SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For
the Quarter Ended June 30, 2010
 Commission
File Number 1-34495
 Ladish Co., Inc.
 (Exact name of registrant as specified in its charter)
 Wisconsin
    
    31-1145953(State or other Jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)5481 South Packard Avenue, Cudahy, Wisconsin
    
    53110(Address of principal executive offices)
    
    (Zip Code)
 (414) 747-2611  (Registrants telephone number, including area code)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o(Do not check if a smaller reporting
company)
    
    Smaller reporting company o
 Yes o No þ
  Class
    
    Outstanding at June 30, 2010Common Stock, $0.01 Par Value
    
    15,703,004




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PART I  FINANCIAL INFORMATION
  Page 2 of 14




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##### 



Ladish Co., Inc.
 
 Condensed Consolidated Statements of Operations
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,(unaudited)
    
    
    (unaudited)2010
    
    
    2009
    
    
    2010
    
    
    2009Net sales
    
    $
    99,407
    
    
    $
    84,686
    
    
    $
    198,355
    
    
    $
    190,425Cost of sales
    
    
    82,709
    
    
    
    78,349
    
    
    
    167,994
    
    
    
    176,764Gross profit
    
    
    16,698
    
    
    
    6,337
    
    
    
    30,361
    
    
    
    13,661Selling, general and administrative expenses
    
    
    4,032
    
    
    
    4,273
    
    
    
    8,232
    
    
    
    8,315Income from operations
    
    
    12,666
    
    
    
    2,064
    
    
    
    22,129
    
    
    
    5,346Other income (expense):Interest expense
    
    
    (1,419
    )
    
    
    (1,321
    )
    
    
    (2,894
    )
    
    
    (2,166
    )Other, net
    
    
    404
    
    
    
    101
    
    
    
    654
    
    
    
    (333
    )Income before income tax provision
    
    
    11,651
    
    
    
    844
    
    
    
    19,889
    
    
    
    2,847Income tax provision
    
    
    4,092
    
    
    
    205
    
    
    
    6,978
    
    
    
    1,008Net income
    
    
    7,559
    
    
    
    639
    
    
    
    12,911
    
    
    
    1,839Noncontrolling interest in net earnings (loss) of subsidiary
    
    
    21
    
    
    
    (11
    )
    
    
    25
    
    
    
    (11
    )Net income attributable to the controlling interest
    
    $
    7,538
    
    
    $
    650
    
    
    $
    12,886
    
    
    $
    1,850Basic earnings per share
    
    $
    0.48
    
    
    $
    0.04
    
    
    $
    0.82
    
    
    $
    0.12Diluted earnings per share
    
    $
    0.48
    
    
    $
    0.04
    
    
    $
    0.82
    
    
    $
    0.12Basic weighted average shares outstanding
    
    
    15,703,004
    
    
    
    15,901,216
    
    
    
    15,780,352
    
    
    
    15,901,216Diluted weighted average shares outstanding
    
    
    15,704,594
    
    
    
    15,901,539
    
    
    
    15,781,692
    
    
    
    15,901,393
   Page 3 of 14




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Ladish Co., Inc.
 
 Condensed Consolidated Balance Sheets
  June 30,
    
    
    December 31,2010
    
    
    2009(unaudited)Assets:Current assets:Cash and cash equivalents
    
    $
    22,984
    
    
    $
    19,917Accounts receivable, less allowance of $75 at each date
    
    
    75,074
    
    
    
    59,382Inventories
    
    
    91,956
    
    
    
    92,697Deferred income taxes
    
    
    5,054
    
    
    
    5,144Prepaid expenses and other current assets
    
    
    3,498
    
    
    
    6,118Total current assets
    
    
    198,566
    
    
    
    183,258Property, plant and equipment:Land and improvements
    
    
    6,785
    
    
    
    6,905Buildings and improvements
    
    
    58,682
    
    
    
    60,416Machinery and equipment
    
    
    246,924
    
    
    
    240,352Construction in progress
    
    
    53,687
    
    
    
    58,451366,078
    
    
    
    366,124Less  accumulated depreciation
    
    
    (173,945
    )
    
    
    (167,688
    )Net property, plant and equipment
    
    
    192,133
    
    
    
    198,436Deferred income taxes
    
    
    23,529
    
    
    
    26,522Goodwill
    
    
    37,571
    
    
    
    37,571Other intangible assets, net
    
    
    19,265
    
    
    
    19,465Other assets
    
    
    2,997
    
    
    
