Graham Corp. reported third quarter net income of $4 million, almost triple its profits a year ago, bolstered by increased production capacity at its expanded Batavia facilities.
The maker of vacuum and heat transfer equipment recorded net income per share of 39 cents, compared to 14 cents a year ago.
Graham’s quarterly revenue increased 44 percent to $33.6 million, fueled by its North American refining and chemical industry projects. Refining industry sales were $12.8 million.
Graham said it faces greater order volatility in the near term. The company’s backlog as of Dec. 31 was $103.8 million, down from $112.1 million as of the end of March, due to uncertainties in the refining market.
“We continue to believe that we can organically double the size of our business from its last peak of just above $100 million,” said James Lines, the president and chief executive officer, in a statement. “However, the recent severe decline in crude oil prices has slowed many customer order decisions, which in turn has affected our expectations for fiscal 2016.”
Lines said Graham is pursuing nuclear, defense industry and aftermarket opportunities, which it believes will provide a “predictable base of business,” and is working to capture market share in its traditional refining and petrochemical markets.
The company still expects its fiscal 2015 sales to be in the upper half of the previously provided range of $125 million to $130 million.