Graham CEO: Strong bookings and backlog power bright future

Graham Corp. (AMEX:GHM) CEO James Lines said strong bookings and a robust order backlog prompted the maker of vacuum and heat transfer equipment to increase its 2009 revenue outlook.

“Our positive outlook for the next few years has been constant due to the continued anticipated strength from refining and petrochemical markets,” Lines said.

In an announcement released before Friday’s opening, Graham said it expects fiscal 2009 year-over-year revenue growth of between 15% and 20%, which would translate to a range of $99.4 million to $103.7 million. The Batavia, N.Y.-based firm’s previous revenue growth estimate was a range of 10% to 15%. During fiscal 2008, Graham’s revenue totaled $86.4 million. Wall Street expects $84.8 million in fiscal 2009.

The chief executive said an important indicator of growth in the primary markets Graham serves is the growth in the order backlogs of key engineering procurement and construction contracting companies.

“There has been a very good correlation for the backlog of the [engineering procurement contractors] and our bookings and backlog,” Lines said. “Our activity with these contractors continues to be high and they too are forecasting growth during the next couple years.”

Graham is the amount of price quotes requested also correlates well to bookings, revenue and backlog, Lines said.

“The level of our quotation activity continues to increase and from that, we expect there to be growth from current-year bookings and revenue growth for fiscal 2010,” Lines said. “The value of our trailing 12-month quotation activity is up 30% from 12 months ago. I consider this to be the best barometer for assessing the likelihood of near-term growth.”

Graham is working at identifying new business opportunities throughout the . . .

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