    4,262Total assets
    
    $
    474,061
    
    
    $
    469,514Liabilities:Current liabilities:Accounts payable
    
    $
    30,315
    
    
    $
    23,613Senior notes
    
    
    5,714
    
    
    
    5,714Accrued liabilities:Pensions
    
    
    249
    
    
    
    259Postretirement benefits
    
    
    3,464
    
    
    
    3,464Officers deferred compensation
    
    
    155
    
    
    
    155Wages and salaries
    
    
    6,087
    
    
    
    3,314Taxes, other than income taxes
    
    
    292
    
    
    
    289Interest
    
    
    1,321
    
    
    
    1,355Profit sharing
    
    
    1,343
    
    
    
    611Paid progress billings
    
    
    1,588
    
    
    
    2,428Other
    
    
    7,372
    
    
    
    4,541Total current liabilities
    
    
    57,900
    
    
    
    45,743Noncurrent liabilities:Senior notes
    
    
    78,571
    
    
    
    84,286Pensions
    
    
    65,537
    
    
    
    69,653Postretirement benefits
    
    
    29,667
    
    
    
    30,215Officers deferred compensation
    
    
    9,476
    
    
    
    9,276Other noncurrent liabilities
    
    
    2,829
    
    
    
    4,220Total liabilities
    
    
    243,980
    
    
    
    243,393Equity:Stockholders equity:Common stock  authorized 100,000,000, issued 15,907,552 shares at each
date of $.01 par value
    
    
    159
    
    
    
    159Additional paid-in capital
    
    
    153,292
    
    
    
    153,292Retained earnings
    
    
    158,264
    
    
    
    145,378Treasury stock, 204,548 and 4,548 shares of common stock at each date at cost
    
    
    (3,283
    )
    
    
    (33
    )Accumulated other comprehensive loss
    
    
    (78,911
    )
    
    
    (73,214
    )Total stockholders equity
    
    
    229,521
    
    
    
    225,582Noncontrolling interest in equity of subsidiary
    
    
    560
    
    
    
    539Total equity
    
    
    230,081
    
    
    
    226,121Total liabilities and equity
    
    $
    474,061
    
    
    $
    469,514
   Page 4 of 14




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Ladish Co., Inc.
 
 Condensed Consolidated Statements of Cash Flows
  For the Six MonthsEnded June 30,(unaudited)2010
    
    

2009CASH FLOWS FROM OPERATING ACTIVITIES:Net income attributable to the controlling interest
    
    $
    12,886
    
    
    $
    1,850Adjustments to reconcile net income to net cash
provided by (used in) operating activities:Depreciation
    
    
    7,721
    
    
    
    7,595Amortization of intangibles
    
    
    200
    
    
    
    273Non-cash deferred compensation
    
    
    (80
    )
    
    
    147Deferred income taxes
    
    
    2,734
    
    
    
    587Noncontrolling interest in net earnings (loss) of subsidiary
    
    
    25
    
    
    
    (11
    )Gain on purchase of stock  noncontrolling interest
    
    
    (2
    )
    
    
    (16
    )Loss on disposal of property, plant and equipment
    
    
    116
    
    
    
    289Changes in assets and liabilities:Accounts receivable
    
    
    (17,035
    )
    
    
    19,379Inventories
    
    
    166
    
    
    
    21,111Other assets
    
    
    3,932
    
    
    
    2,057Accounts payable and accrued liabilities
    
    
    13,027
    
    
    
    (17,459
    )Other liabilities
    
    
    (5,533
    )
    
    
    1,416Net cash provided by operating activities
    
    
    18,157
    
    
    
    37,218CASH FLOWS FROM INVESTING ACTIVITIES:Additions to property, plant and equipment
    
    
    (5,909
    )
    
    
    (8,353
    )Proceeds from sale of property, plant and equipment
    
    
    53
    
    
    
    45Purchase of ZKM stock  noncontrolling interest
    
    
    (2
    )
    
    
    (32
    )Proceeds from working capital adjustment on Aerex acquisition
    
    
    
    
    
    
    1,200Net cash used in investing activities
    
    
    (5,858
    )
    
    
    (7,140
    )CASH FLOWS FROM FINANCING ACTIVITIES:Repayment of Facility
    
    
    
    
    
    
    (28,900
    )Repayment of senior notes
    
    
    (5,715
    )
    
    
    Retirement of capital lease obligations
    
    
    
    
    
    
    (1,660
    )Purchase of treasury stock
    
    
    (3,250
    )
    
    
    Net cash used in financing activities
    
    
    (8,965
    )
    
    
    (30,560
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    (267
    )
    
    
    (351
    )INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    3,067
    
    
    
    (833
    )CASH AND CASH EQUIVALENTS, beginning of period
    
    
    19,917
    
    
    
    4,903CASH AND CASH EQUIVALENTS, end of period
    
    $
    22,984
    
    
    $
    4,070
   Page 5 of 14




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Ladish Co., Inc.
 
