders
increased $8.3 million or 9.8% year over year.
For the first nine months of 1995, orders of $551.2 million
represented a 24.5% increase over orders of $442.6 million for the
first nine months of 1994. Without Vogel, total orders for the
nine months of 1995 were $503.1 million or a 13.7% increase over
orders for the first nine months 1994. The increase, excluding
Vogel, is composed of a $29.7 million or 14.4% increase in Water
Technologies orders while Industrial Products orders increased
$30.8 million or 13.0% year over year. Industrial orders increases
reflect the continued strength in the Company's core markets,
especially the chemical and pulp and paper markets. Industrial
repair orders jumped 21.2% for the quarter and strong overall order
increases were noted in Asia-Pacific and Canada compared to the
third quarter of 1994. Water Technologies orders increases for the
quarter were mainly driven by the international markets, including
Europe, which posted an increase of 32.1% in local currency. The
U.S. residential water market continued to be relatively soft.
Backlog increased from $97.7 million at September 30, 1994 to
a record $159.4 million at September 30, 1995. Without Vogel's
backlog of $30.1 million, backlog would have been $129.3 million at
September 30, 1995. Excluding Vogel, Industrial Products backlog
increased $25.3 million while the Water Technologies backlog
increased $6.3 million from September 30, 1994 levels.
Consolidated backlog at December 31, 1994 was $113.8 million.
<F50>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
GOULDS PUMPS, INCORPORATED
(Registrant)
Date: December 8, 1995 /S/John P. Murphy
John P. Murphy
Vice President - Finance
(Mr. Murphy is the Chief
Financial Officer.)
