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Graham Corporation  (AMEX:GHM)
Batavia, NY 14020
www.graham-mfg.com

Graham Corporation is a 71 year old U.S.-based industrial vacuum and heat transfer equipment company that’s gaining recent market traction. While the products may seem unglamorous, its returns ($1.48 per share in the most recent fiscal year), add some star appeal.

The company designs, manufactures and sells products such as steam jet ejector vacuum systems, surface condensers (for steam turbines), vacuum pumps and compressors, and various types of heat exchangers.  If it produces a vacuum, condenses steam or transfers heat on industrial scale, Graham can and will custom-build it.

Graham’s principle customers are the oil refining and electric power generation industries, but its equipment is used in metal refining, ship-building, desalination, and HVAC to name but a few. It has significant presence in markets worldwide. 

As the world’s attention increasingly focuses on world power generation and refining needs, Graham is well-positioned to benefit. 

Now, as to the glamour: for the fiscal year 2007 ended March 31, 2007, Graham’s revenues totaled $65.8 million, up19.2% from 2005. Most notably, Graham’s net income was close to 9% per year at $5.8 million for the year ended March 31, 2007. This translates into $1.48 per share, fully diluted, versus net income of $3.6 million, or $0.96 per diluted share in fiscal 2006. And, Graham believes in sharing the wealth with its owners: on June 1, 2007, the company declared a $0.25 per share cash dividend.

Very glamorous, indeed.