Graham Corporation Awarded $17 Million in North American Refining Industry Orders
9 December 2017
Graham Corporation, a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries, announced today that it received two orders totaling approximately $17 million, both for ejector systems in the North American refining industry. Equipment delivery for both orders is scheduled for the second quarter of fiscal 2019.
Equipment that the Company engineers and manufactures for the refining market often includes large ejector systems that operate in highly corrosive environments. Both of these orders involve the replacement of currently installed Graham equipment, which is required due to corrosion caused by harsh operating environments. In one instance, the components will be replaced with the same metallurgy. In the other instance, the end user chose replacement equipment with a special metallurgy that offers increased corrosion resistance to extend operating life.
James R. Lines, Graham’s President and Chief Executive Officer, commented, “We are benefiting from our large installed base, where we have been working closely with our customers in the field. These two orders, along with the previously announced orders this quarter, are for existing rather than new installations. Refiners are focused on improving operational performance and reliability of their current process units. We expect that our large installed base will continue to benefit us as the refining industry seeks to maximize capabilities of its existing asset base.”
He continued, “While we are pleased with these orders and have seen an uptick in activity from the refining market during this quarter, we do not believe that these recent successes reflect a sustained shift in capital spending within the refining industry.”
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.
Jeffrey F. Glajch, 585-343-2216
Vice President – Finance and CFO
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
Karen L. Howard, 716-843-3942