Graham Corporation Awarded $6.6 Million in U.S. Gulf Coast Petrochemical Industry Orders
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Replacing and upgrading equipment in Graham’s installed base
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Adding new petrochemical capacity driven by plentiful natural
gas feedstock
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 two orders
totaling approximately $6.6 million, both for the petrochemical industry
in the U.S. Gulf Coast. Equipment delivery for both orders is planned
for the first half of fiscal 2020 and both will add to fiscal 2019
revenue.
The first order is for a Texas-based ethylene cracking plant within the
Company’s installed base, replacing and upgrading steam surface
condensers that Graham installed 25 years ago. The new condensers will
provide more corrosion resistant material. Graham was well positioned to
win this order as the supplier of the original equipment.
The second order is for new petrochemical capacity at a Texas-based
plant producing fuel additives that reduce automobile emissions. Graham
will provide a process vacuum condenser.
James R. Lines, Graham’s President and Chief Executive Officer,
commented, “Low-cost natural gas, serving as the primary feedstock to
the petrochemical industry, is supporting massive investments in North
America that began in full force with the first wave about five years
ago. We are identifying projects for both new capacity and revamping of
existing facilities to improve output and operational performance. We
believe both of these projects are part of a second wave of
petrochemical investment in the region.”
He concluded, “While we don’t anticipate that the second wave will be as
strong as the first, we believe we are well positioned to benefit from
these petrochemical investments which we believe are part of a
multi-year campaign. As previously disclosed, we project that Graham
will realize strong revenue growth in fiscal 2019 and we are now further
encouraged that we are also filling backlog for fiscal 2020.”
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.
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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
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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 recovery 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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