 Notes to Condensed Consolidated Financial Statements
  Basis of Presentation
     Inventories
 June 30,
    
    
    December 31,2010
    
    
    2009Raw materials
    
    $
    14,445
    
    
    $
    18,038Work-in-process and finished goods
    
    
    81,301
    
    
    
    77,209Less progress payments
    
    
    (3,790
    )
    
    
    (2,550
    )Total inventories
    
    $
    91,956
    
    
    $
    92,697
 Interest and Income Tax Payments
 For the Six MonthsEnded June 30,2010
    
    
    2009Interest paid
    
    $
    2,950
    
    
    $
    3,053Income taxes paid (refunded)
    
    
    3,507
    
    
    
    (2,681
    )
  Page 6 of 14




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Cash and Cash Equivalents
  Revenue Recognition
  Income Taxes
  Pension and Postretirement Benefits
  OtherPension Benefits
    
    
    Postretirement Benefits2010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    803
    
    
    $
    673
    
    
    $
    115
    
    
    $
    95Interest cost
    
    
    5,463
    
    
    
    5,928
    
    
    
    824
    
    
    
    951Expected return on plan assets
    
    
    (6,119
    )
    
    
    (6,633
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    245
    
    
    
    195
    
    
    
    7
    
    
    
    7Amortization of the net loss
    
    
    4,085
    
    
    
    2,637
    
    
    
    51
    
    
    
    3Net periodic benefit cost
    
    $
    4,477
    
    
    $
    2,800
    
    
    $
    997
    
    
    $
    1,056
  Page 7 of 14




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Debt
       Page 8 of 14




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Earnings Per Share
  Stockholders Equity
   Legal Proceedings
   New Accounting Pronouncements
  Subsequent Events
   Page 9 of 14




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MANAGEMENTS DISCUSSION
AND ANALYSIS OF RESULTS OF OPERATIONS AND
CHANGES IN FINANCIAL POSITION
 RESULTS OF OPERATIONS
 Second Quarter 2010 Compared to Second Quarter 2009
  Three Months Ended June 30,2010
    
    
    2009Jet Engine Components
    
    $
    49,783
    
    
    
    50
    %
    
    $
    49,335
    
    
    
    58
    %Aerospace Components
    
    
    35,921
    
    
    
    36
    %
    
    
    25,976
    
    
    
    31
    %General Industrial Components
    
    
    13,703
    
    
    
    14
    %
    
    
    9,375
    
    
    
    11
    %Total
    
    $
    99,407
    
    
    
    100
    %
    
    $
    84,686
    
    
    
    100
    %
        Page 10 of 14




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First Six Months 2010 Compared to First Six Months 2009
  Six Months Ended June 30,2010
    
    
    2009Jet Engine Components
    
    $
    97,663
    
    
    
    49
    %
    
    $
    104,792
    
    
    
    55
    %Aerospace Components
    
    
    73,734
    
    
    
    37
    %
    
    
    59,950
    
    
    
    32
    %General Industrial Components
    
    
    26,958
    
    
    
    14
    %
    
    
    25,683
    
    
    
    13
    %Total
    
    $
    198,355
    
    
    
    100
    %
    
    $
    190,425
    
    
    
    100
    %
       Liquidity and Capital Resources
   Page 11 of 14




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Page 12 of 14




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Item 3. Quantitative and Qualitative Disclosures about Market Risk
      Market conditions and demand for the Companys products
    
       Competition   Interest rates and capital costs
    
       Technologies   Unstable governments and business conditions in emerging economies
    
       Raw material and energy prices   Legal, regulatory and environmental issues   Health care costs
    
       Taxes
  
 Item 4. Controls and Procedures
   
 PART II  OTHER INFORMATION
 
 Item 4. Other Information
  
 Item 5. Exhibits
     Page 13 of 14




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SIGNATURES
  LADISH CO., INC.Date: July 28, 2010
    By:
    /s/  Wayne E. LarsenWayne E. LarsenVice President Law/Finance & Secretary  Page 14 of 14