Revenue during the quarter dropped 4.65 percent to $94.20 million from $98.80 million in the previous year period. Gross margin for the quarter expanded 318 basis points over the previous year period to 24.65 percent. Total expenses were 92.48 percent of quarterly revenues, down from 92.96 percent for the same period last year. This has led to an improvement of 47 basis points in operating margin to 7.52 percent.

Operating income for the quarter was $7.08 million, compared with $6.96 million in the previous year period.

Jeffrey S. Gorman, president and chief executive commented, “Although headwinds may remain for the agricultural and export markets for 2017, we are hopeful that capital spending in the oil and gas markets may have reached bottom and should begin to increase. We are also encouraged by the new federal administration’s attention to increased spending for water and wastewater infrastructure, military growth and renewed pipeline projects. Along with the administration’s focus on U.S. manufacturing, these initiatives could be positive for Gorman-Rupp as the majority of our products continue to be manufactured domestically. Our underlying fundamentals remain strong and we remain well positioned to drive long-term growth."

Working capital increases
The Gorman-Rupp Company has recorded an increase in the working capital over the last year. It stood at $154.55 million as at Dec. 31, 2016, up 5.90 percent or $8.62 million from $145.93 million on Dec. 31, 2015. Current ratio was at 4.13 as on Dec. 31, 2016, down from 4.36 on Dec. 31, 2015.