Gorman-Rupp Reports Record Backlog and 9 Months Results

MANSFIELD, Ohio--(Business Wire)--
The Gorman-Rupp Company (AMEX:GRC) reports record backlog and nine
months ended September 30, 2008 financial results.

Net income for the third quarter 2008 was $7,385,000 compared to
$5,475,000 during the third quarter of 2007, an increase of 34.9%. Net
sales increased 12.8% to a record $84,188,000 for the quarter ended
September 30, 2008 from $74,629,000 during the same period in 2007.
Earnings per share during the quarter were $0.44 compared to $0.33
during 2007's third quarter.

Net income for the first nine months of 2008 increased 31.1% to a
record $22,432,000 compared to $17,105,000 during 2007. Net sales
increased 9.1% to a record $249,653,000 for the nine months ended
September 30, 2008 from $228,737,000 during the same period in 2007.
Earnings per share for the current nine months were a record $1.34
compared to $1.02 in the first nine months of 2007.

Increased net sales for the quarter principally resulted from
water and wastewater applications, fabricated components, and
continued strength in international business. The increase in the
Company's third quarter earnings primarily resulted from additional
operating leverage on sales growth and favorable product mix.

Incoming orders principally arising from water and wastewater
applications and fabricated components contributed to a record backlog
of $128.3 million at September 30, 2008, a 10.2% increase from the
backlog of $116.4 million at December 31, 2007.

Capital expenditures of $9.7 million for the previously announced
consolidation and expansion of the Mansfield, Ohio facilities have
been incurred as of September 30, 2008, of which $7.3 million has been
incurred during 2008. Construction started during this quarter and is
expected to be completed by the end of 2009.

President and CEO Jeffrey Gorman stated, "We are extremely pleased
with the record performance for the third quarter and nine months
2008, and are encouraged by the record backlog and level of business
so far this year. Even with the current economic conditions, we remain
confident as we move into the fourth quarter. On behalf of all of our
global employees and investors, I am proud that The Gorman-Rupp
Company has again been named as one of Forbes Magazine's "200 Best
Small Companies" for the third consecutive year."

For information contact Robert E. Kirkendall, Senior Vice
President & CFO, Telephone (419) 755-1294.

The Gorman-Rupp Company designs, manufactures and sells pumps and
related equipment (pumps and motor controls) for use in water,
wastewater, construction, industrial, petroleum, original equipment,
agricultural, fire protection, heating ventilating and air
conditioning (HVAC), military and other liquid handling applications.

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The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)

Three Months Ended Nine Months Ended
September 30, September 30,

2008 2007 2008 2007
--------- ------- -------- --------

Net sales $84,188 $74,629 $249,653 $228,737
Cost of products sold 64,016 58,362 189,231 178,306
--------- ------- -------- --------

Gross profit 20,172 16,267 60,422 50,431

Selling, general and
administrative expenses 9,140 8,342 27,995 25,068
--------- ------- -------- --------

Operating income 11,032 7,925 32,427 25,363

Other income (expense) - net 377 507 1,803 1,550
--------- ------- -------- --------

Income before income taxes 11,409 8,432 34,230 26,913
Income taxes 4,024 2,957 11,798 9,808
--------- ------- -------- --------

Net income $ 7,385 $ 5,475 $ 22,432 $ 17,105
========= ======= ======== ========

Basic and diluted earnings per
share $ 0.44 $ 0.33 $ 1.34 $ 1.02
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The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)

Unaudited
September 30, December 31,
2008 2007
------------ ------------
Assets
Cash and short-term investments $ 39,835 $ 30,190
Accounts receivable - net 46,652 47,256
Inventories 56,060 53,223
Deferred income taxes and other current
assets 3,501 4,619
------------ ------------

Total current assets 146,048 135,288

Property, plant and equipment - net 66,598 59,970

Deferred income taxes and other assets 19,612 16,276
------------ ------------

Total assets $ 232,258 $ 211,534
============ ============

Liabilities and shareholders'
equity

Accounts payable $ 11,623 $ 14,162
Accrued liabilities and expenses 25,324 19,319
------------ ------------

Total current liabilities 36,947 33,481

Deferred and other long-term income taxes 1,258 1,432
Postretirement benefits 27,748 26,661

Minority interest 621 520

Shareholders' equity 165,684 149,440
------------ ------------

Total liabilities and shareholders'
equity $ 232,258 $ 211,534
============ ============

Shares outstanding 16,707,535 16,703,035

Shares outstanding and per share data reflect the 5 for 4 stock split
effective December 10, 2007.
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The Gorman-Rupp Company
David P. Emmens, Corporate Secretary, 419-755-1477

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