BATAVIA, N.Y.--(BUSINESS WIRE)--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.
Safe Harbor Regarding Forward Looking Statements
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 assumptions and are identified by words such as “expects,” “estimates,” “confidence,” “projects,” “typically,” “outlook,” “anticipates,” “believes,” “appears,” “could,” “opportunities,” “seeking,” “plans,” “aim,” “pursuit,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, expected expansion and growth opportunities within its domestic and international markets, anticipated revenue, the timing of 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.